Glencore shares advance after "strong" production in first half

Glencore PLC on Wednesday reported mixed production performance for the first half of 2026, with shares rallying in morning session in response.

Glencore shares were up 3.6% to 524.90 pence on Wednesday morning in London, the fifth best performer in the FTSE 100 index. They also were up 3.6%, to ZAR116.74, in Johannesburg, the third best performer in the top 40 index.

The Switzerland-based mining house said copper production rose 15% to 397,000 tonnes in the six months that ended June 30 from 343,900 tonnes a year earlier, getting a lift from higher contributions across the portfolio.

But cobalt production slumped 46% to 10,200 tonnes in the half-year from 18,900 a year before, taking a hit from the Democratic Republic of Congo's cobalt export quota regime.

Zinc output fell 21% to 365,600 tonnes from 465,200, following Australian-based Lady Loretta's end of mine life in late 2025 and lower zinc grades at Antamina in Peru.

Lead production dropped 7.8% to 83,800 tonnes from 90,900 a year before, while nickel output was down 2.2% to 35,800 tonnes from 36,600.

In precious metals, gold production declined 44% to 168,000 ounces from 301,000, but silver production rose 2.3% to 9,306 ounces from 9,097.

Chrome ore production fell 4.1% to 1.65 million tonnes from 1.72 million.

Turning to fossil fuels, steelmaking coal production was down 14% to 13.5 million tonnes in the first half of 2026 from 15.7 million a year before, while energy coal output was 1.8% lower at 47.4 million tonnes from 48.3 million.

"We are pleased to report a strong production performance for the first six months of the year, where our key assets largely performed in line with expectations and previously communicated guidance," Chief Executive Officer Gary Nagle said.

Looking forward, Glencore maintained its full-year production guidance for copper, zinc and nickel.

It predicted copper production of between 810,000 and 870,000 tonnes in 2026, compared to 851,600 tonnes in 2025. The zinc output estimate ranges from 700,000 to 740,000 tonnes, down from 969,400 tonnes in 2025, and nickel output is seen between 70,000 and 80,000 tonnes, compared with 71,900 tonnes.

However, Steelmaking coal guidance for 2026 was changed to between 30 million and 32 million tonnes from between 30 million and 34 million forecast previously. In 2025, steelmaking coal was 32.5 million tonnes.

Energy coal production for 2026 was revised up to between 96 million from 101 million tonnes, from a range of 95 million to 100 million tonnes previously. Output was 98.0 million tonnes in 2025.

In its Marketing segment, which trades commodities, Glencore expects to report adjusted earnings before interest and tax of USD3.3 billion for the first half of 2026, up from USD1.4 billion in the first half of 2025.

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