[miningmx.com] – GLENCORE Xstrata reported a 24% increase in first quarter copper production owing to expansions at its African operations and higher grades at its South American mines, said Reuters citing the group’s production report published today.
The Swiss headquartered group, which is led by CEO Ivan Glasenberg, had performed in line with market expectations, said Reuters. Glencore has the highest exposure to copper of all the world’s diversified miners but it also produces coal, nickel and zinc as well as a range of other commodities.
Glencore said the performance of its marketing division was overall “strong and in line with expectations”, without elaborating further.
The mining company produced 382 000 tonnes in the three months, up 24% from 321 800 tonnes in the same period a year ago, said Reuters.
The increase was driven by the expansion at the Mutanda mine in the Democratic Republic of Congo and the Ernest Henry mine in Australia and improved production at the Collahuasi and Antamina mines in South America, it said.
Glencore’s African copper assets remain its strongest source of high quality revenue growth, in our view,” Bernstein Research analysts said in a note.
“Today’s results reinforce our thesis for Glencore Xstrata, predicated on its high copper exposure and the increasing benefit of its high-grade African copper assets. We reiterate our outperform rating.”
