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Investing.com -- Glencore Plc (LON:GLEN) shares rose more than 5% on Wednesday after the commodities group reported stronger-than-expected third-quarter production, led by higher copper and coal output, while keeping its 2025 earnings guidance unchanged.
The miner’s copper production reached 240,000 tons in the third quarter, 3% to 9% above Morgan Stanley and consensus estimates.
The result was driven by improved ore grades, better plant recoveries, and the completion of maintenance work at the Katanga operation that had constrained output in the first half of the year.
Copper accounts for about 25% of Glencore’s group earnings before interest, taxes, depreciation and amortization (EBITDA).
Energy coal production came in 8% to 15% higher than consensus forecasts, and steelmaking coal was 6% to 13% above estimates.
Those segments make up roughly 28% of the group’s EBITDA and continued to show “strong operating momentum,” according to Morgan Stanley.
Zinc output, about 17% of EBITDA, missed expectations by 1% to 3%. Nickel production fell short by 17% to 21% because of maintenance and lower throughput, while cobalt output was 13% to 17% under forecasts.
“2025 guidance kept broadly unchanged, leaving more work to be done in 4Q amid strong momentum,” Morgan Stanley added.
The miner reiterated its full-year 2025 marketing EBIT guidance at US$2.3 billion to US$3.5 billion, in line with its recently raised through-the-cycle range.
Visible Alpha consensus is about US$2.8 billion, slightly below the midpoint. “2025 EBIT guidance reiterated, in-line with our and consensus estimates,” the brokerage said.
Glencore adjusted several output forecasts for the year. Copper guidance was narrowed to 850,000 to 875,000 tons from 850,000 to 890,000 tons. Cobalt was trimmed to 41,000 to 43,000 tons from 42,000 to 45,000 tons. Nickel was lowered to 70,000 to 72,000 tons from 74,000 to 80,000 tons.
Zinc was set at 950,000 to 975,000 tons, slightly below prior expectations. Energy coal guidance was raised to 92 million to 97 million tons from 90 million to 96 million, reflecting stronger Australian output. Steelmaking coal guidance remained unchanged at 30 million to 35 million tons.
For 2026, Glencore secured provisional cobalt export allocations aligned with production plans at its Mutanda and KCC operations.
The company said this should allow for a full drawdown of stockpiled material and restore normal export flows by midyear, pending regulatory approvals.