Diversified miner Glencore has reduced its 2019 production guidance by 5 million to 140 million, due to recent Colombian volume reductions as well as a safety stoppage in South Africa, showed an investor update released on December 3.
According to the presentation, the Swiss-based producer reduced its guidance to 138-142 million tonnes in 2019, which is still 7-10% higher than last year's production of 129 million tonnes.
Glencore also forecast in the presentation that coal output next year at 131-139 million tonnes, 131-141 million tonnes in 2021 and 135-145 million tonnes in 2022.
"Flat production by 2022 with nearer-term volumes (2020 and 2021) impacted by permitting delays of United Wambo." showed the presentation.
"Production volumes comfortably within our commitment to limit capacity to levels broadly 150Mtpa at the time of announcement." said the company.
The open-cut PCI and thermal coal project in Australia's Upper Hunter Valley of New South Wales, which is 50% owned by Peabody Energy, is expected to reach 5 Mtpa.
Glencore expected profit margins of $23/t in 2020 in its coal business and a reiterate target of at least $1 billion from non-core long-term asset monetisations during next year. Long-term marketing adjusted EBIT is unchanged at guidance range of $2.2-3.2 billion, according to the miner.
Besides, Glencore estimated its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) in 2020 at $3.1 billion, down from $5.2 billion in 2019.
(Writing by Becky Du Editing by Harry Huo)
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