Glencore shares fall after disappointing production update

Glencore PLC (LSE:GLEN) shares fell over 4% on Wednesday as the miner and commodities trading giant delivered a disappointing first-quarter production update.

Market prices for various commodities were also down on the day, with Brent crude oil down 1.7% to just over $62 a barrel, copper down 4%, gold down 0.9% and iron ore flat.    

Own-source copper output was 167,900 tonnes in the first three months of 2025, down 30% from a year ago and below forecasts for almost 205K.

Own-source zinc output came to 213,600 tonnes, versus a consensus forecast of 233,545.

Steelmaking coal volumes were up 493% to 8.3 million tonnes after the acquistion last year of Elk Valley Resources in Canada, with energy coal down 7% to 23.4 million tonnes due to mine closures. 

Guidance for full-year 2025 production remained unchanged from the outlook provided at the beginning of the year, said CEO Gary Nagle, except for a 5% reduction to energy coal due to a recent decision to reduce volumes at its Cerrejón project to "support rebalancing this market".

He said full year underlying profits from the Marketing division were currently expected "around the middle" of the group's long-term guidance range for between $2.2 billion and $3.2 billion, but opportunities to make the most of market volatility are "likely". 

Nagle said the guidance accounted for "general market uncertainty and global economic growth scenarios trending lower".

He added: "Since quarter-end, financial markets, including commodities, have been highly volatile and unpredictable, responding rapidly to US tariff newsflow and uncertainty.

"In such an unpredictable environment, risk management has been a primary focus, noting the many complex supply chains we are exposed to, including the US, China, Europe and Canada.

"Despite the 'noise', primary commodity trade routes to date have not been meaningfully disrupted. However, owing to the various proposed and currently being implemented tariffs across commodity supply chains, it is likely that some physical trade flow re-orientation and dislocation will manifest over the coming months, which may present opportunities for our Marketing business."

On copper, he said the slow start to the year is expected to be the weakest of the four quarters, while both steelmaking and energy coal volumes are "tracking well".