Glencore Plc, a Swiss multinational commodity trading and mining company largely owned by South African billionaire Ivan Glasenberg, has revealed a major reduction in its cobalt production forecasts for the current year.
Glencore, a trading business founded in the 1970s, plans to lower operating rates at its Mutanda mine in Congo, which will harm copper production. The decision comes as the corporation faces challenges in selling the stockpiled metal, prompting a rethinking of its production plan.
The firm announced on Thursday that it plans to produce between 35,000 and 40,000 tons of cobalt this year, a significant 42 percent fall from the production target stated in December 2022.
The decision is expected to raise production costs at Glencore’s copper mines, owing to the accumulation of unsold cobalt. The company recognizes the adverse market conditions and the necessity to adapt its production levels accordingly.
Glencore anticipates its trading division to achieve $3.5 billion in adjusted pretax earnings last year, decreasing the previously stated range of $3.5 billion to $4 billion.
Glasenberg’s wealth soars: 9.81 percent stake in Glencore produces a $97.4 million gain.
Despite the issues in the production sector, Glencore’s share price rose 2.49 percent in the last 24 hours to £4.25 ($5.42). This boost pushed the group’s market capitalization beyond $66 billion.
Glasenberg’s net worth increased significantly when Glencore’s share price rose. Glasenberg’s fortune increased by $97.4 million after he acquired a 9.81 percent share in Glencore.
Despite a 9.56 percent loss in Glencore shares year-to-date, Glasenberg’s net worth has decreased from $8.86 billion to $8.16 billion as of this report’s drafting.
