Mining Roundup: Glencore Share Price Up on Strong Rise in Output

on Aug 14, 2013
Listen Wednesday, August 14th: Shares in Glencore Xstrata (LON:GLEN) today gained after the Switzerland-based industry major reported a strong rise in output across most of its commodities during the first six months of 2013.

Glencore’s half-year production of copper, nickel, gold and ferrochrome rose 20, 1.5, 10, and 22 percent respectively, as compared to the same period a year earlier. Zinc and lead were the only base metals to record a decline in output, dropping 3.3 and 5.4 percent, respectively.
Agricultural output rose 31 percent to 3.9 million tonnes, driven by a rise in oilseed crushing activities, which more than offset a decrease in biodiesel, rice milling and wheat milling output. On the energy front, Glencore’s coal output rose four percent to 67.8 million tonnes mainly due to increased thermal coal production. Yet, oil production on a 100-percent attributable basis fell 10 percent to 9.94 million barrels.

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Glencore, which is due to post half-year earnings next week, gave no update on its closely-watched commodities trading division.
The Glencore share price in London was 1.06 percent higher at £310.70p as of 12:51 BST today, after reaching a session high of £311.85p.
**ENRC Share Price Dips on Profit Plunge**
Shares in Eurasian Natural Resources (LON:ENRC) declined after the Kazakh miner, which is under investigation by the Serious Fraud Office, posted a 17 percent drop in first-half underlying core profit in what could be its final set of earnings as a listed company.

Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) totalled $944 million for the six months to the end of June, weighed down by a poor pricing environment, higher finance costs and an impairment charge at its Boss Mining arm in the Democratic Republic of Congo. Net income dropped to $221 million from $492 million a year earlier, while revenue slid 1.1 percent to $3.2 billion, ENRC said.

The FTSE 100-listed miner is in the final phase of a $4.6-billion buyout by its founders and the Kazakh government, a move that will take ENRC private after almost six turbulent years on the London Stock Exchange.
The ENRC share price slumped by as much as 4.3 percent today, the biggest fall since June 28, and was down 2.66 percent at £230.2p as of 13:25 BST.

**Rio Tinto Expects Low Output, Job Cuts at Australia’s Warkworth Coal Mine**
London-based Rio Tinto (LON:RIO) has said that it expected falling output and job cuts at its Warkworth coal mine in eastern Australia, regardless of its appeal against a court decision to block plans to extend the life of the operation.
The miner is disputing claims by some residents of Bulga, near the Warkworth mine in New South Wales state, that expanding the pit would wreck their community. Today the Supreme Court in Sydney is due to hear Rio Tinto’s appeal against an earlier ruling in favour of the residents’ case.
Harry Kenyon-Slaney, the head of Rio Tinto’s energy division, said the outcome of the appeal would not be known for several months — too late to avoid cuts to its 1,300-workforce at Warkworth. He was quoted by The Wall Street Journal as saying in a statement today: “If this continues, it will be impossible to maintain production levels at the mine which in turn means fewer jobs.”
Reacting to the company’s forecasts, the Rio Tinto share price declined in London and as of 13:07 BST was 1.98 percent down at £3,198.50p.


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