Glencore expects to fully deliver cost savings of $1 billion across its industrial businesses by the end of 2026, the mining and commodity trading giant said on Wednesday.
In a preview of first-half production, Glencore also raised its long-term earnings guidance for the first time since 2017 to reflect the growth in its core metals and energy businesses with entry into new markets and expansion of existing products, including LNG, alumina, steelmaking coal, and lithium.
This growth, coupled with “inflationary progression to today’s dollars,” prompted Glencore to raise its long-term Marketing Adjusted EBIT guidance to a range of $2.3 billion to $3.5 billion per year, up from the $2.2 billion – $3.2 billion guidance which had been in place since 2017.
For the first half of this year, Glencore expects to report a half-year Marketing Adjusted earnings before interest and tax of about $1.35 billion. The result reflects a strong metals and minerals contribution, balanced out by the challenging energy market backdrop, the company said.
Glencore reports half-year figures next week, which will shed more light on the financial performance so far this year and on the cost savings it has identified in a review of its industrial asset portfolio.
“This review also identified c.$1bn of cost savings opportunities (against a 2024 baseline) across our various operating structures, which are expected to be fully delivered by the end of 2026,” Glencore CEO Gary Nagle said, adding that details will be announced next week.
Glencore’s copper production of 343,900 tons for the first half of 2025 was 26% lower compared to the same period last year, primarily due to lower head grades and recoveries at several major copper mines globally.
Own-sourced cobalt production jumped by 19% to 18,900 tons, mainly reflecting higher cobalt grades and volumes at the Mutanda copper and cobalt site in the Democratic Republic of the Congo.
Last year, Glencore scrapped a plan to spin off its coal business as shareholders continue to see value in it and aren’t sure a metals-only Glencore would have seen a higher market valuation.
By Tsvetana Paraskova for Oilprice.com
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