Morning Bites (part 1)
☢Niger has suspended uranium exports to France, following the recent military coup. According to Politico, Niger accounts for ~20% of total EU imports of the material, as well as 15% of French uranium needs. In 2022, Niger accounted for ~4% of global U production, according to the World Nuclear Association's data. We note that Orano, a French company, which has been mining Niger's uranium reserves since 1970s, is continuing its operations. Overall, the export disruptions, if not resolved, might be a positive for global uranium prices. The latter might also affect EU energy prices: nuclear plants generated 22% and 63% of the region’s and France's electricity supply in 2022, respectively
#uranium
https://metals-wire.com/sector/Uranium
☢Niger has suspended uranium exports to France, following the recent military coup. According to Politico, Niger accounts for ~20% of total EU imports of the material, as well as 15% of French uranium needs. In 2022, Niger accounted for ~4% of global U production, according to the World Nuclear Association's data. We note that Orano, a French company, which has been mining Niger's uranium reserves since 1970s, is continuing its operations. Overall, the export disruptions, if not resolved, might be a positive for global uranium prices. The latter might also affect EU energy prices: nuclear plants generated 22% and 63% of the region’s and France's electricity supply in 2022, respectively
#uranium
https://metals-wire.com/sector/Uranium
👍2
Morning Bites (part 2)
🇨🇱Chile’s copper production was down 1% YoY in June, after the 14% YoY drop in May. The country’s mining industry is facing a persistent drought and unfavourable structural effects (e.g. grade depletion). However, the production decline decelerated last month, despite the heavy floods in late-June. To recap, Chile represents ~27% of global copper production, so if the adverse factors in its mining sector persist, they could at least partially offset the supply additions from new Cu projects (e.g. Kamoa, QB2 and Udokan) which are due to launch in 2023
#copper
https://metals-wire.com:3000/sector/Copper
🇨🇱Chile’s copper production was down 1% YoY in June, after the 14% YoY drop in May. The country’s mining industry is facing a persistent drought and unfavourable structural effects (e.g. grade depletion). However, the production decline decelerated last month, despite the heavy floods in late-June. To recap, Chile represents ~27% of global copper production, so if the adverse factors in its mining sector persist, they could at least partially offset the supply additions from new Cu projects (e.g. Kamoa, QB2 and Udokan) which are due to launch in 2023
#copper
https://metals-wire.com:3000/sector/Copper
Morning Bites (part 1)
🏆Global physical gold demand declined 5% YoY to 942t in 2Q23, after the 15% YoY increase in 1Q23, according to the World Gold Council (WGC). Meanwhile, total global gold demand was down 2% YoY (vs. -13% YoY in 1Q23). Importantly, central bank purchases last quarter were down 35% YoY, mostly driven by the sales of Turkey’s central bank. At the same time, the demand for gold jewellery was flat YoY in 2Q23 (vs. -2% YoY in 1Q23). Gold mine production grew ~4% YoY in 2Q23, accelerating from the 2% YoY growth in 1Q23. Despite some correction in physical gold demand, we keep our positive view on the precious metal's price, amid gold miners' rising cash costs and the adverse macroeconomic situation globally
#gold
https://metals-wire.com/sector/Gold
🏆Global physical gold demand declined 5% YoY to 942t in 2Q23, after the 15% YoY increase in 1Q23, according to the World Gold Council (WGC). Meanwhile, total global gold demand was down 2% YoY (vs. -13% YoY in 1Q23). Importantly, central bank purchases last quarter were down 35% YoY, mostly driven by the sales of Turkey’s central bank. At the same time, the demand for gold jewellery was flat YoY in 2Q23 (vs. -2% YoY in 1Q23). Gold mine production grew ~4% YoY in 2Q23, accelerating from the 2% YoY growth in 1Q23. Despite some correction in physical gold demand, we keep our positive view on the precious metal's price, amid gold miners' rising cash costs and the adverse macroeconomic situation globally
#gold
https://metals-wire.com/sector/Gold
Morning Bites (part 2)
🌏Global manufacturing PMIs remained subdued in July. The Eurozone Markit Manufacturing PMI declined to 42.7 (consensus estimate - 43.5), from 43.4 in June, its lowest point since May 2020, marking the sixth consecutive decline. The US ISM manufacturing PMI grew slightly, to 46.4 (from 46.0 in June)
🇨🇳The official NBS Manufacturing PMI in China also showed a slight recovery, to 49.3 in July (from 49.0 in June), ahead of the 49.2 estimates. However, the Caixin China Manufacturing PMI dropped to 49.2 in July (from 50.5), missing the forecasts of 50.3
❗️Overall, global PMIs below 50.0 in July indicate the still soft sentiment on the manufacturing sector. In turn, this slowdown of industrial activity in the EU/US and China is likely to have an adverse impact on the demand for industrial metals (e.g. steel, aluminium and copper). Nonetheless, China's potential measures for its real estate sector could bolster metals consumption
#PMIs
https://metals-wire.com:3000/news-reports
🌏Global manufacturing PMIs remained subdued in July. The Eurozone Markit Manufacturing PMI declined to 42.7 (consensus estimate - 43.5), from 43.4 in June, its lowest point since May 2020, marking the sixth consecutive decline. The US ISM manufacturing PMI grew slightly, to 46.4 (from 46.0 in June)
🇨🇳The official NBS Manufacturing PMI in China also showed a slight recovery, to 49.3 in July (from 49.0 in June), ahead of the 49.2 estimates. However, the Caixin China Manufacturing PMI dropped to 49.2 in July (from 50.5), missing the forecasts of 50.3
❗️Overall, global PMIs below 50.0 in July indicate the still soft sentiment on the manufacturing sector. In turn, this slowdown of industrial activity in the EU/US and China is likely to have an adverse impact on the demand for industrial metals (e.g. steel, aluminium and copper). Nonetheless, China's potential measures for its real estate sector could bolster metals consumption
#PMIs
https://metals-wire.com:3000/news-reports
Morning Bites (part 3)
💍Hong Kong jewellery and watch sales grew 64% YoY in June, following the 52% YoY increase in May, according to the government data. However, sales remained slightly below the pre-Covid level (-3% vs. June 2019). The growth was mostly due to the low base effect from 2022, when Hong Kong was under strict Covid-19 restrictions, resulting in a significant decline in the number of visitors. Despite sentiment in Asia being comparatively upbeat, its impact on the global diamond market, which is still being heavily stressed by adverse macroeconomic conditions, is limited, we believe
🛒Japanese consumers have agreed to pay a USD 127.50/t aluminium premium in 3Q23, Reuters reports. The figure is in line with the 2Q23 premiums. Meanwhile, producers’ initial offers were made at USD 165-180/t. According to market participants, the premiums remained unchanged QoQ, as local demand is still sluggish, with sufficient stocks
#diamonds #aluminium
https://metals-wire.com:3000/news-reports
💍Hong Kong jewellery and watch sales grew 64% YoY in June, following the 52% YoY increase in May, according to the government data. However, sales remained slightly below the pre-Covid level (-3% vs. June 2019). The growth was mostly due to the low base effect from 2022, when Hong Kong was under strict Covid-19 restrictions, resulting in a significant decline in the number of visitors. Despite sentiment in Asia being comparatively upbeat, its impact on the global diamond market, which is still being heavily stressed by adverse macroeconomic conditions, is limited, we believe
🛒Japanese consumers have agreed to pay a USD 127.50/t aluminium premium in 3Q23, Reuters reports. The figure is in line with the 2Q23 premiums. Meanwhile, producers’ initial offers were made at USD 165-180/t. According to market participants, the premiums remained unchanged QoQ, as local demand is still sluggish, with sufficient stocks
#diamonds #aluminium
https://metals-wire.com:3000/news-reports
Morning Bites (part 1)
💎US jewellery sales shrank 4% YoY in June, vs. the revised 2% YoY drop in May – IDEX reports, citing the US Department of Commerce. This was the ninth month of consecutive YoY drops since October 2022 (ex. January 2023, when there was +1% YoY). Although the country’s inflation is gradually slowing, consumer sentiment remains cautious, which is likely to keep weighing on diamond consumption, at least in the near future. Hence, we reiterate our view that the ongoing decline in US sales (~50% of world gem-set jewellery trade) might further stress rough diamonds prices
#diamonds
https://metals-wire.com/sector/Diamonds
💎US jewellery sales shrank 4% YoY in June, vs. the revised 2% YoY drop in May – IDEX reports, citing the US Department of Commerce. This was the ninth month of consecutive YoY drops since October 2022 (ex. January 2023, when there was +1% YoY). Although the country’s inflation is gradually slowing, consumer sentiment remains cautious, which is likely to keep weighing on diamond consumption, at least in the near future. Hence, we reiterate our view that the ongoing decline in US sales (~50% of world gem-set jewellery trade) might further stress rough diamonds prices
#diamonds
https://metals-wire.com/sector/Diamonds
Morning Bites (part 2)
🥉Global copper production was up 1.7% YoY in 5mo23, the International Copper Study Group reports. Meanwhile, the output in May showed a 1.5% YoY decrease (vs. +3.3% YoY in April). Although global Cu mined production benefited from some ramp ups and expansions, the growth was largely limited by operational issues in Chile, China, Indonesia, Panama and the US, as well as by community actions in Peru, according to the report. Specifically, Indonesian output shrank 5.0% YoY, as Grasberg operations were temporarily hit by rainfall and landslides
#copper
https://metals-wire.com:3000/sector/Copper
🥉Global copper production was up 1.7% YoY in 5mo23, the International Copper Study Group reports. Meanwhile, the output in May showed a 1.5% YoY decrease (vs. +3.3% YoY in April). Although global Cu mined production benefited from some ramp ups and expansions, the growth was largely limited by operational issues in Chile, China, Indonesia, Panama and the US, as well as by community actions in Peru, according to the report. Specifically, Indonesian output shrank 5.0% YoY, as Grasberg operations were temporarily hit by rainfall and landslides
#copper
https://metals-wire.com:3000/sector/Copper
CSN 2Q23 results - slightly below expectations
✏️CSN's 2Q23 revenues missed both the consensus and our estimates by 3%, as steel sales came lower than we had anticipated, although that was partially offset by an increase in iron ore shipments. Consequently, EBITDA was reported 3% below the consensus and -5% vs. our forecast
⛏The company's iron ore output surged 35% YoY, which puts CSN back on track to achieve its production guidance of 39-41mt in FY23 (~19% YoY growth)
❗️We see CSN’s 3Q23F EBITDA staying relatively flat QoQ, given the stable production levels and steel prices (at spot)
#SID #iron_ore
https://metals-wire.com:3000/company/SID_US/
✏️CSN's 2Q23 revenues missed both the consensus and our estimates by 3%, as steel sales came lower than we had anticipated, although that was partially offset by an increase in iron ore shipments. Consequently, EBITDA was reported 3% below the consensus and -5% vs. our forecast
⛏The company's iron ore output surged 35% YoY, which puts CSN back on track to achieve its production guidance of 39-41mt in FY23 (~19% YoY growth)
❗️We see CSN’s 3Q23F EBITDA staying relatively flat QoQ, given the stable production levels and steel prices (at spot)
#SID #iron_ore
https://metals-wire.com:3000/company/SID_US/
Warrior Met Coal 2Q23 results - EBITDA miss on higher unit costs
✏️Warrior's 2Q23 revenue was 6% below the consensus, but 5% above us, amid slightly higher realised prices, as well as upbeat sales volumes. EBITDA, though, was materially below the consensus (-18%) and our estimates (-10%), as unit cash costs accelerated faster than we had anticipated
📈Unit cash costs were 8% QoQ (5% YoY) higher in 2Q23 to USD 142/mt; however, the company sees normalisation with an average cost of USD 131/mt in FY23
⛏The company has revised its FY23 guidance. Coking coal output is set to reach 6.8-7.4mst, (+8% vs. the previous indications); this would imply a 14% YoY increase. Sales guidance was also revised 7% up to 7.1-7.7mst, implying 31% YoY growth
❗️At spot, we expect Warrior’s 3Q23 EBITDA to show a moderate improvement QoQ, due to the guided cost normalisation and slight increase in sales
#HCC_US #Coal
https://metals-wire.com/company/HCC_US
✏️Warrior's 2Q23 revenue was 6% below the consensus, but 5% above us, amid slightly higher realised prices, as well as upbeat sales volumes. EBITDA, though, was materially below the consensus (-18%) and our estimates (-10%), as unit cash costs accelerated faster than we had anticipated
📈Unit cash costs were 8% QoQ (5% YoY) higher in 2Q23 to USD 142/mt; however, the company sees normalisation with an average cost of USD 131/mt in FY23
⛏The company has revised its FY23 guidance. Coking coal output is set to reach 6.8-7.4mst, (+8% vs. the previous indications); this would imply a 14% YoY increase. Sales guidance was also revised 7% up to 7.1-7.7mst, implying 31% YoY growth
❗️At spot, we expect Warrior’s 3Q23 EBITDA to show a moderate improvement QoQ, due to the guided cost normalisation and slight increase in sales
#HCC_US #Coal
https://metals-wire.com/company/HCC_US
Kinross 2Q23 results - EBITDA beats expectations again
📝Kinross’s 2Q23 revenues have moderately exceeded market estimates (+8% vs. the consensus and +6% vs. us), following sales being ~6% higher than we had anticipated. Meanwhile, the cash costs came in softer, giving more of a positive push to EBITDA (+16% vs. consensus, and +20% vs. us)
💵In 2Q23, the gold miner’s AISC fell 3% YoY (-2% QoQ) to USD 1,296/oz of gold equivalent. Hence, Kinross is on track to meet its FY23 AISC guidance of USD 1,320/oz
⛏The company reiterated its FY23 production outlook of 2.1mnoz of gold equivalent (+7% YoY), amid higher output from its Tasiast and La Coipa mines
💰The BoD has declared a regular quarterly dividend of USD 0.03/share, which implies a 0.7% DY
❗️We see Kinross's 3Q23F adjusted EBITDA declining in the mid-single digits QoQ, at spot, driven by a slightly lower gold price (-2% vs. the 2Q23 average)
#K_CN #gold
https://metals-wire.com:3000/company/K_CN/
📝Kinross’s 2Q23 revenues have moderately exceeded market estimates (+8% vs. the consensus and +6% vs. us), following sales being ~6% higher than we had anticipated. Meanwhile, the cash costs came in softer, giving more of a positive push to EBITDA (+16% vs. consensus, and +20% vs. us)
💵In 2Q23, the gold miner’s AISC fell 3% YoY (-2% QoQ) to USD 1,296/oz of gold equivalent. Hence, Kinross is on track to meet its FY23 AISC guidance of USD 1,320/oz
⛏The company reiterated its FY23 production outlook of 2.1mnoz of gold equivalent (+7% YoY), amid higher output from its Tasiast and La Coipa mines
💰The BoD has declared a regular quarterly dividend of USD 0.03/share, which implies a 0.7% DY
❗️We see Kinross's 3Q23F adjusted EBITDA declining in the mid-single digits QoQ, at spot, driven by a slightly lower gold price (-2% vs. the 2Q23 average)
#K_CN #gold
https://metals-wire.com:3000/company/K_CN/
Morning Bites
🚘US light vehicle sales rose 15% YoY in July, decelerating from the 21% YoY growth in June, but still 6% below the pre-Covid 2019 level. Seasonally adjusted sales volumes also grew 19% YoY last month (-6% vs. 2019). According to Reuters, citing S&P Global, delays within the supply chain are easing, which is helping automakers to ramp up production to meet demand. However, per the agency, high inflation rates in 2H23 might negatively affect affordability. In our view, a slowdown in sales recovery would further weigh on the US domestic market in 2023, and, therefore, keep PGM demand from the automotive sector stressed, as North America accounted for ~22% and 16% of the world autocatalyst Pd and Pt consumption, respectively, in 2022
#cars
https://metals-wire.com:3000/news-reports
🚘US light vehicle sales rose 15% YoY in July, decelerating from the 21% YoY growth in June, but still 6% below the pre-Covid 2019 level. Seasonally adjusted sales volumes also grew 19% YoY last month (-6% vs. 2019). According to Reuters, citing S&P Global, delays within the supply chain are easing, which is helping automakers to ramp up production to meet demand. However, per the agency, high inflation rates in 2H23 might negatively affect affordability. In our view, a slowdown in sales recovery would further weigh on the US domestic market in 2023, and, therefore, keep PGM demand from the automotive sector stressed, as North America accounted for ~22% and 16% of the world autocatalyst Pd and Pt consumption, respectively, in 2022
#cars
https://metals-wire.com:3000/news-reports
Week ahead data releases in M&M
Several major M&M names are due to release their 2Q23 financials this week. For Glencore and Barrick, we are slightly more conservative than the consensus. Meanwhile, we expect Newcrest to reveal upbeat EBITDA figures
#reporting_season
https://metals-wire.com:3000/events
Several major M&M names are due to release their 2Q23 financials this week. For Glencore and Barrick, we are slightly more conservative than the consensus. Meanwhile, we expect Newcrest to reveal upbeat EBITDA figures
#reporting_season
https://metals-wire.com:3000/events
Morning Bites (part 1)
🔗CISA mills' daily crude steel production during late July was 2.14mnt, a 5.0% drop from the previous ten days. However, the output rose 13.0% YoY - mostly due to the low base effect from 2022. Local steel inventories declined 7.5% (-12.7% YoY). Although the YTD steel output grew 1.8% YoY, we note that Beijing’s stated intention is not to exceed the 2022 production level. Furthermore, the potential for new stimulus for China’s property sector could favourably affect construction activity and, thus, the demand for industrial metals (e.g. steel aluminium and copper) later in 2H23
#steel
https://metals-wire.com:3000/sector/Steel
🔗CISA mills' daily crude steel production during late July was 2.14mnt, a 5.0% drop from the previous ten days. However, the output rose 13.0% YoY - mostly due to the low base effect from 2022. Local steel inventories declined 7.5% (-12.7% YoY). Although the YTD steel output grew 1.8% YoY, we note that Beijing’s stated intention is not to exceed the 2022 production level. Furthermore, the potential for new stimulus for China’s property sector could favourably affect construction activity and, thus, the demand for industrial metals (e.g. steel aluminium and copper) later in 2H23
#steel
https://metals-wire.com:3000/sector/Steel
Morning Bites (part 2)
🏦Global central banks returned to gold purchases in June, accumulating a net 55t (vs. the 27t sold in May), the World Gold Council reports. The main buyers were China (21t), Poland (14t), Turkey (11t) and Uzbekistan (8t). Meanwhile, the only substantial seller was Kazakhstan, which sold 3t of gold. Although world physical gold demand was down 5% YoY in 2Q23, this was mainly driven by the massive sales from Turkey’s CB. Overall, the adverse macroeconomic conditions globally and growing miners' cash costs are likely to provide further support for the yellow metal's performance, we believe
#gold
https://metals-wire.com/sector/Gold
🏦Global central banks returned to gold purchases in June, accumulating a net 55t (vs. the 27t sold in May), the World Gold Council reports. The main buyers were China (21t), Poland (14t), Turkey (11t) and Uzbekistan (8t). Meanwhile, the only substantial seller was Kazakhstan, which sold 3t of gold. Although world physical gold demand was down 5% YoY in 2Q23, this was mainly driven by the massive sales from Turkey’s CB. Overall, the adverse macroeconomic conditions globally and growing miners' cash costs are likely to provide further support for the yellow metal's performance, we believe
#gold
https://metals-wire.com/sector/Gold
Morning Bites (part 3)
⛏Barrick aims to restart the Porgera gold mine before the end of 2023, according to a company press release. The CEO’s message follows announcements in late March, but the project’s timing has now been revealed. In 2019, before Porgera’s operations were suspended, it accounted for 0.2% of global Au production. Hence, the supply addition is unlikely to have a substantial effect on the market balance, although it might reflect the gold market's strong fundamentals
#gold
https://metals-wire.com/sector/Gold
⛏Barrick aims to restart the Porgera gold mine before the end of 2023, according to a company press release. The CEO’s message follows announcements in late March, but the project’s timing has now been revealed. In 2019, before Porgera’s operations were suspended, it accounted for 0.2% of global Au production. Hence, the supply addition is unlikely to have a substantial effect on the market balance, although it might reflect the gold market's strong fundamentals
#gold
https://metals-wire.com/sector/Gold
🗞Today, China published its preliminary import/export statistics for July (see table above)
#statistics #China
https://metals-wire.com:3000/news-reports
#statistics #China
https://metals-wire.com:3000/news-reports
Morning Bites (part 1)
🔗China’s net finished steel exports rose 13% YoY in July, following the 2% YoY increase in June. Despite the Chinese government's stated intention to keep national steel output below the 2022 level, it was up ~2% YoY in 7mo23, according to CISA data. Meanwhile, Beijing is aiming to bolster the country’s economy via new support measures, mainly for the real estate segment: this is likely to support the demand for industrial metals, we believe
🪨China’s coal imports jumped 67% YoY in July (vs. +110% YoY in June). Imports remained at elevated levels last month after overseas purchases almost doubled in 1H23: utilities continued to import cheaper supplies, amid peak summer power demand, Reuters reports. We note that local power loads have hit new peaks since mid-June, as China experienced periods of abnormally high temperatures
#coal #steel
https://metals-wire.com:3000/news-reports
🔗China’s net finished steel exports rose 13% YoY in July, following the 2% YoY increase in June. Despite the Chinese government's stated intention to keep national steel output below the 2022 level, it was up ~2% YoY in 7mo23, according to CISA data. Meanwhile, Beijing is aiming to bolster the country’s economy via new support measures, mainly for the real estate segment: this is likely to support the demand for industrial metals, we believe
🪨China’s coal imports jumped 67% YoY in July (vs. +110% YoY in June). Imports remained at elevated levels last month after overseas purchases almost doubled in 1H23: utilities continued to import cheaper supplies, amid peak summer power demand, Reuters reports. We note that local power loads have hit new peaks since mid-June, as China experienced periods of abnormally high temperatures
#coal #steel
https://metals-wire.com:3000/news-reports
Morning Bites (part 2)
🚘New car registrations in France, the UK, Spain, Italy and Germany rose 18% YoY in July, the same as in June. However, the figure was still 23% below the (2019) pre-COVID level. Specifically, in Germany and Spain, car sales declined 27% and 30%, respectively, vs. the 2019 level, while sales in France were 25% lower. At the same time, sales in the UK and Italy were 8% and 22% below the 2019 figures, respectively. Given these five countries represent ~70% of new vehicle registrations in Europe, the region’s car sales have likely continued to show robust YoY recovery, while remaining below their pre-pandemic levels
#cars
https://metals-wire.com:3000/sector/PGM
🚘New car registrations in France, the UK, Spain, Italy and Germany rose 18% YoY in July, the same as in June. However, the figure was still 23% below the (2019) pre-COVID level. Specifically, in Germany and Spain, car sales declined 27% and 30%, respectively, vs. the 2019 level, while sales in France were 25% lower. At the same time, sales in the UK and Italy were 8% and 22% below the 2019 figures, respectively. Given these five countries represent ~70% of new vehicle registrations in Europe, the region’s car sales have likely continued to show robust YoY recovery, while remaining below their pre-pandemic levels
#cars
https://metals-wire.com:3000/sector/PGM
Morning Bites (part 3)
🏦China is continuing to accumulate gold reserves, purchasing 23t (~6% of annualised physical gold demand in 2022) in July, the 9th consecutive month of additions, Bloomberg reports. Hence, PBoC gold holdings now stand at 2,137t, with ~188t added since November 2022. Of note, in annualised terms, the county’s November 2022 - July 2023 purchases accounted for ~5% of world physical gold demand in 2022. Overall, given adverse macroeconomic conditions globally, as well as miners’ rising cash costs and persistent inflationary pressures, we maintain our bullish view on gold performance
#gold
https://metals-wire.com/sector/Gold
🏦China is continuing to accumulate gold reserves, purchasing 23t (~6% of annualised physical gold demand in 2022) in July, the 9th consecutive month of additions, Bloomberg reports. Hence, PBoC gold holdings now stand at 2,137t, with ~188t added since November 2022. Of note, in annualised terms, the county’s November 2022 - July 2023 purchases accounted for ~5% of world physical gold demand in 2022. Overall, given adverse macroeconomic conditions globally, as well as miners’ rising cash costs and persistent inflationary pressures, we maintain our bullish view on gold performance
#gold
https://metals-wire.com/sector/Gold
Glencore 1H23 results - firmly below expectations
📝Glencore's 1H23 revenues underperformed both the consensus and us (by 16% and 19%, respectively), due to lower realised coal prices and proceeds from marketing. Meanwhile, EBITDA came in 18% below forecasts, also affected by lower Ni/Cu sales, as well as the ongoing costs pressure
📈Glencore anticipates cash costs to normalize. Specifically, in copper, they rose 2.7x YoY to USD 1.45/lb in 1H23, while the FY23 cost is expected at USD 1.32/lb (although that would still be +65% YoY)
📍The company reiterated its FY23 guidance: copper output is set to shrink ~2% YoY, while zinc and coal are to stay unchanged
💰The group has announced a dividend of USD 0.08/sh (~1.3% DY), as well as a new USD 1.2bn semi-annual buyback programme (~1.6% yield until February 2024)
📌At spot, we expect Glencore’s EBITDA to show a modest HoH improvement in 2H23, as the costs normalisation is to offset lower commodity prices
#GLEN #copper
https://metals-wire.com/company/GLEN_LN/
📝Glencore's 1H23 revenues underperformed both the consensus and us (by 16% and 19%, respectively), due to lower realised coal prices and proceeds from marketing. Meanwhile, EBITDA came in 18% below forecasts, also affected by lower Ni/Cu sales, as well as the ongoing costs pressure
📈Glencore anticipates cash costs to normalize. Specifically, in copper, they rose 2.7x YoY to USD 1.45/lb in 1H23, while the FY23 cost is expected at USD 1.32/lb (although that would still be +65% YoY)
📍The company reiterated its FY23 guidance: copper output is set to shrink ~2% YoY, while zinc and coal are to stay unchanged
💰The group has announced a dividend of USD 0.08/sh (~1.3% DY), as well as a new USD 1.2bn semi-annual buyback programme (~1.6% yield until February 2024)
📌At spot, we expect Glencore’s EBITDA to show a modest HoH improvement in 2H23, as the costs normalisation is to offset lower commodity prices
#GLEN #copper
https://metals-wire.com/company/GLEN_LN/