LONDON -(Dow Jones)- Commodities titan Glencore International AG(GLE.LN) Wednesday reported mixed first quarter output across commodity products and said its marketing activity was “robust” as physical demand for its commodities remains broadly healthy.
“Glencore has traded well across all segments of its business in 2012,” the Baar, Switzerland-based company said. “Physical demand for commodities remains broadly healthy across the globe, although precise conditions vary by location,” it added.
Glencore‘s marketing activities accounted for 35% of the company’s adjusted 2011 earnings before interest and taxes, or Ebit, while industrial activities accounted for the remainder.
On the production side, first quarter output from its own sources increased by 11% for copper, 2% for lead, and 59% for tin while gold (including gold equivalents) fell 2%, nickel dropped 13% and cobalt fell 3% in the first quarter compared with the same period a year-ago. First quarter coal output from its Colombian mine Prodeco was up 10% on the year.
The company said its “major growth projects remain overall on schedule and within budget.”
The FTSE-100 mining company, which listed to much fan-fare last May, is currently in the midst of securing shareholder and regulatory approval for a merger of equals with Xstrata PLC (XTA.LN), in which it owns a 34% stake. The combination of the two companies would create a mining juggernaut with a market capitalization of around $90 billion.
Glencore‘s shares closed Tuesday down 4.5% at 392 pence a share. The shares are down 26% since the company listed in London on May 19.
-By Alex MacDonald, Dow Jones Newswires