Leading miner & metal supplier Glencore has provides updates concerning its coal Industrial business and Marketing business. Glencore said “Our Industrial coal portfolio produces various quality specifications in three countries, destined primarily for seaborne thermal markets, but also for steel and domestic consumption. We have seen unprecedented dislocation in energy markets over the year to date, resulting, at times, in record pricing differentials between the various coal benchmarks and quality categories. Relative to the Newcastle thermal coal pricing benchmark, our coal portfolio mix adjustment guidance, which is used to calculate an overall realised price for the Group’s coal portfolio as a deduction against the Newcastle thermal coal price, has increased to reflect these larger differentials and portfolio composition.”Glencore said “Our February 2022 full year portfolio mix adjustment guidance of USD 32.8 per tonne, basis a Newcastle thermal coal forward average price at the time of USD 175 per tonne, is expected to increase to a range of USD 82-86 per tonne for the first half of 2022, basis an assumed Newcastle thermal coal average benchmark price of USD 318 per tonne over the half.”Glencore added “In line with the higher coal prices, government royalties have increased significantly relative to our February cost expectations, which together with higher input costs (including diesel, explosives, logistics and electricity), are expected to result in an increase in our reported average FOB thermal unit cost for the period to USD 75-78 per tonne, compared to earlier guidance of USD 59 per tonne for 2022.”
Leading miner & metal supplier Glencore has provides updates concerning its coal Industrial business and Marketing business. Glencore said “Our Industrial coal portfolio produces various quality specifications in three countries, destined primarily for seaborne thermal markets, but also for steel and domestic consumption. We have seen unprecedented dislocation in energy markets over the year to date, resulting, at times, in record pricing differentials between the various coal benchmarks and quality categories. Relative to the Newcastle thermal coal pricing benchmark, our coal portfolio mix adjustment guidance, which is used to calculate an overall realised price for the Group’s coal portfolio as a deduction against the Newcastle thermal coal price, has increased to reflect these larger differentials and portfolio composition.”Glencore said “Our February 2022 full year portfolio mix adjustment guidance of USD 32.8 per tonne, basis a Newcastle thermal coal forward average price at the time of USD 175 per tonne, is expected to increase to a range of USD 82-86 per tonne for the first half of 2022, basis an assumed Newcastle thermal coal average benchmark price of USD 318 per tonne over the half.”Glencore added “In line with the higher coal prices, government royalties have increased significantly relative to our February cost expectations, which together with higher input costs (including diesel, explosives, logistics and electricity), are expected to result in an increase in our reported average FOB thermal unit cost for the period to USD 75-78 per tonne, compared to earlier guidance of USD 59 per tonne for 2022.”
