Glencore shares fell due to new forecasts
2022.12.06 10:16
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Glencore shares fell due to new forecasts
Budrigannews.com – Shares in Glencore, a miner and trader (OTC:) on Tuesday, when its 2023 production guidance for all commodities it mines fell short of consensus estimates.
The company said it would produce 1.04 million tonnes in 2023, which is less than the 1.06 million tonnes it produced this year and is lower than the 1.124 million tonnes consensus predicted by analysts.
RBC Capital’s Tyler Broda stated, “Today’s release will drive a material rebasing of investors’ expectations.”
“The market expected higher costs, higher capital expenditures, and lower production; however, the numbers have come in behind our below consensus forecasts and we expect will significantly reduce consensus free cash flow estimates,” the company stated.
EBITDA, or earnings before interest, taxes, depreciation, and amortization, Glencore anticipates in 2022 to be $28.7 billion and $14.7 billion, respectively.
Despite a slight recovery, shares continue to underperform their peers and are currently trading down 1.9 %.
