LONDON (Reuters) -Shares in miner and trader Glencore fell as much as 3.5% on Tuesday after 2023 production guidance across all the commodities it mines missed consensus estimates.
The company guided towards copper production of 1.04 million tonnes in 2023, down from 1.06 million this year and compared to a consensus of analysts at 1.124 million tonnes.
“Today’s release will drive a material rebasing of investors expectations,” Tyler Broda at RBC Capital said.
“Higher costs, higher capex and lower production were all expected by the market, but the numbers have come in behind our below consensus forecasts and we expect will materially reduce consensus free cash flow estimates.”
Glencore expects 2022 EBITDA (earnings before interest, tax, depreciation and amortization) at $28.7 billion and free-cash-flow at $14.7 billion.
Shares recovered slightly and were last trading down 1.8%, still underperforming peers.
(Reporting by Clara Denina, Helen Reid and Pratima Desai; Editing by Jan Harvey and David Evans)
