Performance of miners on August 11
On Thursday, August 11, the stocks related to base metals gained whereas precious metal–related stocks lost momentum. At 3:05 PM EDT, the PowerShares DB Base Metals ETF (DBB) and the SPDR S&P Metals & Mining ETF (XME) gained ~0.35% and ~0.12%, respectively. The SPDR Gold Shares ETF (GLD) fell by ~0.46%.
Glencore decreases production in first half of 2016
Glencore (GLNCY), the multinational trading and mining giant, decreased its production in the first half of 2016. According to data released by the Swiss miner, the production of zinc decreased by about one-third in the first half of 2016 when compared to same period in 2015.
Glencore produced 506,500 tons of zinc in the first six months of 2016, which is 223,800 tons less than its production in the first half of 2015. Considering the second quarter readings, the production of zinc, coal, and copper in 2Q16 declined by 33%, 12%, and 3.2%, respectively, compared to same period in 2015.
Glencore reduced the production by shutting down several mines to help the Market to achieve balance amid lower prices and oversupply. Since the beginning of 2016, Glencore has gained more than 90%. At 11:40 AM EDT on Thursday, August 11, it was trading at $5.10, a gain of ~1.4%.