Swiss trading and mining giant Glencore on Wednesday posted a net loss of $233 million in the first half of the year, compared to a net profit of $4.56 billion a year earlier.

The swing into the red reflects significant items of $1.7 billion, with impairment charges of around $1 billion, and lower average prices for key commodities. Overall, revenue rose 9% in the period to $117 billion, with a “strong metals performance.”

Company’s chief executive Gary Nagle announced that full-year production guidance for battery metals has been maintained. This includes 950,000-1,010 tonnes of copper, 35,000-40,000 t of cobalt, and 80,000-90,000 t of nickel, Kallanish notes.

In the first half of the year, Glencore saw its key battery metals prices decline due to market oversupply, with cobalt and nickel metal prices dropping 20% and 28%, respectively. Average copper prices, however, were 4% higher y-o-y, supported by tight concentrate availability.

In H2, Glencore’s copper and nickel production volumes are expected to recover with higher planned production at African Copper, Antapaccay, and Murrin Murrin. However, Nagle warns that the current macroeconomic environment remains “uncertain, with a meaningful manufacturing recovery in the US, China and Europe yet to emerge.”

The company forecasts copper mine supply growth to continue to be constrained by ageing assets, a diminished project pipeline and political factors, with new projects likely to experience delays.

Despite the downward trend in cobalt prices, ending June at $11.30/lb, Glencore believes that “solid structural cobalt demand fundamentals remain intact.” This is due to an anticipated recovery in consumer goods demand and Western EV growth.

“In addition to government stockpiling programs, certain funds have also begun building positions in cobalt to take advantage of expected trading opportunities resulting from lower spot prices and longer-term positive cobalt fundamentals,” the company says.

Glencore estimates that at current prices, a large portion of global nickel production is operating at negative margins. Yet, the company notes nickel demand “remains robust,” with an estimated growth of 5% this year, supported by “increased usage” in batteries and “strong” stainless steel output.

Nagle also announced the decision to retain the group’s coal and carbon steel materials business, rather than demerge it. This should “enhance Glencore’s cash-generating capacity to fund opportunities in our transition metals portfolio, such as our copper growth project pipeline, as well as accelerate and optimise the return of excess cash flows to shareholders,” the ceo explains.

The company also said it has resolved investigations from the Swiss and Dutch governments over bribery allegations in the Democratic Republic of the Congo in 2011.