On Friday, Glencore (OTC:GLNCY) said that it produced 18 per cent less zinc in the first nine months of the year compared with the same period a year ago. It is to be noted that the company cut its full-year output forecast by 6 per cent due to the knock-on effects of the Russia-Ukraine war.

The forecast reduction was associated with emerging supply-chain issues in Kazakhstan due to the secondary impacts of the Russia-Ukraine war. Notably, Kazakhstan has large deposits of zinc and other materials. Glencore controls Kazzinc, a producer of zinc, lead, and copper in the country.

Zinc production of 699,600 tonnes from Glencore’s production sites during the first three quarters was lower due to the closure of Matagami in Canada, disposals and closures in South America, and worker absences in Australia. Glencore revised its base forecast for zinc production this year by 65,000 to 945,000 tonnes.

Lead production declined 21 per cent to 136,900 tonnes, mainly due to similar reasons for weaker zinc output since Lead and Zinc are often found in the same ore bodies.

However, Cobalt output surged by 41 per cent to 33,100 tonnes due to greater output at its Katanga mine in the Democratic Republic of Congo (DRC). Also, Copper output dropped 14 per cent to 770,500 tonnes, owing to continued reduced output at Katanga.

The company expects second-half operating profit at its trading arm to decline sharply. However, it remains on track for a record 2022 performance.