Glencore plc reported its 2026 Half-Year Results on 5 August 2026, revealing a strong performance across its metals and minerals portfolio, with zinc playing a meaningful role in the group's overall earnings recovery. The diversified mining and trading giant posted a Group Adjusted EBITDA of $10.1 billion for the first half of 2026, up 86% compared to the prior period, driven primarily by higher commodity prices across its key metals. The zinc division delivered an Adjusted EBITDA of $0.9 billion in H1 2026, consistent with the prior period figure of $0.9 billion.
The result was underpinned by a realised zinc price of 148.9 cents per pound during the first half, compared to 124.9 cents per pound in H1 2025, representing a year-on-year increase of approximately 22% in average zinc prices. According to the presentation, zinc prices contributed positively to the group's Industrial Adjusted EBITDA bridge, which moved from $3.8 billion in H1 2025 to $6.5 billion in H1 2026, with zinc listed among the key primary commodities driving a combined price uplift of $3.8 billion. On the production side, Glencore reported primary zinc production of 365.6 thousand tonnes in H1 2026.
After accounting for production from other departments and a payability deduction, net relevant zinc production stood at 270.8 thousand tonnes, with net relevant sales of 261.0 thousand tonnes for the period. In terms of unit economics, the zinc division reported a net unit cash cost of negative 8.5 cents per pound in H1 2026, meaning by-product credits continued to more than offset direct mining costs. By-product credits reached 291.4 cents per pound, exceeding unit costs ex by-products of 282.9 cents per pound.
The resulting zinc margin was 157.4 cents per pound for the half. Glencore's zinc mining margins improved to 21% in H1 2026, up from 19% in H1 2025, reflecting the positive impact of higher zinc prices, although the division faced increased input cost pressures. The company noted that cost headwinds were primarily driven by the impact of the Middle East conflict on energy inputs, particularly diesel, sulphur and sulphuric acid, which affected multiple business units including zinc operations.
A notable development in the zinc portfolio was the sale of the Kidd mining asset, completed on 1 June 2026. Glencore indicated that higher zinc volumes from the remaining portfolio, excluding Kidd, partially mitigated higher energy costs arising from the Middle East conflict. For the full year 2026, Glencore provided updated guidance for its zinc operations.
The illustrative 2026 full-year zinc Adjusted EBITDA is projected at $1.9 billion, based on net relevant sales of 561 thousand tonnes and a modelled realised zinc price of 153.1 cents per pound, derived from the realised LME zinc price year-to-date and the July-to-December forward curve. The guided net unit cash cost for full-year 2026 is estimated at negative 0.4 cents per pound, with by-product credits of 254.3 cents per pound and unit costs ex by-products of 253.9 cents per pound. The full-year zinc margin is estimated at 153.5 cents per pound.
Regarding cost guidance, Glencore noted an update to its 2026 zinc net cash unit cost forecast, which was revised to negative 0.4 cents per pound, compared to the February 2026 guidance of negative 48 cents per pound. The company attributed this revision primarily to reduced by-product credits stemming from lower gold and silver price assumptions, specifically gold at $4,096 per ounce versus the prior assumption of $4,854 per ounce, and silver at $58.7 per ounce versus $82.2 per ounce previously. Higher energy costs from the Middle East conflict provided a further offset, though these were partially mitigated by higher zinc volumes from the portfolio excluding Kidd.
On capital allocation, the zinc segment accounted for $0.5 billion of Industrial capital expenditure in H1 2026, up from $0.4 billion in H1 2025. For the 2026 to 2028 forecast period, Glencore's capital expenditure plan for zinc includes life extension investments at ATK Gold, the Kazzinc operation, through both open-cut and underground development. The Zinc division's contribution sits within a broader Metals and Minerals segment that delivered Adjusted EBITDA of $4.5 billion in H1 2026, up 86% from $2.4 billion in the prior period.
The group noted that tight metals concentrate markets continued to support marketing earnings in metals and minerals, with the marketing segment posting Adjusted EBIT of $1.2 billion from metals and minerals, albeit 23% below the record prior period. Glencore's overall financial position at 30 June 2026 showed net debt of $10.2 billion, down 9% from $11.2 billion at end December 2025. The company announced total 2026 shareholder returns of approximately $3.5 billion, including an August top-up distribution of $8.5 cents per share and a $500 million buyback.
The group maintained its credit ratings at A3 and BBB+. All financial data cited in this article is sourced from the Glencore 2026 Half-Year Results Presentation published on 5 August 2026, available at glencore.com/publications.
Source: glencore.com