REG - Glencore PLC - First Quarter Production Report 2024

GlencoreAnnouncement

30/04/2024 07:00

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RNS Number : 4735M  Glencore PLC  30 April 2024

  NEWS RELEASE

Baar, 30 April 2024

First Quarter Production Report 2024

 

Glencore Chief Executive Officer, Gary Nagle:

"Our full year production guidance remains unchanged from that presented at
the beginning of the year. First quarter copper, zinc and coal production was
broadly in line with the prior year comparable period, while nickel increased
14%, reflecting recovery from the Raglan strike impacts in the base period.
Lower year-on-year cobalt and ferrochrome volumes primarily reflect the
previously announced market-related production adjustments in the DRC and the
decision to idle our Rustenburg ferrochrome smelter in the current price
environment.

"Basis Marketing's performance over the first quarter, we currently expect
full year Marketing Adjusted EBIT in the $3.0-$3.5 billion range, being around
the top end of our long-term $2.2-3.2 billion p.a. guidance range, reflecting
cyclically elevated interest rates."

 

Production from own sources - Total(1)

                                     Q1 2024            Q1 2023            Change %
 Copper                 kt                  239.7              244.1                 (2)
 Cobalt                 kt                    6.6               10.5                (37)
 Zinc                   kt                  205.6              205.3                  -
 Lead                   kt                   43.8               39.3                 11
 Nickel                 kt                   23.8               20.9                 14
 Gold                  koz                    201                187                  7
 Silver                koz                  4,520              4,525                  -
 Ferrochrome            kt                    297                400                (26)
 Coal                   mt                   26.6               26.9                 (1)

1. Controlled industrial assets and joint ventures only (excludes Volcan).
Production is on a 100% basis, except as stated later in this report.

 

Q1 production highlights

•       Own sourced copper production of 239,700 tonnes was 2% above
Q1 2023 on a like-for-like basis, removing 8,700 tonnes of Cobar (sold in June
2023) volumes from the prior period.

•       Own sourced cobalt production of 6,600 tonnes was 3,900 tonnes
lower than Q1 2023, mainly reflecting planned lower run-rates at Mutanda in
the current weak cobalt pricing environment and mill downtime at KCC.

•       Own sourced overall zinc production of 205,600 tonnes was in
line with Q1 2023, reflecting the ramp up of Zhairem (14,300 tonnes), offset
by lower zinc tonnes from Antamina (10,300 tonnes), on account of its expected
mining sequence and zinc Australia (3,500 tonnes), due to a tropical cyclone
and flash flooding. Own sourced zinc production from the zinc department
itself, excluding Antamina, was 10,600 tonnes (6%) higher than Q1 2023.

•       Own sourced nickel production of 23,800 tonnes was 2,900
tonnes (14%) higher than Q1 2023, largely due to recovery from the INO supply
chain constraints seen in the base period.

•       Attributable ferrochrome production of 297,000 tonnes was
103,000 tonnes (26%) below Q1 2023, as the Rustenburg smelter remains idled,
pending an improved price/cost environment.

•       Coal production of 26.6 million tonnes was broadly in line
with Q1 2023.

Production guidance

                                    Actual         Previous     Current guidance       2024 weighting

       FY
guidance
                                 2023              2024         2024                   H1            H2
 Copper            kt                1,010         950-1,010    950-1,010              50%           50%
 Cobalt            kt                 41.3            35-40         35-40              47%           53%
 Zinc              kt                  919         900-950        900-950         (1)  47%           53%
 Nickel            kt                   98            80-90         80-90         (2)  48%           52%
 Ferrochrome       kt                1,162         1,100-1,200  1,100-1,200            51%           49%
 Coal              mt                  114         105-115        105-115         (3)  50%           50%

1. Excludes Volcan.

2. Koniambo (KNS) transitioned to care and maintenance during February 2024.
The nickel production guidance above (consistent with our earlier guidance
release) is presented ex-KNS and therefore excludes the 5.0kt produced by KNS
in Q1 2024 prior to its transition to care and maintenance.

3. Guidance excludes any contribution from the Elk Valley Resources (EVR)
steelmaking coal assets, in which Glencore agreed in November 2023 to acquire
a 77% interest from Teck Resources Limited, subject to various regulatory
approvals.

Production guidance is unchanged from that announced in our full year 2023
Production Report released on 1 February 2024.

To view the full report please click here:
https://www.glencore.com/.rest/api/v1/documents/static/e65e4202-8635-4865-8d8d-54710a2f5791/GLEN_2024-Q1ProductionReport.pdf
(https://www.glencore.com/.rest/api/v1/documents/static/e65e4202-8635-4865-8d8d-54710a2f5791/GLEN_2024-Q1ProductionReport.pdf)

 

 

For further information please contact:

 Investors
 Martin Fewings        t: +41 41 709 2880      m: +41 79 737 5642      martin.fewings@glencore.com
 Media
 Charles Watenphul     t: +41 41 709 2462      m: +41 79 904 3320      charles.watenphul@glencore.com

www.glencore.com (http://www.glencore.com)

Glencore LEI: 2138002658CPO9NBH955

Please refer to the end of this document for disclaimers including on
forward-looking statements.

Notes for Editors

Glencore is one of the world's largest global diversified natural resource
companies and a major producer and marketer of more than 60 commodities that
advance everyday life. Through a network of assets, customers and suppliers
that spans the globe, we produce, process, recycle, source, market and
distribute the commodities that support decarbonisation while meeting the
energy needs of today.

With over 150,000 employees and contractors and a strong footprint in over 35
countries in both established and emerging regions for natural resources, our
marketing and industrial activities are supported by a global network of more
than 50 offices.

Glencore's customers are industrial consumers, such as those in the
automotive, steel, power generation, battery manufacturing and oil sectors. We
also provide financing, logistics and other services to producers and
consumers of commodities.

Glencore is proud to be a member of the Voluntary Principles on Security and
Human Rights and the International Council on Mining and Metals. We are an
active participant in the Extractive Industries Transparency Initiative.

We will support the global effort to achieve the goals of the Paris Agreement
through our efforts to decarbonise our own operational footprint. We believe
that we should take a holistic approach and have considered our commitment
through the lens of our global industrial emissions. Against a restated 2019
baseline, we are targeting to reduce our Scope 1, 2 and 3 industrial emissions
by 15% by the end of 2026, 25% by the end of 2030, 50% by the end of 2035 and
we have an ambition to achieve net zero industrial emissions by the end of
2050, subject to a supportive policy environment. For more information see our
2024-2026 Climate Action Transition Plan and the About our emissions
calculation and reporting section in our 2023 Annual Report, available on our
website at glencore.com/publications.

Important notice

This document does not constitute or form part of any offer or invitation to
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Cautionary statement regarding forward-looking information

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and resources and production forecasts; expectations, plans, strategies and
objectives of management; expectations regarding financial performance,
results of operations and cash flows, climate scenarios; sustainability
performance (including, without limitation, environmental, social and
governance) related goals, ambitions, targets, intentions, visions, milestones
and aspirations; approval of certain projects and consummation of certain
transactions (including, without limitation, acquisitions and disposals, in
particular the proposed acquisition of a majority stake of EVR from Teck
Resources Limited and potential subsequent demerger of the combined coal and
carbon steel materials business); closures or divestments of certain assets,
operations or facilities (including, without limitation, associated costs);
capital costs and scheduling; operating costs and supply of materials and
skilled employees; financings; anticipated productive lives of projects, mines
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in environmental scenarios and related regulations, including, without
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divestments; health, safety, environmental or social performance incidents;
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should review and consider these risks and uncertainties (as well as the other
risks identified in this document) when considering the information contained
in this document. Readers should also note that the high degree of uncertainty
around the nature, timing and magnitude of climate-related risks, and the
uncertainty as to how the energy transition will evolve, makes it difficult to
determine all potential risks and opportunities and disclose these and any
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this document discusses in certain instances and the inherent uncertainty in
possible policy, market and technological developments in the future.

No statement in this document is intended as any kind of forecast (including,
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Except as required by applicable regulations or by law, Glencore is not under
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intention, obligation or undertaking, to update or revise any forward-looking
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Glencore since the date of this document or that the information contained
herein is correct as at any time subsequent to its date.

Cautionary statement regarding climate strategy

Glencore operates in a dynamic and uncertain market and external environment.
Plans and strategies can and must adapt in response to dynamic market
conditions, changing preference of our stakeholders, joint venture decisions,
changing weather and climate patterns, new opportunities that might arise or
other changing circumstances. Investors should assume that our climate
strategy will evolve and be updated as time passes. Additionally, a number of
aspects of our strategy involve developments or workstreams that are complex
and may be delayed, more costly than anticipated or unsuccessful for many
reasons, including, without limitation, reasons that are outside of Glencore's
control. Our strategy will also necessarily be impacted by changes in our
business, such as the proposed acquisition of EVR and potential demerger of
the combined coal and carbon steel materials business.

There are inherent limitations to scenario analysis and it is difficult to
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Due to the inherent uncertainty and limitations in measuring greenhouse gas
(GHG) emissions and operational energy consumption under the calculation
methodologies used in the preparation of such data, all CO(2)e emissions and
operational energy consumption data or volume references (including, without
limitation, ratios and/or percentages) in this document are estimates. GHG
emissions calculation and reporting methodologies may change or be
progressively refined over time resulting in the need to restate previously
reported data. There may also be differences in the manner that third parties
calculate or report such data compared to Glencore, which means that
third-party data may not be comparable to Glencore's data. For information on
how we calculate our emissions and operational energy consumption data, see
our latest Basis of Reporting, Climate Report and Extended ESG Data, which is
available on our website.

Sources

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from publicly available third-party sources. This information has not been
independently verified and presents the view of those third parties, and may
not necessarily correspond to the views held by Glencore and Glencore
expressly disclaims any responsibility for, or liability in respect of, and
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(including, without limitation, as to its accuracy, completeness or whether it
is current). Glencore cautions readers against reliance on any of the
industry, market or other third-party data or information contained in this
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Information preparation

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assumptions that may affect the information presented. Certain information is
derived from management accounts, is unaudited and based on information
Glencore has available to it at the time. Figures throughout this document are
subject to rounding adjustments. The information presented is subject to
change at any time without notice and we do not intend to update this
information except as required.

This document contains alternative performance measures which reflect how
Glencore's management assesses the performance of the Group, including results
that exclude certain items included in our reported results. Further details
and information needed to reconcile such information to our reported results
can be found in the section of this report entitled "Alternative Performance
Measures". For further information on how we calculate certain non-financial
metrics such as fatalities at our industrial operations, please refer to our
latest Basis of Reporting, which is available on our website.

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