Glencore Says Operations Performed as Expected in 2021 -- Commodity Comment

By Jaime Llinares Taboada

Glencore PLC said Wednesday that its operations performed largely in line with guidance expectations last year, with copper output falling 5% on year. Here's what the FTSE 100 mining and commodity-trading major had to say:

On 2021 performance:

"Overall, our operations largely performed in line with guidance expectations. We completed the Cerrejon acquisition and Ernest Henry disposal in January, such transactions being consistent with our continued strategy to simplify and align our portfolio with the materials needed for the energy transition and the responsible decline of our coal business."

"Own sourced copper production of 1,195,700 tonnes was 62,400 tonnes (5%) lower than 2020, mainly due to the Mopani disposal (23,800 tonnes), expected lower copper grades at Antapaccay (14,800 tonnes) and lower copper by-products from our mature zinc and nickel mines (26,600 tonnes)."

"Own sourced cobalt production of 31,300 tonnes was 3,900 tonnes (14%) higher than 2020 due to the limited restart of production at Mutanda in 2021."

"Own sourced zinc production of 1,117,800 tonnes was 52,600 tonnes (4%) lower than 2020, mainly reflecting the expected decline of the Maleevsky mine in Kazakhstan, being lagged by the slower than expected ramp-up of replacement Zhairem mine tonnage (19,600 tonnes); Mount Isa producing additional metal from ore stockpile drawdowns in the base period (24,400 tonnes); and Kidd lower grades (13,800 tonnes). These factors were partly offset by stronger zinc production at Antamina, which was suspended for part of 2020 due to Covid restrictions."

"Nickel production of 102,300 tonnes was 7,900 tonnes (7%) lower than in 2020, mainly due to the lengthy scheduled statutory shutdown and maintenance issues at Murrin Murrin earlier in the year."

"Attributable ferrochrome production of 1,468,000 tonnes was 439,000 tonnes (43%) higher than 2020 mainly due to the South African national lockdown in the prior year, and a strong operating performance."

"Coal production of 103.3 million tonnes was 2.9 million tonnes (3%) lower than 2020, reflecting Prodeco's care and maintenance status and lower domestic power demand / export rail capacity constraints in South Africa, offset by higher production at Cerrejon, following a Covid suspension and strike in 2020."

"Entitlement interest production of 5.3 million boe was 1.3 million boe (34%) higher than 2020 mainly due to commencement of the gas phase of the Alen project in Equatorial Guinea. There was no production from the Chad fields in 2021."

On 2022 guidance:

"2022 production guidance unchanged from the Investor Update in December 2021. Purchase of the remaining interest in Cerrejon completed in January 2022, a few months earlier than initially assumed. Changes, if any, to 2022 guidance will be updated in April, together with our 1Q production report."

Write to Jaime Llinares Taboada at [e-mail]; @JaimeLlinaresT

(END) Dow Jones Newswires

February 02, 2022 02:39 ET (07:39 GMT)

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