Glencore 2022 Production Mostly in Line With Guidance -- Commodity Comment

Glencore PLC on Wednesday reported production figures for 2022 which were overall in line with guidance provided for in October, with final quarter sequential production increases across most of its key commodities, including copper, zinc, nickel and coal. Here's what the FTSE 100-listed commodity mining and trading company had to say:

On copper production:

"Own sourced copper production of 1,058,100 metric tons was 137,600 metric tons (12%) lower than 2021, due to the basis change arising from the sale of Ernest Henry in January 2022 (44,800 metric tons), the ongoing geotechnical constraints at Katanga (44,300 metric tons), Collahuasi planned mining sequence changes (26,100 metric tons) and a lower contribution from Mount Isa (21,000 metric tons)."

On cobalt production:

"Own sourced cobalt production of 43,800 metric tons was 12,500 metric tons (40%) higher than 2021 following Mutanda's restart in 4Q 2021."

On zinc production:

"Own sourced zinc production of 938,500 metric tons was 179,300 metric tons (16%) lower than 2021, reflecting the disposal / cessation of South America operations (83,400 metric tons), closure of Matagami (30,100 metric tons) and lower volumes from Mount Isa (39,600 metric tons), as Lady Loretta approaches end of mine life."

On nickel production:

"Own sourced nickel production of 107,500 metric tons was 5,200 metric tons (5%) higher than 2021, reflecting Murrin Murrin's scheduled major maintenance shut in the prior year and Koniambo running two production lines for the majority of 2022, partially offset by lower production at INO due to strike action in Canada and Norway."

On ferrochrome production:

"Attributable ferrochrome production of 1,488,000 tons was in line with 2021."

On coal production:

"Coal production of 110.0 million metric tons was 6.7 million metric tons (6%) higher than 2021, reflecting higher attributable production from Cerrejon, following the acquisition in January 2022 of the remaining two-thirds interest that Glencore did not already own, less declines elsewhere in the portfolio."

On oil production:

"Entitlement interest oil production of 6.1 million barrels of oil equivalent was 0.9 million barrels (16%) higher than 2021, due to a full year of production from the Alen gas project in Equatorial Guinea, following its commencement in March 2021."

On 2022 volumes:

"Overall, 2022 production volumes were in line with our revised guidance from October 2022, with final quarter sequential production increases delivered across most of our key commodities, including copper, zinc, nickel and coal."

Write to Ian Walker at [e-mail]

(END) Dow Jones Newswires

February 01, 2023 03:07 ET (08:07 GMT)

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