Glencore PLC First Quarter 2021 Production Report (9762W)

TIDMGLEN

RNS Number : 9762W

Glencore PLC

29 April 2021

NEWS RELEASE

Baar, 29 April 2021

First Quarter 2021 Production Report

Glencore Chief Executive Officer, Ivan Glasenberg:

"The Group's overall production was broadly in line with our expectations for the first quarter. Production in Q1 2021 reflects that many of our operations continue to maintain thorough Covid-safe working practices, as appropriate for each specific country and region. Coal production was down 7.4 million tonnes, reflecting Prodeco's care and maintenance status and the market-related production cuts in Australia, actioned in H2 2020. Full year production guidance has been maintained for our key commodities.

"Basis Q1 2021's marketing performance, we expect full year Marketing EBIT to be within the top half of our long-term $2.2-3.2 billion p.a. guidance range."

Production from own sources - Total(1)

 
 
                                                                                                                                         Change 
                                                                            Q1 2021                      Q1 2020                              % 
----------------------  -----------------------------  ----------------------------  ---------------------------  ----------------------------- 
Copper                                            kt                      301.2                         293.3                              3 
Cobalt                                           kt                            6.8                          6.1                          11 
Zinc                                              kt                      282.6                         295.6                              (4) 
Lead                                             kt                         55.3                           61.7                          (10) 
Nickel                                           kt                         25.2                          28.2                            (11) 
Gold                                          koz                             224                           211                             6 
Silver                                        koz                          7,761                       7,778                                  - 
Ferrochrome                                      kt                           399                         388                               3 
 
Coal - coking                                   mt                             2.4                           1.8                           33 
Coal - semi-soft                               mt                               1.2                          1.6                         (25) 
Coal - thermal                                 mt                            20.9                          28.5                         (27) 
----------------------  -----------------------------  ----------------------------  ---------------------------  ----------------------------- 
Coal                                            mt                           24.5                           31.9                         (23) 
 
Oil (entitlement 
 interest basis)                             kboe                           1,071                        1,806                           (41) 
 
 

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

Production guidance

   --       No changes versus previous guidance. 
 
 
                                             Actual          Previous          Current 
                                                 FY          guidance         guidance                   2021 weighting 
                                               2020              2021             2021              H1                  H2 
------------  ---------------     -----------------  ----------------  ---------------  ---  ----------------  -------------------- 
 
                                                      1,220 +/-         1,220 
Copper                    kt                1,258      30                +/- 30                           50%                   50% 
------------  ------------------  -----------------  ----------------  ---------------  ---  ----------------  -------------------- 
                                                               35 +/-           35 +/- 
      Cobalt                  kt               27.4                 2                2                    45%                   55% 
------------  ------------------  -----------------  ----------------  ---------------  ---  ----------------  -------------------- 
                                                            1,250 +/-            1,250 
        Zinc                  kt              1,170                30           +/- 30  (1)               45%                   55% 
------------  ------------------  -----------------  ----------------  ---------------  ---  ----------------  -------------------- 
                                                              117 +/-          117 +/- 
      Nickel                  kt                110                 5                5                    45%                   55% 
------------  ------------------  -----------------  ----------------  ---------------  ---  ----------------  -------------------- 
                                                            1,400 +/-            1,400 
 Ferrochrome                  kt              1,029                30           +/- 30                    52%                   48% 
------------  ------------------  -----------------  ----------------  ---------------  ---  ----------------  -------------------- 
                                                              113 +/-          113 +/- 
        Coal                  mt                106                 4                4                    45%                   55% 
 
 

1 Excludes Volcan

Q1 production highlights

-- Own sourced copper production of 301,200 tonnes was 3% higher than in Q1 2020, mainly relating to productivity improvements and mine plan sequencing at our South American operations including Collahuasi, Antamina and Antapaccay.

-- Own sourced zinc production of 282,600 tonnes was 13,000 tonnes (4%) lower than Q1 2020, mainly relating to lower grades at Kazzinc's Maleevsky mine and mine sequencing at Kidd.

-- Own sourced nickel production of 25,200 tonnes was 3,000 tonnes (11%) lower than Q1 2020, primarily reflecting maintenance at Koniambo.

-- Attributable ferrochrome production of 399,000 tonnes was 3% up on Q1 2020, reflecting the impact of the South African national lockdown on the base period, having commenced late March 2020.

-- Coal production of 24.5 million tonnes was 7.4 million tonnes (23%) lower than Q1 2020, mainly reflecting cessation of mining at Prodeco (3.8 million tonnes) and various changes in the Australian portfolio (2.9 million tonnes).

-- Entitlement interest oil production of 1.1 million barrels of oil equivalent (boe) was 0.7 million boe (41%) lower than in Q1 2020, reflecting the Chad oil fields placed on care and maintenance in April 2020. Partly offsetting, the gas phase of the Equatorial Guinea project commenced in February 2021, resulting in an overall 83% quarterly sequential increase in entitlement interest production.

To view the full report please click:

https://www.glencore.com/dam/jcr:9a953b82-146b-4540-a5d6-8633c2c4fd55/GLEN_2021-Q1_ProductionReport.pdf

For further information please contact:

 
 Investors 
 Martin Fewings        t: +41 41 709       m: +41 79 737     [e-mail] 
                       2880                5642 
 Media 
 Charles Watenphul     t: +41 41 709       m: +41 79 904     [e-mail] 
                       2462                3320 
 
 

www.glencore.com

Glencore LEI: 2138002658CPO9NBH955

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 responsibly-sourced commodities that advance everyday life. The Group's operations comprise around 150 mining,

metallurgical and oil production assets.

With a strong footprint in over 35 countries in both established and emerging regions for natural resources, Glencore's industrial

activities are supported by a global network of more than 30 marketing 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's companies employ around 135,000 people, including

contractors.

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. Our ambition is to be a net zero

total emissions company by 2050.

Disclaimer

The companies in which Glencore plc directly and indirectly has an interest are separate and distinct legal entities. In this

document, "Glencore", "Glencore group" and "Group" are used for convenience only where references are made to Glencore

plc and its subsidiaries in general. These collective expressions are used for ease of reference only and do not imply any other

relationship between the companies. Likewise, the words "we", "us" and "our" are also used to refer collectively to members of

the Group or to those who work for them. These expressions are also used where no useful purpose is served by identifying the

particular company or companies.

Important notice concerning this document including forward looking statements

This document contains statements that are, or may be deemed to be, "forward looking statements" which are prospective in

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variations of such words or comparable terminology and phrases or statements that certain actions, events or results "may", "could",

"should", "shall", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements are not based on historical

facts, but rather on current predictions, expectations, beliefs, opinions, plans, objectives, goals, intentions and projections about

future events, results of operations, prospects, financial condition and discussions of strategy.

By their nature, forward-looking statements involve known and unknown risks and uncertainties, many of which are beyond

Glencore's control. Forward looking statements are not guarantees of future performance and may and often do differ materially

from actual results. Important factors that could cause these uncertainties include, but are not limited to, those disclosed in the last

published annual report and half-year report, both of which are freely available on Glencore's website.

For example, our future revenues from our assets, projects or mines will be based, in part, on the market price of the commodity

products produced, which may vary significantly from current levels. These may materially affect the timing and feasibility of

particular developments. Other factors include (without limitation) the ability to produce and transport products profitably, demand

for our products, changes to the assumptions regarding the recoverable value of our tangible and intangible assets, the effect of

foreign currency exchange rates on market prices and operating costs, and actions by governmental authorities, such as changes in

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Neither Glencore nor any of its associates or directors, officers or advisers, provides any representation, assurance or guarantee that

the occurrence of the events expressed or implied in any forward-looking statements in this document will actually occur. You are

cautioned not to place undue reliance on these forward-looking statements which only speak as of the date of this document.

Except as required by applicable regulations or by law, Glencore is not under any obligation and Glencore and its affiliates expressly

disclaim any intention, obligation or undertaking, to update or revise any forward looking statements, whether as a result of new

information, future events or otherwise. This document shall not, under any circumstances, create any implication that there has

been no change in the business or affairs of Glencore since the date of this document or that the information contained herein is

correct as at any time subsequent to its date.

No statement in this document is intended as a profit forecast or a profit estimate and past performance cannot be relied on as a

guide to future performance. This document does not constitute or form part of any offer or invitation to sell or issue, or any

solicitation of any offer to purchase or subscribe for any securities.

The companies in which Glencore plc directly and indirectly has an interest are separate and distinct legal entities. In this document,

"Glencore", "Glencore group" and "Group" are used for convenience only where references are made to Glencore plc and its

subsidiaries in general. These collective expressions are used for ease of reference only and do not imply any other relationship

between the companies. Likewise, the words "we", "us" and "our" are also used to refer collectively to members of the Group or to

those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company

or companies.

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April 29, 2021 02:00 ET (06:00 GMT)