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GLENCORE PLC - GLN - Third Quarter 2020 Production Report

Release Date: 30/10/2020 09:00
Code(s): GLN     PDF:  
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GLN - Third Quarter 2020 Production Report

(Incorporated in Jersey under the Companies (Jersey) Law 1991)
(Registration number 107710)
JSE Share Code: GLN
LSE Share Code: GLEN
HKSE Share Code: 805HK

Baar, 30 October 2020

Third Quarter 2020 Production
Glencore Chief Executive Officer, Ivan Glasenberg:
    “Glencore has delivered a solid third quarter operating performance, including the continued successful
    ramp-up of Katanga, which remains on track to achieve design capacity by year end. Our teams have adapted
    well to the numerous challenges presented by Covid-19.
    “We maintain our 2020 full year production guidance, except coal, which was adjusted for the extended strike
    at Cerrejon. We will provide a detailed business update, including progress on climate change initiatives
    at our Investor Update on 4 December.”

Production from own sources – Total(1)
                                                                                   YTD 2020      YTD 2019        %
Copper                                                               kt            934.7         1,015.8         (8)
Cobalt                                                               kt            21.6          34.4            (37)
Zinc                                                                 kt            860.1         809.2           6
Lead                                                                 kt            194.3         219.8           (12)
Nickel                                                               kt            81.8          89.4            (9)
Gold                                                                 koz           611           622             (2)
Silver                                                               koz           23,220        23,733          (2)
Ferrochrome                                                          kt            651           1,030           (37)

Coal - coking                                                        mt            5.6           6.1             (8)
Coal - semi-soft                                                     mt            3.6           5.1             (29)
Coal - thermal                                                       mt            74.3          92.8            (20)
Coal                                                                 mt            83.5          104.0           (20)

Oil (entitlement interest basis)                                     kbbl          3,360         3,638           (8)
1 Controlled industrial assets and joint ventures only. Production is on a 100% basis, except as stated.

Production guidance

•    Changes in guidance reflect the tightening of most ranges and coal down 5mt (4%), accounting for the current
     extended industrial strike at Cerrejón JV (Colombia).

                                                     Q1     Q2       Q3       Actual   ROY    Current           Previous
                                                                              YTD             guidance          guidance
                                                     2020   2020     2020     2020     2020   2020             2020
Copper                                          kt   293    295      347      935      320    1,255 ± 25       1,255 ± 35
Cobalt                                          kt   6      8        8        22       6      28 ± 1           28 ± 2
Zinc                                            kt   296    255      310      860      300    1,160 ± 25 (1)   1,160 ± 30
Nickel                                          kt   28     27       27       82       32     114 ± 3          114 ± 4
Ferrochrome                                     kt   388    78       185      651      349    1,000 ± 25       1,000 ± 25
Coal                                            mt   32     26       26       84       25     109 ± 3          114 ± 3
1 Excludes Volcan

•    The generally strong sequential quarterly production performance noted in the table above, in large part,
     reflects reversal of the various short-term Covid-19 related shutdowns in Q2, as mandated by several
     national/local governments.

•     Own sourced copper production of 934,700 tonnes was 81,100 tonnes (8%) lower than the comparable prior
      period, reflecting Mutanda being on care and maintenance in the current period and the temporary suspension
      of operations at Antamina in Q2, partly offset by a continued strong milling performance at Collahuasi and
      Katanga’s ramp-up.

•     Own sourced cobalt production of 21,600 tonnes was 12,800 tonnes (37%) lower than the comparable prior
      period, mainly reflecting Mutanda on care and maintenance, partly offset by Katanga’s ramp-up.

•     Own source zinc production of 860,100 tonnes was 50,900 tonnes (6%) higher than the comparable prior period,
      mainly reflecting: (i) higher zinc grades from Antamina notwithstanding the temporary Covid-related
      suspension (21,800 tonnes); (ii) improved throughput at Mount Isa (14,900 tonnes); and (iii) the net
      positive effect of 13,800 tonnes from Other South America owing to re-opening the short-life Iscaycruz mine
      in Peru, offset by Covid-related slowdowns and suspensions.

•     Own sourced nickel production of 81,800 tonnes was 7,600 tonnes (9%) lower than the comparable prior period,
      mainly reflecting Koniambo running as a single-line operation for most of Q2/Q3, with Covid-related
      restrictions on mobility affecting timing of maintenance.

•     Attributable ferrochrome production of 651,000 tonnes was 379,000 tonnes (37%) lower than the comparable
      prior period, primarily reflecting the Q2 South African lockdown measures. As of 1 September, four of the
      five smelters were running. The competitive environment across the South African ferrochrome industry
      continues to be challenging, in particular due to high input costs including electricity.

•     Coal production of 83.5 million tonnes was 20.5 million tonnes (20%) lower than the comparable prior period,
      reflecting Prodeco being on care and maintenance for most of 2020, disruptions at Cerrejón (initially Covid-
      related, and lately due to industrial action), and targeted H2 volume reductions across the Australian
      portfolio, during a time of weak market conditions.

•     Entitlement interest oil production of 3.4 million barrels was 0.3 million barrels (8%) lower than the
      comparable prior period, reflecting the temporary suspension of Chad operations since April 2020, partly
      offset by new wells drilled in Equatorial Guinea and Cameroon.

To view the full report please click:
and on the JSE at

For further information please contact:

    Martin Fewings                    t: +41 41 709 2880    m: +41 79 737 5642

    Maartje Collignon                 t: +41 41 709 32 69   m: +41 79 197 42 02
    Charles Watenphul                 t: +41 41 709 2462    m: +41 79 904 3320

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 commodities. The Group's operations comprise around 150 mining and metallurgical
sites and oil production assets.

With a strong footprint in both established and emerging regions for natural resources, Glencore's industrial
and marketing activities are supported by a global network of offices located in over 35 countries.

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 158,000 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.
Glencore Third Quarter 2020 Production Report
Absa Corporate and Investment Bank, a division of Absa Bank Limited

Important notice concerning this document
including forward looking statements year

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 nature. These forward looking statements may be identified by the use of forward looking
terminology, or the negative thereof such as “outlook”, "plans", "expects" or "does not expect", "is
expected", "continues", "assumes", "is subject to", "budget", "scheduled", "estimates", "aims", "forecasts",
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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 taxation or regulation, and political uncertainty.

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

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.

Glencore Third Quarter 2020 Production Report                                                                  4

Date: 30-10-2020 09:00:00
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