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GLN - Third Quarter 2020 Production Report
GLENCORE PLC
(Incorporated in Jersey under the Companies (Jersey) Law 1991)
(Registration number 107710)
JSE Share Code: GLN
LSE Share Code: GLEN
HKSE Share Code: 805HK
ISIN: JE00B4T3BW64
NEWS RELEASE
Baar, 30 October 2020
Third Quarter 2020 Production
Report
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)
Change
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
Highlights
• 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:
https://www.glencore.com/dam/jcr:3b5ec265-1700-4269-8f66-1a1fded7bc87/GLEN_2020-Q3_ProductionReport.pdf
and on the JSE at
https://senspdf.jse.co.za/documents/2020/JSE/ISSE/GLN/Q3PrRep20.pdf
For further information please contact:
Investors
Martin Fewings t: +41 41 709 2880 m: +41 79 737 5642 martin.fewings@glencore.com
Maartje Collignon t: +41 41 709 32 69 m: +41 79 197 42 02 maartje.collignon@glencore.com
Media
Charles Watenphul t: +41 41 709 2462 m: +41 79 904 3320 charles.watenphul@glencore.com
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 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
Sponsor
Absa Corporate and Investment Bank, a division of Absa Bank Limited
Important notice concerning this document
including forward looking statements year
2020
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
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Forward-looking statements are not based on historical facts, but rather on current predictions,
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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
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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
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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
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Glencore Third Quarter 2020 Production Report 4
Date: 30-10-2020 09:00:00
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