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GLN - Full Year 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
LEI: 2138002658CPO9NBH955
Baar, Switzerland
3 February 2021
NEWS RELEASE
Full Year 2020 Production Report
Glencore Chief Executive Officer, Ivan Glasenberg:
“Our mining assets performed well in difficult circumstances during 2020. Various precautionary operating changes
made in Q2 continued into the second half, with sustainable and safe working practices embedded for the pandemic
era. Production picked up accordingly, with year-over-year increases in zinc, gold and silver production.
“Excluding Mutanda (currently on care and maintenance), 2020 copper production was in line with 2019, while cobalt
production was 6,200 tonnes higher, reflecting Katanga’s continued successful ramp-up to design capacity levels.
Required Covid-19 related mandatory suspensions and international mobility restrictions significantly impacted 2020
production of ferrochrome in South Africa, oil in Chad and nickel at Koniambo. Furthermore, various proactive market-
related supply reductions were initiated in H2 2020, primarily with respect to coal production from Australia.
“As noted at our recent 2020 Investor Update, we continue to progress portfolio optimisation, and, in this regard,
recently agreed terms for the sale of Mopani to an existing minority shareholder. Work continues to advance options
around other non-core assets within the Group.”
Production from own sources – Total(1)
2020 2019 Change
%
Copper kt 1,258.1 1,371.2 (8)
Cobalt kt 27.4 46.3 (41)
Zinc kt 1,170.4 1,077.5 9
Lead kt 259.4 280.0 (7)
Nickel kt 110.2 120.6 (9)
Gold koz 916 886 3
Silver koz 32,766 32,018 2
Ferrochrome kt 1,029 1,438 (28)
Coal - coking mt 7.6 9.2 (17)
Coal - semi-soft mt 4.6 6.4 (28)
Coal - thermal mt 94.0 123.9 (24)
Coal mt 106.2 139.5 (24)
Oil (entitlement interest basis) kbbl 3,944 5,518 (29)
1 Controlled industrial assets and joint ventures only. Production is on a 100% basis, except as stated.
Production guidance
• FY 2021 guidance as per our investor presentation in December 2020 is still current.
• Changes versus 2020 reflect:
- Katanga cobalt production continuing to ramp up to steady-state capacity
- Commissioning of Zhairem zinc/lead project in Kazakhstan
- Chrome smelters running throughout the year following a Covid-disrupted 2020
- Cautious coal supply increases in Australia, following market-driven reductions in H2 2020.
Actual Actual Actual Guidance
FY FY FY FY
2018 2019 2020 2021
Copper kt 1,454 1,371 1,258 1,220 ± 30 (1)
Cobalt kt 42.2 46.3 27.4 35 ± 2
Zinc kt 1,068 1,078 1,170 1,250 ± 30 (2)
Nickel kt 124 121 110 117 ± 5
Ferrochrome kt 1,580 1,438 1,029 1,400 ± 30
Coal mt 129 140 106 113 ± 4
1 Excludes Mopani.
2 Excludes Volcan.
Realised prices
Realised
US$ million ¢/lb $/t
Copper 285 6,283
Zinc 102 2,242
Nickel 619 13,647
The average Newcastle coal (NEWC) settlement price for the period was $60.45/t. After applying a portfolio mix
adjustment (component of our regular coal cash flow modelling guidance) of $3.60/t to reflect, amongst other
factors, movements in pricing of non-NEWC quality coals, an average price of c.$56.8/t was realised across all
coal sales volumes.
Production highlights
• Own sourced copper production of 1,258,100 tonnes was 113,100 tonnes (8%) lower than 2019, mainly reflecting
Mutanda being on care and maintenance in 2020 (partly offset by Katanga’s successful ramp-up), with Covid-19
related suspensions being a much smaller factor.
• Own sourced cobalt production of 27,400 tonnes was 18,900 tonnes (41%) lower than 2019, mainly reflecting
Mutanda on care and maintenance. On a standalone basis, Katanga’s cobalt production was up 6,800 tonnes (40%).
• Own sourced zinc production of 1,170,400 tonnes was 92,900 tonnes (9%) higher than 2019, mainly reflecting: (i)
higher zinc content from Antamina (40,000 tonnes); (ii) improved output from the Mount Isa operations (27,800
tonnes); and (iii) the net positive effect of 18,700 tonnes from Other South America, owing to restarting the short-life
Iscaycruz mine in Peru, offset by Covid-related suspensions and shutdowns.
• Own sourced nickel production of 110,200 tonnes was 10,400 tonnes (9%) lower than 2019, reflecting Koniambo
operating as a single-line operation for the majority of 2020, with Covid-related mobility restrictions affecting its
maintenance schedule. The expected decline in grades at the existing Sudbury mines (INO) also contributed.
• Attributable ferrochrome production of 1,029,000 tonnes was 409,000 tonnes (28%) lower than 2019, reflecting the
South African lockdown and resulting suspension of smelting operations in Q2, with a phased restart thereafter.
Lydenburg smelter has been placed on extended care and maintenance. The remaining four smelters were fully
operational from Q4, resulting in materially higher quarter on quarter production.
• Coal production of 106.2 million tonnes was 33.3 million tonnes (24%) lower than in 2019, reflecting the impacts of
the pandemic via stopped or reduced work in Colombia and South Africa, extended care and maintenance at
Prodeco, plus market-related supply reductions in Australia in H2 2020.
• Entitlement interest oil production of 3.9 million barrels was 1.6 million barrels (29%) lower than 2019. Operated fields
in Chad were placed on care and maintenance in March/April 2020 and are yet to be restarted, given continued
pandemic-related challenges in international mobility (2.2 million barrels decrease). The balance reflects year over
year production increases in Equatorial Guinea and Cameroon since new wells were drilled.
Other matters
• In January 2021, Glencore agreed terms for the sale of its interest in Mopani to ZCCM, with completion expected in
H1 2021.
• Glencore also published its 2020 Resources and Reserves report today.
To view the full report please click:
http://www.glencore.com/dam/jcr:9a549d01-c619-4e0d-b043-403a417bd79b/GLEN_2020-Q4_ProductionReport.pdf
To view the full report on the Johannesburg Stock Exchange portal please click here:
https://senspdf.jse.co.za/documents/2021/JSE/ISSE/GLN/FY20-PrRep.pdf
For further information please contact:
Investors
Martin Fewings t: +41 41 709 2880 m: +41 79 737 5642 martin.fewings@glencore.com
Media
Charles Watenphul t: +41 41 709 24 62 m: +41 79 904 33 20 charles.watenphul@glencore.com
www.glencore.com
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 and metallurgical sites 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 145,000 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 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", "risks", "intends", "positioned", "predicts", "anticipates"
or "does not anticipate", or "believes", or 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 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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Date: 03-02-2021 09:00:00
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