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GLN: Half-Year Production Report 2022
GLENCORE PLC
(Incorporated in Jersey under the Companies (Jersey) Law 1991)
(Registration number 107710)
JSE Share Code: GLN
LSE Share Code: GLEN
ISIN: JE00B4T3BW64
LEI: 2138002658CPO9NBH955
Baar, Switzerland
29 July 2022
NEWS RELEASE
Half-Year Production Report 2022
Glencore Chief Executive Officer, Gary Nagle:
“Overall production was mixed period-over-period (5 commodities up and 5 down in the table below), reflecting the Ernest
Henry (copper/gold) and Bolivia (zinc) portfolio disposals, and geotechnical and processing challenges at Katanga, offset by
improved cobalt, nickel and ferrochrome production levels and the additional contribution from Cerrejon, reflecting its full
ownership from early January.
“Our full year production guidance remains unchanged with the exception of copper, where the ongoing geotechnical
constraints relating to Katanga’s open pit and continued management of higher levels of acid-consuming ore, largely
account for the reduced guidance of 1,060kt (previously 1,110kt).
“We remain focused on the health and safety of our workforce. Unfortunately we recorded the loss of one life at Glencore’s
managed operations during the first half of 2022. We continue to believe that we can and must eliminate all fatalities, and
we will continue to drive the management of safety across the business to achieve this. Our Total Recordable Injury
Frequency rate of 2.3 incidents per million hours worked over the six months to June was 3% lower year-on-year and 14%
lower over two years.
“Our financial performance (both industrial and marketing) was very strong during the period, particularly on account of
buoyant energy markets, which will be a feature in the release of next week’s Half-Year Report. Allied with the strong results,
particularly in marketing and mostly energy related, our net working capital has significantly increased during the period, in
line with materially higher oil, gas and coal prices, and their elevated market volatilities. These factors result in a timing
mismatch between the net positive fair value of physical forward contracts (which are not margined) and related derivative
hedging requirements (which are margined). The various commodity exchanges have also significantly increased their initial
margining requirements.”
Production from own sources – Total1
H1 2022 H1 2021 Change %
Copper kt 510.2 598.0 (15)
Cobalt kt 20.7 14.8 40
Zinc kt 480.7 581.8 (17)
Lead kt 95.1 117.0 (19)
Nickel kt 57.8 47.7 21
Gold koz 334 423 (21)
Silver koz 12,579 15,984 (21)
Ferrochrome kt 786 773 2
Coal mt 55.4 48.7 14
Oil (entitlement interest basis) kboe 3,132 2,557 22
1. Controlled industrial assets and joint ventures only. Production is on a 100% basis, except as stated later in this report.
H1 production highlights
• Own sourced copper production of 510,200 tonnes was 87,700 tonnes (15%) lower than H1 2021 due to ongoing geotechnical
constraints at Katanga (35,500 tonnes), the basis change arising from the sale of Ernest Henry in January 2022 (21,900 tonnes),
Collahuasi mine sequencing (18,100 tonnes) and lower copper units produced within Glencore’s zinc business.
• Own sourced zinc production of 480,700 tonnes was 101,000 tonnes (17%) lower than H1 2021 reflecting progressive reduction
in the South American portfolio through disposals and closures (49,600 tonnes), Covid-19 related absenteeism leading to lower
development rates and sequence changes at Mount Isa (34,800 tonnes) and somewhat lower Antamina production.
• Own sourced nickel production of 57,800 tonnes was 10,100 tonnes (21%) higher than H1 2021 reflecting Koniambo operating
both production lines in 2022 and Murrin stable operations compared to maintenance in base period.
Glencore Half-Year Production Report 2022
• Attributable ferrochrome production of 786,000 tonnes was 13,000 tonnes (2%) higher than H1 2021, reflecting consistent
smelter performance.
• Coal production of 55.4 million tonnes was 6.7 million tonnes (14%) higher than H1 2021, mainly reflecting higher attributable
production from Cerrejón, following the acquisition in January 2022 of the remaining two-thirds interest that Glencore did not
already own. On a like for like basis, overall Group production declined by 0.5 million tonnes (1%).
• Entitlement interest oil production of 3.1 million barrels of oil equivalent was 0.6 million barrels (22%) higher than H1 2021, due to
commencement of the gas phase of the Alen project in Equatorial Guinea from March 2021.
Realised prices
Realised
US$ million ¢/lb $/t
Copper 393 8,664
Zinc 173 3,824
Nickel 1,239 27,315
The average Newcastle coal (NEWC) settlement prices for the period was $320/t. After applying a portfolio mix adjustment (component of our regular coal cash flow modelling guidance)
of $84/t to reflect e.g. movements in the pricing of non-NEWC quality coals, coking coal margins and the lag effect of 2021’s JPU fixed-price contracts, an average thermal-equivalent
realised price of c.$236/t can be applied across all coal sales volumes in H1.
Production guidance
Actual Previous Current
FY guidance guidance 2022 weighting
2021 2022 2022 H1 H2
Copper kt 1,196 1,110 ± 30 1,060 ± 30 48% 52%
Cobalt kt 31.3 45 ± 3 45 ± 3 46% 54%
Zinc kt 1,118 1,010 ± 30 1,010 ± 30 1
48% 52%
Nickel kt 102 118 ± 5 118 ± 5 49% 51%
Ferrochrome kt 1,468 1,500 ± 30 1,500 ± 30 52% 48%
Coal mt 103 121 ± 5 121 ± 5 46% 54%
1 Excludes Volcan
Changes to guidance mainly reflect:
• Copper down 50kt (5%) – primarily due to the ongoing geotechnical constraints facing Katanga’s open pit and management
of higher levels of acid-consuming ore, as well as reflecting the lower YTD run-rate at Mount Isa Copper, in large part due to
Covid-19 related absenteeism
• Coal – the negative effect on volumes from the recent flooding event in New South Wales and associated delays in restoring
mine production and logistics infrastructure has not yet been incorporated in the guidance table above, pending final
assessment
To view the full report please click: https://www.glencore.com/dam/jcr:8939851b-8710-4b91-9552-a4226f0dc599/GLEN_2022-
H1_ProductionReport.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 2462 m: +41 79 904 3320 charles.watenphul@glencore.com
www.glencore.com
Glencore LEI: 2138002658CPO9NBH955
Please refer to the end of this document for disclaimers including on forward-looking statements.
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. Through a network of assets, customers and suppliers that
Glencore Half-Year Production Report 2022 2
spans the globe, we produce, process, recycle, source, market and distribute the commodities that enable decarbonisation while
meeting the energy needs of today.
Glencore companies employ around 135,000 people, including contractors. With a strong footprint in over 35 countries in both
established and emerging regions for natural resources, our marketing and industrial activities are supported by a global network of
more than 40 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 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 recognises our responsibility to contribute to the global effort to achieve the goals of the Paris Agreement. Our ambition is
to be a net zero total emissions company by 2050. In August 2021, we increased our medium-term emission reduction target to a
50% reduction by 2035 on 2019 levels and introduced a new short-term target of a 15% reduction by 2026 on 2019 levels.
Important notice concerning disclaimers including on 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.
Glencore Half-Year Production Report 2022 3
HIGHLIGHTS
CONTINUED
Sponsor
Absa Corporate and Investment Bank, a division of Absa Bank Limited
Glencore Half-Year Production Report 2022
Date: 29-07-2022 08:14:00
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