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GLN - Half-Year Production Report 2024
GLENCORE PLC
(Incorporated in Jersey under the Companies (Jersey) Law 1991)
(Registration number 107710)
JSE Share Code: GLN
LSE Share Code: GLEN
ISIN: JE00B4T3BW64
Glencore LEI: 2138002658CPO9NBH955
NEWS RELEASE
Baar, 30 July 2024
Half-Year Production Report 2024
Glencore Chief Executive Officer, Gary Nagle:
"Across the portfolio, our full-year 2024 production guidance has been maintained and we have added additional steelmaking
coal volumes in H2 2024, following successful closing of the EVR acquisition on 11 July 2024. As anticipated, 2024 is expected to
be a year of two halves, whereby the tracking of our year-to-date production versus guidance is expected to be caught up
during the second half of the year.
"Key anticipated H2 over H1 higher production levels include African Copper: +c.30kt (recovery from H1 mill outage, access to
higher grade ores and higher throughput rates at Mutanda), Antapaccay: +c.8kt (recovery from H1 geotechnical event),
Kazzinc: +c.60kt (continued ramp-up at Zhairem) and Murrin Murrin: +c.3kt (reflecting the timing of its annual shutdown in
April). We have updated 2024 steelmaking coal production guidance to 19Mt-21Mt, via inclusion of 12Mt of expected EVR
volumes in H2. In our energy coal business, the expected H2/H1 uplift is mainly from our Australian assets, reflecting longwall
changes, improved equipment availability and reduced strip ratios.
"As announced earlier this month, post the acquisition of EVR, we are now in the process of consulting with shareholders to
assess their views regarding the potential demerger of our coal and carbon steel materials business. We expect to be able to
announce the outcome of such engagement and the decision of the Board regarding the potential demerger alongside our
interim results next week."
Production from own sources – Total(1)
H1 2024 H1 2023 Change %
Copper kt 462.6 488.0 (5)
Cobalt kt 15.9 21.7 (27)
Zinc kt 417.2 434.7 (4)
Lead kt 87.9 87.4 1
Nickel kt 44.2 46.4 (5)
Gold koz 369 369 –
Silver koz 9,117 9,446 (3)
Ferrochrome kt 599 717 (16)
Steelmaking coal mt 3.4 3.7 (8)
Energy coal mt 47 51 (7)
(1). Controlled industrial assets and joint ventures only. Production is on a 100% basis, except as stated later in this report.
H1 production highlights
• On a like-for-like basis, removing 15,000 tonnes of Cobar (sold in June 2023) volumes from the prior period, own sourced copper
production of 462,600 tonnes was 2% below H1 2023.
• Own sourced cobalt production of 15,900 tonnes was 5,800 tonnes (27%) lower than H1 2023, reflecting planned lower run-rates
at Mutanda in response to the current weak cobalt pricing environment and lower throughput and cobalt grades at KCC.
• Own sourced overall zinc production of 417,200 tonnes was 17,500 tonnes (4%) below H1 2023, mainly reflecting lower zinc tonnes
from Antamina (34,900 tonnes), given its current year expected copper/zinc mine sequence, partly offset by the ramp up of
Zhairem (24,800 tonnes). Own sourced zinc production from the zinc department itself (i.e. excluding Antamina) was 17,400
tonnes (5%) higher than H1 2023.
• Own sourced nickel production of 44,200 tonnes was 2,200 tonnes (5%) lower than H1 2023, reflecting Koniambo's transition to
care and maintenance (7,700 tonnes), partially offset by recovery from the INO supply chain constraints seen in the base period
(4,200 tonnes) and higher production from Murrin Murrin (1,300 tonnes). Excluding Koniambo (KNS), own sourced nickel
production of 39,200 tonnes was 5,500 tonnes (16%) higher than H1 2023.
• Attributable ferrochrome production of 599,000 tonnes was 118,000 tonnes (16%) below H1 2023, as the Rustenburg smelter
remains idled in response to weak market conditions and pending an improved price/cost environment.
• Coal production of 50.6 million tonnes was 3.6 million tonnes (7%) lower than H1 2023, mainly reflecting the progressive impact
of scheduled mine closures, the temporary impact of longwall moves in Australia in 2024 and export rail constraints in South
Africa.
Glencore Half-Year Production Report 2024 1
HIGHLIGHTS
continued
Production guidance
Actual Previous Current
FY guidance guidance 2024 weighting
2023 2024 2024 H1 H2
Copper kt 1,010 950-1,010 950-1,010 47% 53%
Cobalt kt 41.3 35-40 35-40 42% 58%
Zinc kt 919 900-950 900-950 45% 55%
Nickel kt 98 80-90 80-90 (1) 46%(1) 54%
Ferrochrome kt 1,162 1,100-1,200 1,100-1,200 52% 48%
Steelmaking coal mt 7.5 7-9 19-21 (2) n.m. n.m.
Energy coal mt 107 98-106 98-106 46% 54%
1. KNS transitioned to care and maintenance during February 2024. The nickel production guidance above is presented ex-KNS and therefore excludes the 5.0kt produced by KNS in Q1
2024 prior to its transition to care and maintenance.
2. Full year coal guidance has been updated to include circa 12mt (on a 100% basis) in H2 2024 from the Elk Valley Resources (EVR) steelmaking coal business acquired on 11 July 2024.
Other than forecast adjustments for the recently-acquired EVR operations, production guidance is unchanged from that announced
in our full year 2023 Production Report released on 1 February 2024.
Other matters
• H1 2024 copper, zinc, nickel and coal realised price and cost details are provided in their respective sections later in this report.
• We expect to report a meaningful H1 2024 reduction in net working capital, such contributing to an expected decline in reported
Net Debt over the period.
• In May 2024, Glencore sold its stake in Volcan.
• On 5 July 2024, Glencore received final regulatory approval for the acquisition of a 77% interest in EVR from Teck Resources. The
transaction closed on 11 July 2024. Our forward-looking production guidance has been adjusted to separate steelmaking and
energy coal. Steelmaking coal guidance includes circa 12mt (on a 100% basis) of forecast EVR production in H2 2024.
To view the full report please click here: https://www.glencore.com/.rest/api/v1/documents/static/65731bf1-985d-4458-984f-
103f7a732222/GLEN_2024-H1ProductionReport.pdf
To view the full report on the Johannesburg Stock Exchange portal please click here:
https://senspdf.jse.co.za/documents/2024/JSE/ISSE/GLN/HY24-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 2462 m: +41 79 904 3320 charles.watenphul@glencore.com
www.glencore.com
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 commodities that advance everyday life. Through a network of assets, customers and suppliers that spans the globe, we produce,
process, recycle, source, market and distribute the commodities that support decarbonisation while meeting the energy needs of
today.
With over 150,000 employees and contractors and 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 50 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.
We will support the global effort to achieve the goals of the Paris Agreement through our efforts to decarbonise our own operational
footprint. We believe that we should take a holistic approach and have considered our commitment through the lens of our global
industrial emissions. Against a restated 2019 baseline, we are targeting to reduce our Scope 1, 2 and 3 industrial emissions by 15% by
the end of 2026, 25% by the end of 2030, 50% by the end of 2035 and we have an ambition to achieve net zero industrial emissions by
the end of 2050, subject to a supportive policy environment. For more information see our 2024-2026 Climate Action Transition Plan
and the About our emissions calculation and reporting section in our 2023 Annual Report, available on our website at
glencore.com/publications.
Glencore Half-Year Production Report 2024 2
Important notice
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. This document does not purport to contain all of the information you may wish to consider.
Cautionary statement regarding forward-looking information
Certain descriptions in this document are oriented towards future events and therefore contains statements that are, or may be
deemed to be, "forward-looking statements" which are prospective in nature. Such statements may include, without limitation,
statements in respect of trends in commodity prices and currency exchange rates; demand for commodities; reserves and resources
and production forecasts; expectations, plans, strategies and objectives of management; expectations regarding financial
performance, results of operations and cash flows, climate scenarios; sustainability (including, without limitation, environmental, social
and governance) performance-related goals, ambitions, targets, intentions and aspirations; approval of certain projects and
consummation and impacts of certain transactions (including, without limitation, acquisitions and disposals); closures or divestments
of certain assets, operations or facilities (including, without limitation, associated costs); capital costs and scheduling; operating costs
and supply of materials and skilled employees; financings; anticipated productive lives of projects, mines and facilities; provisions and
contingent liabilities; and tax, legal and regulatory developments.
These forward-looking statements may be identified by the use of forward-looking terminology, or the negative thereof including,
without limitation, "outlook", "guidance", "trend", "plans", "expects", "continues", "assumes", "is subject to", "budget", "scheduled",
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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. The information in this document provides an insight into how we currently intend to
direct the management of our businesses and assets and to deploy our capital to help us implement our strategy. The matters
disclosed in this document are a 'point in time' disclosure only. 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 conditions and discussions of strategy, and reflect judgments, assumptions, estimates and
other information available as at the date of this document or the date of the corresponding planning or scenario analysis process.
By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause
actual results, performance or achievements to differ materially from any future event, results, performance, achievements or other
outcomes expressed or implied by such forward-looking statements. Important factors that could impact these uncertainties include
(without limitation) those disclosed in the risk management section of our latest Annual Report and/or Half-Year Report (which can
each be found on our website). These risks and uncertainties may materially affect the timing and feasibility of particular
developments. Other factors which impact risks and uncertainties include, without limitation: the ability to produce and transport
products profitably; demand for our products and commodity prices; development, efficacy and adoption of new or competing
technologies; changing or divergent preferences and expectations of our stakeholders; events giving rise to adverse reputational
impacts; changes to the assumptions regarding the recoverable value of our tangible and intangible assets; inadequate estimates of
resources and reserves; changes in environmental scenarios and related regulations, including, without limitation, transition risks and
the evolution and development of the global transition to a low carbon economy; recovery rates and other operational capabilities;
timing, quantum and nature of certain acquisitions and divestments; delays, overruns or other unexpected developments in
connection with significant projects; the ability to successfully manage the planning and execution of closure, reclamation and
rehabilitation of industrial sites; health, safety, environmental or social performance incidents; labor shortages or workforce
disruptions; natural catastrophes or adverse geological conditions, including, without limitation, the physical risks associated with
climate change; effects of global pandemics and outbreaks of infectious disease; the outcome of litigation or enforcement or
regulatory proceedings; the effect of foreign currency exchange rates on market prices and operating costs; actions by governmental
authorities, such as changes in taxation or regulation or changes in the decarbonisation policies and plans of other countries; breaches
of Glencore's policy framework, applicable laws or regulations; the availability of sufficient credit and management of liquidity and
counterparty risks; changes in economic and financial market conditions generally or in various countries or regions; political or
geopolitical uncertainty; and wars, political or civil unrest, acts of terrorism, cyber attacks or sabotage.
Readers, including, without limitation, investors and prospective investors, should review and consider these risks and uncertainties
(as well as the other risks identified in this document) when considering the information contained in this document. Readers should
also note that the high degree of uncertainty around the nature, timing and magnitude of climate-related risks, and the uncertainty
as to how the energy transition will evolve, makes it particularly difficult to determine all potential risks and opportunities and disclose
these and any potential impacts with precision. Neither Glencore nor any of its affiliates, associates, employees, directors, officers or
advisers, provides any representation, warranty, assurance or guarantee as to the accuracy, completeness or correctness, likelihood of
achievement or reasonableness of any forward-looking information contained in this document or that the events, results,
performance, achievements or other outcomes expressed or implied in any forward-looking statements in this document will actually
occur. Glencore cautions readers against reliance on any forward-looking statements contained in this document, particularly in light
of the long-term time horizon which this document discusses in certain instances and the inherent uncertainty in possible policy,
market and technological developments in the future.
No statement in this document is intended as any kind of forecast (including, without limitation, a profit forecast or a profit estimate),
guarantee or prediction of future events or performance and past performance cannot be relied on as a guide to future performance.
Glencore Half-Year Production Report 2024 3
Except as required by applicable rules and 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.
Sources
Certain statistical and other information included in this document is sourced from publicly available third-party sources. This
information has not been independently verified and presents the view of those third parties, and may not necessarily correspond to
the views held by Glencore and Glencore expressly disclaims any responsibility for, or liability in respect of, and makes no
representation or guarantee in relation to, such information (including, without limitation, as to its accuracy, completeness or whether
it is current). Glencore cautions readers against reliance on any of the industry, market or other third-party data or information
contained in this document.
Information preparation
In preparing this document, Glencore has made certain estimates and assumptions that may affect the information presented.
Certain information is derived from management accounts, is unaudited and based on information Glencore has available to it at the
time. Figures throughout this document are subject to rounding adjustments. The information presented is subject to change at any
time without notice and we do not intend to update this information except as required.
This document contains alternative performance measures which reflect how Glencore's management assesses the performance of
the Group, including results that exclude certain items included in our reported results. These alternative performance measures
should be considered in addition to, and not as a substitute for, or as superior to, measures of financial performance or position
reported in accordance with IFRS. Such measures may not be uniformly defined by all companies, including those in Glencore's
industry. Accordingly, the alternative performance measures presented may not be comparable with similarly titled measures
disclosed by other companies. Further information can be found in our reporting suite available at glencore.com/publications.
Subject to any terms implied by law which cannot be excluded, Glencore accepts no responsibility for any loss, damage, cost or
expense (whether direct or indirect) incurred by any person as a result of any error, omission or misrepresentation in information in
this document.
Other information
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"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.
Sponsor
Absa Corporate and Investment Bank, a division of Absa Bank Limited
Date: 30-07-2024 08:00:00
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