Wrap Text
GLN - First quarter 2018 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
Baar, Switzerland
3 May 2018
First Quarter 2018 Production Report
Production highlights
- Production was largely in line with expectations across all commodity groups. Full
year guidance is unchanged from that presented in February (refer to page 18).
- Own sourced copper production of 345,400 tonnes was 21,300 tonnes higher than Q1
2017, reflecting the commissioning of phase 1 of Katanga’s whole ore leach project
in December 2017, partly offset by the impact of maintenance at the Mount Isa
smelter and Alumbrera’s expected decline as it moves towards end of mine life.
- Own sourced zinc production of 242,700 tonnes was 36,500 tonnes (13%) below Q1
2017, mainly reflecting the disposal of Rosh Pinah and Perkoa in August 2017.
Adjusting for such, production was in line.
- Own sourced nickel production of 30,100 tonnes was 5,100 tonnes (21%) higher than
the comparable period, reflecting the continuing stabilisation and ramp-up of
Koniambo’s processing plant, where both production lines are now operational, and
stronger performances at Murrin and INO.
- Attributable ferrochrome production of 409,000 tonnes was 31,000 tonnes (7%) below
Q1 2017, mainly reflecting furnace downtime and challenges with the subsequent
restart.
- Coal production of 30.7 million tonnes was in line with Q1 2017, reflecting a
stronger contribution from the Australian thermal portfolio (impacted by adverse
weather in the base period), offset by weather-related reductions at Prodeco. Full
year coal production guidance (unchanged) includes the largely offsetting impacts
of the Hail Creek JV acquisition, expected in H2 2018, and lower production now
expected from Prodeco in 2018, before returning to higher levels in 2019.
- Glencore’s entitlement interest oil production of 1,156,000 barrels was 209,000
barrels (15%) lower than Q1 2017. This was in line with Q4 2017 as natural field
declines in Equatorial Guinea were offset by increasing production in Chad from the
drilling campaign that started in H2 2017.
- Full year 2018 Marketing EBIT expected to be within the top half of the $2.2
billion to $3.2 billion long term guidance range.
Glencore Q1 2018 - Production Report - 1
For further information please contact:
Investors
Martin Fewings t: +41 41 709 2882 m: +41 79 737 5642 martin.fewings@glencore.com
Ash Lazenby t: +41 41 709 2714 m: +41 79 543 3804 ash.lazenby@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 90 commodities. The Group's operations
comprise around 150 mining and metallurgical sites, oil production assets and
agricultural facilities.
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 more
than 90 offices located in over 50 countries.
Glencore's customers are industrial consumers, such as those in the automotive, steel,
power generation, oil and food processing sectors. We also provide financing, logistics
and other services to producers and consumers of commodities. Glencore's companies employ
around 146,000 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.
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Glencore Q1 2018 - Production Report - 2
Metals and minerals
Production from own sources – total(1)
2018 2017 Change
Q1 Q1 %
Copper kt 345.4 324.1 7
Zinc kt 242.7 279.2 (13)
Lead kt 57.4 68.9 (17)
Nickel kt 30.1 24.9 21
Gold koz 231 259 (11)
Silver koz 8,296 9,295 (11)
Cobalt kt 7.0 6.3 11
Ferrochrome kt 409 439 (7)
Production from own sources – Copper assets(1)
2018 2017 Change
Q1 Q1 %
African Copper (Katanga, Mutanda, Mopani)
Copper metal kt 92.9 56.9 63
Cobalt(3) kt 6.1 5.7 7
Collahuasi(4)
Copper in concentrates kt 60.6 57.6 5
Silver in concentrates koz 812 774 5
Antamina(5)
Copper in concentrates kt 36.5 30.3 20
Zinc in concentrates kt 30.3 24.5 24
Silver in concentrates koz 1,321 1,445 (9)
Other South America (Alumbrera, Lomas Bayas, Antapaccay,
Punitaqui)
Copper metal kt 17.1 20.3 (16)
Copper in concentrates kt 56.5 59.4 (5)
Gold in concentrates and in koz 73 82 (11)
doré
Silver in concentrates and in koz 417 463 (10)
doré
Australia (Mount Isa, Ernest Henry, Townsville, Cobar)
Copper metal kt 32.7 48.5 (33)
Copper in concentrates kt 15.1 12.7 19
Gold koz 17 17 -
Silver koz 370 389 (5)
Total Copper
department
Copper kt 311.4 285.7 9
Cobalt kt 6.1 5.7 7
Zinc kt 30.3 24.5 24
Gold koz 90 99 (9)
Silver koz 2,920 3,071 (5)
Glencore Q1 2018 - Production Report - 3
Production from own sources – Zinc assets(1)
2018 2017 Change
Q1 Q1 %
Kazzinc
Zinc metal kt 49.8 48.1 4
Lead metal kt 14.0 11.3 24
Lead in concentrates kt - 2.3 (100)
Copper metal(2) kt 12.0 12.7 (6)
Gold koz 133 150 (11)
Silver koz 1,388 1,152 20
Silver in concentrates koz - 55 (100)
Australia (Mount Isa, McArthur River)
Zinc in concentrates kt 110.2 115.6 (5)
Lead in concentrates kt 32.6 40.5 (20)
Silver in concentrates koz 1,240 1,935 (36)
North America (Matagami, Kidd)
Zinc in concentrates kt 26.1 35.0 (25)
Copper in concentrates kt 10.4 12.3 (15)
Silver in concentrates koz 601 663 (9)
Other Zinc: South America (Argentina, Bolivia,
Peru)(6)
Zinc in concentrates kt 26.3 24.9 6
Lead metal kt 2.6 2.6 -
Lead in concentrates kt 8.2 11.3 (27)
Copper in concentrates kt 1.1 0.5 120
Silver metal koz 158 108 46
Silver in concentrates koz 1,879 2,081 (10)
Other Zinc: Africa (Rosh Pinah, Perkoa)
Zinc in concentrates kt - 31.1 (100)
Lead in concentrates kt - 0.9 (100)
Silver in concentrates koz - 47 (100)
Total Zinc department
Zinc kt 212.4 254.7 (17)
Lead kt 57.4 68.9 (17)
Copper kt 23.5 25.5 (8)
Gold koz 133 150 (11)
Silver koz 5,266 6,041 (13)
Glencore Q1 2018 - Production Report - 4
Production from own sources – Nickel assets(1)
2018 2017 Change
Q1 Q1 %
Integrated Nickel Operations (“INO”) (Sudbury,
Raglan, Nikkelverk)
Nickel metal kt 15.0 13.9 8
Nickel in concentrates kt 0.1 0.2 (50)
Copper metal kt 3.6 3.9 (8)
Copper in concentrates kt 6.9 9.0 (23)
Cobalt metal kt 0.2 0.1 100
Gold koz 8 10 (20)
Silver koz 110 183 (40)
Platinum koz 19 23 (17)
Palladium koz 39 37 5
Rhodium koz 1 2 (50)
Murrin Murrin
Nickel metal kt 8.4 6.2 35
Cobalt metal kt 0.7 0.5 40
Koniambo Nickel in ferronickel kt 6.6 4.6 43
Total Nickel department
Nickel kt 30.1 24.9 21
Copper kt 10.5 12.9 (19)
Cobalt kt 0.9 0.6 50
Gold koz 8 10 (20)
Silver koz 110 183 (40)
Platinum koz 19 23 (17)
Palladium koz 39 37 5
Rhodium koz 1 2 (50)
Production from own sources – Ferroalloys assets(1)
2018 2017 Change
Q1 Q1 %
Ferrochrome(7) kt 409 439 (7)
PGM(8) Platinum koz 16 14 14
Palladium koz 11 9 22
Rhodium koz 3 2 50
Gold koz - - n.m.
4E koz 30 25 20
Vanadium Pentoxide mlb 5.3 5.1 4
Glencore Q1 2018 - Production Report - 5
Total production – Custom metallurgical assets(1)
2018 2017 Change
Q1 Q1 %
Copper (Altonorte, Pasar, Horne, CCR)
Copper metal kt 117.0 128.2 (9)
Copper anode kt 126.5 139.7 (9)
Zinc (Portovesme, San Juan de Nieva, Nordenham,
Northfleet)
Zinc metal kt 190.0 197.2 (4)
Lead metal kt 52.7 53.3 (1)
Silver koz 2,907 3,243 (10)
1 Controlled industrial assets and joint ventures only. Production is on a 100% basis,
except as stated.
2 Copper metal includes copper contained in copper concentrates and blister.
3 Cobalt contained in concentrates and hydroxides.
4 The Group’s pro-rata share of Collahuasi production (44%).
5 The Group’s pro-rata share of Antamina production (33.75%).
6 South American production excludes Volcan Compania Minera.
7 The Group’s attributable 79.5% share of the Glencore-Merafe Chrome Venture.
8 Consolidated 50% of Mototolo and 100% of the Group's PGM recovery plant.
Selected average commodity prices
2018 2017 Change
Q1 Q1 %
S&P GSCI Industrial Metals Index 384 324 19
LME (cash) copper price ($/t) 6,958 5,838 19
LME (cash) zinc price ($/t) 3,413 2,778 23
LME (cash) lead price ($/t) 2,518 2,278 11
LME (cash) nickel price ($/t) 13,273 10,265 29
Gold price ($/oz) 1,330 1,219 9
Silver price ($/oz) 17 18 (6)
Metal Bulletin cobalt price 99.3% ($/lb) 37 20 85
Metal Bulletin ferrochrome 6-8% C basis 60% Cr, max 1.5% Si 133 137 (3)
(¢/lb)
Iron ore (Platts 62% CFR North China) price ($/DMT) 71 86 (17)
Operating highlights
Copper assets
Own sourced copper production of 345,400 tonnes was 21,300 tonnes higher than Q1
2017, reflecting the commissioning of phase 1 of Katanga’s whole ore leach project
in December 2017, partly offset by the impact of maintenance at the Mount Isa
smelter and Alumbrera’s expected decline as it moves towards end of mine life.
African copper
Own sourced copper production of 92,900 tonnes was 36,000 tonnes (63%) ahead of Q1
2017, mainly reflecting the commissioning of phase 1 of Katanga’s whole ore leach
project in December 2017 (production of 27,700 tonnes in Q1 2018).
Own sourced cobalt production of 6,100 tonnes was 7% over Q1 2017, reflecting a 500
tonnes contribution from Katanga, whose cobalt circuit delivered first metal in
March 2018 as scheduled.
Glencore Q1 2018 - Production Report - 6
Collahuasi
Glencore’s share of copper production at 60,600 tonnes was 3,000 tonnes (5%) higher
than Q1 2017, reflecting higher throughput.
Antamina
Glencore’s share of copper production was 36,500 tonnes and its share of zinc
production was 30,300 tonnes, up 20% and 24%, respectively, on Q1 2017. The base
period was impacted by flooding in the region, which led to the temporary closure
of the concentrates pipeline. Against the more comparable Q4 2017, copper
production was up 4% and zinc production was down 12%, within the normal range of
expectations for variations in ores processed.
Other South America
Copper production of 73,600 tonnes was down 6,100 tonnes (8%) on Q1 2017, mainly
relating to Alumbrera, as noted above.
Australia
Own sourced copper production of 47,800 tonnes was down 13,400 tonnes (23%) on Q1
2017, mainly due to timing of maintenance at the Mount Isa smelter, including a
periodic furnace rebricking.
Custom metallurgical assets
Copper cathode production of 117,000 tonnes was 11,200 tonnes (9%) lower than Q1
2017, mainly reflecting issues in Pasar’s acid plant, which are being addressed.
Copper anode production of 126,500 tonnes was 13,200 tonnes (10%) lower than Q1
2017, also relating to Pasar.
Zinc assets
Own sourced zinc production of 242,700 tonnes was 36,500 tonnes (13%) below Q1
2017, mainly reflecting the disposal of Rosh Pinah and Perkoa in August 2017.
Adjusting for such, production was in line.
Own sourced lead production of 57,400 tonnes was down 11,500 tonnes (17%) on Q1
2017, mainly reflecting expected changes in mine supply at Mount Isa, together with
expected lower head grades at Aguilar mine in Argentina.
Note that these totals exclude Volcan, a consolidated but otherwise standalone
entity where the Group has a 23% economic interest.
Kazzinc
Total production (own sourced plus third party material) was in line with or ahead
of Q1 2017 for all primary products.
Own sourced zinc production of 49,800 tonnes was 1,700 tonnes (4%) ahead of Q1
2017, reflecting certain efficiencies achieved in Kazzinc’s smelting operations.
Own sourced lead production of 14,000 tonnes was in line with the comparable
period. Own sourced copper production of 12,000 tonnes was 700 tonnes (6%) below Q1
2017, reflecting lower grades and a temporary furnace stoppage.
Australia
Zinc production of 110,200 tonnes was 5,600 tonnes (5%) below Q1 2017 and lead
production of 32,600 tonnes was down 7,900 tonnes (20%), reflecting expected mine
planning changes at both operations.
Glencore Q1 2018 - Production Report - 7
North America
Zinc production of 26,100 tonnes and copper production of 10,400 tonnes were down
25% and 15%, respectively, on Q1 2017, reflecting the expected transition of both
Kidd and Matagami towards lower grades and throughput.
South America
Zinc production of 26,300 tonnes was up 1,400 tonnes (6%) on Q1 2017, reflecting
stable operations. Lead production of 10,800 tonnes was down 3,100 tonnes (22%),
reflecting lower lead grades at Aguilar mine in Argentina.
European custom metallurgical assets
Zinc production of 190,000 tonnes was 7,200 tonnes (4%) below Q1 2017, reflecting
certain short-term interruptions, with production expected to be recovered in the
coming months. Lead production of 52,700 tonnes was in line with Q1 2017.
Nickel assets
Own sourced nickel production of 30,100 tonnes was 5,200 tonnes (21%) higher than
the comparable period, reflecting the continuing stabilisation and ramp-up of
Koniambo’s processing plant, where both production lines are now operational, and
stronger performances at Murrin and INO.
Integrated Nickel Operations (“INO“)
Own sourced nickel production of 15,100 tonnes was 1,000 tonnes (7%) higher than
the comparable period, reflecting the timing of processing own sourced and third
party feeds in the refinery. Total production including third party material of
21,600 tonnes was down 1,200 tonnes on the comparable period which is within the
range of normal expected variations.
Own sourced copper production of 10,500 tonnes was 2,400 tonnes (19%) down on the
comparable period, reflecting expected declining grades at the Sudbury complex.
Murrin Murrin
Own sourced nickel production of 8,400 tonnes was 2,200 tonnes (35%) higher than
the comparable period, which was impacted by a maintenance shutdown.
Koniambo
First metal was tapped from Line 2 in December 2017 and both production lines have
increased production progressively through the quarter. Accordingly, production of
6,600 tonnes was 2,000 tonnes (43%) higher than Q1 2017 and 1,400 tonnes (27%)
higher than Q4 2017.
Ferroalloys assets
Ferrochrome
Attributable ferrochrome production of 409,000 tonnes was 30,000 tonnes (7%) below
Q1 2017, mainly reflecting furnace downtime and challenges with the subsequent
restart.
Platinum Group Metals (“PGM”)
Production of 30,000 ounces was 5,000 ounces (20%) higher than Q1 2017, mainly
reflecting improved grades and milling rates at Mototolo.
Vanadium
Vanadium pentoxide production of 5.3 million pounds was 0.2 million pounds (4%)
higher than the comparable 2017 period.
Glencore Q1 2018 - Production Report - 8
Energy products
Production from own sources
Coal assets(1)
2018 2017 Change
Q1 Q1 %
Australian coking coal mt 1.6 1.7 (6)
Australian semi-soft coal mt 0.6 1.0 (40)
Australian thermal coal (export) mt 14.2 12.8 11
Australian thermal coal (domestic) mt 2.4 1.6 50
South African thermal coal (export) mt 4.0 4.2 (5)
South African thermal coal (domestic) mt 2.5 2.6 (4)
Prodeco mt 3.0 4.2 (29)
Cerrejón(2) mt 2.4 2.8 (14)
Total Coal department mt 30.7 30.9 (1)
1 Controlled industrial assets and joint ventures only. Production is on a 100% basis except for joint
ventures, where the Group’s attributable share of production is included.
2 The Group’s pro-rata share of Cerrejón production (33.3%).
Oil assets
2018 2017 Change
Q1 Q1 %
Glencore entitlement interest basis
Equatorial Guinea kbbl 517 691 (25)
Chad kbbl 639 674 (5)
Total Oil department kbbl 1,156 1,365 (15)
Gross basis
Equatorial Guinea kbbl 2,395 3,249 (26)
Chad kbbl 873 921 (5)
Total Oil department kbbl 3,268 4,170 (22)
Selected average commodity prices
2018 2017 Change
Q1 Q1 %
S&P GSCI Energy Index 214 179 20
Coal API4 ($/t) 93 83 12
Coal Newcastle (6,000 kcal/kg) ($/t) 101 82 23
Oil price – Brent ($/bbl) 67 55 22
Glencore Q1 2018 - Production Report - 9
Operating highlights
Coal assets
Coal production of 30.7 million tonnes was in line with Q1 2017, reflecting a
stronger contribution from the Australian thermal portfolio (impacted by adverse
weather in Q1 2017), offset by weather-related reductions in at Prodeco.
Australian coking
Production of 1.6 million tonnes was in line with Q1 2017.
Australian thermal and semi-soft
Production of 17.2 million tonnes was 1.8 million tonnes (11%) higher than Q1 2017,
which was affected by adverse weather in New South Wales.
South African thermal
Production of 6.5 million tonnes was 0.3 million tonnes (4%) lower than Q1 2017,
mainly reflecting the deconsolidation of Wonderfontein mine (Umcebo). Glencore
continues to benefit from its stake in this mine, which is now equity accounted.
Prodeco
Production of 3.0 million tonnes was 1.2 million tonnes (29%) lower than Q1 2017,
reflecting the impact on truck productivities during unusually heavy rainfall.
Quarterly production for the remainder of the year is expected to be at similar
levels, reflecting the requirement for additional overburden removal in order to
access planned levels of coal in future periods.
Cerrejón
Cerrejón’s attributable production decreased by 12% to 2.4 million tonnes as a
result of higher strip ratio areas being mined during the period.
Oil assets
Entitlement interest production of 1,156,000 barrels was 209,000 barrels (15%)
lower than Q1 2017. This was in line with Q4 2017 as natural field declines in
Equatorial Guinea were offset by increasing production in Chad from the drilling
campaign that started in H2 2017.
Glencore Q1 2018 - Production Report - 10
Appendix
Production by quarter – Q1 2017 to Q1 2018
Metals and minerals
Production from own sources – total(1)
Copper Zinc Lead Nickel
kt kt kt kt
Q1 2017 324.1 279.2 68.9 24.9
Q2 2017 318.8 291.6 70.3 26.3
Q3 2017 303.6 256.6 71.5 29.5
Q4 2017 363.2 262.8 61.8 28.4
Q1 2018 345.4 242.7 57.4 30.1
Change % 7 (13) (17) 21
Q1 18 vs Q1 17
Change % (5) (8) (7) 6
Q1 18 vs Q4 17
Gold Silver Cobalt Ferrochrome
koz koz kt kt
Q1 2017 259 9,295 6.3 439
Q2 2017 265 10,215 6.4 397
Q3 2017 247 9,298 7.1 271
Q4 2017 262 8,935 7.6 424
Q1 2018 231 8,296 7.0 409
Change % (11) (11) 11 (7)
Q1 18 vs Q1 17
Change % (12) (7) (8) (4)
Q1 18 vs Q4 17
Production from own sources – Copper assets(1)
Q1 Q2 Q3 Q4
2017 2017 2017 2017
African Copper (Katanga, Mutanda, Mopani)
Katanga Copper metal kt - - - 2.2
Copper in concentrates kt - - - 2.7
Cobalt(3) kt - - - -
Mutanda Copper metal kt 48.8 47.7 44.1 51.5
Cobalt(3) kt 5.7 5.5 6.0 6.7
Mopani Copper metal kt 8.1 6.9 11.7 15.0
African Copper - total production including third party feed
Mopani Copper metal kt 21.9 12.5 23.7 40.8
Total Copper metal kt 56.9 54.6 55.8 68.7
Total Copper in kt - - - 2.7
concentrates
Total Cobalt(3) kt 5.7 5.5 6.0 6.7
Collahuasi(4) Copper metal kt - - - -
Copper in concentrates kt 57.6 51.0 58.4 63.5
Silver in concentrates koz 774 748 766 815
Antamina(5) Copper in concentrates kt 30.3 40.0 37.2 35.1
Zinc in concentrates kt 24.5 34.5 34.5 34.6
Silver in concentrates koz 1,445 1,882 1,772 1,480
Glencore Q1 2018 - Production Report - 11
Q1 Change Change
2018 Q1 18 vs Q1 18 vs
Q1 17 Q4 17
% %
African Copper (Katanga, Mutanda,
Mopani)
Katanga Copper metal kt 27.7 n.m. 1,159
Copper in concentrates kt - n.m. (100)
Cobalt(3) kt 0.5 n.m. n.m.
Mutanda Copper metal kt 50.8 4 (1)
Cobalt(3) kt 5.6 (2) (16)
Mopani Copper metal kt 14.4 78 (4)
African Copper - total production including third party feed
Mopani Copper metal kt 33.0 51 (19)
Total Copper metal kt 92.9 63 35
Total Copper in kt - n.m. (100)
concentrates
Total Cobalt(3) kt 6.1 7 (9)
Collahuasi(4) Copper metal kt - n.m. n.m.
Copper in concentrates kt 60.6 5 (5)
Silver in concentrates koz 812 5 -
Antamina(5) Copper in concentrates kt 36.5 20 4
Zinc in concentrates kt 30.3 24 (12)
Silver in concentrates koz 1,321 (9) (11)
Glencore Q1 2018 - Production Report - 12
Q1 Q2 Q3 Q4
2017 2017 2017 2017
Other South America (Alumbrera, Lomas Bayas, Antapaccay, Punitaqui)
Alumbrera Copper in concentrates kt 11.4 9.1 7.3 5.5
Gold in concentrates and koz 48 49 53 38
in doréin concentrates
Silver koz 119 79 64 44
Lomas Bayas and in doré
Copper metal kt 20.3 20.7 19.9 17.2
Antapaccay Copper in concentrates kt 46.4 50.1 47.3 62.7
Gold in concentrates koz 29 26 34 50
Silver in concentrates koz 326 324 359 446
Punitaqui Copper in concentrates kt 1.6 1.2 1.4 1.3
Gold in concentrates koz 5 6 4 6
Silver in concentrates koz 18 17 14 11
Total Copper metal kt 20.3 20.7 19.9 17.2
Total Copper in kt 59.4 60.4 56.0 69.5
concentrates
Total Gold in koz 82 81 91 94
concentrates and in doré
Total Silver in koz 463 420 437 501
concentrates and in doré
Australia (Mount Isa, Ernest Henry, Townsville, Cobar)
Mount Isa, Copper metal kt 48.5 42.5 27.0 46.6
Ernest Henry, Copper in concentrates kt - - 7.4 5.1
Townsville Gold koz 17 21 9 20
Silver koz 261 196 387 252
Silver in concentrates koz - - 38 23
Mount Isa, Ernest Henry, Townsville - total production including third party feed
Copper metal kt 54.8 62.8 49.2 60.6
Copper in concentrates kt - - 7.4 5.1
Gold koz 46 43 33 39
Silver koz 349 432 447 253
Silver in concentrates koz - - 38 23
Cobar Copper in concentrates kt 12.7 12.7 12.3 15.7
Silver in concentrates koz 128 156 134 146
Total Copper kt 48.5 42.5 27.0 46.6
Total Copper in kt 12.7 12.7 19.7 20.8
concentrates
Total Gold koz 17 21 9 20
Total Silver koz 389 352 559 421
Total Copper department
Copper kt 285.7 281.9 274.0 324.1
Cobalt kt 5.7 5.5 6.0 6.7
Zinc kt 24.5 34.5 34.5 34.6
Gold koz 99 102 100 114
Silver koz 3,071 3,402 3,534 3,217
Glencore Q1 2018 - Production Report - 13
Q1 Change Change
2018 Q1 18 vs Q1 18 vs
Q1 17 Q4 17
% %
Other South America (Alumbrera, Lomas Bayas, Antapaccay, Punitaqui)
Alumbrera Copper in concentrates kt 6.5 (43) 18
Gold in concentrates and in koz 39 (19) 3
doré
Silver in concentrates and in koz 55 (54) 25
Lomas Bayas doré
Copper metal kt 17.1 (16) (1)
Antapaccay Copper in concentrates kt 48.9 5 (22)
Gold in concentrates koz 33 14 (34)
Silver in concentrates koz 348 7 (22)
Punitaqui Copper in concentrates kt 1.1 (31) (15)
Gold in concentrates koz 1 (80) (83)
Silver in concentrates koz 14 (22) 27
Total Copper metal kt 17.1 (16) (1)
Total Copper in concentrates kt 56.5 (5) (19)
Total Gold in concentrates koz 73 (11) (22)
and in doré
Total Silver in concentrates koz 417 (10) (17)
and in doré
Australia (Mount Isa, Ernest Henry, Townsville, Cobar)
Mount Isa, Copper metal kt 32.7 (33) (30)
Ernest Henry, Copper in concentrates kt 1.9 n.m. (63)
Townsville Gold koz 17 - (15)
Silver koz 235 (10) (7)
Silver in concentrates koz 2 n.m. (100)
Mount Isa, Ernest Henry, Townsville - total production including third party feed
Copper metal kt 45.1 (18) (26)
Copper in concentrates kt 1.9 n.m. (63)
Gold koz 29 (37) (26)
Silver koz 267 (23) 6
Silver in concentrates koz 2 n.m. (91)
Cobar Copper in concentrates kt 13.2 4 (16)
Silver in concentrates koz 133 4 (9)
Total Copper kt 32.7 (33) (30)
Total Copper in concentrates kt 15.1 19 (27)
Total Gold koz 17 - (15)
Total Silver koz 370 (5) (12)
Total Copper department
Copper kt 311.4 9 (4)
Cobalt kt 6.1 7 (9)
Zinc kt 30.3 24 (12)
Gold koz 90 (9) (21)
Silver koz 2,920 (5) (9)
Glencore Q1 2018 - Production Report - 14
Production from own sources – Zinc assets(1)
Q1 Q2 Q3 Q4
2017 2017 2017 2017
Kazzinc
Zinc metal kt 48.1 54.1 54.9 53.4
Lead metal kt 11.3 13.8 16.1 11.7
Lead in concentrates kt 2.3 1.6 0.8 -
Copper metal(2) kt 12.7 15.2 6.3 15.5
Gold koz 150 156 138 141
Silver koz 1,152 1,702 1,591 1,335
Silver in concentrates koz 55 51 19 7
Kazzinc - total production including third party feed
Zinc metal kt 75.3 77.2 81.9 82.4
Lead metal kt 36.5 36.9 38.4 34.5
Lead in concentrates kt 2.3 1.6 0.8 -
Copper metal kt 15.2 18.9 7.8 20.8
Gold koz 172 187 169 184
Silver koz 5,572 6,396 5,201 5,483
Silver in concentrates koz 55 51 19 7
Australia (Mount Isa, McArthur River)
Mount Isa Zinc in concentrates kt 68.7 64.0 51.3 42.0
Lead in concentrates kt 31.8 30.1 27.2 22.5
Silver in concentrates koz 1,658 1,539 1,251 1,046
McArthur Zinc in concentrates kt 46.9 38.2 45.6 79.3
River Lead in concentrates kt 8.7 8.3 10.8 17.0
Silver in concentrates koz 277 269 400 674
Total Zinc in kt 115.6 102.2 96.9 121.3
concentrates
Total Lead in kt 40.5 38.4 38.0 39.5
concentrates
Total Silver in koz 1,935 1,808 1,651 1,720
concentrates
North America (Matagami, Kidd, Brunswick, CEZ Refinery)
Matagami Zinc in concentrates kt 11.0 14.0 13.2 13.1
Copper in concentrates kt 2.0 2.1 1.3 2.0
Kidd Zinc in concentrates kt 24.0 22.2 11.4 14.8
Copper in concentrates kt 10.3 9.2 9.1 11.3
Silver in concentrates koz 663 842 379 387
Total Zinc in kt 35.0 36.2 24.6 27.9
concentrates
Total Copper in kt 12.3 11.3 10.4 13.3
concentrates
Total Silver in koz 663 842 379 387
concentrates
North America - total production including third party feed
Brunswick Lead metal kt 15.7 16.5 17.6 12.7
Smelter Silver metal koz 4,232 3,480 5,025 3,689
CEZ Zinc metal kt 12.5 12.6 8.5 11.5
Refinery(6)
Glencore Q1 2018 - Production Report - 15
Q1 Change Change
2018 Q1 18 vs Q1 18 vs
Q1 17 Q4 17
% %
Kazzinc
Zinc metal kt 49.8 4 (7)
Lead metal kt 14.0 24 20
Lead in concentrates kt - (100) n.m.
Copper metal(2) kt 12.0 (6) (23)
Gold koz 133 (11) (6)
Silver koz 1,388 20 4
Silver in concentrates koz - (100) (100)
Kazzinc - total production including third party feed
Zinc metal kt 80.1 6 (3)
Lead metal kt 38.8 6 12
Lead in concentrates kt - (100) n.m.
Copper metal kt 15.3 1 (26)
Gold koz 179 4 (3)
Silver koz 5,007 (10) (9)
Silver in concentrates koz - (100) (100)
Australia (Mount Isa, McArthur River)
Mount Isa Zinc in concentrates kt 50.1 (27) 19
Lead in concentrates kt 21.1 (34) (6)
Silver in concentrates koz 829 (50) (21)
McArthur Zinc in concentrates kt 60.1 28 (24)
River Lead in concentrates kt 11.5 32 (32)
Silver in concentrates koz 411 48 (39)
Total Zinc in kt 110.2 (5) (9)
concentrates
Total Lead in kt 32.6 (20) (17)
concentrates
Total Silver in koz 1,240 (36) (28)
concentrates
North America (Matagami, Kidd, Brunswick, CEZ Refinery)
Matagami Zinc in concentrates kt 8.9 (19) (32)
Copper in concentrates kt 1.5 (25) (25)
Kidd Zinc in concentrates kt 17.2 (28) 16
Copper in concentrates kt 8.9 (14) (21)
Silver in concentrates koz 601 (9) 55
Total Zinc in kt 26.1 (25) (6)
concentrates
Total Copper in kt 10.4 (15) (22)
concentrates
Total Silver in koz 601 (9) 55
concentrates
North America - total production including third party feed
Brunswick Lead metal kt 16.5 5 30
Smelter Silver metal koz 3,668 (13) (1)
CEZ Zinc metal kt 17.2 38 50
Refinery(6)
Glencore Q1 2018 - Production Report - 16
Q1 Q2 Q3 Q4
2017 2017 2017 2017
Other Zinc: South America (Argentina, Bolivia, Peru)(7)
Zinc in concentrates kt 24.9 26.3 23.0 25.6
Lead metal kt 2.6 3.6 3.5 3.9
Lead in concentrates kt 11.3 11.4 11.8 6.7
Copper in concentrates kt 0.5 0.6 1.0 1.3
Silver metal koz 108 182 155 192
Silver in concentrates koz 2,081 2,011 1,764 1,919
Other Zinc: Africa (Rosh Pinah, Perkoa)
Zinc in concentrates kt 31.1 38.3 22.7 -
Lead in concentrates kt 0.9 1.5 1.3 -
Silver in concentrates koz 47 74 36 -
Total Zinc department
Zinc kt 254.7 257.1 222.1 228.2
Lead kt 68.9 70.3 71.5 61.8
Copper kt 25.5 27.1 17.7 30.1
Gold koz 150 156 138 141
Silver koz 6,041 6,670 5,595 5,560
Q1 Change Change
2018 Q1 18 vs Q1 18 vs
Q1 17 Q4 17
% %
Other Zinc: South America (Argentina, Bolivia, Peru)(7)
Zinc in concentrates kt 26.3 6 3
Lead metal kt 2.6 - (33)
Lead in concentrates kt 8.2 (27) 22
Copper in concentrates kt 1.1 120 (15)
Silver metal koz 158 46 (18)
Silver in concentrates koz 1,879 (10) (2)
Other Zinc: Africa (Rosh Pinah, Perkoa)
Zinc in concentrates kt - (100) n.m.
Lead in concentrates kt - (100) n.m.
Silver in concentrates koz - (100) n.m.
Total Zinc department
Zinc kt 212.4 (17) (7)
Lead kt 57.4 (17) (7)
Copper kt 23.5 (8) (22)
Gold koz 133 (11) (6)
Silver koz 5,266 (13) (5)
Glencore Q1 2018 - Production Report - 17
Production from own sources – Nickel assets(1)
Q1 Q2 Q3 Q4
2017 2017 2017 2017
Integrated Nickel Operations (Sudbury, Raglan, Nikkelverk)
Nickel metal kt 13.9 15.5 14.0 13.6
Nickel in concentrates kt 0.2 0.1 0.1 0.1
Copper metal kt 3.9 4.2 3.9 3.6
Copper in concentrates kt 9.0 5.6 8.0 5.4
Cobalt metal kt 0.1 0.3 0.2 0.2
Gold koz 10 7 8 7
Silver koz 183 143 169 158
Platinum koz 23 13 20 19
Palladium koz 37 27 38 34
Rhodium koz 2 1 1 2
Integrated Nickel Operations - total
Nickel third
production including metal party feed kt 22.6 21.2 21.4 21.3
Nickel in concentrates kt 0.2 0.1 0.1 0.2
Copper metal kt 5.9 5.9 5.9 5.0
Copper in concentrates kt 10.2 6.5 9.6 6.7
Cobalt metal kt 0.8 1.0 0.8 0.9
Gold koz 13 9 11 10
Silver koz 275 211 258 232
Platinum koz 30 19 29 25
Palladium koz 50 41 62 58
Rhodium koz 2 2 1 2
Murrin
Murrin Total Nickel metal kt 6.2 7.3 11.1 9.5
Total Cobalt metal kt 0.5 0.6 0.9 0.7
Murrin Murrin - total production including third party feed
Total Nickel metal kt 8.2 9.5 13.0 11.3
Total Cobalt metal kt 0.5 0.8 0.9 0.8
Koniambo Nickel in ferronickel kt 4.6 3.4 4.3 5.2
Total Nickel department
Nickel kt 24.9 26.3 29.5 28.4
Copper kt 12.9 9.8 11.9 9.0
Cobalt kt 0.6 0.9 1.1 0.9
Gold koz 10 7 8 7
Silver koz 183 143 169 158
Platinum koz 23 13 20 19
Palladium koz 37 27 38 34
Rhodium koz 2 1 1 2
Glencore Q1 2018 - Production Report - 18
Q1 Change Change
2018 Q1 18 vs Q1 18 vs
Q1 17 Q4 17
% %
Integrated Nickel Operations (Sudbury, Raglan, Nikkelverk)
Nickel metal kt 15.0 8 10
Nickel in concentrates kt 0.1 (50) -
Copper metal kt 3.6 (8) -
Copper in concentrates kt 6.9 (23) 28
Cobalt metal kt 0.2 100 -
Gold koz 8 (20) 14
Silver koz 110 (40) (30)
Platinum koz 19 (17) -
Palladium koz 39 5 15
Rhodium koz 1 (50) (50)
Integrated Nickel Operations - total
Nickel third
production including metal party feed kt 21.4 (5) -
Nickel in concentrates kt 0.2 - -
Copper metal kt 5.1 (14) 2
Copper in concentrates kt 7.7 (25) 15
Cobalt metal kt 1.0 25 11
Gold koz 10 (23) -
Silver koz 157 (43) (32)
Platinum koz 24 (20) (4)
Palladium koz 67 34 16
Rhodium koz 2 - -
Murrin
Murrin Total Nickel metal kt 8.4 35 (12)
Total Cobalt metal kt 0.7 40 -
Murrin Murrin - total production including
third party feed
Total Nickel metal kt 9.0 10 (20)
Total Cobalt metal kt 0.7 40 (13)
Koniambo Nickel in ferronickel kt 6.6 43 27
Total Nickel department
Nickel kt 30.1 21 6
Copper kt 10.5 (19) 17
Cobalt kt 0.9 50 -
Gold koz 8 (20) 14
Silver koz 110 (40) (30)
Platinum koz 19 (17) -
Palladium koz 39 5 15
Rhodium koz 1 (50) (50)
Glencore Q1 2018 - Production Report - 19
Production from own sources – Ferroalloys assets(1)
Q1 Q2 Q3 Q4 Q1 Change Change
2017 2017 2017 2017 2018 Q1 18 Q1 18
vs vs
Q1 17 Q4 17
% %
Ferrochrome(8) kt 439 397 271 424 409 (7) (4)
PGM(9) Platinum koz 14 15 8 4 16 14 300
Palladium koz 9 9 5 2 11 22 450
Rhodium koz 2 3 1 1 3 50 200
Gold koz - - 1 - - n.m. n.m.
4E koz 25 27 15 7 30 20 329
Vanadium Pentoxide mlb 5.1 4.4 6.1 5.3 5.3 4 -
Total production – Custom metallurgical assets(1)
Q1 Q2 Q3 Q4 Q1 Change Change
2017 2017 2017 2017 2018 Q1 18 Q1 18
vs vs
Q1 17 Q4 17
% %
Copper (Altonorte, Pasar, Horne, CCR)
Copper metal kt 128.2 131.3 132.1 135.2 117.0 (9) (13)
Copper anode kt 139.7 124.6 139.5 131.9 126.5 (9) (4)
Zinc (Portovesme, San Juan de Nieva, Nordenham, Northfleet)
Zinc metal kt 197.2 198.0 196.6 196.2 190.0 (4) (3)
Lead metal kt 53.3 46.5 44.1 49.9 52.7 (1) 6
Silver koz 3,243 4,222 2,890 3,301 2,907 (10) (12)
1 Controlled industrial assets and joint ventures only. Production is on a 100% basis, except as
stated.
2 Copper metal includes copper contained in copper concentrates and blister.
3 Cobalt contained in concentrates and hydroxides.
4 The Group’s pro-rata share of Collahuasi production (44%).
5 The Group’s pro-rata share of Antamina production (33.75%).
6 The Group’s pro-rata share of CEZ production (25%).
7 South American production excludes Volcan Compania Minera.
8 The Group’s attributable 79.5% share of the Glencore-Merafe Chrome Venture.
9 Consolidated 50% of Mototolo and 100% of the Group's PGM recovery plant.
Glencore Q1 2018 - Production Report - 20
Energy products
Production from own sources
Coal assets(1)
Q1 Q2 Q3 Q4
2017 2017 2017 2017
Australian coking coal mt 1.7 1.0 1.8 1.6
Australian semi-soft coal mt 1.0 1.2 1.0 0.8
Australian thermal coal (export) mt 12.8 13.4 11.2 11.7
Australian thermal coal (domestic) mt 1.6 1.7 1.6 2.6
South African thermal coal (export) mt 4.2 4.5 5.4 4.6
South African thermal coal (domestic) mt 2.6 2.2 2.7 2.5
Prodeco mt 4.2 3.8 3.7 2.9
Cerrejón(2) mt 2.8 2.4 2.5 2.9
Total Coal department mt 30.9 30.2 29.9 29.6
Q1 Change Change
2018 Q1 18 vs Q1 18 vs
Q1 17 Q4 17
% %
Australian coking coal mt 1.6 (6) -
Australian semi-soft coal mt 0.6 (40) (25)
Australian thermal coal (export) mt 14.2 11 21
Australian thermal coal (domestic) mt 2.4 50 (8)
South African thermal coal (export) mt 4.0 (5) (13)
South African thermal coal (domestic) mt 2.5 (4) -
Prodeco mt 3.0 (29) 3
Cerrejón(2) mt 2.4 (14) (17)
Total Coal department mt 30.7 (1) 4
1 Controlled industrial assets and joint ventures only. Production is on a 100% basis except for joint
ventures, where the Group’s attributable share of production is included.
2 The Group’s pro-rata share of Cerrejón production (33.3%).
Oil assets
Q1 Q2 Q3 Q4
2017 2017 2017 2017
Glencore entitlement interest basis
Equatorial Guinea kbbl 691 642 622 574
Chad kbbl 674 633 624 593
Total Oil department kbbl 1,365 1,275 1,246 1,167
Gross basis
Equatorial Guinea kbbl 3,249 3,048 2,896 2,721
Chad kbbl 921 866 853 810
Total Oil department kbbl 4,170 3,914 3,749 3,531
Glencore Q1 2018 - Production Report - 21
Q1 Change Change
2018 Q1 18 vs Q1 18 vs
Q1 17 Q4 17
% %
Glencore entitlement interest basis
Equatorial Guinea kbbl 517 (25) (10)
Chad kbbl 639 (5) 8
Total Oil department kbbl 1,156 (15) (1)
Gross basis
Equatorial Guinea kbbl 2,395 (26) (12)
Chad kbbl 873 (5) 8
Total Oil department kbbl 3,268 (22) (7)
Glencore Q1 2018 - Production Report - 22
Appendix
Full year 2018 production guidance
Full year 2018 production guidance
Actual Actual Actual Guidance 2018
FY FY FY FY Weighting
2015 2016 2017 2018 H1
H2
Copper kt 1,502 1,426 1,310 1,465 ± 30 48% 52% 1
Cobalt kt 23.0 28.3 27.4 39 ± 3 45% 55% 1
Zinc kt 1,445 1,094 1,090 1,090 ± 30 45% 55% 2
Lead kt 298 295 273 300 ± 10 40% 60% 2
Nickel kt 96 115 109 132 ± 5 45% 55%
Ferrochrome kt 1,462 1,523 1,531 1,600 ± 30 50% 50%
Coal mt 132 125 121 134 ± 5 47% 53% 3
Oil mbbl 10.6 7.5 5.1 4.9 ± 0.2 50% 50%
1. 2018 guidance (unchanged) includes ~150kt of copper and ~11kt of cobalt attributable to Katanga,
upon commissioning of phase 1 of its whole ore leach project in December 2017 – see below
2. Excludes Volcan
3. Coal production guidance (total unchanged) includes the largely offsetting impacts of the Hail Creek
JV acquisition (expected in H2 2018) and lower production now expected from Prodeco in 2018, before
returning to higher levels in 2019
As previously announced, Katanga’s state-owned joint venture partner in the DRC, Gécamines, has commenced
legal proceedings in the DRC to dissolve KCC (Katanga’s main operating subsidiary) following KCC’s earlier
failure to address its stand-alone capital deficiency. Katanga believes it has several options to remedy
KCC’s capital deficiency.
Separately, as previously announced, a company affiliated with Mr Dan Gertler has served freezing orders
against Mutanda and KCC (Katanga), alleging breach of certain royalty agreements. Glencore is assessing
the impact of these orders and notes that they may materially adversely affect such operations, including
production. Full year production guidance above assumes ordinary course operations at both DRC mines.
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. Such statements are qualified in their entirety by the inherent risks and uncertainties
surrounding future expectations. 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 discussed in Glencore’s Annual Report 2017.
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. Other than
in accordance with its legal or regulatory obligations (including under the UK Listing Rules and the
Disclosure and Transparency Rules of the Financial Conduct Authority and the Listing Requirements of the
Johannesburg Stock Exchange Limited), 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 no statement in
this document should be interpreted to mean that earnings per Glencore share for the current or future
financial years would necessarily match or exceed the historical published earnings per Glencore share.
Glencore Q1 2018 - Production Report - 23
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 making of this document does
not constitute a recommendation regarding 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.
Sponsor
Absa Bank Limited (acting through its Corporate and Investment Bank Division)
Glencore Q1 2018 - Production Report - 24
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