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GLENCORE PLC - GLN - Full Year 2019 Production Report

Release Date: 04/02/2020 09:00
Code(s): GLN     PDF:  
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GLN - Full Year 2019 Production Report

(Incorporated in Jersey under the Companies (Jersey) Law 1991)
(Registration number 107710)
JSE Share Code: GLN
LSE Share Code: GLEN
HKSE Share Code: 805HK

Baar, Switzerland
4 February 2020


Full Year 2019 Production Report

Production from own sources – Total(1)
                                                                                               2019            2018       Change
Copper - excl. African Copper                                                 kt               1,001.3         1,043.0    (4)
Copper - African Copper, in development/optimisation                          kt               369.9           410.7      (10)
Copper                                                                        kt               1,371.2         1,453.7    (6)
Cobalt                                                                        kt               46.3            42.2       10
Zinc                                                                          kt               1,077.5         1,068.1    1
Lead                                                                          kt               280.0           273.3      2
Nickel                                                                        kt               120.6           123.8      (3)
Gold                                                                          koz              848             1,003      (15)
Silver                                                                        koz              32,018          34,880     (8)
Ferrochrome                                                                   kt               1,438           1,580      (9)

Coal - coking                                                                 mt               9.2             7.5        23
Coal - semi-soft                                                              mt               6.4             3.9        64
Coal - thermal                                                                mt               123.9           118.0      5
Coal                                                                          mt               139.5           129.4      8

Oil (entitlement interest basis)                                              kbbl             5,518           4,626      19

(1)   Controlled industrial assets and joint ventures only. Production is on a 100% basis, except as stated.

Realised prices
                                                                                    Realised              LME (average   Difference
US$ million                                                                   ¢/lb           $/t          12 months) %
Copper                                                                        257            5,666        6,005          (6)
Zinc                                                                          111            2,457        2,548          (4)
Nickel                                                                        639            14,088       13,944         1

•     The average spot Newcastle coal price for the period was $78/t. After applying a portfolio mix adjustment
      (component of our regular coal cash flow modelling guidance) of $7/t to reflect, amongst other factors,
      movements in pricing of non-NEWC quality coals, an average price of $71/t was realised across all coal sales

•     Own sourced copper production of 1,371,200 tonnes was 82,500 tonnes (6%) lower than in 2018.
      Approximately half of this (40,800 tonnes) related to the African Copper assets, with Katanga’s ramp-up
      (+82,100 tonnes, meeting its full-year revised target) partially offsetting Mutanda scaling down and placement
      into temporary care and maintenance and Mopani’s extensive smelter refurbishment shutdown. The remainder
      primarily comprised relatively minor portfolio changes and maintenance.
•     Own sourced cobalt production of 46,300 tonnes was 4,100 tonnes (10%) higher than the comparable prior
      period, primarily reflecting Katanga’s ramp-up.
•     Own sourced zinc production of 1,077,500 tonnes was in line with 2018, reflecting the effects of stronger
      production (mine restarts) in Australia and Peru, largely offset by reduced own sourced production at Kazzinc
      for safety reasons and expected lower zinc production from Antamina due to mine scheduling. Q4 2019
      production was weaker than expected, primarily due to mechanical issues at the Ridder concentrator (Kazzinc),
      resulting in ore being stockpiled, in advance of its processing in 2020.
•     Own sourced nickel production of 120,600 tonnes was 3,200 tonnes (3%) lower than in 2018, mainly reflecting
      a number of maintenance stoppages at Koniambo, including a crane failure in December 2019.
•     Attributable ferrochrome production of 1,438,000 tonnes was 142,000 tonnes (9%) lower than in 2018, mainly
      reflecting additional maintenance days taken opportunistically in Q3 2019 during a period of high energy costs
      and low selling prices.
•     Coal production of 139.5 million tonnes was 10.1 million tonnes (8%) higher than in 2018, mainly reflecting the
      full-year effects of the acquisitions of HVO (acquired in May 2018) and Hail Creek (August 2018). Prodeco’s
      year over year contribution refelcted a period of additional mine development in the base period, while
      Cerrejon’s 2019 production was constrained by dust emissions control requirements.
•     Entitlement interest oil production of 5.5 million barrels was 0.9 million barrels (19%) higher than in 2018,
      reflecting the benefits of the drilling campaign in Chad and first oil from the Bolongo field in Cameroon.
•     Full year 2020 production guidance, consistent with that presented in the investor update on 3 December 2019,
      is set out on page 17.
•     The Group’s Resources and Reserves report for 2019 is also released today and is available on the Glencore

To view the full report please click:

For further information please contact:
    Martin Fewings         t: +41 41 709 2880        m: +41 79 737 5642
    Maartje Collignon      t: +41 41 709 32 69       m: +41 79 197 42 02
    Charles Watenphul      t: +41 41 709 2462        m: +41 79 904 3320
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.

Absa Bank Limited (acting through its Corporate and Investment Banking Division)

Date: 04-02-2020 09:00:00
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