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GLENCORE PLC - GLN - First Quarter 2024 Production Report

Release Date: 30/04/2024 08:13
Code(s): GLN     PDF:  
Wrap Text
GLN - First Quarter 2024 Production Report

Glencore plc
(Incorporated in Jersey under the Companies (Jersey) Law 1991)
(Registration number 107710)
JSE Share Code: GLN
LSE Share Code: GLEN
LEI: 2138002658CPO9NBH955

Baar, 30 April 2024

First Quarter Production Report 2024

Glencore Chief Executive Officer, Gary Nagle:
        "Our full year production guidance remains unchanged from that presented at the beginning of the year. First quarter
        copper, zinc and coal production was broadly in line with the prior year comparable period, while nickel increased 14%,
        reflecting recovery from the Raglan strike impacts in the base period. Lower year-on-year cobalt and ferrochrome volumes
        primarily reflect the previously announced market-related production adjustments in the DRC and the decision to idle our
        Rustenburg ferrochrome smelter in the current price environment.
        "Basis Marketing's performance over the first quarter, we currently expect full year Marketing Adjusted EBIT in the $3.0-$3.5
        billion range, being around the top end of our long-term $2.2-3.2 billion p.a. guidance range, reflecting cyclically elevated
        interest rates."

Production from own sources – Total(1)
                                                         Q1 2024               Q1 2023      Change %
Copper                                   kt                239.7                244.1            (2)
Cobalt                                   kt                  6.6                 10.5           (37)
Zinc                                     kt                205.6                205.3              –
Lead                                     kt                 43.8                 39.3             11
Nickel                                   kt                 23.8                 20.9             14
Gold                                    koz                  201                  187              7
Silver                                  koz                4,520                4,525              –
Ferrochrome                              kt                  297                  400            (26)
Coal                                     mt                 26.6                 26.9             (1)

(1)Controlled industrial assets and joint ventures only (excludes Volcan). Production is on a 100% basis, except as stated later in this report.

Q1 production highlights
 •      Own sourced copper production of 239,700 tonnes was 2% above Q1 2023 on a like-for-like basis, removing 8,700 tonnes of
        Cobar (sold in June 2023) volumes from the prior period.
 •      Own sourced cobalt production of 6,600 tonnes was 3,900 tonnes lower than Q1 2023, mainly reflecting planned lower run-
        rates at Mutanda in the current weak cobalt pricing environment and mill downtime at KCC.
 •      Own sourced overall zinc production of 205,600 tonnes was in line with Q1 2023, reflecting the ramp up of Zhairem (14,300
        tonnes), offset by lower zinc tonnes from Antamina (10,300 tonnes), on account of its expected mining sequence and zinc
        Australia (3,500 tonnes), due to a tropical cyclone and flash flooding. Own sourced zinc production from the zinc department
        itself, excluding Antamina, was 10,600 tonnes (6%) higher than Q1 2023.
 •      Own sourced nickel production of 23,800 tonnes was 2,900 tonnes (14%) higher than Q1 2023, largely due to recovery from the
        INO supply chain constraints seen in the base period.
 •      Attributable ferrochrome production of 297,000 tonnes was 103,000 tonnes (26%) below Q1 2023, as the Rustenburg smelter
        remains idled, pending an improved price/cost environment.
 •      Coal production of 26.6 million tonnes was broadly in line with Q1 2023.

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         50%        50%
Cobalt                                   kt               41.3         35-40            35-40         47%        53%
Zinc                                     kt                919       900-950          900-950(1)      47%        53%
Nickel                                   kt                 98         80-90            80-90(2)      48%        52%
Ferrochrome                              kt              1,162   1,100-1,200       1,100-1,200        51%        49%
Coal                                     mt                114       105-115           105-115(3)     50%        50%

1. Excludes Volcan.
2. Koniambo (KNS) transitioned to care and maintenance during February 2024. The nickel production guidance above (consistent with our earlier guidance release) is presented ex-
   KNS and therefore excludes the 5.0kt produced by KNS in Q1 2024 prior to its transition to care and maintenance.
3. Guidance excludes any contribution from the Elk Valley Resources (EVR) steelmaking coal assets, in which Glencore agreed in November 2023 to acquire a 77% interest from Teck
   Resources Limited, subject to various regulatory approvals.

Production guidance is unchanged from that announced in our full year 2023 Production Report released on 1 February 2024.

To view the full report please click here:

To view the full report on the Johannesburg Stock Exchange portal please click here:

For further information please contact:
    Martin Fewings                 t: +41 41 709 2880          m: +41 79 737 5642          martin.fewings@glen
    Charles Watenphul              t: +41 41 709 2462          m: +41 79 904 3320          charles.watenphul@g
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 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

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.

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 performance (including, without limitation,
environmental, social and governance) related goals, ambitions, targets, intentions, visions, milestones and aspirations; approval of
certain projects and consummation of certain transactions (including, without limitation, acquisitions and disposals, in particular the
proposed acquisition of a majority stake of EVR from Teck Resources Limited and potential subsequent demerger of the combined
coal and carbon steel materials business); 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

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",
"estimates", "aims", "forecasts", "risks", "intends", "positioned", "predicts", "projects", "anticipates", "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. 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 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 of our stakeholders; changes to the assumptions regarding the recoverable value
of our tangible and intangible assets; 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; 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; changes in economic and financial market conditions generally or in various
counties 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 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

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.

Cautionary statement regarding climate strategy

Glencore operates in a dynamic and uncertain market and external environment. Plans and strategies can and must adapt in
response to dynamic market conditions, changing preference of our stakeholders, joint venture decisions, changing weather and
climate patterns, new opportunities that might arise or other changing circumstances. Investors should assume that our climate
strategy will evolve and be updated as time passes. Additionally, a number of aspects of our strategy involve developments or
workstreams that are complex and may be delayed, more costly than anticipated or unsuccessful for many reasons, including,
without limitation, reasons that are outside of Glencore's control. Our strategy will also necessarily be impacted by changes in our
business, such as the proposed acquisition of EVR and potential demerger of the combined coal and carbon steel materials

There are inherent limitations to scenario analysis and it is difficult to predict which, if any, of the scenarios might eventuate.
Scenario analysis relies on assumptions that may or may not be, or prove to be, correct and that may or may not eventuate and
scenarios may also be impacted by additional factors to the assumptions disclosed. Given these limitations we treat these scenarios
as one of several inputs that we consider in our climate strategy.

Due to the inherent uncertainty and limitations in measuring greenhouse gas (GHG) emissions and operational energy
consumption under the calculation methodologies used in the preparation of such data, all CO2e emissions and operational energy
consumption data or volume references (including, without limitation, ratios and/or percentages) in this document are estimates.
GHG emissions calculation and reporting methodologies may change or be progressively refined over time resulting in the need to
restate previously reported data. There may also be differences in the manner that third parties calculate or report such data
compared to Glencore, which means that third-party data may not be comparable to Glencore's data. For information on how we
calculate our emissions and operational energy consumption data, see our latest Basis of Reporting, Climate Report and Extended
ESG Data, which is available on our website.


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. Further details and information needed to
reconcile such information to our reported results can be found in the section of this report entitled "Alternative Performance
Measures". For further information on how we calculate certain non-financial metrics such as fatalities at our industrial operations,
please refer to our latest Basis of Reporting, which is available on our website.

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

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.

Date: 30-04-2024 08:13:00
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