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GLENCORE PLC - GLN: First Quarter 2021 Production Report.

Release Date: 29/04/2021 08:00
Code(s): GLN     PDF:  
Wrap Text
GLN: First Quarter 2021 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


NEWS RELEASE
Baar, 29 April 2021


First Quarter 2021 Production Report
Glencore Chief Executive Officer, Ivan Glasenberg:

“The Group’s overall production was broadly in line with our expectations for the first quarter.
Production in Q1 2021 reflects that many of our operations continue to maintain thorough Covid-safe
working practices, as appropriate for each specific country and region. Coal production was down 7.4
million tonnes, reflecting Prodeco’s care and maintenance status and the market-related production cuts
in Australia, actioned in H2 2020. Full year production guidance has been maintained for our key
commodities.
“Basis Q1 2021’s marketing performance, we expect full year Marketing EBIT to be within the top half of
our long-term $2.2-3.2 billion p.a. guidance range.”


Production from own sources – Total1
                                                                                           Q1 2021       Q1 2020      Change %
Copper                                                                            kt         301.2         293.3             3
Cobalt                                                                            kt           6.8           6.1            11
                                                                                                                            (4
Zinc                                                                              kt         282.6         295.6 )
                                                                                                                           (10
Lead                                                                              kt          55.3          61.7 )
                                                                                                                           (11
Nickel                                                                            kt          25.2          28.2 )
Gold                                                                             koz           224           211             6
Silver                                                                           koz         7,761         7,778             –
Ferrochrome                                                                       kt           399           388             3

Coal - coking                                                                     mt           2.4           1.8            33
                                                                                                                           (25
Coal - semi-soft                                                                  mt           1.2           1.6 )
                                                                                                                           (27
Coal - thermal                                                                    mt          20.9          28.5 )
                                                                                                                           (23
Coal                                                                              mt          24.5          31.9 )

                                                                                                                           (41
Oil (entitlement interest basis)                                                kboe         1,071         1,806 )
1   Controlled industrial assets and joint ventures only. Production is on a 100% basis, except as stated later in this report.



Glencore Q1 2021 Production Report                                                                                               
Production guidance
•      No changes versus previous guidance.

                                                                            Actual   Previous       Current
                                                                                FY   guidance      guidance          2021 weighting
                                                                              2020       2021          2021              H1         H2
                                                                                      1,220   ±        1,220 ±
Copper
                                                          kt                 1,258 30             30                    50%       50%
Cobalt                                                    kt                  27.4     35 ±   2         35 ± 2          45%       55%
                                                                                      1,250   ±        1,250 ±
Zinc
                                                          kt                 1,170 30             30             1      45%       55%
Nickel                                                    kt                   110    117 ±   5        117 ± 5          45%       55%
                                                                                      1,400   ±        1,400 ±
Ferrochrome
                                                          kt                 1,029 30             30                    52%       48%
Coal                                                      mt                   106    113 ±   4        113 ± 4          45%       55%
1 Excludes Volcan



Q1 production highlights
•      Own sourced copper production of 301,200 tonnes was 3% higher than in Q1 2020, mainly relating to productivity
       improvements and mine plan sequencing at our South American operations including Collahuasi, Antamina and
       Antapaccay.

•      Own sourced zinc production of 282,600 tonnes was 13,000 tonnes (4%) lower than Q1 2020, mainly relating
       to lower grades at Kazzinc’s Maleevsky mine and mine sequencing at Kidd..

•      Own sourced nickel production of 25,200 tonnes was 3,000 tonnes (11%) lower than Q1 2020, primarily
       reflecting maintenance at Koniambo.

•      Attributable ferrochrome production of 399,000 tonnes was 3% up on Q1 2020, reflecting the impact of the
       South African national lockdown on the base period, having commenced late March 2020.

•      Coal production of 24.5 million tonnes was 7.4 million tonnes (23%) lower than Q1 2020, mainly reflecting
       cessation of mining at Prodeco (3.8 million tonnes) and various changes in the Australian portfolio (2.9
       million tonnes).

•      Entitlement interest oil production of 1.1 million barrels of oil equivalent (boe) was 0.7 million boe
       (41%) lower than in Q1 2020, reflecting the Chad oil fields placed on care and maintenance in April 2020.
       Partly offsetting, the gas phase of the Equatorial Guinea project commenced in February 2021, resulting in
       an overall 83% quarterly sequential increase in entitlement interest production.


To view the full report please click: https://www.glencore.com/dam/jcr:9a953b82-146b-4540-a5d6-
8633c2c4fd55/GLEN_2021-Q1_ProductionReport.pdf
and on the JSE on https://senspdf.jse.co.za/documents/2021/JSE/ISSE/GLN/H1Rep2021.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

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. The Group's operations comprise around 150
mining,


Glencore Q1 2021 Production Report                                                                                                       2
metallurgical and oil production assets.

With a strong footprint in over 35 countries in both established and emerging regions for natural resources,
Glencore's industrial
activities are supported by a global network of more than 30 marketing 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's companies employ around 135,000 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. Our
ambition is to be a net zero
total emissions company by 2050.

Disclaimer
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.

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. 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.


Glencore Q1 2021 Production Report                                                                                                 3
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.




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




Glencore Q1 2021 Production Report                                                                              4

Date: 29-04-2021 08:00:00
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