Third Quarter 2021 Production Report

Baar, Switzerland
29 October 2021

Glencore Chief Executive Officer, Gary Nagle:

“The asset base has largely performed in line with our expectations and our full year production guidance remains unchanged. Notably, as energy markets have improved, we are recovering from the market-driven production cuts initiated within our Australian coal portfolio in H2 2020. 

“Basis Marketing’s continued strong performance, we now expect full year 2021 Adjusted EBIT to exceed the top end of our $2.2-3.2 billion per annum long-term guidance range.”

Production from own sources – Total¹

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

Production guidance

• No change to previous 2021 production guidance.

^{1 Excludes Volcan.}

Production highlights

• Own sourced copper production of 895,500 tonnes was 39,200 tonnes (4%) below the comparable 2020 period, reflecting lower mined grades at various operations. Approximately half this variance relates to lower copper by-product at non-Copper department assets.
• Own sourced zinc production of 855,800 tonnes was in line with the comparable 2020 period. Recovery from 2020 Covid restrictions was offset by temporarily lower Kazzinc production pending the ramp-up of the recently commissioned Zhairem mine.
• Own sourced nickel production of 71,100 tonnes was 10,700 tonnes (13%) lower than the comparable 2020 period due to planned maintenance at Murrin Murrin and various operating issues at Koniambo.
• Attributable ferrochrome production of 1,071,000 tonnes was 420,000 tonnes (65%) higher than the comparable 2020 period, reflecting that operations were suspended for much of Q2 2020 due to the South African national lockdown, with a period of ramp-up thereafter.
• Coal production of 76.3 million tonnes was 7.2 million tonnes (9%) lower than the comparable 2020 period, reflecting a full period of Prodeco care and maintenance, the progressive recovery from the market-related reductions across the Australian portfolio initiated in H2 2020 and lower domestic production/demand in South Africa.
• Entitlement interest oil production of 4.1 million barrels of oil equivalent (boe) was 0.8 million boe (23%) higher than the comparable 2020 period. This mainly reflects the gas phase of a project in Equatorial Guinea that commenced in February 2021, and a full period contribution from the new Cameroon well. The Chad fields remained on care and maintenance throughout 2021.

Other matters

• On 15 October 2021, Glencore reached an agreement to sell 100% of the interests in its wholly owned subsidiary Chemoil Terminals LLC, which owns the Long Beach and Carson oil products storage terminals in California. The sale consideration is $242 million and closing is subject to certain conditions precedent, including relevant anti-trust approval. We expect the transaction to close before the end of this year.
• As previously announced, Glencore has reached agreement to dispose of its Bolivian zinc assets, Sinchi Wayra and Illapa, to Santa-cruz Silver Mining, Ltd, for consideration of approximately $110 million. The consideration is structured as a $20 million initial payment and a further $90 million to be paid within 4 years or less. Completion is expected to occur within the next three months.
• As previously announced, Glencore was formally notified that the Colombian National Mining Agency has accepted the relinquishment of Prodeco’s key mining contracts back to the Republic of Colombia. The mines will remain on care and maintenance until the formal process of relinquishing the contracts is complete.

To view the full report please click: https://www.glencore.com/dam/jcr:9900b36f-78ae-49f1-aa62-69abaf137e4f/GLEN_2021-Q3_ProductionReport.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 24 62    
m: +41 79 904 33 20    
charles.watenphul@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 and metallurgical sites 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.
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.