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Third Quarter 2020 Production Report

Baar, Switzerland
30 October 2020

 

Glencore Chief Executive Officer, Ivan Glasenberg:

“Glencore has delivered a solid third quarter operating performance, including the continued successful ramp-up of Katanga, which remains on track to achieve design capacity by year end. Our teams have adapted well to the numerous challenges presented by Covid-19.

“We maintain our 2020 full year production guidance, except coal, which was adjusted for the extended strike at Cerrejon. We will provide a detailed business update, including progress on climate change initiatives at our Investor Update on 4 December.”

 

Production from own sources – Total1

 

 

YTD 2020

YTD 2019

Change %

Copper

                       kt

                 934.7

                1,015.8

                       (8 )

Cobalt

                       kt

                    21.6

                   34.4

                      (37 )

Zinc

                       kt

                  860.1

                 809.2

                         6

Lead

                       kt

                  194.3

                  219.8

                      (12 )

Nickel

                       kt

                    81.8

                   89.4

                        (9 )

Gold

                    koz

                      611

                    622

                        (2 )

Silver

                    koz

               23,220

                23,733

                        (2 )

Ferrochrome

                       kt

                     651

                  1,030

                      (37 )

 

 

 

 

 

Coal - coking

                     mt

                      5.6

                       6.1

                       (8 )

Coal - semi-soft

                     mt

                      3.6

                       5.1

                      (29 )

Coal - thermal

                     mt

                   74.3

                   92.8

                     (20 )

Coal

                     mt

                    83.5

                 104.0

                     (20 )

Oil (entitlement interest basis)

                   kbbl

                 3,360

                 3,638

                       (8 )

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

 

Production guidance

  • Changes in guidance reflect the tightening of most ranges and coal down 5mt (4%), accounting for the current extended industrial strike at Cerrejón JV (Colombia).
 

 

 

Q1
2020

Q2
2020

Q3
2020

Actual
YTD
2020

           ROY
2020

Current guidance
2020

 

   Previous
guidance
2020

Copper

            kt

 

      293

             295

             347

             935

             320

  1,255 ± 25

 

  1,255 ± 35

Cobalt

            kt

 

           6

                 8

                 8

               22

                 6

          28 ± 1

 

         28 ± 2

Zinc

            kt

 

      296

              255

              310

            860

             300

   1,160 ± 25

1 

  1,160 ± 30

Nickel

            kt

 

        28

               27

               27

               82

               32

        114 ± 3

 

        114 ± 4

Ferrochrome

            kt

 

      388

               78

              185

              651

             349

  1,000 ± 25

 

  1,000 ± 25

Coal

          mt

 

         32

               26

               26

               84

               25

       109 ± 3

 

        114 ± 3

1 Excludes Volcan

 

Highlights

  • The generally strong sequential quarterly production performance noted in the table above, in large part, reflects reversal of the various short-term Covid-19 related shutdowns in Q2, as mandated by several national/local governments.
  • Own sourced copper production of 934,700 tonnes was 81,100 tonnes (8%) lower than the comparable prior period, reflecting Mutanda being on care and maintenance in the current period and the temporary suspension of operations at Antamina in Q2, partly offset by a continued strong milling performance at Collahuasi and Katanga’s ramp-up.
  • Own sourced cobalt production of 21,600 tonnes was 12,800 tonnes (37%) lower than the comparable prior period, mainly reflecting Mutanda on care and maintenance, partly offset by Katanga’s ramp-up.
  • Own source zinc production of 860,100 tonnes was 50,900 tonnes (6%) higher than the comparable prior period, mainly reflecting: (i) higher zinc grades from Antamina notwithstanding the temporary Covid-related suspension (21,800 tonnes); (ii) improved throughput at Mount Isa (14,900 tonnes); and (iii) the net positive effect of 13,800 tonnes from Other South America owing to re-opening the short-life Iscaycruz mine in Peru, offset by Covid-related slowdowns and suspensions.
  • Own sourced nickel production of 81,800 tonnes was 7,600 tonnes (9%) lower than the comparable prior period, mainly reflecting Koniambo running as a single-line operation for most of Q2/Q3, with Covid-related restrictions on mobility affecting timing of maintenance.
  • Attributable ferrochrome production of 651,000 tonnes was 379,000 tonnes  (37%) lower than the comparable prior period, primarily reflecting the Q2 South African lockdown measures. As of 1 September, four of the five smelters were running. The competitive environment across the South African ferrochrome industry continues to be challenging, in particular due to high input costs including electricity.
  • Coal production of 83.5 million tonnes was 20.5 million tonnes (20%) lower than the comparable prior period, reflecting Prodeco being on care and maintenance for most of 2020, disruptions at Cerrejón (initially Covid-related, and lately due to industrial action), and targeted H2 volume reductions across the Australian portfolio, during a time of weak market conditions.
  • Entitlement interest oil production of 3.4 million barrels was 0.3 million barrels (8%) lower than the comparable prior period, reflecting the temporary suspension of Chad operations since April 2020, partly offset by new wells drilled in Equatorial Guinea and Cameroon.

To view the full report please click: 

https://www.glencore.com/dam/jcr:3b5ec265-1700-4269-8f66-1a1fded7bc87/GLEN_2020-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

Maartje Collignon
t: +41 41 709 32 69
m: +41 79 197 42 02
maartje.collignon@glencore.com

Media

Charles Watenphul
t: +41 41 709 2462
m: +41 79 904 3320
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 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.

 

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