TIDMGLEN
RNS Number : 4029E
Glencore PLC
28 October 2022
NEWS RELEASE
Baar, 28 October 2022
Third Quarter 2022 Production Report
Glencore Chief Executive Officer, Gary Nagle:
"Operational performance over the third quarter was impacted by
a range of events including extreme weather in Australia,
industrial action at nickel assets in Canada and Norway (since
resolved) and the emergence of significant supply chain issues in
Kazakhstan stemming from the Russia/Ukraine war. Full-year 2022
production guidance has, accordingly, been reduced for those
affected commodities.
"Following the exceptionally strong marketing performance in the
first half of the year, we currently expect a significantly
reduced, but still above-average second-half contribution, likely
exceeding $1.6 billion, being the top end of the pro-rated
long-term EBIT guidance range of $2.2 to $3.2 billion p.a."
Production from own sources - Total(1)
YTD YTD Change
2022 2021 %
--------------------------------- ----- ------ ------ ------
Copper kt 770.5 895.5 (14)
Cobalt kt 33.1 23.4 41
Zinc kt 699.6 855.8 (18)
Lead kt 136.9 173.4 (21)
Nickel kt 81.6 71.1 15
Gold koz 504 593 (15)
Silver koz 17,878 23,794 (25)
Ferrochrome kt 1,110 1,071 4
Coal mt 81.9 76.3 7
Oil (entitlement interest basis) kboe 4,822 4,145 16
--------------------------------- ----- ------ ------ ------
1 Controlled industrial assets and joint ventures only.
Production is on a 100% basis, except as stated.
Production guidance
Changes in guidance, extensively foreshadowed in our Q2 2022
production report, but requiring passage of time to quantify the
various impacts, mainly reflects:
-- Tightening of the ranges
-- Zinc down 65kt (6%) - emerging supply-chain issues in
Kazakhstan as the secondary impacts of the Russia/Ukraine war are
felt throughout the CIS region
-- Nickel down 8kt (7%) - effects of the approximately 15-week
strike at Raglan mine and the 10-day strike at Nikkelverk
-- Coal down 11mt (9%) - severe flooding in NSW (also higher
than average rainfall in Queensland) and associated delays in
restoring mine production and logistics infrastructure (primary NSW
export rail line closed for approximately 2 weeks). The La Niña
weather pattern exhibits a high probability of causing further
disruption in Q4, with a wide plus/minus 4mt range reflecting
this.
Actual Actual Actual Guidance
FY FY FY FY
2019 2020 2021 2022
------------ --- ------ ------ ------ --------
1,060
Copper kt 1,371 1,258 1,196 +/- 20
------------ --- ------ ------ ------ --------
45 +/-
Cobalt kt 46.3 27.4 31.3 2
------------ --- ------ ------ ------ --------
945
Zinc kt 1,078 1,170 1,118 +/- 25
------------ --- ------ ------ ------ --------
110
Nickel kt 121 110 102 +/- 4
------------ --- ------ ------ ------ --------
1,500
Ferrochrome kt 1,438 1,029 1,468 +/- 20
------------ --- ------ ------ ------ --------
110
Coal mt 140 106 103 +/- 4
------------ --- ------ ------ ------ --------
1 Excludes Volcan.
Production highlights
-- Own sourced copper production of 770,500 tonnes was 125,000
tonnes (14%) lower than the comparable 2021 period, due to the
previously reported land access, geotechnical and processing
constraints at Katanga (50,600 tonnes), the basis change arising
from the sale of Ernest Henry in January 2022 (34,100 tonnes),
Collahuasi lower ore mined due to mine sequencing (23,000 tonnes)
and lower copper units produced within Glencore's zinc
business.
-- Own sourced zinc production of 699,600 tonnes was 156,200
tonnes (18%) lower than the comparable 2021 period, reflecting
progressive reduction in the South American portfolio through
disposals and closures (70,700 tonnes), closure of Matagami (20,100
tonnes) and Covid-19 related absenteeism leading to lower
development rates and sequence changes at Mount Isa (51,200
tonnes).
-- Own sourced nickel production of 81,600 tonnes was 10,500
tonnes (15%) higher than the comparable 2021 period, reflecting
Koniambo operating both production lines in 2022 and stable Murrin
Murrin operations, compared to a multi-week shutdown for scheduled
maintenance in the base period, partially offset by lower
production at INO due to strikes at Raglan and Nikkelverk.
-- Attributable ferrochrome production of 1,110,000 tonnes was
39,000 tonnes (4%) higher than the comparable 2021 period,
reflecting consistent smelter performance.
-- Coal production of 81.9 million tonnes was 5.6 million tonnes
(7%) higher than the comparable 2021 period, mainly reflecting
higher attributable production from Cerrejón, following the
acquisition in January 2022 of the remaining two-thirds interest
that Glencore did not already own. On a like for like basis,
overall Group production declined by 5.6 million tonnes (6%)
reflecting lower tonnes from South Africa.
-- Entitlement interest oil production of 4.8 million barrels of
oil equivalent was 0.7 million barrels (16%) higher than the
comparable 2021 period, due to commencement of the gas phase of the
Alen project in Equatorial Guinea from March 2021.
Other matters
-- Following the exceptionally strong marketing performance in
the first half of the year, we currently expect a significantly
reduced, but still above-average second-half contribution, likely
exceeding $1.6 billion, being the top end of the pro-rated
long-term EBIT guidance range of $2.2 to $3.2 billion p.a.
-- Glencore's investor update will be held on 6 December 2022.
Further details will be published on our website in due course.
To view the full report please click:
https://www.glencore.com/dam/jcr:d6c949c7-bc62-4b81-9bc3-853becbdc371/GLEN_2022-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
www.glencore.com
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 responsibly-sourced 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 enable decarbonisation while
meeting the energy needs of today.
Glencore companies employ around 135,000 people, including
contractors. With 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 40 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.
Glencore recognises our responsibility to contribute to the
global effort to achieve the goals of the Paris Agreement. Our
ambition is to be a net zero total emissions company by 2050. In
August 2021, we increased our medium-term emission reduction target
to a 50% reduction by 2035 on 2019 levels and introduced a new
short-term target of a 15% reduction by 2026 on 2019 levels.
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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
UPDPPGQUUUPPGQM
(END) Dow Jones Newswires
October 28, 2022 02:00 ET (06:00 GMT)
Glencore (LSE:GLEN)
Historical Stock Chart
From Jun 2024 to Jul 2024
Glencore (LSE:GLEN)
Historical Stock Chart
From Jul 2023 to Jul 2024