REG - Glencore PLC - First Quarter Production Report 2025

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RNS Number : 6801G  Glencore PLC  30 April 2025

NEWS RELEASE

Baar, 30 April 2025

First Quarter Production Report 2025

 

Glencore Chief Executive Officer, Gary Nagle:

"Our full year 2025 production guidance remains unchanged from that presented
at the beginning of the year, except for a c.5% reduction to energy coal's
range to reflect our recent proactive decision to reduce Cerrejón volumes, in
support of rebalancing this market.

"While copper had a slow start to the year, Q1 is expected to be the lowest
quarter, and a significantly stronger performance is anticipated over the
remainder of 2025. Copper production is expected to weight approximately
42%/58% over H1 and H2 2025 respectively, with all other guided commodities
being in the 45%-51% range over H1. 2024 also experienced a stronger H2
performance, where ultimately full year production guidance was met. At
Collahuasi, completion of the planned reorientation of the pit, along with
additional trucks and improved water availability, is expected to underpin its
delivery of full year guidance. In Peru, a planned initially higher strip
ratio at Antapaccay is forecast to reduce progressively through the year,
boosting H2 volumes, while the transition at KCC of plant feed, from
predominately ore stocks to run-of-mine feed, is expected to lift throughput
rates and production over the balance of 2025.

"In coal, both steelmaking and energy coal volumes are tracking well. EVR
posted a strong quarter of 6.6Mt, while our energy coal production volumes
were modestly lower year-over-year, accounting for the closures of Glendell
and Integra in the base period. First quarter zinc volumes were up 4%, aided
by stronger contributions from Antamina and our Australian assets.

"While still early in the year, basis Marketing's performance over the first
quarter, and accounting for general market uncertainty and global economic
growth scenarios trending lower, we currently expect full year Marketing
Adjusted EBIT around the middle of our long-term $2.2-3.2 billion p.a.
guidance range. Since quarter-end, financial markets, including commodities,
have been highly volatile and unpredictable, responding rapidly to US tariff
newsflow and uncertainty. In such an unpredictable environment, risk
management has been a primary focus, noting the many complex supply chains we
are exposed to, including the US, China, Europe and Canada. Despite the
'noise', primary commodity trade routes to date have not been meaningfully
disrupted. However, owing to the various proposed and currently being
implemented tariffs across commodity supply chains, it is likely that some
physical trade flow re-orientation and dislocation will manifest over the
coming months, which may present opportunities for our Marketing business."

 

Production from own sources - Total(1)

                                          Q1 2025            Q1 2024              Change %
 Copper                      kt                  167.9              239.7                  (30)
 Cobalt                      kt                    9.5                6.6                   44
 Zinc                        kt                  213.6              205.6                    4
 Lead                        kt                   49.9               43.8                   14
 Nickel                      kt                   18.8               23.8                  (21)
 Gold                       koz                    145                201                  (28)
 Silver                     koz                  4,230              4,520                   (6)
 Ferrochrome                 kt                    277                297                   (7)
 Steelmaking coal            mt                    8.3                1.4                  493
 Energy coal                 mt                   23.4               25.2                   (7)

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

 

Q1 production highlights

•       Own sourced copper production of 167,900 tonnes was 71,800
tonnes (30%) below Q1 2024, primarily due to lower ore mining rates, head
grades and overall recoveries at Collahuasi (29,400 tonnes), Antapaccay
(20,800 tonnes) and KCC (16,700 tonnes).

•       Own sourced cobalt production of 9,500 tonnes was 2,900 tonnes
(44%) higher than Q1 2024, mainly reflecting higher cobalt grades and volumes
at Mutanda.

•       Own sourced overall zinc production of 213,600 tonnes was
8,000 tonnes (4%) higher than Q1 2024, mainly reflecting higher zinc grades
from Antamina (7,000 tonnes) and stronger Australian production (7,700
tonnes).

•       Adjusting for 5,000 tonnes of Koniambo production in the base
period (prior to its transition to care and maintenance), own sourced nickel
production of 18,800 tonnes was in line with Q1 2024.

•       Attributable ferrochrome production of 277,000 tonnes was
20,000 tonnes (7%) below Q1 2024, such decrease being the result of proactive
management in response to market conditions.

•       Steelmaking coal production of 8.3 million tonnes mainly
comprises the Elk Valley Resources (EVR) business acquired in July 2024, which
produced 6.6 million tonnes in Q1 2025. Australian steelmaking coal production
of 1.7 million tonnes was 0.3 million tonnes (21%) higher than Q1 2024, due to
a longwall move at Oaky Creek in the base period.

•       Energy coal production of 23.4 million tonnes was down 7% on
Q1 2024, reflecting the progressive impact of two scheduled mine closures in
Australia.

 

Production guidance

                                        Actual         Previous    Current guidance       2025 weighting

       FY
guidance
                                     2024              2025        2025                   H1            H2
 Copper                 kt               951.6         850-910       850-910              42%           58%
 Cobalt                 kt                38.2            40-45        40-45         (1)  45%           55%
 Zinc                   kt               905.0         930-990       930-990              51%           49%
 Nickel                 kt                82.3            74-86        74-86              46%           54%
 Steelmaking coal       mt                19.9            30-35        30-35         (2)  50%           50%
 Energy coal            mt                99.6           92-100        87-95         (3)  51%           49%

 

1  A ban on DRC cobalt exports is currently in place. Cobalt produced at KCC
and Mutanda is being stored in country, and will be sold in due course..

2  On an annualised basis, <2% of EVR's production is non-steelmaking
quality coal, ordinarily sold into energy coal markets. Given the de minimis
size, these volumes are not disaggregated from Canadian steelmaking coal
volumes.

3  In March 2025, Cerrejón announced a production cut of 5-10Mt p.a.
Accordingly, the energy coal guidance range has been reduced by 5Mt.

 

To view the full report please click here:
https://www.glencore.com/.rest/api/v1/documents/static/0a6952b0-b644-41ee-b291-c1ee6a93f9d5/GLEN_2025-Q1ProductionReport.pdf
(https://www.glencore.com/.rest/api/v1/documents/static/0a6952b0-b644-41ee-b291-c1ee6a93f9d5/GLEN_2025-Q1ProductionReport.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 (http://www.glencore.com)

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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 30
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. For more
information see our 2024-2026 Climate Action Transition Plan, available on our
website at glencore.com/publications.

 

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