REG - Glencore PLC - Half-Year Production Report 2024

GlencoreAnnouncement

30/07/2024 07:00

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RNS Number : 2773Y  Glencore PLC  30 July 2024

NEWS RELEASE

Baar, 30 July 2024

Half-Year Production Report 2024

 

Glencore Chief Executive Officer, Gary Nagle:

"Across the portfolio, our full-year 2024 production guidance has been
maintained and we have added additional steelmaking coal volumes in H2 2024,
following successful closing of the EVR acquisition on 11 July 2024. As
anticipated, 2024 is expected to be a year of two halves, whereby the tracking
of our year-to-date production versus guidance is expected to be caught up
during the second half of the year.

"Key anticipated H2 over H1 higher production levels include African Copper:
+c.30kt (recovery from H1 mill outage, access to higher grade ores and higher
throughput rates at Mutanda), Antapaccay: +c.8kt (recovery from H1
geotechnical event), Kazzinc: +c.60kt (continued ramp-up at Zhairem) and
Murrin Murrin: +c.3kt (reflecting the timing of its annual shutdown in April).
We have updated 2024 steelmaking coal production guidance to 19Mt-21Mt, via
inclusion of 12Mt of expected EVR volumes in H2. In our energy coal business,
the expected H2/H1 uplift is mainly from our Australian assets, reflecting
longwall changes, improved equipment availability and reduced strip ratios.

"As announced earlier this month, post the acquisition of EVR, we are now in
the process of consulting with shareholders to assess their views regarding
the potential demerger of our coal and carbon steel materials business. We
expect to be able to announce the outcome of such engagement and the decision
of the Board regarding the potential demerger alongside our interim results
next week."

 

Production from own sources - Total(1)

                                          H1 2024                H1 2023                Change %
 Copper                      kt                  462.6                  488.0                     (5)
 Cobalt                      kt                   15.9                   21.7                    (27)
 Zinc                        kt                  417.2                  434.7                     (4)
 Lead                        kt                   87.9                   87.4                      1
 Nickel                      kt                   44.2                   46.4                     (5)
 Gold                       koz                    369                    369                      -
 Silver                     koz                  9,117                  9,446                     (3)
 Ferrochrome                 kt                    599                    717                    (16)
 Steelmaking coal            mt                    3.4                    3.7                     (8)
 Energy coal                 mt                     47                     51                     (7)

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

 

H1 production highlights

•       On a like-for-like basis, removing 15,000 tonnes of Cobar
(sold in June 2023) volumes from the prior period, own sourced copper
production of 462,600 tonnes was 2% below H1 2023.

•       Own sourced cobalt production of 15,900 tonnes was 5,800
tonnes (27%) lower than H1 2023, reflecting planned lower run-rates at Mutanda
in response to the current weak cobalt pricing environment and lower
throughput and cobalt grades at KCC.

•       Own sourced overall zinc production of 417,200 tonnes was
17,500 tonnes (4%) below H1 2023, mainly reflecting lower zinc tonnes from
Antamina (34,900 tonnes), given its current year expected copper/zinc mine
sequence, partly offset by the ramp up of Zhairem (24,800 tonnes). Own sourced
zinc production from the zinc department itself (i.e. excluding Antamina) was
17,400 tonnes (5%) higher than H1 2023.

•       Own sourced nickel production of 44,200 tonnes was 2,200
tonnes (5%) lower than H1 2023, reflecting Koniambo's transition to care and
maintenance (7,700 tonnes), partially offset by recovery from the INO supply
chain constraints seen in the base period (4,200 tonnes) and higher production
from Murrin Murrin (1,300 tonnes). Excluding Koniambo (KNS), own sourced
nickel production of 39,200 tonnes was 5,500 tonnes (16%) higher than H1 2023.

•       Attributable ferrochrome production of 599,000 tonnes was
118,000 tonnes (16%) below H1 2023, as the Rustenburg smelter remains idled in
response to weak market conditions and pending an improved price/cost
environment.

•       Coal production of 50.6 million tonnes was 3.6 million tonnes
(7%) lower than H1 2023, mainly reflecting the progressive impact of scheduled
mine closures, the temporary impact of longwall moves in Australia in 2024 and
export rail constraints in South Africa.

 

 

Production guidance

                                             Actual         Previous          Current guidance       2024 weighting

guidance
                                         FY
                                     2023                   2024              2024                   H1             H2
 Copper                 kt               1,010                  950-1,010     950-1,010              47%            53%
 Cobalt                 kt                41.3                    35-40           35-40              42%            58%
 Zinc                   kt                 919                    900-950       900-950              45%            55%
 Nickel                 kt                  98                    80-90           80-90         (1)  46%(1)         54%
 Ferrochrome            kt               1,162                1,100-1,200      1,100-1,200           52%            48%
 Steelmaking coal       mt                 7.5                      7-9           19-21         (2)  n.m.           n.m.
 Energy coal            mt                 107                  98-106           98-106              46%            54%

1. KNS transitioned to care and maintenance during February 2024. The nickel
production guidance above is presented ex-KNS and therefore excludes the 5.0kt
produced by KNS in Q1 2024 prior to its transition to care and maintenance.

2. Full year coal guidance has been updated to include circa 12mt (on a 100%
basis) in H2 2024 from the Elk Valley Resources (EVR) steelmaking coal
business acquired on 11 July 2024.

Other than forecast adjustments for the recently-acquired EVR operations,
production guidance is unchanged from that announced in our full year 2023
Production Report released on 1 February 2024.

Other matters

•       H1 2024 copper, zinc, nickel and coal realised price and cost
details are provided in their respective sections later in this report.

•       We expect to report a meaningful H1 2024 reduction in net
working capital, such contributing to an expected decline in reported Net Debt
over the period.

•       In May 2024, Glencore sold its stake in Volcan.

•       On 5 July 2024, Glencore received final regulatory approval
for the acquisition of a 77% interest in EVR from Teck Resources. The
transaction closed on 11 July 2024. Our forward-looking production guidance
has been adjusted to separate steelmaking and energy coal. Steelmaking coal
guidance includes circa 12mt (on a 100% basis) of forecast EVR production in
H2 2024.

To view the full report please click here:
https://www.glencore.com/.rest/api/v1/documents/static/65731bf1-985d-4458-984f-103f7a732222/GLEN_2024-H1ProductionReport.pdf
(https://www.glencore.com/.rest/api/v1/documents/static/65731bf1-985d-4458-984f-103f7a732222/GLEN_2024-H1ProductionReport.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
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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 35
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we have an ambition to achieve net zero industrial emissions by the end of
2050, subject to a supportive policy environment. For more information see our
2024-2026 Climate Action Transition Plan and the About our emissions
calculation and reporting section in our 2023 Annual Report, available on our
website at glencore.com/publications.

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