REG - Glencore PLC - Half-Year Production Report 2025
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RNS Number : 0544T Glencore PLC 30 July 2025
NEWS RELEASE
Baar, 30 July 2025
Half-Year Production Report 2025
5% CuEq production uplift for H1 2025 over H1 2024, with the integration of
EVR's steelmaking coal volumes
Glencore Chief Executive Officer, Gary Nagle: "Over the first half, we have
continued to make significant progress in optimising the business and
positioning for further value accretive growth.
"A comprehensive review of our industrial asset portfolio during the period
recognised opportunities to streamline our industrial operating structure, to
optimise departmental management and reporting, and to support enhanced
technical excellence and operational focus.
"This review also identified c.$1bn of cost savings opportunities (against a
2024 baseline) across our various operating structures, which are expected to
be fully delivered by the end of 2026. H2 2025 is expected to already generate
significant cost savings resulting from these initiatives - further details
will be provided in our Half-Year results on 6 August.
"Recent business reviews also confirmed our confidence in delivering our full
year production guidance, with the ranges now tightened to reflect performance
to date.
"We remain focussed on delivering safe reliable production and achieving value
accretive growth across our industrial asset portfolio in the coming years.
"Given completion of the sale of Viterra in early July, and, despite no longer
including our share of Viterra earnings in our Marketing Adjusted EBIT going
forward, we now take the opportunity to revise up our through the cycle
long-term marketing Adjusted EBIT guidance range to $2.3 to $3.5 billion p.a.
(from the $2.2 to $3.2 billion previously), representing a mid-point increase
of 16% from c.$2.5 billion (ex-Viterra) to $2.9 billion."
H1 production highlights
· Copper equivalent (CuEq) production rose 5% year-on-year
in H1, primarily due to the contribution of EVR's steelmaking coal volumes.
· Own sourced copper production of 343,900 tonnes was
118,700 tonnes (26%) below H1 2024, primarily due to lower head grades and
recoveries associated with planned mining sequencing and the resultant ore fed
to the plants, contributing to the reductions at Collahuasi (41,700 tonnes),
Antapaccay (21,700 tonnes), Antamina (20,800 tonnes) and KCC (25,300 tonnes).
· Own sourced cobalt production of 18,900 tonnes was 3,000
tonnes (19%) higher than H1 2024, mainly reflecting higher cobalt grades and
volumes at Mutanda.
· Own sourced overall zinc production of 465,200 tonnes was
48,000 tonnes (12%) higher than H1 2024, mainly reflecting higher zinc grades
at Antamina (36,800 tonnes) and higher McArthur River production (10,600
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 36,600 tonnes was 2,600 tonnes (7%) lower than H1 2024,
due to Murrin Murrin maintenance downtime.
· Attributable ferrochrome production of 433,000 tonnes was
166,000 tonnes (28%) below H1 2024, reflecting pressure on smelting conversion
margins, which led to the strategic decision to suspend operations at the
Boshoek and Wonderkop smelters, until such time as market conditions
sufficiently improve.
· Steelmaking coal production of 15.7 million tonnes mainly
comprises the Elk Valley Resources (EVR) business acquired in July 2024, which
produced 12.7 million tonnes in H1 2025. Australian steelmaking coal
production of 3.0 million tonnes was 0.4 million tonnes (12%) lower than H1
2024, due to the temporary suspension of Oaky Creek following a water inrush.
· Energy coal production of 48.3 million tonnes was broadly
in line with H1 2024, reflecting stronger Australian production offsetting the
more recent voluntary production cuts at Cerrejón.
Production from own sources - Total(1)
H1 2025 H1 2024 Change %
Copper kt 343.9 462.6 (26)
Cobalt kt 18.9 15.9 19
Zinc kt 465.2 417.2 12
Lead kt 90.9 87.9 3
Nickel kt 36.6 44.2 (17)
Gold koz 301 369 (18)
Silver koz 9,097 9,117 -
Ferrochrome kt 433 599 (28)
Steelmaking coal mt 15.7 3.4 362
Energy coal mt 48.3 47.2 2
Expressed in copper equivalents(2) kt 1,485 1,409 5
1. Controlled industrial assets and joint ventures only. Production is on
a 100% basis, except as stated later in this report.
2. Copper equivalent production is calculated on the basis of the H1 2025
average commodity prices shown on page 10, except coal, where realised prices,
post portfolio mix adjustment, have been used (see overleaf).
2025 Production guidance
· Updates to 2025 production guidance primarily reflect a
tightening of ranges, taking year to date and expected full year performance
into account.
Actual Previous Current guidance 2025 weighting
FY
guidance
2024 2025 2025 H1 H2
Copper kt 951.6 850-910 850-890 40% 60%
Cobalt kt 38.2 40-45 42-45 (1) 43% 57%
Zinc kt 905.0 930-990 940-980 48% 52%
Nickel kt 82.3 74-86 74-80 48% 52%
Steelmaking coal mt 19.9 30-35 30-35 (2) 48% 52%
Energy coal mt 99.6 87-95 90-96 52% 48%
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.
· Copper production
o 2025 H1:H2 projected production weighting at 40:60, primarily reflecting
higher expected grades in the second half at our key assets. Key H2 vs H1
operating comments are noted below:
Kt H2 2025F FY 2025F
Asset H1 2025 Low High Low High H2 Comment
KCC 63 128 139 191 202 Primarily grade driven uplift: expected H2 2025 Cu grade of 2.80% vs 1.79% in
H1
Mutanda 20 38 40 58 60 Primarily grade driven uplift: expected H2 2025 Cu grade of 2.04% vs 1.13% in
H1
Collahuasi 83 101 109 184 192 Water restrictions lifted somewhat with the early July staged commissioning of
the new desalination plant. Expected Cu grade uplift from 0.91% to 0.98%,
along with higher expected recoveries from fresh ore and reduced reliance on
stockpiles
Antamina 56 66 71 122 127 Primarily grade driven uplift: expected H2 2025 Cu grade of 0.87% vs 0.79% in
H1. Management changes also effected in H1
Antapaccay 48 90 97 138 145 Primarily grade driven uplift: expected H2 2025 Cu grade of 0.50% vs 0.29% in
H1. Additional expected cathode production in H2 from the leaching circuit
Lomas Bayas 30 31 34 61 64 Similar operating parameters to H1
Non-Copper Dept 44 52 56 96 100 Mount Isa, Kazzinc, INO and Kidd
Total Copper 344 506 546 850 890
Estimated H1 unit costs
· Period on period improvements in zinc and coal unit
costs.
· Copper unit cash cost is higher period on period,
primarily reflecting the fixed cost denominator impact of the H1:H2 volume
asymmetry, as well as the impact of the DRC cobalt export ban on cobalt credit
outcomes. Higher expected H2 volumes are expected to underpin a full-year unit
cash cost outcome broadly in line with our previous guidance of c.$1.78/lb.
H1 2025 H1 2024
Copper(1) c/lb 225.0 170.5
Zinc(2) c/lb 2.3 33.3
Steelmaking coal(3) $/t 108.4 139.9
Energy coal(3) $/t 65.0 72.6
1. Net unit cash cost after by-product credits, excluding costs expensed and
associated with the MARA, El Pachon and New Range development projects
2. Net unit cash cost after by-product credits
3. FOB unit cash cost
H1 realised prices
Key metals
Realised LME (average 6 months) Difference
$/t
%
¢/lb $/t
Copper 410 9,043 9,432 (4)
Zinc 125 2,753 2,739 1
Nickel 697 15,370 15,369 -
Coal
H1 2025 $/t H1 2024 $/t
Steelmaking coal: average prime hard coking coal (PHCC) settlement price 184.7 277.4
Steelmaking coal: portfolio mix adjustment(1) (17.6) (3.2)
Steelmaking coal: average realised price(2) 167.1 274.2
Energy coal: average Newcastle coal (NEWC) settlement price 102.5 130.9
Energy coal: portfolio mix adjustment(3) (23.9) (22.0)
Energy coal: average realised price(4) 78.6 108.9
1. Component of our regular cash flow modelling guidance to reflect movements
in the pricing of non-PHCC quality coals
2. Average energy-equivalent realised price to be applied across all H1 2025
steelmaking coal sales volumes
3. Component of our regular cash flow modelling guidance, primarily reflecting
movements in the pricing of non-NEWC quality coals
4. Average energy-equivalent realised price to be applied across all H1 2025
energy coal sales volumes (including semi-soft)
Marketing Updates
Revised long-term EBIT guidance range
· With the sale of Viterra to Bunge having now closed in
early July 2025, we update our through the cycle long-term Marketing Adjusted
EBIT guidance range to $2.3 to $3.5 billion p.a. (from the $2.2 to $3.2
billion which had been in place since 2017), reflecting:
o the loss of c.$0.2 billion share of earnings from Viterra,
o growth in our core metals and energy businesses, via entry into new
markets and expansion of existing product lines, including LNG, alumina,
steelmaking coal, lithium etc, and
o inflationary progression to today's dollars.
Estimated H1 performance
· We expect to report a half-year Marketing Adjusted EBIT
result of approximately $1.35 billion, comprising a strong metals and minerals
contribution, balanced out by the challenging energy market backdrop.
Working capital
· In H1 2025, we invested a net c.$1.1 billion into non-RMI
working capital, primarily via a number of expected high-returning commodity
pre-pay / lending opportunities, including in connection with completion of
the purchase by the Chandra Asri-Glencore JV of the Bukom Singapore oil
refinery complex and chemical assets from Shell during the period, in which
Glencore now has a minority 20% equity stake and exclusive crude supply and
oil product offtake arrangements.
Other matters
· The Ferroalloys business completed the review of the
sustainability of its smelting operations. The Boshoek and Wonderkop smelters
were indefinitely suspended in May and June 2025, respectively, pending
sufficient recovery in the ferrochrome market. Operations at the Lion smelter
are currently temporarily suspended, undergoing scheduled annual maintenance
and planned rebuilds.
· During the period, the Group implemented several
organisational changes across its Industrial business to optimise departmental
management and reporting structures and to support enhanced technical
excellence and operational focus. The appendix to this report shows the H1
2024 results for the Industrial activities reporting segment on the basis of
the revised reporting structure, together with a reconciliation to the
previously disclosed information. There is no change to total metrics for the
Industrial activities reporting segment. The H1 2025 actual results will be
presented on this basis.
To view the full report please click here:
https://www.glencore.com/.rest/api/v1/documents/static/80aa3906-26b0-40d5-8fb1-881442e89c39/GLEN_2025-H1+ProductionReport.pdf
(https://www.glencore.com/.rest/api/v1/documents/static/80aa3906-26b0-40d5-8fb1-881442e89c39/GLEN_2025-H1+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 2462 m: +41 79 904 3320 charles.watenphul@glencore.com
www.glencore.com (http://www.glencore.com)
Glencore LEI: 2138002658CPO9NBH955
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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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