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GLN: Full Year 2021 Production Report.
GLENCORE PLC
(Incorporated in Jersey under the Companies (Jersey) Law 1991)
(Registration number 107710)
JSE Share Code: GLN
LSE Share Code: GLEN
ISIN: JE00B4T3BW64
LEI: 2138002658CPO9NBH955
NEWS RELEASE
Baar, 2 February 2022
Full Year 2021 Production Report
Glencore Chief Executive Officer, Gary Nagle:
“The operating environment remained challenging in 2021, with the Covid-19 pandemic again dominating the daily lives of
many of our colleagues, families, local communities and society at large. As a responsible operator, our top priority is to p rotect
the safety and health of our people and the communities that host our businesses. Maintaining production in 2021 became
increasingly important as many of our products, so crucial for decarbonisation, energy supply and industrial output, saw higher
levels of demand.
“Overall, our operations largely performed in line with guidance expectations. We completed the Cerrejon acquisition and
Ernest Henry disposal in January, such transactions being consistent with our continued strategy to simplify and align our
portfolio with the materials needed for the energy transition and the responsible decline of our coal business .”
Production from own sources – Total(1)
2021 2020 Change %
Copper kt 1,195.7 1,258.1 (5)
Cobalt kt 31.3 27.4 14
Zinc kt 1,117.8 1,170.4 (4)
Lead kt 222.3 259.4 (14)
Nickel kt 102.3 110.2 (7)
Gold koz 809 916 (12)
Silver koz 31,519 32,766 (4)
Ferrochrome kt 1,468 1,029 43
Coal - coking mt 9.1 7.6 20
Coal - semi-soft mt 4.5 4.6 (2)
Coal - thermal mt 89.7 94.0 (5)
Coal mt 103.3 106.2 (3)
Oil (entitlement interest basis) kboe 5,274 3,944 34
1 Controlled industrial assets and joint ventures only. Production is on a 100% basis, except as stated.
Production guidance
- 2022 production guidance unchanged from the Investor Update in December 2021. Purchase of the remaining interest in
Cerrejon completed in January 2022, a few months earlier than initially assumed. Changes, if any, to 2022 guid ance will be
updated in April, together with our Q1 production report.
- The Ernest Henry copper mine (disposed January 2022) produced 44,700 tonnes in 2021, largely accounting for the copper
reduction from 2021 to 2022.
Actual Actual Actual Guidance
FY FY FY FY
2019 2020 2021 2022
Copper kt 1,371 1,258 1,196 1,150 ± 30
Cobalt kt 46.3 27.4 31.3 48 ± 3
Zinc kt 1,078 1,170 1,118 1,110 ± 30(1)
Nickel kt 121 110 102 115 ± 5
Ferrochrome kt 1,438 1,029 1,468 1,460 ± 30
Coal mt 140 106 103 121 ± 5
1 Excludes Volcan.
Glencore Full Year 2021 Production Report
HIGHLIGHTS
continued
Realised prices
Realised LME Average 12months) Difference
US$ million ¢/lb $/t $/t %
Copper 426 9,392 9,320 1
Zinc 135 2,975 3,005 (1)
Nickel 839 18,497 18,474 –
The averageNewcastle coal (NEWC) settlement prices for 2021 was $137.30/t. After applying a portfoliomix adjustment (component of our regular coal cash flow modelling guidance) of
$33.80/t to reflect e.g. movements in the pricing of non-NEWC quality coals, coking coal margins and the lag effect of 2020’s JPU fixed-price contracts, an average thermal-equivalent
realised priceof c. $103.50/t can be applied across all coal sales volumes. Due mainly toweather-related logistics challenges at the port of Newcastle, circa 1.5mt of Australian coal sales
volumes, initially expected in December 2021, slipped into 2022.
Production highlights
- Own sourced copper production of 1,195,700 tonnes was 62,400 tonnes (5%) lower than 2020, mainly due to the
Mopani disposal (23,800 tonnes), expected lower copper grades at Antapaccay (14,800 tonnes) and lower copper by-
products from our mature zinc and nickel mines (26,600 tonnes).
- Own sourced cobalt production of 31,300 tonnes was 3,900 tonnes (14%) higher than 2020 due to the limited restart of
production at Mutanda in 2021.
- Own sourced zinc production of 1,117,800 tonnes was 52,600 tonnes (4%) lower than 2020, mainly reflecting:
- the expected decline of Maleevsky mine in Kazakhstan, being lagged by the slower than expected ramp-up of
replacement Zhairem mine tonnage (19,600 tonnes);
- Mount Isa producing additional metal from ore stockpile drawdowns in the base period (24,400 tonnes); and
- Kidd lower grades (13,800 tonnes).
These factors were partly offset by stronger zinc production at Antamina, which was suspended for part of 2020 due to Covid
restrictions.
- Nickel production of 102.300 tonnes was 7,900 tonnes (7%) lower than in 2020, mainly due to the lengthy scheduled
statutory shutdown and maintenance issues at Murrin Murrin earlier in the year .
- Attributable ferrochrome production of 1,468,000 tonnes was 439,000 tonnes (43%) higher than 2020 mainly due to the South
African national lockdown in the prior year, and a strong operating performance.
- Coal production of 103.3 million tonnes was 2.9 million tonnes (3%) lower than 2020, reflecting Prodeco’s care and maintenance
status and lower domestic power demand / export rail capacity constraints in South Africa, offset by higher production at
Cerrejón, following a Covid suspension and strike in 2020.
- Entitlement interest production of 5.3 million boe was 1.3 million boe (34%) higher than 2020 mainly due to commencement of
the gas phase of the Alen project in Equatorial Guinea. There was no production from the Chad fields in 2021.
Other matters
- In early January 2022 we completed the acquisition of the two-thirds of Cerrejon we did not already own.
- The previously announced Ernest Henry copper mine disposal also completed in early January 2022.
To view the full report please click: https://www.glencore.com/dam/jcr:90d4d8f9-a85e-42ec-ad8a-b75b657f55d2/GLEN_2021-full-
year_ProductionReport.pdf
To view the full report on the Johannesburg Stock Exchange portal please click here:
https://senspdf.jse.co.za/documents/2022/JSE/ISSE/GLN/FY21-PrRep.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
Glencore Full Year 2021 Production Report
continued
www.glencore.com
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. The Group's operations comprise around 150 mining and
metallurgical sites and oil production assets.
With a strong footprint in over 35 countries in both established and emerging regions for natural resources, Glencore's industrial
activities are supported by a global network of more than 30 marketing 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, logist ics and
other services to producers and consumers of commodities. Glencore's companies employ around 135,000 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. Our ambition is to be a net zero
total emissions company by 2050.
Disclaimer
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 ot her
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.
Glencore Full Year 2021 Production Report
DUMMY HEADER
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 change s 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 comp any
or companies.
Sponsor
Absa Corporate and Investment Bank, a division of Absa Bank Limited
Glencore Full Year 2021 Production Report 4
Date: 02-02-2022 09:00:00
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