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GLN - Third Quarter 2022 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, 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
Copper kt 1,371 1,258 1,196 1,060 ± 20
Cobalt kt 46.3 27.4 31.3 45 ± 2
Zinc kt 1,078 1,170 1,118 945 ± 25(1)
Nickel kt 121 110 102 110 ± 4
Ferrochrome kt 1,438 1,029 1,468 1,500 ± 20
Coal mt 140 106 103 110 ± 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
and on the JSE on https://senspdf.jse.co.za/documents/2021/JSE/ISSE/GLN/Q3Rep2022.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
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
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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
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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
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the occurrence of the events expressed or implied in any forward-looking statements in this document will actually occur. You are
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Sponsor
Absa Corporate and Investment Bank, a division of Absa Bank Limited
Date: 28-10-2022 08:06:00
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