Glencore Plc
Third Quarter 2020 Production Report
Glencore Chief Executive Officer, Ivan Glasenberg:
“Glencore has delivered a solid third quarter operating performance, including the continued successful ramp-up of Katanga, which remains on track to achieve design capacity by year end. Our teams have adapted well to the numerous challenges presented by Covid-19.
“We maintain our 2020 full year production guidance, except coal, which was adjusted for the extended strike at Cerrejon. We will provide a detailed business update, including progress on climate change initiatives at our Investor Update on 4 December.”
Production from own sources – Total1
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YTD 2020 |
YTD 2019 |
Change |
Copper |
kt |
934.7 |
1,015.8 |
(8) |
Cobalt |
kt |
21.6 |
34.4 |
(37) |
Zinc |
kt |
860.1 |
809.2 |
6 |
Lead |
kt |
194.3 |
219.8 |
(12) |
Nickel |
kt |
81.8 |
89.4 |
(9) |
Gold |
koz |
611 |
622 |
(2) |
Silver |
koz |
23,220 |
23,733 |
(2) |
Ferrochrome |
kt |
651 |
1,030 |
(37) |
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Coal – coking |
mt |
5.6 |
6.1 |
(8) |
Coal – semi-soft |
mt |
3.6 |
5.1 |
(29) |
Coal – thermal |
mt |
74.3 |
92.8 |
(20) |
Coal |
mt |
83.5 |
104.0 |
(20) |
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Oil (entitlement interest basis) |
kbbl |
3,360 |
3,638 |
(8) |
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1 Controlled industrial assets and joint ventures only. Production is on a 100% basis, except as stated.
Production guidance
• Changes in guidance reflect the tightening of most ranges and coal down 5mt (4%), accounting for the current extended industrial strike at Cerrejón JV (Colombia).
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Q1 |
Q2 |
Q3 |
Actual |
ROY |
Current guidance |
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Previous |
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2020 |
2020 |
2020 |
2020 |
2020 |
2020 |
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2020 |
Copper |
kt |
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293 |
295 |
347 |
935 |
320 |
1,255 ± 25 |
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1,255 ± 35 |
Cobalt |
kt |
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6 |
8 |
8 |
22 |
6 |
28 ± 1 |
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28 ± 2 |
Zinc |
kt |
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296 |
255 |
310 |
860 |
300 |
1,160 ± 25 |
1 |
1,160 ± 30 |
Nickel |
kt |
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28 |
27 |
27 |
82 |
32 |
114 ± 3 |
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114 ± 4 |
Ferrochrome |
kt |
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388 |
78 |
185 |
651 |
349 |
1,000 ± 25 |
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1,000 ± 25 |
Coal |
mt |
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32 |
26 |
26 |
84 |
25 |
109 ± 3 |
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114 ± 3 |
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1 Excludes Volcan
Highlights
• The generally strong sequential quarterly production performance noted in the table above, in large part, reflects reversal of the various short-term Covid-19 related shutdowns in Q2, as mandated by several national/local governments.
• Own sourced copper production of 934,700 tonnes was 81,100 tonnes (8%) lower than the comparable prior period, reflecting Mutanda being on care and maintenance in the current period and the temporary suspension of operations at Antamina in Q2, partly offset by a continued strong milling performance at Collahuasi and Katanga's ramp-up.
• Own sourced cobalt production of 21,600 tonnes was 12,800 tonnes (37%) lower than the comparable prior period, mainly reflecting Mutanda on care and maintenance, partly offset by Katanga's ramp-up.
• Own source zinc production of 860,100 tonnes was 50,900 tonnes (6%) higher than the comparable prior period, mainly reflecting: (i) higher zinc grades from Antamina notwithstanding the temporary Covid-related suspension (21,800 tonnes); (ii) improved throughput at Mount Isa (14,900 tonnes); and (iii) the net positive effect of 13,800 tonnes from Other South America owing to re-opening the short-life Iscaycruz mine in Peru, offset by Covid-related slowdowns and suspensions.
• Own sourced nickel production of 81,800 tonnes was 7,600 tonnes (9%) lower than the comparable prior period, mainly reflecting Koniambo running as a single-line operation for most of Q2/Q3, with Covid-related restrictions on mobility affecting timing of maintenance.
• Attributable ferrochrome production of 651,000 tonnes was 379,000 tonnes (37%) lower than the comparable prior period, primarily reflecting the Q2 South African lockdown measures. As of 1 September, four of the five smelters were running. The competitive environment across the South African ferrochrome industry continues to be challenging, in particular due to high input costs including electricity.
• Coal production of 83.5 million tonnes was 20.5 million tonnes (20%) lower than the comparable prior period, reflecting Prodeco being on care and maintenance for most of 2020, disruptions at Cerrejón (initially Covid-related, and lately due to industrial action), and targeted H2 volume reductions across the Australian portfolio, during a time of weak market conditions.
• Entitlement interest oil production of 3.4 million barrels was 0.3 million barrels (8%) lower than the comparable prior period, reflecting the temporary suspension of Chad operations since April 2020, partly offset by new wells drilled in Equatorial Guinea and Cameroon.