Coronavirus Update

Glencore Plc - Third Quarter 2020 Production Report

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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

 

 

 

 

 

 

 

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)

 

 

 

 

 

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)

 

 

 

 

 

Oil (entitlement interest basis)

  kbbl

  3,360

  3,638

  (8)

 

 

 

 

 

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).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1

Q2

Q3

Actual
YTD

  ROY

Current guidance

 

Previous
guidance

 

 

 

2020

2020

2020

2020

2020

2020

 

2020

Copper

  kt

 

  293

  295

  347

  935

  320

  1,255 ± 25

 

  1,255 ± 35

Cobalt

  kt

 

  6

  8

  8

  22

  6

  28 ± 1

 

  28 ± 2

Zinc

  kt

 

  296

  255

  310

  860

  300

  1,160 ± 25

1

  1,160 ± 30

Nickel

  kt

 

  28

  27

  27

  82

  32

  114 ± 3

 

  114 ± 4

Ferrochrome

  kt

 

  388

  78

  185

  651

  349

  1,000 ± 25

 

  1,000 ± 25

Coal

  mt

 

  32

  26

  26

  84

  25

  109 ± 3

 

  114 ± 3

 

 

 

 

 

 

 

 

 

 

 

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.