07/30/2021 | Press release | Distributed by Public on 07/30/2021 00:02
Glencore Chief Executive Officer, Gary Nagle:
'Our Industrial operating assets continued to manage responsibly and effectively amid the health and logistical challenges presented by Covid-19, while, from a market perspective, we remain disciplined in a recovering, yet somewhat uncertain, global economic picture. I am particularly pleased to report an improved safety performance. We relaunched our 'SafeWork' program earlier this year to address underlying issues in historical safety performance. Unfortunately, we recorded the loss of one life at Glencore's managed operations in the first half. We remain relentless in our ambition to achieve a fatality-free business.
'In our key copper and zinc businesses, production met our H1 guidance, while planned coal and nickel volumes were impacted by a range of factors during the half. Prodeco's care and maintenance and market-driven Australian supply reductions since H2 2020 are mainly responsible for a 16% period-on-period decline in coal production. Nickel production was constrained by various operating issues at Koniambo, with a restart of its second production line currently expected in August.
'Our Marketing business has again performed well, with constructive market conditions allowing us to raise our full year 2021 EBIT expectations to the top end of our $2.2-$3.2 billion p.a. guidance range.
'In the near term we remain alert to the continuing challenges of Covid-19, and our operational teams remain focussed on operating safely and responsibly to create sustainable long-term value for all stakeholders.'
Production from own sources - Total1
H1 2021 |
H1 2020 |
Change % |
||
Copper |
kt |
598.0 |
588.1 |
2 |
Cobalt |
kt |
14.8 |
14.3 |
3 |
Zinc |
kt |
581.8 |
550.1 |
6 |
Lead |
kt |
117.0 |
127.9 |
(9) |
Nickel |
kt |
47.7 |
55.2 |
(14) |
Gold |
koz |
423 |
411 |
3 |
Silver |
koz |
15,984 |
14,185 |
13 |
Ferrochrome |
kt |
773 |
466 |
66 |
Coal - coking |
mt |
4.1 |
3.7 |
11 |
Coal - semi-soft |
mt |
2.6 |
2.6 |
- |
Coal - thermal |
mt |
42.0 |
51.8 |
(19) |
Coal |
mt |
48.7 |
58.1 |
(16) |
Oil (entitlement interest basis) |
kboe |
2,557 |
2,612 |
(2) |
H1 production highlights
Realised prices
Realised |
||||
US$ million |
¢/lb |
$/t |
||
Copper |
425 | 9,370 | ||
Zinc |
128 | 2,831 | ||
Nickel |
788 | 17,372 | ||
The average Newcastle coal (NEWC) settlement prices for the period was $98.85/t. After applying a portfolio mix adjustment (component of our regular coal cash flow modelling guidance) of $26.60/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 price of c.$72.25/t can be applied across all coal sales volumes in H1. Own sourced copper sales during the period were c.21kt lower than production and own sourced zinc sales were c.20kt higher than production.
Production guidance
Actual |
Previous |
Current guidance |
2021 weighting |
|||||
2020 |
2021 |
2021 |
H1 |
H2 |
||||
Copper |
kt |
1,258 |
1,220 ± 30 |
1,220 ± 30 |
49% |
51% |
||
Cobalt |
kt |
27.4 |
35 ± 2 |
35 ± 3 |
42% |
58% |
||
Zinc |
kt |
1,170 |
1,250 ± 30 |
1,170 ± 30 |
1 |
50% |
50% |
|
Nickel |
kt |
110 |
117 ± 5 |
105 ± 5 |
45% |
55% |
||
Ferrochrome |
kt |
1,029 |
1,400 ± 30 |
1,430 ± 30 |
54% |
46% |
||
Coal |
mt |
106 |
113 ± 4 |
104 ± 4 |
47% |
53% |
To view the full report please click: https://www.glencore.com/dam/jcr:9897d2a2-0d44-491f-9912-0728c92e69f4/GLEN_2021-HY_ProductionReport.pdf
For further information please contact:
Investors
Martin Fewings
t: +41 41 709 2880
m: +41 79 737 5642
[email protected]
Media
Charles Watenphul
t: +41 41 709 2462
m: +41 79 904 3320
[email protected]
Glencore LEI: 2138002658CPO9NBH955
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,metallurgical 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, suchas 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'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 onMining 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.
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