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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
Baar, Switzerland
21 July 2023
NEWS RELEASE
Half-Year Production Report 2023
Glencore Chief Executive Officer, Gary Nagle:
“We are pleased to report a solid first-half production performance from our underlying base business, where our key copper,
coal and zinc assets performed in line with expectations and previously communicated guidance.
“Our full year production guidance remains unchanged from earlier guidance. Second half volume weightings in copper, zinc
and nickel reflect higher expected production volumes from Collahuasi, Kazzinc, Mount Isa and INO.
“In our Marketing segment, progressively through 2023, the particularly elevated commodity market imbalances and
volatility levels that prevailed through much of 2022, have largely normalised, which, while clearly impacting profitability, has
allowed for the release of some of the investment made in non-RMI marketing working capital in 2022. We continue to
expect a full year 2023 Adjusted EBIT outcome above the top end of our $2.2-3.2 billion p.a. long-term guidance range, likely in
the $3.5-4.0 billion range.”
Production from own sources – Total(1)
H1 2023 H1 2022 Change %
Copper kt 488.0 510.2 (4)
Cobalt kt 21.7 20.7 5
Zinc kt 434.7 480.7 (10)
Lead kt 87.4 95.1 (8)
Nickel kt 46.4 57.8 (20)
Gold koz 369 334 10
Silver koz 9,446 12,579 (25)
Ferrochrome kt 717 786 (9)
Coal mt 54.2 55.4 (2)
1. Controlled industrial assets and joint ventures only (excludes Volcan). Production is on a 100% basis, except as stated later in this report.
H1 production highlights
• Own sourced copper production of 488,000 tonnes was 22,200 tonnes (4%) lower than H1 2022, consistent with our
expectations around mining sequences at Collahuasi and Antamina, and lower copper by-products outside the Copper
department. Own source copper sales volumes were some 11,000 tonnes lower due to timing of shipments.
• Own sourced cobalt production of 21,700 tonnes was 1,000 tonnes (5%) higher than H1 2022, reflecting improved recoveries at
Katanga.
• Own sourced zinc production of 434,700 tonnes was 46,000 tonnes (10%) lower than H1 2022, mainly reflecting the 2022
disposals of South American zinc operations (18,700 tonnes) and the closure of Matagami (17,300 tonnes).
• Own sourced nickel production of 46,400 tonnes was 11,400 tonnes (20%) lower than H1 2022, primarily reflecting higher INO
third party production (versus own sourced), in large part necessitated by the strike at Raglan mine in 2022.
Glencore Half-Year Production Report 2023 1
HIGHLIGHTS
CONTINUED
• Attributable ferrochrome production of 717,000 tonnes was 69,000 tonnes (9%) below H1 2022 due to planned additional
smelter offline days.
• Coal production of 54.2 million tonnes was broadly in line with H1 2022.
• Full year production guidance remains unchanged from that presented in Glencore’s Q1 2023 Production Report and
December 2022 investor update.
Glencore Half-Year Production Report 2023 2
HIGHLIGHTS
CONTINUED
H1 realised prices
Realised
¢/lb $/t
Copper 375 8,267
Zinc 124 2,729
Nickel 953 21,010
Cobalt: Given recent overall sector cobalt hydroxide oversupply, hydroxide payabilities (on already materially lower cobalt metal prices, down c.25% at 30 June 2023 from 31
December 2022) declined to a historic low of close to 50% in May 2023 before recovering to mid-60% by the end of H1. The significantly lower period over period realised cobalt
hydroxide prices, have therefore materially impacted earnings from our African copper operations, via significantly higher post by-product $/lb average unit costs
Coal: The average Newcastle coal (NEWC) settlement price for H1 2023 was $204.3/t. After applying a portfolio mix adjustment (component of our regular coal cash flow modelling
guidance) of $43.6/t to reflect e.g. movements in the pricing of non-NEWC quality coals, coking coal margins and effect of JPU fixed-price contracts, an average thermal-equivalent
realised price of c. $160.7/t can be applied across all coal sales volumes.
Production guidance
Actual Previous Current
FY guidance guidance 2023 weighting
2022 2023 2023 H1 H2
Copper kt 1,058 1,040 ± 30 1,040 ± 30 47% 53%
Cobalt kt 43.8 38 ± 5 38 ± 5 57% 43%
Zinc kt 939 950 ± 30 950 ± 30 1
46% 54%
Nickel kt 108 112 ± 5 112 ± 5 41% 59%
Ferrochrome kt 1,488 1,310 ± 30 1,310 ± 30 55% 45%
Coal mt 110 110 ± 5 110 ± 5 49% 51%
1 Excludes Volcan
Production guidance is unchanged from that presented in Glencore’s Q1 2023 Production Report and December 2022 investor
update.
Key H1/H2 variations reflect:
• Copper: 552kt H2 2023 guidance midpoint, up 64kt (13%) from H1 2023 actual production – mainly higher grades and
throughput at Collahuasi as the mine reaches higher grade material, which, together with additional H2 volumes from
Antapaccay and Lomas Bayas, offset the impact of no Cobar tonnage in H2, following its disposal in June 2023
• Cobalt: 16kt, 6kt lower (27%) – reflects the weak current market conditions
• Zinc: 515kt, up 80kt (18%) – Zhairem’s continued ramp-up and reduced weather challenges in Australia, also aiding copper
production
• Nickel: 65kt, up 19kt (41%) – circa 10kt from INO as the impact of last year’s Raglan strike is fully recovered; remaining 9kt from
stronger Murrin and Koniambo contributions, basis H1 2023 maintenance and more recent production performances
• Ferrochrome: 593kt, 124kt lower (17%) – winter season offline days/maintenance in South Africa
Other highlights
• On 13 June, Glencore and its partner shareholders in Viterra Limited announced an agreement with Bunge Limited, whereby
Bunge and Viterra would merge in a cash and stock transaction. Under the terms of the agreement, Glencore will receive $1.0
billion cash and approximately $3.1 billion in Bunge stock (at date of announcement) for its circa 50% stake in Viterra. The
merger, subject to satisfaction of customary closing conditions, including receipt of regulatory approvals and approval by
Bunge shareholders, is expected to close in mid-2024.
• On 16 June, Glencore sold its 100% share in Cobar Management Pty Ltd (CMPL) to Metals Acquisition Corp (MAC), with
Glencore continuing to offtake the copper concentrate produced at CMPL. As part of the consideration, Glencore now holds
20.6% of the shares in MAC, which is accounted for under the equity method.
• On 27 April, Glencore announced that it had agreed to acquire a 30% equity stake in Alunorte and a 45% equity stake in MRN
from Hydro, with completion expected to occur in H2 2023.
To view the full report please click: https://www.glencore.com/.rest/api/v1/documents/static/26ae0436-7810-403e-b3b2-
e069d77d1b36/GLEN_2023-H1_ProductionReport.pdf and on the
Glencore Half-Year Production Report 2023 3
HIGHLIGHTS
CONTINUED
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 2462 m: +41 79 904 3320 charles.watenphul@glencore.com
www.glencore.com
Glencore LEI: 2138002658CPO9NBH955
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 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 support decarbonisation while meeting the energy
needs of today.
With around 140,000 employees and contractors and 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.
We recognise our responsibility to contribute to the global effort to achieve the goals of the Paris Agreement by decarbonising our
own operational footprint. We believe that we should take a holistic approach and have considered our commitment through the
lens of our global industrial emissions. Against a 2019 baseline, we are committed to reducing our Scope 1, 2 and 3 industrial
emissions by 15% by the end of 2026, 50% by the end of 2035 and we have an ambition to achieve net zero industrial emissions by
the end of 2050. For more detail see our 2022 Climate Report on the publication page of our website at glencore.com/publications.
Important notice concerning this report including forward-looking statements
Given the focus of this document, it is necessarily oriented towards future events and therefore contains statements that are, or may
be deemed to be, “forward-looking statements” which are prospective in nature. Such statements may include (without
limitation)statements in respect of trends in commodity prices and currency exchange rates; demand for commodities; reserves
and resources and production forecasts; expectations, plans, strategies and objectives of management; climate scenarios;
sustainability performance (including, without limitation, environmental, social and governance) related goals, ambitions, targets,
intentions, visions, milestones and aspirations; approval of certain projects and consummation of certain transactions (including,
without limitation, acquisitions and disposals); closures or divestments of certain assets, operations or facilities (including, without
limitation, associated costs); capital costs and scheduling; operating costs and supply of materials and skilled employees; financings;
anticipated productive lives of projects, mines and facilities; provisions and contingent liabilities; and tax, legal and regulatory
developments.
These forward-looking statements may be identified by the use of forward-looking terminology, or the negative thereof including,
without limitation, “outlook”, “guidance”, “trend”, “plans”, “expects”, “continues”, “assumes”, “is subject to”, “budget”, “scheduled”,
“estimates”, “aims”, “forecasts”, “risks”, “intends”, “positioned”, “predicts”, “projects”, “anticipates”, “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. The information in this document provides an insight into how we currently intend
to direct the management of our businesses and assets and to deploy our capital to help us implement our strategy. The matters
disclosed in this document are a ‘point in time’ disclosure only. 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 conditions and discussions of strategy, and reflect judgments, assumptions, estimates and
other information available as at the date of this document or the date of the corresponding planning or scenario analysis process.
Glencore Half-Year Production Report 2023 4
By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause
actual results, performance or achievements to differ materially from any future event, results, performance, achievements or other
outcomes expressed or implied by such forward-looking statements. Important factors that could impact these uncertainties
include (without limitation) those disclosed in the risk management section of our latest Annual Report and Half-Year Report (which
can each be found on our website). These risks and uncertainties may materially affect the timing and feasibility of particular
developments. Other factors which impact risks and uncertainties 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; changes in environmental scenarios and related regulations, including (without limitation) transition risks and the
evolution and development of the global transition to a low carbon economy; recovery rates and other operational capabilities;
health, safety, environmental or social performance incidents; natural catastrophes or adverse geological conditions, including
(without limitation) the physical risks associated with climate change; the outcome of litigation or enforcement or regulatory
proceedings; the effect of foreign currency exchange rates on market prices and operating costs; actions by governmental
authorities, such as changes in taxation or regulation or changes in the decarbonisation plans of other countries; and political
uncertainty.
Readers, including (without limitation) investors and prospective investors, should review and take into account these risks and
uncertainties (as well as the other risks identified in this document) when considering the information contained in this document.
Readers should also note that the high degree of uncertainty around the nature, timing and magnitude of climate-related risks, and
the uncertainty as to how the energy transition will evolve, makes it difficult to determine and disclose the risks and their potential
impacts with precision. Neither Glencore nor any of its affiliates, associates, employees, directors, officers or advisers, provides any
representation, warranty, assurance or guarantee that the occurrence of the events, results, performance, achievements or other
outcomes expressed or implied in any forward-looking statements in this document will actually occur. Glencore cautions readers
against reliance on any forward-looking statements contained in this document, particularly in light of the long-term time
horizon which this report discusses and the inherent uncertainty in possible policy, market and technological developments in
future.
No statement in this document is intended as any kind of forecast (including, without limitation, a profit forecast or a profit
estimate), guarantees or predictions of future events or performance and past performance cannot be relied on as a guide to future
performance. Neither Glencore nor any of its affiliates, associates, employees, directors, officers or advisers, provides any
representation, warranty, assurance or guarantee as to the accuracy, completeness or correctness, likelihood of achievement or
reasonableness of any forward-looking information contained in this document.
Glencore operates in a dynamic and uncertain market and external environment. Plans and strategies can and must adapt in
response to dynamic market conditions, joint venture decisions, new opportunities that might arise or other changing
circumstances. Investors should not assume that our strategy on climate change will not evolve and be updated as time passes.
Additionally, a number of aspects of our strategy involve developments or workstreams that are complex and may be delayed, more
costly than anticipated or unsuccessful for many reasons, including (without limitation) reasons that are outside of Glencore’s
control.
There are inherent limitations to scenario analysis and it is difficult to predict which, if any, of the scenarios might eventuate.
Scenario analysis relies on assumptions that may or may not be, or prove to be, correct and that may or may not eventuate and
scenarios may also be impacted by additional factors to the assumptions disclosed. Given these limitations we treat these scenarios
as one of several inputs that we consider in our climate strategy.
Due to the inherent uncertainty and limitations in measuring greenhouse gas (GHG) emissions and operational energy
consumption under the calculation methodologies used in the preparation of such data, all CO2e emissions and operational energy
consumption data or volume references (including, without limitation, ratios and/or percentages) in this document are estimates.
There may also be differences in the manner that third parties calculate or report such data compared to Glencore, which means
that third-party data may not be comparable to Glencore’s data. For information on how we calculate our emissions and operational
energy consumption data, see our latest Basis of Reporting, Climate Report and Extended ESG Data, which can be found on our
website.
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.
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. Certain statistical and other information about Glencore included in this document is
sourced from publicly available third-party sources. As such it has not been independently verified and presents the view of those
third parties, but may not necessarily correspond to the views held by Glencore and Glencore expressly disclaims any responsibility
for, or liability in respect of, and makes no representation or guarantee in relation to, such information (including, without limitation,
as to its accuracy, completeness or whether it is current). Glencore cautions readers against reliance on any of the industry,
market or other third-party data or information contained in this report.
Glencore Half-Year Production Report 2023 5
Subject to any terms implied by law which cannot be excluded, Glencore accepts no responsibility for any loss, damage, cost or
expense (whether direct or indirect) incurred by any person as a result of any error, omission or misrepresentation in information in
this report.
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 company
or companies.
Sponsor
Absa Corporate and Investment Bank, a division of Absa Bank Limited
Glencore Half-Year Production Report 2023 6
