Glencore Chief Executive Officer, Gary Nagle:
“We are pleased to report a solid production performance from our underlying base business over the first nine months of the year, where our key copper, coal and zinc assets performed in line with expectations and previously communicated guidance.
“Full year 2023 production guidance for copper, zinc, coal and cobalt remains in line with previous guidance, however nickel has been reduced to reflect, within the INO business, maintenance outages at the Sudbury smelter and a longer than expected recovery from 2022 strike action, together with a lower full-year revision for Koniambo. Ferrochrome production has also been marked lower, due to additional smelter off-line days on account of electricity pricing and load curtailments in South Africa, however chrome ore mining production is expected to only be modestly below 2022 levels.
“In our Marketing segment, 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, with a likely outcome within the previously communicated $3.5-4.0 billion range.”
Production from own sources – Total1
| YTD2023 | YTD2022 | Change % | ||
| Copper | kt | 735.8 | 770.5 | (5) |
| Cobalt | kt | 32.5 | 33.1 | (2) |
| Zinc | kt | 672.1 | 699.6 | (4) |
| Lead | kt | 133.6 | 136.9 | (2) |
| Nickel | kt | 68.4 | 81.6 | (16) |
| Gold | koz | 544 | 504 | 8 |
| Silver | koz | 14,510 | 17,878 | (19) |
| Ferrochrome | kt | 873 | 1,110 | (21) |
| Coal | mt | 83.9 | 81.9 | 2 |
1 Controlled industrial assets and joint ventures only. Production is on a 100% basis, except as stated.
Production highlights
- Own sourced copper production of 735,800 tonnes was 34,700 tonnes (5%) lower than the comparable 2022 period, reflecting the sale of Cobar in June 2023 and lower copper by-product production outside the Copper department.
- Own sourced cobalt production of 32,500 tonnes was in line with the comparable 2022 period.
- Own sourced zinc production of 672,100 tonnes was 27,500 tonnes (4%) lower than the comparable 2022 period, mainly reflecting the 2022 disposals of South American zinc operations (23,600 tonnes) and the closure of Matagami (17,300 tonnes), offset by stronger production from Kazzinc (Zhairem) and Antamina.
- Own sourced nickel production of 68,400 tonnes was 13,200 tonnes (16%) lower than the comparable 2022 period, primarily reflecting higher INO third party production (versus own sourced), in large part necessitated by the strike at Raglan mine in 2022.
- Attributable ferrochrome production of 873,000 tonnes was 237,000 tonnes (21%) lower than the comparable 2022 period, mainly due to planned additional smelter offline days during the 3-month high electricity demand winter season, a period of elevated power prices.
- Coal production of 83.9 million tonnes was broadly in line with the comparable 2022 period.
Production guidance
| ActualFY | ActualFY | Actual FY | Previous guidance | Guidance FY | |||||
| 2020 | 2021 | 2022 | 2023 | 2023 | |||||
| Copper | kt | 1,258 | 1,196 | 1,058 | 1,040 ± 30 | 1,040 ± 30 | |||
| Cobalt | kt | 27.4 | 31.3 | 43.8 | 38 ± 5 | 38 ± 4 | |||
| Zinc | kt | 1,170 | 1,118 | 939 | 950 ± 30 | 950 ± 30 | 1 | ||
| Nickel | kt | 110 | 102 | 108 | 112 ± 5 | 102 ± 4 | |||
| Ferrochrome | kt | 1,029 | 1,468 | 1,488 | 1,310 ± 30 | 1,200 ± 30 | |||
| Coal | mt | 106 | 103 | 110 | 110 ± 5 | 110 ± 4 | |||
1 Excludes Volcan.
Changes in guidance mainly reflect:
- Nickel down 10kt (9%) – combination of a longer than expected recovery period following the extended Raglan strike action in 2022, maintenance outages at the Sudbury smelter and a lower full-year revision for Koniambo
- Ferrochrome down 110kt (8%) – lower production in H2 2023, reflecting additional smelter offline days and further curtailments in response to ferrochrome market conditions. Full year chrome ore production is expected to only be modestly below 2022 levels.
To view the full report please click: https://www.glencore.com/.rest/api/v1/documents/static/a69c4068-eef7-4db1-9042-ed53166c287c/GLEN_2023-Q3_ProductionReport.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 2462 | m: +41 79 904 3320 | charles.watenphul@glencore.com | |||