Baar, Switzerland
3 February 2021
Glencore Chief Executive Officer, Ivan Glasenberg:

“Our mining assets performed well in difficult circumstances during 2020. Various precautionary operating changes made in Q2 continued into the second half, with sustainable and safe working practices embedded for the pandemic era. Production picked up accordingly, with year-over-year increases in zinc, gold and silver production.

“Excluding Mutanda (currently on care and maintenance), 2020 copper production was in line with 2019, while cobalt production was 6,200 tonnes higher, reflecting Katanga’s continued successful ramp-up to design capacity levels. Required Covid-19 related mandatory suspensions and international mobility restrictions significantly impacted 2020 production of ferrochrome in South Africa, oil in Chad and nickel at Koniambo. Furthermore, various proactive market-related supply reductions were initiated in H2 2020, primarily with respect to coal production from Australia.

“As noted at our recent 2020 Investor Update, we continue to progress portfolio optimisation, and, in this regard, recently agreed terms for the sale of Mopani to an existing minority shareholder. Work continues to advance options around other non-core assets within the Group.”

Production from own sources – Total1
2020 2019 Change %
Copper
kt 1,258.1 1,371.2 (8)

Cobalt
kt 27.4 46.3 (41)

Zinc
kt 1,170.4 1,077.5 9

Lead
kt 259.4 280.0 (7)

Nickel
kt 110.2 120.6 (9)

Gold
koz 916 886 3

Silver
koz 32,766 32,018 2

Ferrochrome
kt 1,029 1,438 (28)

Coal - coking
mt 7.6 9.2 (17)

Coal - semi-soft
mt 4.6 6.4 (28)

Coal - thermal
mt 94.0 123.9 (24)

Coal
mt 106.2 139.5 (24)

Oil (entitlement interest basis)
kbbl 3,944 5,518 (29)


1 Controlled industrial assets and joint ventures only. Production is on a 100% basis, except as stated.

Production guidance
FY 2021 guidance as per our investor presentation in December 2020 is still current.
Changes versus 2020 reflect: Katanga cobalt production continuing to ramp up to steady-state capacity
Commissioning of Zhairem zinc/lead project in Kazakhstan
Chrome smelters running throughout the year following a Covid-disrupted 2020
Cautious coal supply increases in Australia, following market-driven reductions in H2 2020.

Actual FY Actual FY Actual FY Guidance FY
2018 2019 2020 2021

Copper kt 1,454 1,371 1,258 1,220 ± 30 1
Cobalt kt 42.2 46.3 27.4 35 ± 2
Zinc kt 1,068 1,078 1,170 1,250 ± 30 2
Nickel kt 124 121 110 117 ± 5
Ferrochrome kt 1,580 1,438 1,029 1,400 ± 30
Coal mt 129 140 106 113 ± 4

1 Excludes Mopani.
2 Excludes Volcan.

Realised prices

US$ million
Realised ¢/lb $/t
Copper 285 6,283
Zinc 102 2,242
Nickel 619 13,647

The average Newcastle coal (NEWC) settlement price for the period was $60.45/t. After applying a portfolio mix adjustment (component of our regular coal cash flow modelling guidance) of $3.60/t to reflect, amongst other factors, movements in pricing of non-NEWC quality coals, an average price of c.$56.8/t was realised across all coal sales volumes.

Production highlights
Own sourced copper production of 1,258,100 tonnes was 113,100 tonnes (8%) lower than 2019, mainly reflecting Mutanda being on care and maintenance in 2020 (partly offset by Katanga’s successful ramp-up), with Covid-19 related suspensions being a much smaller factor.
Own sourced cobalt production of 27,400 tonnes was 18,900 tonnes (41%) lower than 2019, mainly reflecting Mutanda on care and maintenance. On a standalone basis, Katanga’s cobalt production was up 6,800 tonnes (40%).
Own sourced zinc production of 1,170,400 tonnes was 92,900 tonnes (9%) higher than 2019, mainly reflecting: (i) higher zinc content from Antamina (40,000 tonnes); (ii) improved output from the Mount Isa operations (27,800 tonnes); and (iii) the net positive effect of 18,700 tonnes from Other South America, owing to restarting the short-life Iscaycruz mine in Peru, offset by Covid-related suspensions and shutdowns.
Own sourced nickel production of 110,200 tonnes was 10,400 tonnes (9%) lower than 2019, reflecting Koniambo operating as a single-line operation for the majority of 2020, with Covid-related mobility restrictions affecting its maintenance schedule. The expected decline in grades at the existing Sudbury mines (INO) also contributed.
Attributable ferrochrome production of 1,029,000 tonnes was 409,000 tonnes (28%) lower than 2019, reflecting the South African lockdown and resulting suspension of smelting operations in Q2, with a phased restart thereafter. Lydenburg smelter has been placed on extended care and maintenance. The remaining four smelters were fully operational from Q4, resulting in materially higher quarter on quarter production.
Coal production of 106.2 million tonnes was 33.3 million tonnes (24%) lower than in 2019, reflecting the impacts of the pandemic via stopped or reduced work in Colombia and South Africa, extended care and maintenance at Prodeco, plus market-related supply reductions in Australia in H2 2020.
Entitlement interest oil production of 3.9 million barrels was 1.6 million barrels (29%) lower than 2019. Operated fields in Chad were placed on care and maintenance in March/April 2020 and are yet to be restarted, given continued pandemic-related challenges in international mobility (2.2 million barrels decrease). The balance reflects year over year production increases in Equatorial Guinea and Cameroon since new wells were drilled.

Other matters
In January 2021, Glencore agreed terms for the sale of its interest in Mopani to ZCCM, with completion expected in H1 2021.
Glencore also published its 2020 Resources and Reserves report today.

To view the full report please click: http://www.glencore.com/dam/jcr:9a549d01-c619-4e0d-b043-403a417bd79b/GLEN_2020-Q4_ProductionReport.pdf

For further information please contact:

Investors
Martin Fewings