GLENCORE PLC 
Glencore Chief Executive Officer,
Disruptions to our business have, to date, been manageable and the majority of our assets are operating relatively normally, a credit to our people that have stepped up to the challenge of a changed working environment, especially those who continue to carry out their work on site at our industrial assets - Glencore's frontline. Some industrial assets have been temporarily suspended, generally in line with national and regional lockdowns. Our updated full year production guidance reflects these impacts.
'A rigorous focus on optimising our asset portfolio has helped to preserve solid levels of overall Industrial Asset free cash flow generation in the current operating environment. Focussed cost control, lower energy costs, favourable movements in producer currencies and higher precious metals' by-product credits, have underpinned reductions in forecast full year unit cash costs for our key commodity departments. Copper unit costs are now guided lower to 105c/lb, zinc unit costs 39% lower at 14c/lb and thermal coal guided unit cash costs are
'Furthermore, notwithstanding global macroeconomic / demand headwinds , the volatile and complex commodity trading environment has provided opportunities for our Marketing business, such that, to date, we have generated annualised earnings within our
'Given our strong liquidity position and resilient business model, we are well positioned to navigate the current challenges. We recognise the uncertainty caused by the current environment and endeavour to support our stakeholders, as appropriate.'
COVID-19 situation report and outlook
The COVID-19 pandemic is an unprecedented challenge for all of us, including our colleagues, families, local communities and society at large. As a responsible operator, our top priority is to protect the safety and health of our people and the communities that host our businesses.
Glencore operates more than 180 sites and offices in over 35 countries. The scale and diversity of our operations means that the impact of the virus varies by location. In addition, many of our operations are located in remote areas with limited public health care systems. Our teams are working closely with governments, health agencies and others key responders to provide effective local solutions.
We have introduced a number of precautionary measures across our offices and industrial assets in response to COVID-19. This includes the implementation of enhanced hygiene and cleaning measures, application of social distancing and identification of higher risk groups. Our goal is to operate only when we can keep our people safe and healthy, while safeguarding jobs and providing support to our local communities. A near-total restriction on non-essential travel has been implemented as well as remote working, where possible.
The majority of our industrial assets continue to operate relatively normally, accounting for the various changed practices noted above. Various operations have been temporarily suspended, where national/regional lockdowns or other circumstances have dictated such.
Colombian coal - given the continued pressure on European coal pricing, production volumes are at risk of further reduction.
Volcan - excluded from Glencore's production statistics due to our relatively small equity interest (c.23%). Operations were suspended on 19 March due to national government restrictions in
Production guidance and updated financial outlook
Full year 2020 production guidance, including accounting for latest expected business interruptions due to COVID-19 noted above, is set out below, with further remarks on page 19.
Industrial Assets capex for 2020 now expected to be in the
Our Marketing business is delivering annualised Adjusted EBIT performance within our through the cycle long-term guidance range of
Contact:
Tel: +41 41 709 2880
Email: martin.fewings@glencore.com
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 and metallurgical sites 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, 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's companies employ around 160,000 people, including contractors.
Glencore is proud to be a member of the Voluntary Principles on Security and Human Rights and the
Important notice concerning this document including forward looking statements
This document contains statements that are, or may be deemed to be, 'forward looking statements' which are prospective in nature. These forward looking statements may be identified by the use of forward looking terminology, or the negative thereof such as 'outlook', 'plans', 'expects' or 'does not expect', 'is expected', 'continues', 'assumes', 'is subject to', 'budget', 'scheduled', 'estimates', 'aims', 'forecasts', 'risks', 'intends', 'positioned', 'predicts', 'anticipates' or 'does not anticipate', or '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. 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 condition and discussions of strategy.
By their nature, forward-looking statements involve known and unknown risks and uncertainties, many of which are beyond Glencore's control. Forward looking statements are not guarantees of future performance and may and often do differ materially from actual results. Important factors that could cause these uncertainties include, but are not limited to, those disclosed in the last published annual report and half-year report, both of which are freely available on Glencore's website.
For example, our future revenues from our assets, projects or mines will be based, in part, on the market price of the commodity products produced, which may vary significantly from current levels. These may materially affect the timing and feasibility of particular developments. Other factors 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, the effect of foreign currency exchange rates on market prices and operating costs, and actions by governmental authorities, such as changes in taxation or regulation, and political uncertainty.
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.
No statement in this document is intended as a profit forecast or a profit estimate and past performance cannot be relied on as a guide to future performance. 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.
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