Glencore : Operational update

Glencore

Operational update

28 May 2020

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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. Importantfactors that could cause these uncertainties include, but are not limited to, those disclosed in Glencore's 2019 Annual Report.

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.

Neither Glencore nor any of its associates or directors, officers or advisers, provides any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in this document will actually occur. You are cautioned not to place undue reliance on these forward-looking statements which only speak as of the date of this document.

Except as required by applicableregulations 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 subsequentto 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.

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.

Operational update - 28 May 2020

Operational update

Operational update - 28 May 2020

Responding to COVID-19

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Our people

• The COVID-19 pandemic is an unprecedented challenge for all of us
• As a responsible operator, our top priority is to protect the safety and health of our people and the communities that host our businesses
• We have introduced a number of precautionary measures across our offices and industrial assets
• • 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
  • Our teams are working closely with governments, health agencies and other key organisations to provide effective local solutions: to support these efforts we have allocated $25 million to help our local communities

AustraliaColombia

Canada	South Africa

ZambiaKazakhstan

Operational update - 28 May 2020

Responding to COVID-19

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Global commodity markets

• Commodity markets have responded quickly to the sharp reduction in demand, with pricing for many commodities falling into the upper end of their respective cost curves
• The full impact of the demand shock has been tempered by COVID-19 related supply disruptions/reductions to date, with cumulative losses contributing to closing the gap on demand losses
• Low above ground inventories at the start of the year (relative to previous economic cycles) should help limit the extent of potential inventory build likely to be seen in copper, zinc and nickel

Global estimated industry supply impacts year to date(1)

Estimated losses as a share of pre-COVID 2020 supply forecast

4% Cu Excluding smelting/refining and

6% Zn direct use scrap losses

5% Ni

6% Thermal Coal

6% Met Coal

5% Mn ore

11% Cr ore

11% Cr alloy

Operational update - 28 May 2020

Source: (1) Glencore estimates, Reuters, Bloomberg, company releases

Responding to COVID-19

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Our assets

• Glencore operates more than 180 sites and offices in over 35 countries
• The majority of our industrial assets continue to operate relatively normally, accounting for the various precautionary measures
• A number of operations have been temporarily suspended, where national/regional lockdowns or other circumstances have required

2020 production guidance revisions	Previous	Current(1)	2020 weighting
			guidance	Guidance
			2020	2020		H1	H2
	Copper - excl. African Copper	kt	975 ± 25	975 ± 20		47%	53%
Copper - African Copper	kt	325 ± 25	280 ± 25		50%	50%
Copper	kt	1,300 ± 50	1,255 ± 45		48%	52%
Cobalt	kt	29 ± 4	28 ± 2		48%	52%
Zinc	kt	1,265 ± 30	1,160 ± 30		50%	50%
Nickel	kt	125 ± 5	122 ± 5		46%	54%
Ferrochrome	kt	1,340 ± 25	1,000 ± 25		47%	53%
Coal	mt	135 ± 4	132 ± 3	2	47%	53%
Oil	mbbl	6.5 ± 0.2	Under review		n.a.	n.a.

Operational update - 28 May 2020	Source: (1) See page 19 of Glencore Q1 Production Report, including all the notes relating to the current guidance. (2) Colombian coal volumes are at
	risk of further reduction given continued pressure on European coal pricing

Responding to COVID-19

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Adapting our business

• We have quickly moved to reposition the business for the changed macroeconomic environment
• Liquidity has been reinforced

1. Refinancing and extension of our Revolving Credit Facilities on the same commercial terms

as last year

• 1. Deferral of distribution decision to Q3 2020
• Industrial asset capex has been cut
• 1. Planned $1 to $1.5bn reduction (from $5.5bn) from asset curtailments and associated capex savings, various deferrals and lower equivalent USD costs due to generally weaker producer currencies and lower input costs, particularly through oil price changes
• Mine costs for key commodities have been reduced
• 1. Focused cost control, lower energy costs, favourable FX and higher precious metal by- products underpin lower costs

Leading cost/margin positions in our key commodities(1)

Copperminecosts (¢/lb)			Zinc minecosts (¢/lb)
		148					47	58	58
			120
104		105(2)		24		23
		81	82			13	14
101		83		-4
	ExAfrica			Includinggoldcredits
2018A	2019A	2020	2020		2018A	2019A	2020	2020
			Guidance Updated			Guidance Updated

Nickel minecosts (¢/lb)			Thermalcoal FOBcash costs($/t)
	398	351	382	47
					45	45
211		ExKoniambo					42
277
		240
		227
2018A	2019A	2020	2020		2018A	2019A	2020	2020
		Guidance Updated				Guidance Updated

Operational update - 28 May 2020	Notes: (1) See page 3 of Glencore Q1 Production Report, including all the notes relating to the current guidance. (2) Copper unit cost guidance excludes costs associated withnon-
	operating or significantly curtailed assets, including those on care and maintenance. In this regard, an estimated combined approximately $400 million of net operating costs is
	expected to be incurred in relation to Mopani, Mutanda, Alumbrera and Polymet in 2020. Comparable to previous guidance, the 120c/lb cost would have been 106c/lb, plus
	approximately $300 million of net operating costs associated with the non-operating or significantly curtailed assets.

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Well positioned to navigate the current challenges

• Flexible business model that adapts quickly to changing conditions
• Unique combination of industrial assets and marketing
• • Diversified portfolio of large-scalelow-cost commodities that will underpin the energy and mobility transition and high quality thermal coal that provides access to affordable and reliable energy
  • Marketing business earnings resilience through the cycle
• Resilient and flexible balance sheet, commitment to strong BBB/Baa rating
• Disciplined approach to value over volume
• Experienced management team focused on maximising value creation

Operational update - 28 May 2020