NEWS RELEASE
Baar, 31 July 2020
Half-Year Production Report 2020
Glencore Chief Executive Officer, Ivan Glasenberg:
"Glencore has delivered an overall strong first-half operating performance amid the unprecedented challenges presented by Covid-19, reflecting both the ability and dedication of our teams to adapt to these difficult conditions. As a responsible operator, our top priority has been to protect the health and safety of our people and the communities that host our businesses.
"Although some of our industrial operations were temporarily suspended in line with national and regional guidance, or where our risk assessment determined a suspension was appropriate, the majority of our assets continued to operate relatively normally. I am particularly pleased to report a strong operational performance at Katanga, with its ramp-up on track to achieve design capacity by the end of the year.
"Our Marketing business has also risen to the challenge, delivering robust counter-cyclical earnings. A very strong first-half performance allows us to now raise our full year 2020 EBIT expectations to the top end of our $2.2-$3.2 billion guidance range.
"In the near-term, we remain alert to the continuing challenges that Covid-19 presents. While we expect our operating cash flow to remain solid, we are ready to adapt to changing market conditions."
Production from own sources - Total1
H1 2020 | H1 2019 | Change % | ||
Copper | kt | 588.1 | 663.0 | (11) |
Cobalt | kt | 14.3 | 21.3 | (33) |
Zinc | kt | 550.1 | 535.9 | 3 |
Lead | kt | 127.9 | 147.5 | (13) |
Nickel | kt | 55.2 | 55.4 | - |
Gold | koz | 385 | 423 | (9) |
Silver | koz | 14,185 | 15,490 | (8) |
Ferrochrome | kt | 466 | 799 | (42) |
Coal - coking | mt | 3.7 | 4.3 | (14) |
Coal - semi-soft | mt | 2.6 | 3.3 | (21) |
Coal - thermal | mt | 51.8 | 60.6 | (15) |
Coal | mt | 58.1 | 68.2 | (15) |
Oil (entitlement interest basis) | kbbl | 2,612 | 2,240 | 17 |
- Controlled industrial assets and joint ventures only. Production is on a 100% basis, except as stated later in this report.
Realised prices
Realised | LME (average 6 | |||
US$ million | months) | Difference | ||
¢/lb | $/t | $/t | % | |
Copper | 239 | 5,269 | 5,502 | (4) |
Zinc | 94 | 2,072 | 2,049 | 1 |
Nickel | 566 | 12,477 | 12,477 | - |
Realised prices differ from LME benchmarks, reflecting provisional pricing adjustments, commercial terms / qualities, etc.
- The average spot Newcastle coal price for the period was $62/t. After applying a portfolio mix adjustment (component of our regular coal cash flow modelling guidance) of $1.70/t to reflect, amongst other factors, movements in pricing of non-NEWC quality coals, an average price of $60.30/t was realised across all coal sales volumes.
Glencore Half-Year Production Report 2020 | 1 |
Highlights
continued
Covid-19 situation - update report
- While the majority of our assets continued to operate through Q2 with minimal disruption, certain operations were temporarily suspended, on account of mandatory governmental lockdown provisions, or otherwise where a risk assessment determined such action appropriate. The curtailed operations have mostly restarted as follows:
Jurisdiction | Asset | Commodity | Date suspended | Date restarted | Comment |
Canada (Quebec) | Raglan | Nickel | Late March | Late April | Expect to make up the majority of lost tonnes |
over the balance of 2020 | |||||
Canada (Quebec) | Matagami | Zinc | Late March | Late April | Production restarted in line with historical levels |
Chad | Oilfields | Oil | April | Currently on care | See "Operational update" below |
and maintenance | |||||
Colombia | Cerrejon JV | Coal | Late March | Early May | Limited restart in May. FY 2020 attributable |
production expected in the 6.5-7.0mt range | |||||
(2019: 8.6mt) | |||||
Colombia | Prodeco | Coal | Late March | Currently on care | See "Operational update" below |
and maintenance | |||||
DRC | Katanga | Copper/cobalt | n.a | n.a. | No material production disruption; acid plant |
commissioning delayed to H2 2020 | |||||
New Caledonia | Koniambo | Nickel | n.a. | n.a. | Delays to planned maintenance from |
restrictions impacting availability of key | |||||
maintenance teams. Will be operated as a | |||||
single-line operation for the balance of 2020 | |||||
Peru | Antamina JV | Copper/zinc | Mid April | Late May | Operations restarted with a reduced workforce; |
expect a phased ramp-up through H2 | |||||
South Africa | Ferroalloys | Chrome and | Late March | Early May | See "Operational update" below |
vanadium | |||||
South Africa | SA Coal | Coal | n.a. | n.a. | Major complexes operated relatively normally |
throughout the SA lockdown | |||||
South Africa | Astron Energy Oil refining | Late March | Operations | Post delayed turnaround, refinery restart | |
suspended | disrupted by an incident requiring major repair | ||||
and remediation. Fuel marketing and | |||||
distribution operations unaffected throughout, | |||||
although underlying demand has been weaker | |||||
Zambia | Mopani | Copper | n.a. | n.a. | See "Operational update" below |
Marketing update
- Marketing performance in H1 2020 was very strong, with full year EBIT expectations now raised to the top end of our long-term$2.2-$3.2 billion range. Contributing towards H1 2020's EBIT performance was a sizeable increase in carried inventory ("Carry Trades") transactions / quantities (although the overall dollar value of inventories was somewhat lower than December 2019, due to lower commodity prices) and also a build in non-RMI net working capital on account of the varying terms of trade in our respective business units. In particular, our oil department, which in recent years has managed its receivables portfolio days on hand to around 20 days and accounts payable around 45 days, saw a significant reduction in its net payables position (payables less receivables) via the sharp reduction in oil prices, as well as lower sales volumes due to weaker product demand in H1 2020. Together with the initial cash margining required to give effect to the additional Carry Trades, this has led to an increase in our Net Debt as at 30 June 2020.
Operational update
- Mopani notified the Zambian government of its intention to place the mining operations on care and maintenance to preserve value and maintain the option to deliver its various growth projects when conditions further improve. Mopani was notified by the relevant authorities that its proposal was rejected. Mopani has appealed this decision. Mining operations will continue pending the outcome of the appeal and Mopani continues to engage with the relevant authorities.
- The outlook for Prodeco's business remains challenging due to ongoing weakness in the Atlantic coal market, exacerbated by the impact of Covid-19. Prodeco is in the process of optimising its mine plans to account for the current market environment. This
Glencore Half-Year Production Report 2020 | 2 |
Highlights
continued
process requires consultation and approval by a number of external parties. An application has been made to the authorities for Prodeco to remain on care and maintenance, which will help preserve the value of the assets and the option to implement the revised plans when the appropriate approvals have been obtained and market conditions have improved.
- Due to Covid-19 related disruptions to international mobility, transportation and supply chains, the Chad oil fields were placed on care and maintenance in April. These disruptions and prevailing market conditions are being monitored to determine when some restart of operations would be appropriate.
- The Ferroalloys business has for some time experienced a structurally worsening competitive environment across the South African ferrochrome industry, including via substantial electricity price increases. In January 2020, a consultation process was initiated on the future of the Rustenburg smelter, and in June 2020, a further process commenced across the entire business, to seek a more competitive operating cost structure. This is an ongoing process with all alternatives being considered.
Production guidance and updated cost outlook
- Full year 2020 production guidance, including accounting for the latest expected business interruptions due to Covid-19 noted above, is set out below, with further remarks on page 19.
Actual | ROY | Current | Previous | ||||||
Q1 | Q2 | H1 | guidance | guidance | |||||
2020 | 2020 | 2020 | 2020 | 2020 | 2020 | ||||
Copper | kt | 293 | 295 | 588 | 667 ± 35 | 1,255 ± 35 | 1,255 ± 45 | ||
Cobalt | kt | 6 | 8 | 14 | 14 ± 2 | 28 ± 2 | 28 | ± 2 | |
Zinc | kt | 296 | 255 | 550 | 610 ± 30 | 1,160 ± 30 | 1 | 1,160 ± 30 | |
Nickel | kt | 28 | 27 | 55 | 59 ± 4 | 114 ± 4 | 122 | ± 5 | |
Ferrochrome | kt | 388 | 78 | 466 | 534 ± 25 | 1,000 ± 25 | 1,000 ± 25 | ||
Coal | mt | 32 | 26 | 58 | 56 ± 3 | 114 ± 3 | 132 | ± 3 |
- Excludes Volcan
- Industrial Assets unit cost guidance updated for changes to production and current producer currency levels, energy costs and by-product pricing, is as follows:
Actual | Previous | Current | FYE 2020 split | ||||
FY | guidance | guidance | |||||
2019 | 2020 | 2020 | H1 | H2 | |||
Copper | c/lb | 148 | 105 | 106 | 1 | 109 | 104 |
Zinc - excl. gold credit | c/lb | 47 | 58 | 48 | 2 | 64 | 32 |
Zinc | c/lb | 13 | 14 | 5 | 2 | 28 | (20) |
Nickel - excl. Koniambo | c/lb | 277 | 240 | 257 | 230 | 281 | |
Nickel | c/lb | 398 | 382 | 413 | 395 | 437 | |
Coal | $/t | 45 | 42 | 46 | 46 | 47 |
- Copper unit cost guidance excludes costs associated with non-operating or significantly curtailed assets, including those on care and maintenance. In this regard, an estimated combined approximately $350 million of net operating costs is expected to be incurred in relation to Mopani, Mutanda, Alumbrera and Polymet in 2020.
2 Excludes Volcan.
H1 production highlights
- Own sourced copper production of 588,100 tonnes was 74,900 tonnes (11%) lower than H1 2019, mainly reflecting Mutanda being on care and maintenance in the current period, expected lower grades at Antapaccay and the short-term impact of Antamina's Covid-19 related demobilisation/remobilisation, partly offset by stronger milling throughput at Collahuasi.
- Own sourced zinc production of 550,100 tonnes was in line with H1 2019, reflecting stronger grades at the Canadian mines and the various temporary Covid-19 related suspensions at Antamina and other South American operations.
- Own sourced nickel production of 55,200 tonnes was in line with H1 2019, reflecting a strong period of operations at Murrin offsetting the delayed delivery of matte from the Sudbury smelter to the Nikkelverk refinery.
- Attributable ferrochrome production of 466,000 tonnes was 333,000 tonnes (42%) lower than H1 2019, mainly reflecting the South African Covid-19 national lockdown during March/April. Smelting operations partly resumed on 1 May, with further capacity expected to be restarted towards the end of Q3.
- Coal production of 58.1 million tonnes was 10.1 million tonnes (15%) lower than H1 2019, mainly reflecting the Covid-19 related asset suspensions in Colombia.
Glencore Half-Year Production Report 2020 | 3 |
Highlights
continued
- Entitlement interest production of 2.6 million barrels was 0.4 million barrels (17%) higher than H1 2019, due to new wells drilled in Equatorial Guinea and Cameroon, which helped to offset the Covid-19 related suspension of the Chad assets.
For further information please contact:
Investors | ||||
Martin Fewings | t: +41 | 41 709 2880 | m: +41 79 737 5642 | martin.fewings@glencore.com |
Maartje Collignon | t: +41 | 41 709 32 69 | m: +41 79 197 42 02 | maartje.collignon@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
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 International Council on Mining and Metals. We are an active participant in the Extractive Industries Transparency Initiative.
Glencore Half-Year Production Report 2020 | 4 |
Metals and minerals
Production data
Production from own sources - Copper assets1
H1 2020 | H1 2019 | Change % | |||
African Copper (Katanga, Mutanda, Mopani) | |||||
Copper metal | kt | 141.1 | 183.8 | (23) | |
Copper in concentrates | kt | - | 4.0 | (100) | |
Cobalt2 | kt | 12.5 | 19.5 | (36) | |
Collahuasi3 | |||||
Copper in concentrates | kt | 142.1 | 112.0 | 27 | |
Silver in concentrates | koz | 1,913 | 1,237 | 55 | |
Antamina4 | |||||
Copper in concentrates | kt | 50.9 | 74.7 | (32) | |
Zinc in concentrates | kt | 53.3 | 51.4 | 4 | |
Silver in concentrates | koz | 2,002 | 2,523 | (21) | |
Other South America (Antapaccay, Lomas Bayas) | |||||
Copper metal | kt | 36.9 | 40.0 | (8) | |
Copper in concentrates | kt | 81.1 | 100.5 | (19) | |
Gold in concentrates and in doré | koz | 34 | 44 | (23) | |
Silver in concentrates and in doré | koz | 565 | 836 | (32) | |
Australia (Mount Isa, Ernest Henry, Townsville, Cobar) | |||||
Copper metal | kt | 64.4 | 64.0 | 1 | |
Copper in concentrates | kt | 22.8 | 22.0 | 4 | |
Gold | koz | 46 | 54 | (15) | |
Silver | koz | 564 | 831 | (32) | |
Total Copper department | kt | 539.3 | 601.0 | (10) | |
Copper | |||||
Cobalt | kt | 12.5 | 19.5 | (36) | |
Zinc | kt | 53.3 | 51.4 | 4 | |
Gold | koz | 80 | 98 | (18) | |
Silver | koz | 5,044 | 5,427 | (7) |
Glencore Half-Year Production Report 2020 | 5 |
Metals and minerals
continued
Production from own sources - Zinc assets1
H1 2020 | H1 2019 | Change % | ||
Kazzinc | ||||
Zinc metal | kt | 84.9 | 89.0 | (5) |
Lead metal | kt | 12.3 | 19.2 | (36) |
Lead in concentrates | kt | - | 2.8 | (100) |
Copper metal5 | kt | 17.5 | 19.2 | (9) |
Gold | koz | 294 | 311 | (5) |
Silver | koz | 1,780 | 1,978 | (10) |
Silver in concentrates | koz | - | 92 | (100) |
Australia (Mount Isa, McArthur River) | ||||
Zinc in concentrates | kt | 311.8 | 301.6 | 3 |
Lead in concentrates | kt | 108.1 | 109.0 | (1) |
Silver in concentrates | koz | 3,790 | 3,774 | - |
North America (Matagami, Kidd) | ||||
Zinc in concentrates | kt | 57.4 | 52.5 | 9 |
Copper in concentrates | kt | 16.8 | 18.9 | (11) |
Silver in concentrates | koz | 929 | 693 | 34 |
Other Zinc: South America (Argentina, Bolivia, Peru)6 | ||||
Zinc in concentrates | kt | 42.7 | 41.4 | 3 |
Lead in concentrates | kt | 7.5 | 16.5 | (55) |
Copper in concentrates | kt | 0.6 | 1.8 | (67) |
Silver in concentrates | koz | 2,418 | 3,247 | (26) |
Total Zinc department | kt | 496.8 | 484.5 | 3 |
Zinc | ||||
Lead | kt | 127.9 | 147.5 | (13) |
Copper | kt | 34.9 | 39.9 | (13) |
Gold | koz | 294 | 311 | (5) |
Silver | koz | 8,917 | 9,784 | (9) |
Glencore Half-Year Production Report 2020 | 6 |
Metals and minerals
continued
Production from own sources - Nickel assets1
H1 2020 | H1 2019 | Change % | ||
Integrated Nickel Operations (INO) (Sudbury, Raglan, Nikkelverk) | ||||
Nickel metal | kt | 27.6 | 28.8 | (4) |
Nickel in concentrates | kt | 0.2 | 0.3 | (33) |
Copper metal | kt | 6.3 | 7.0 | (10) |
Copper in concentrates | kt | 7.6 | 15.1 | (50) |
Cobalt metal | kt | 0.2 | 0.4 | (50) |
Gold | koz | 11 | 14 | (21) |
Silver | koz | 224 | 279 | (20) |
Platinum | koz | 24 | 33 | (27) |
Palladium | koz | 57 | 58 | (2) |
Rhodium | koz | 2 | 2 | - |
Murrin Murrin | ||||
Nickel metal | kt | 17.8 | 16.1 | 11 |
Cobalt metal | kt | 1.6 | 1.4 | 14 |
Koniambo | ||||
Nickel in ferronickel | kt | 9.6 | 10.2 | (6) |
Total Nickel department | kt | 55.2 | 55.4 | - |
Nickel | ||||
Copper | kt | 13.9 | 22.1 | (37) |
Cobalt | kt | 1.8 | 1.8 | - |
Gold | koz | 11 | 14 | (21) |
Silver | koz | 224 | 279 | (20) |
Platinum | koz | 24 | 33 | (27) |
Palladium | koz | 57 | 58 | (2) |
Rhodium | koz | 2 | 2 | - |
Production from own sources - Ferroalloys assets1
H1 2020 | H1 2019 | Change % | ||
Ferrochrome7 | kt | 466 | 799 | (42) |
Vanadium Pentoxide | mlb | 8.3 | 10.2 | (19) |
Total production - Custom metallurgical assets1
H1 2020 | H1 2019 | Change % | ||
Copper (Altonorte, Pasar, Horne, CCR) | ||||
Copper metal | kt | 247.1 | 223.1 | 11 |
Copper anode | kt | 230.2 | 260.7 | (12) |
Zinc (Portovesme, San Juan de Nieva, Nordenham, Northfleet) | ||||
Zinc metal | kt | 391.5 | 403.8 | (3) |
Lead metal | kt | 99.3 | 96.0 | 3 |
- Controlled industrial assets and joint ventures only. Production is on a 100% basis, except for joint ventures, where the Group's attributable share of production is included.
2 Cobalt contained in concentrates and hydroxides.
3 The Group's pro-rata share of Collahuasi production (44%).
4 The Group's pro-rata share of Antamina production (33.75%).
5 Copper metal includes copper contained in copper concentrates and blister.
6 South American production excludes Volcan Compania Minera.
7 The Group's attributable 79.5% share of the Glencore-Merafe Chrome Venture.
Glencore Half-Year Production Report 2020 | 7 |
Metals and minerals
continued
Operating highlights
Copper assets
Own sourced copper production of 588,100 tonnes was 74,900 tonnes (11%) lower than H1 2019, mainly reflecting Mutanda being on care and maintenance in the current period, expected lower grades at Antapaccay and the short-term impact of Antamina's Covid- 19 related demobilisation/remobilisation, partly offset by stronger milling throughput at Collahuasi.
African Copper
Own sourced copper production of 141,100 tonnes was 46,700 tonnes (25%) down on H1 2019 and cobalt production of 12,500 tonnes was 7,000 tonnes (36%) down, in each case mainly reflecting the contribution of Mutanda (now on care and maintenance) in the prior period, partly offset by Katanga, which delivered a strong quarterly production performance.
Collahuasi
Attributable copper production of 142,100 tonnes was 30,100 tonnes (27%) higher than H1 2019, reflecting higher throughput at the concentrator, following investment over recent years to improve productivities at the plant.
Antamina
Mining operations were suspended from mid-April to late May as part of Peru's overall Covid-19 response. Operations restarted on a phased basis, initially targeting 80% of full production, rising to 100% over the course of Q3 2020.
Copper production of 50,900 tonnes was therefore down 32% on H1 2019. Zinc production was in line with H1 2019, despite the temporary suspension, reflecting expected higher zinc grades in the current phase of the mine plan.
Other South America
Copper production of 118,000 tonnes was 22,500 tonnes (16%) lower than H1 2019, mainly reflecting expected lower grades at Antapaccay.
Australia
Own sourced copper production of 87,200 tonnes was in line with H1 2019.
Custom metallurgical assets
Copper cathode production of 247,100 tonnes was 24,000 tonnes (11%) higher than H1 2019, reflecting stronger operations at CCR and Pasar.
Copper anode production of 230,200 tonnes was 30,500 tonnes (12%) lower than the comparable period, mainly reflecting planned maintenance shutdowns at Altonorte and Horne.
Zinc assets
Own sourced zinc production of 550,100 tonnes was in line with H1 2019, reflecting stronger grades at the Canadian mines and the various temporary Covid-19 related suspensions at Antamina and other South American operations.
Kazzinc
Own sourced zinc production of 84,900 tonnes was 4,100 tonnes (5%) lower than H1 2019, mainly reflecting operating changes at the Tishinsky mine.
Own sourced lead production of 12,300 tonnes was 9,700 tonnes (44%) lower than H1 2019, reflecting maintenance on the lead smelter and reduced mining activities at Zhairem.
Own sourced copper production of 17,500 tonnes was 1,700 tonnes (9%) lower than H1 2019 and own sourced gold production was 5% down, in each case due to maintenance, resulting in lower ore milled from the Ridder-Sokolny mine.
Australia
Zinc and lead production of 311,800 tonnes and 108,100 tonnes, respectively, was in line with H1 2019.
North America
Zinc production of 57,400 tonnes was 4,900 (9%) higher than H1 2019, mainly reflecting higher grades at Matagami mine.
Copper production of 16,800 tonnes was 2,100 tonnes lower than H1 2019 mainly due to lower ore milled from Kidd mine.
South America
Zinc production of 42,700 tonnes was in line with H1 2019 as additional zinc units from the Iscaycruz mine in Peru (restarted in Q3 2019) offset the various temporary Covid-19 related suspensions in the portfolio. Lead production of 7,500 tonnes was 9,000 tonnes (55%) down, mainly due to the various temporary Covid-19 related suspensions.
All material operations have since restarted.
European custom metallurgical assets
Zinc and lead metal production of 391,500 tonnes and 99,300 tonnes respectively were in line with H1 2019.
Glencore Half-Year Production Report 2020 | 8 |
Metals and minerals
continued
Nickel assets
Own sourced nickel production of 55,200 tonnes was in line with H1 2019, reflecting a strong period of operations at Murrin, offsetting the delayed delivery of matte from the Sudbury smelter to the Nikkelverk refinery.
Integrated Nickel Operations (INO)
Own sourced nickel production of 27,800 tonnes was 1,300 tonnes (4%) lower than H1 2019, mainly reflecting delayed delivery of matte from the Sudbury smelter to the Nikkelverk refinery. Additional custom feed material was processed in the meantime. The temporary suspension of mining operations at Raglan mine due to Covid-19 did not have a significant impact on H1 2020.
Own sourced copper production of 13,900 tonnes was 8,200 tonnes (37%) lower than H1 2019, mainly reflecting the expected decline in copper grade at the Sudbury mines.
Murrin Murrin
Own sourced nickel production of 17,800 tonnes was 1,700 tonnes (11%) higher than H1 2019, reflecting a strong period of operations, following plant maintenance in February.
Koniambo
One of two furnaces was undergoing annual maintenance when Covid-19 restrictions were introduced in March. The restrictions in movement of staff and contractors resulted in this shutdown being prolonged. The furnace is expected to be recommissioned in Q3, albeit Koniambo is expected to run as a single-line operation for the balance of 2020 in line with required maintenance on the currently operating furnace. Additional process improvements to aid operational stability will also be implemented during this period. Nickel production of 9,600 tonnes was 600 tonnes (6%) lower than in H1 2019, owing to these disruptions.
Ferroalloys assets
Attributable ferrochrome production of 466,000 tonnes was 333,000 tonnes (42%) lower than H1 2019, mainly reflecting the South African Covid-19 national lockdown during March/April. Smelting operations partly resumed on 1 May, with further capacity expected to be restarted towards the end of Q3.
Glencore Half-Year Production Report 2020 | 9 |
Energy products
Coal assets1
H1 2020 | H1 2019 | Change % | |||
Australian coking coal | mt | 3.7 | 4.3 | (14) | |
Australian semi-soft coal | mt | 2.6 | 3.3 | (21) | |
Australian thermal coal (export) | mt | 29.4 | 31.0 | (5) | |
Australian thermal coal (domestic) | mt | 3.7 | 4.0 | (8) | |
South African thermal coal (export) | mt | 7.2 | 6.7 | 7 | |
South African thermal coal (domestic) | mt | 5.0 | 7.4 | (32) | |
Prodeco | mt | 3.8 | 7.3 | (48) | |
Cerrejón2 | mt | 2.7 | 4.2 | (36) | |
Total Coal department | mt | 58.1 | 68.2 | (15) |
Oil assets
H1 2020 | H1 2019 | Change % | ||
Glencore entitlement interest basis | ||||
Equatorial Guinea | kbbl | 1,091 | 859 | 27 |
Chad | kbbl | 1,112 | 1,381 | (19) |
Cameroon | kbbl | 409 | - | n.m. |
Total Oil department | kbbl | 2,612 | 2,240 | 17 |
- Controlled industrial assets and joint ventures only. Production is on a 100% basis, except for joint ventures, where the Group's attributable share of production is included.
2 The Group's pro-rata share of Cerrejón production (33.3%).
Operating highlights
Coal assets
Coal production of 58.1 million tonnes was 10.1 million tonnes (15%) lower than H1 2019, mainly reflecting the Covid-19 related asset suspensions in Colombia.
Australian coking
Coking coal production of 3.7 million tonnes was 0.6 million tonnes (14%) below H1 2019, mainly reflecting the timing of coal extraction at Hail Creek, which is expected to be made up later in the year.
Australian thermal and semi-soft
Production of 35.7 million tonnes was 2.6 million tonnes (7%) lower than H1 2019 due to various maintenance factors and increased haul distances at some sites.
South African thermal
The larger complexes continued to operate at somewhat reduced capacity during the South African Covid-19 national lockdown in March/April. H1 2020 production of 12.2 million tonnes was 1.9 million tonnes (13%) lower than H1 2019.
Prodeco
Mining operations were suspended in late March and remain on care and maintenance. Accordingly, H1 2020 production of 3.8 million tonnes was 3.5 million tonnes (48%) lower than H1 2019.
The outlook for Prodeco's business remains challenging due to ongoing weakness in the Atlantic coal market, exacerbated by the impact of Covid-19. Prodeco is in the process of optimising its mine plans to account for the current market environment. This process requires consultation and approval by a number of external parties. An application has been made to the authorities for Prodeco to remain on care and maintenance, which will help preserve the value of the assets and the option to implement the revised plans when the appropriate approvals have been obtained and market conditions have improved.
Cerrejón
Mining operations were suspended in late March and restarted on a limited basis from early May. Accordingly, H1 2020 attributable production of 2.7 million tonnes was 1.5 million tonnes (36%) lower than H1 2019.
Oil assets
Exploration and production
Entitlement interest production of 2.6 million barrels was 0.4 million barrels (17%) higher than H1 2019, due to new wells drilled in Equatorial Guinea and Cameroon.
Due to the Covid-19 related disruptions to international mobility, transportation and supply chains, the Chad oil fields were placed on care and maintenance in April. These disruptions and prevailing market conditions are being monitored to determine when some restart of operations would be appropriate.
Glencore Half-Year Production Report 2020 | 10 |
Select average commodity prices
Market conditions
Select average commodity prices
H1 2020 | H1 2019 | Change % | ||
S&P GSCI Industrial Metals Index | 290 | 330 | (12) | |
S&P GSCI Energy Index | 133 | 203 | (34) | |
LME (cash) copper price ($/t) | 5,502 | 6,167 | (11) | |
LME (cash) zinc price ($/t) | 2,049 | 2,732 | (25) | |
LME (cash) lead price ($/t) | 1,763 | 1,960 | (10) | |
LME (cash) nickel price ($/t) | 12,477 | 12,318 | 1 | |
Gold price ($/oz) | 1,648 | 1,306 | 26 | |
Silver price ($/oz) | 17 | 15 | 13 | |
Metal Bulletin cobalt standard grade, in-warehouse Rotterdam ($/lb) | 16 | 17 | (6) | |
Ferro-chrome 50% Cr import, CIF main Chinese ports, contained Cr (¢/lb) | 70 | 81 | (14) | |
Iron ore (Platts 62% CFR North China) price ($/DMT) | 87 | 87 | - | |
Coal API4 ($/t) | 64 | 76 | (16) | |
Coal Newcastle (6,000) ($/t) | 62 | 88 | (30) | |
Oil price - Brent ($/bbl) | 42 | 66 | (36) |
Glencore Half-Year Production Report 2020 | 11 |
Production by quarter - Q2 2019 to Q2 2020
Metals and minerals
Production from own sources - Total1
H1 | Change | Change | ||||||||
Q2 | Q3 | Q4 | Q1 | Q2 | H1 | H1 20 vs | Q2 20 vs | |||
2019 | 2019 | 2019 | 2020 | 2020 | 2020 | 2019 | H1 19 | Q2 19 | ||
% | % | |||||||||
Copper | kt | 342.3 | 352.8 | 355.4 | 293.3 | 294.8 | 588.1 | 663.0 | (11) | (14) |
Cobalt | kt | 10.4 | 13.1 | 11.9 | 6.1 | 8.2 | 14.3 | 21.3 | (33) | (21) |
Zinc | kt | 273.6 | 273.3 | 268.3 | 295.6 | 254.5 | 550.1 | 535.9 | 3 | (7) |
Lead | kt | 73.6 | 72.3 | 60.2 | 61.7 | 66.2 | 127.9 | 147.5 | (13) | (10) |
Nickel | kt | 28.3 | 34.0 | 31.2 | 28.2 | 27.0 | 55.2 | 55.4 | - | (5) |
Gold | koz | 221 | 199 | 226 | 199 | 186 | 385 | 423 | (9) | (16) |
Silver | koz | 7,870 | 8,243 | 8,285 | 7,778 | 6,407 | 14,185 | 15,490 | (8) | (19) |
Ferrochrome | kt | 397 | 231 | 408 | 388 | 78 | 466 | 799 | (42) | (80) |
Coal | mt | 35.0 | 35.8 | 35.5 | 31.9 | 26.2 | 58.1 | 68.2 | (15) | (25) |
Oil (entitlement interest basis) | kbbl | 1,095 | 1,398 | 1,880 | 1,806 | 806 | 2,612 | 2,240 | 17 | (26) |
Production from own sources - Copper assets1
Q2 | Q3 | Q4 | Q1 | Q2 | H1 | H1 | Change | Change | |||
H1 20 vs | Q2 20 vs | ||||||||||
2019 | 2019 | 2019 | 2020 | 2020 | 2020 | 2019 | H1 19 | Q2 19 | |||
% | % | ||||||||||
African Copper (Katanga, Mutanda, Mopani) | |||||||||||
Katanga | Copper metal | kt | 52.5 | 59.4 | 65.4 | 67.3 | 67.1 | 134.4 | 109.7 | 23 | 28 |
Cobalt2 | kt | 2.6 | 4.8 | 6.2 | 5.3 | 7.2 | 12.5 | 6.1 | 105 | 177 | |
Mutanda | Copper metal | kt | 25.7 | 31.5 | 18.0 | - | - | - | 53.7 | (100) | (100) |
Cobalt2 | kt | 7.0 | 7.2 | 4.5 | - | - | - | 13.4 | (100) | (100) | |
Mopani | Copper metal * | kt | 10.3 | 1.2 | - | - | 6.7 | 6.7 | 20.4 | (67) | (35) |
Copper in concentrates * | kt | 4.0 | 3.3 | 3.3 | - | - | - | 4.0 | (100) | (100) | |
African Copper - total production including third party feed | |||||||||||
Mopani | Copper metal | kt | 27.5 | 2.5 | - | 5.6 | 21.1 | 26.7 | 48.8 | (45) | (23) |
Copper in concentrates | kt | 4.0 | 3.3 | 3.3 | - | - | - | 4.0 | (100) | (100) | |
Total Copper metal | kt | 88.5 | 92.1 | 83.4 | 67.3 | 73.8 | 141.1 | 183.8 | (23) | (17) | |
Total Copper in concentrates | kt | 4.0 | 3.3 | 3.3 | - | - | - | 4.0 | (100) | (100) | |
Total Cobalt2 | kt | 9.6 | 12.0 | 10.7 | 5.3 | 7.2 | 12.5 | 19.5 | (36) | (25) | |
Collahuasi3 | Copper in concentrates | kt | 54.7 | 64.5 | 72.3 | 66.5 | 75.6 | 142.1 | 112.0 | 27 | 38 |
Silver in concentrates | koz | 538 | 731 | 910 | 1,063 | 850 | 1,913 | 1,237 | 55 | 58 | |
Antamina4 | Copper in concentrates | kt | 38.8 | 39.1 | 37.6 | 33.1 | 17.8 | 50.9 | 74.7 | (32) | (54) |
Zinc in concentrates | kt | 26.7 | 24.3 | 26.7 | 36.9 | 16.4 | 53.3 | 51.4 | 4 | (39) | |
Silver in concentrates | koz | 1,343 | 1,224 | 1,304 | 1,316 | 686 | 2,002 | 2,523 | (21) | (49) | |
Other South America (Antapaccay, Lomas Bayas) | |||||||||||
Antapaccay | Copper in concentrates | kt | 53.5 | 49.6 | 47.5 | 38.0 | 43.1 | 81.1 | 100.5 | (19) | (19) |
Gold in concentrates | koz | 26 | 18 | 23 | 22 | 12 | 34 | 44 | (23) | (54) | |
Silver in concentrates | koz | 455 | 402 | 338 | 270 | 295 | 565 | 836 | (32) | (35) | |
Lomas Bayas | Copper metal | kt | 20.1 | 19.7 | 19.2 | 18.4 | 18.5 | 36.9 | 40.0 | (8) | (8) |
Total Copper metal | kt | 20.1 | 19.7 | 19.2 | 18.4 | 18.5 | 36.9 | 40.0 | (8) | (8) | |
Total Copper in concentrates | kt | 53.5 | 49.6 | 47.5 | 38.0 | 43.1 | 81.1 | 100.5 | (19) | (19) | |
Total Gold in concentrates | koz | 26 | 18 | 23 | 22 | 12 | 34 | 44 | (23) | (54) | |
and in doré | |||||||||||
Total Silver in concentrates | koz | 455 | 402 | 338 | 270 | 295 | 565 | 836 | (32) | (35) | |
and in doré |
* Mopani processed 10.6kt of copper contained concentrates in H1 2020 that was produced and reported in H2 2019.
Glencore Half-Year Production Report 2020 | 12 |
Production by quarter - Q2 2019 to Q2 2020
continued
Metals and minerals
Production from own sources - Copper assets1 continued
Q2 | Q3 | Q4 | Q1 | Q2 | H1 | H1 | Change | Change | |||
H1 20 vs | Q2 20 vs | ||||||||||
2019 | 2019 | 2019 | 2020 | 2020 | 2020 | 2019 | H1 19 | Q2 19 | |||
% | % | ||||||||||
Australia (Mount Isa, Ernest Henry, Townsville, Cobar) | |||||||||||
Mount Isa, Ernest Henry, Townsville, Cobar | |||||||||||
Copper metal | kt | 40.2 | 41.3 | 45.8 | 31.8 | 32.6 | 64.4 | 64.0 | 1 | (19) | |
Gold | koz | 27 | 28 | 18 | 22 | 24 | 46 | 54 | (15) | (11) | |
Silver | koz | 321 | 304 | 245 | 156 | 165 | 321 | 605 | (47) | (49) | |
Mount Isa, Ernest Henry, Townsville - total production including third party feed | |||||||||||
Copper metal | kt | 60.3 | 60.9 | 61.2 | 53.2 | 49.8 | 103.0 | 98.4 | 5 | (17) | |
Gold | koz | 34 | 36 | 36 | 33 | 39 | 72 | 68 | 6 | 15 | |
Silver | koz | 335 | 363 | 395 | 331 | 321 | 652 | 631 | 3 | (4) | |
Cobar | Copper in concentrates | kt | 11.6 | 10.4 | 11.1 | 11.8 | 11.0 | 22.8 | 22.0 | 4 | (5) |
Silver in concentrates | koz | 120 | 116 | 119 | 117 | 126 | 243 | 226 | 8 | 5 | |
Total Copper metal | kt | 40.2 | 41.3 | 45.8 | 31.8 | 32.6 | 64.4 | 64.0 | 1 | (19) | |
Total Copper in concentrates | kt | 11.6 | 10.4 | 11.1 | 11.8 | 11.0 | 22.8 | 22.0 | 4 | (5) | |
Total Gold | koz | 27 | 28 | 18 | 22 | 24 | 46 | 54 | (15) | (11) | |
Total Silver | koz | 441 | 420 | 364 | 273 | 291 | 564 | 831 | (32) | (34) | |
Total Copper department | |||||||||||
Copper | kt | 311.4 | 320.0 | 320.2 | 266.9 | 272.4 | 539.3 | 601.0 | (10) | (13) | |
Cobalt | kt | 9.6 | 12.0 | 10.7 | 5.3 | 7.2 | 12.5 | 19.5 | (36) | (25) | |
Zinc | kt | 26.7 | 24.3 | 26.7 | 36.9 | 16.4 | 53.3 | 51.4 | 4 | (39) | |
Gold | koz | 53 | 46 | 41 | 44 | 36 | 80 | 98 | (18) | (32) | |
Silver | koz | 2,777 | 2,777 | 2,916 | 2,922 | 2,122 | 5,044 | 5,427 | (7) | (24) |
Glencore Half-Year Production Report 2020 | 13 |
Production by quarter - Q2 2019 to Q2 2020
continued
Metals and minerals
Production from own sources - Zinc assets1
Q2 | Q3 | Q4 | Q1 | Q2 | H1 | H1 | Change | Change | |||
H1 20 vs | Q2 20 vs | ||||||||||
2019 | 2019 | 2019 | 2020 | 2020 | 2020 | 2019 | H1 19 | Q2 19 | |||
% | % | ||||||||||
Kazzinc | |||||||||||
Zinc metal | kt | 48.7 | 45.0 | 38.5 | 43.3 | 41.6 | 84.9 | 89.0 | (5) | (15) | |
Lead metal | kt | 11.3 | 8.2 | 4.2 | 5.5 | 6.8 | 12.3 | 19.2 | (36) | (40) | |
Lead in concentrates | kt | - | - | - | - | - | - | 2.8 | (100) | n.m. | |
Copper metal5 | kt | 8.1 | 12.1 | 12.7 | 8.7 | 8.8 | 17.5 | 19.2 | (9) | 9 | |
Gold | koz | 161 | 146 | 177 | 150 | 144 | 294 | 311 | (5) | (11) | |
Silver | koz | 1,019 | 1,354 | 1,214 | 844 | 936 | 1,780 | 1,978 | (10) | (8) | |
Silver in concentrates | koz | 4 | - | - | - | - | - | 92 | (100) | (100) | |
Kazzinc - total production including third party feed | |||||||||||
Zinc metal | kt | 76.3 | 66.2 | 76.3 | 75.0 | 73.9 | 148.9 | 150.8 | (1) | (3) | |
Lead metal | kt | 35.5 | 31.3 | 29.8 | 29.8 | 35.2 | 65.0 | 67.9 | (4) | (1) | |
Lead in concentrates | kt | - | - | - | - | - | - | 2.8 | (100) | n.m. | |
Copper metal | kt | 11.6 | 17.1 | 19.9 | 14.9 | 14.2 | 29.1 | 28.1 | 4 | 22 | |
Gold | koz | 233 | 260 | 263 | 197 | 218 | 415 | 439 | (5) | (6) | |
Silver | koz | 5,533 | 6,594 | 6,056 | 4,704 | 5,406 | 10,110 | 10,479 | (4) | (2) | |
Silver in concentrates | koz | 4 | - | - | - | - | - | 92 | (100) | (100) | |
Australia (Mount Isa, McArthur River) | |||||||||||
Mount Isa | Zinc in concentrates | kt | 80.7 | 88.6 | 75.3 | 85.2 | 89.5 | 174.7 | 162.5 | 8 | 11 |
Lead in concentrates | kt | 40.6 | 42.6 | 33.8 | 38.1 | 41.3 | 79.4 | 81.6 | (3) | 2 | |
Silver in concentrates | koz | 1,422 | 1,463 | 1,108 | 1,341 | 1,637 | 2,978 | 2,947 | 1 | 15 | |
McArthur River Zinc in concentrates | kt | 70.0 | 61.7 | 70.4 | 68.5 | 68.6 | 137.1 | 139.1 | (1) | (2) | |
Lead in concentrates | kt | 13.3 | 11.9 | 16.0 | 14.6 | 14.1 | 28.7 | 27.4 | 5 | 6 | |
Silver in concentrates | koz | 403 | 323 | 525 | 472 | 340 | 812 | 827 | (2) | (16) | |
Total Zinc in concentrates | kt | 150.7 | 150.3 | 145.7 | 153.7 | 158.1 | 311.8 | 301.6 | 3 | 5 | |
Total Lead in concentrates | kt | 53.9 | 54.5 | 49.8 | 52.7 | 55.4 | 108.1 | 109.0 | (1) | 3 | |
Total Silver in concentrates | koz | 1,825 | 1,786 | 1,633 | 1,813 | 1,977 | 3,790 | 3,774 | - | 8 | |
North America (Matagami, Kidd) | |||||||||||
Matagami | Zinc in concentrates | kt | 10.1 | 11.9 | 10.6 | 14.5 | 11.8 | 26.3 | 21.3 | 23 | 17 |
Copper in concentrates | kt | 1.6 | 1.4 | 1.3 | 1.8 | 1.6 | 3.4 | 2.9 | 17 | - | |
Kidd | Zinc in concentrates | kt | 17.6 | 20.6 | 15.8 | 19.3 | 11.8 | 31.1 | 31.2 | - | (33) |
Copper in concentrates | kt | 8.0 | 7.9 | 9.6 | 8.1 | 5.3 | 13.4 | 16.0 | (16) | (34) | |
Silver in concentrates | koz | 435 | 400 | 561 | 517 | 412 | 929 | 693 | 34 | (5) | |
Total Zinc in concentrates | kt | 27.7 | 32.5 | 26.4 | 33.8 | 23.6 | 57.4 | 52.5 | 9 | (15) | |
Total Copper in concentrates | kt | 9.6 | 9.3 | 10.9 | 9.9 | 6.9 | 16.8 | 18.9 | (11) | (28) | |
Total Silver in concentrates | koz | 435 | 400 | 561 | 517 | 412 | 929 | 693 | 34 | (5) |
Glencore Half-Year Production Report 2020 | 14 |
Production by quarter - Q2 2019 to Q2 2020
continued
Metals and minerals
Production from own sources - Zinc assets1 continued
H1 | Change | Change | ||||||||
Q2 | Q3 | Q4 | Q1 | Q2 | H1 | H1 20 vs | Q2 20 vs | |||
2019 | 2019 | 2019 | 2020 | 2020 | 2020 | 2019 | H1 19 | Q2 19 | ||
% | % | |||||||||
Other Zinc: South America (Argentina, Bolivia, Peru)6 | ||||||||||
Zinc in concentrates | kt | 19.8 | 21.2 | 31.0 | 27.9 | 14.8 | 42.7 | 41.4 | 3 | (25) |
Lead in concentrates | kt | 8.4 | 9.6 | 6.2 | 3.5 | 4.0 | 7.5 | 16.5 | (55) | (52) |
Copper in concentrates | kt | 0.8 | 0.5 | 0.4 | 0.4 | 0.2 | 0.6 | 1.8 | (67) | (75) |
Silver in concentrates | koz | 1,655 | 1,808 | 1,851 | 1,574 | 844 | 2,418 | 3,247 | (26) | (49) |
Total Zinc department | ||||||||||
Zinc | kt | 246.9 | 249.0 | 241.6 | 258.7 | 238.1 | 496.8 | 484.5 | 3 | (4) |
Lead | kt | 73.6 | 72.3 | 60.2 | 61.7 | 66.2 | 127.9 | 147.5 | (13) | (10) |
Copper | kt | 18.5 | 21.9 | 24.0 | 19.0 | 15.9 | 34.9 | 39.9 | (13) | (14) |
Gold | koz | 161 | 146 | 177 | 150 | 144 | 294 | 311 | (5) | (11) |
Silver | koz | 4,938 | 5,348 | 5,259 | 4,748 | 4,169 | 8,917 | 9,784 | (9) | (16) |
Glencore Half-Year Production Report 2020 | 15 |
Production by quarter - Q2 2019 to Q2 2020
continued
Metals and minerals
Production from own sources - Nickel assets1
Q2 | Q3 | Q4 | Q1 | Q2 | H1 | H1 | Change | Change | |||
H1 20 vs | Q2 20 vs | ||||||||||
2019 | 2019 | 2019 | 2020 | 2020 | 2020 | 2019 | H1 19 | Q2 19 | |||
% | % | ||||||||||
Integrated Nickel Operations (Sudbury, Raglan, Nikkelverk) | |||||||||||
Nickel metal | kt | 15.5 | 16.1 | 14.9 | 14.5 | 13.1 | 27.6 | 28.8 | (4) | (15) | |
Nickel in concentrates | kt | 0.2 | 0.1 | 0.1 | 0.1 | 0.1 | 0.2 | 0.3 | (33) | (50) | |
Copper metal | kt | 3.1 | 4.1 | 4.7 | 3.4 | 2.9 | 6.3 | 7.0 | (10) | (6) | |
Copper in concentrates | kt | 9.3 | 6.8 | 6.5 | 4.0 | 3.6 | 7.6 | 15.1 | (50) | (61) | |
Cobalt metal | kt | 0.2 | 0.2 | 0.1 | 0.1 | 0.1 | 0.2 | 0.4 | (50) | (50) | |
Gold | koz | 7 | 7 | 8 | 5 | 6 | 11 | 14 | (21) | (14) | |
Silver | koz | 155 | 118 | 110 | 108 | 116 | 224 | 279 | (20) | (25) | |
Platinum | koz | 16 | 15 | 3 | 12 | 12 | 24 | 33 | (27) | (25) | |
Palladium | koz | 32 | 29 | 25 | 28 | 29 | 57 | 58 | (2) | (9) | |
Rhodium | koz | 1 | 1 | 1 | 1 | 1 | 2 | 2 | - | - | |
Integrated Nickel Operations - total production including third party feed | |||||||||||
Nickel metal | kt | 23.0 | 23.1 | 23.4 | 22.4 | 21.3 | 43.7 | 45.6 | (4) | (7) | |
Nickel in concentrates | kt | 0.2 | 0.1 | 0.2 | 0.1 | 0.1 | 0.2 | 0.3 | (33) | (50) | |
Copper metal | kt | 4.5 | 5.8 | 6.3 | 5.1 | 4.6 | 9.7 | 9.9 | (2) | 2 | |
Copper in concentrates | kt | 9.8 | 8.6 | 7.7 | 4.9 | 4.8 | 9.7 | 16.5 | (41) | (51) | |
Cobalt metal | kt | 1.0 | 1.2 | 1.2 | 0.9 | 1.0 | 1.9 | 2.0 | (5) | - | |
Gold | koz | 12 | 10 | 11 | 9 | 9 | 18 | 22 | (18) | (25) | |
Silver | koz | 211 | 189 | 162 | 174 | 200 | 374 | 398 | (6) | (5) | |
Platinum | koz | 23 | 21 | 19 | 21 | 22 | 43 | 44 | (2) | (4) | |
Palladium | koz | 65 | 61 | 53 | 69 | 73 | 142 | 114 | 25 | 12 | |
Rhodium | koz | 1 | 2 | 1 | 1 | 1 | 2 | 2 | - | - | |
Murrin Murrin | |||||||||||
Total Nickel metal | kt | 7.4 | 10.8 | 9.7 | 7.6 | 10.2 | 17.8 | 16.1 | 11 | 38 | |
Total Cobalt metal | kt | 0.6 | 0.9 | 1.1 | 0.7 | 0.9 | 1.6 | 1.4 | 14 | 50 | |
Murrin Murrin - total production including third party feed | |||||||||||
Total Nickel metal | kt | 8.6 | 11.7 | 10.6 | 8.6 | 11.5 | 20.1 | 18.4 | 9 | 34 | |
Total Cobalt metal | kt | 0.9 | 0.9 | 1.1 | 0.8 | 0.9 | 1.7 | 1.7 | - | - | |
Koniambo | Nickel in ferronickel | kt | 5.2 | 7.0 | 6.5 | 6.0 | 3.6 | 9.6 | 10.2 | (6) | (31) |
Total Nickel department | |||||||||||
Nickel | kt | 28.3 | 34.0 | 31.2 | 28.2 | 27.0 | 55.2 | 55.4 | - | (5) | |
Copper | kt | 12.4 | 10.9 | 11.2 | 7.4 | 6.5 | 13.9 | 22.1 | (37) | (48) | |
Cobalt | kt | 0.8 | 1.1 | 1.2 | 0.8 | 1.0 | 1.8 | 1.8 | - | 25 | |
Gold | koz | 7 | 7 | 8 | 5 | 6 | 11 | 14 | (21) | (14) | |
Silver | koz | 155 | 118 | 110 | 108 | 116 | 224 | 279 | (20) | (25) | |
Platinum | koz | 16 | 15 | 3 | 12 | 12 | 24 | 33 | (27) | (25) | |
Palladium | koz | 32 | 29 | 25 | 28 | 29 | 57 | 58 | (2) | (9) | |
Rhodium | koz | 1 | 1 | 1 | 1 | 1 | 2 | 2 | - | - |
Glencore Half-Year Production Report 2020 | 16 |
Production by quarter - Q2 2019 to Q2 2020
continued
Metals and minerals
Production from own sources - Ferroalloys assets1
H1 | Change | Change | ||||||||
Q2 | Q3 | Q4 | Q1 | Q2 | H1 | H1 20 vs | Q2 20 vs | |||
2019 | 2019 | 2019 | 2020 | 2020 | 2020 | 2019 | H1 19 | Q2 19 | ||
% | % | |||||||||
Ferrochrome7 | kt | 397 | 231 | 408 | 388 | 78 | 466 | 799 | (42) | (80) |
Vanadium pentoxide | mlb | 5.1 | 5.6 | 4.4 | 4.2 | 4.1 | 8.3 | 10.2 | (19) | (20) |
Total production - Custom metallurgical assets1
H1 | Change | Change | ||||||||
Q2 | Q3 | Q4 | Q1 | Q2 | H1 | H1 20 vs | Q2 20 vs | |||
2019 | 2019 | 2019 | 2020 | 2020 | 2020 | 2019 | H1 19 | Q2 19 | ||
% | % | |||||||||
Copper (Altonorte, Pasar, Horne, CCR) | ||||||||||
Copper metal | kt | 109.8 | 100.8 | 109.0 | 123.0 | 124.1 | 247.1 | 223.1 | 11 | 13 |
Copper anode | kt | 137.3 | 117.7 | 132.3 | 127.4 | 102.8 | 230.2 | 260.7 | (12) | (25) |
Zinc (Portovesme, San Juan de Nieva, Nordenham, Northfleet) | ||||||||||
Zinc metal | kt | 200.5 | 197.3 | 204.6 | 195.9 | 195.6 | 391.5 | 403.8 | (3) | (2) |
Lead metal | kt | 50.3 | 43.9 | 50.6 | 44.6 | 54.7 | 99.3 | 96.0 | 3 | 9 |
- Controlled industrial assets and joint ventures only. Production is on a 100% basis, except for joint ventures, where the Group's attributable share of production is included.
2 Cobalt contained in concentrates and hydroxides.
3 The Group's pro-rata share of Collahuasi production (44%).
4 The Group's pro-rata share of Antamina production (33.75%).
5 Copper metal includes copper contained in copper concentrates and blister.
6 South American production excludes Volcan Compania Minera.
7 The Group's attributable 79.5% share of the Glencore-Merafe Chrome Venture.
Glencore Half-Year Production Report 2020 | 17 |
Production by quarter - Q2 2019 to Q2 2020
continued
Energy products
Production from own sources - Coal assets1
Q2 | Q3 | Q4 | Q1 | Q2 | H1 | H1 | Change | Change | ||
H1 20 vs | Q2 20 vs | |||||||||
2019 | 2019 | 2019 | 2020 | 2020 | 2020 | 2019 | H1 19 | Q2 19 | ||
% | % | |||||||||
Australian coking coal | mt | 1.7 | 1.8 | 3.1 | 1.8 | 1.9 | 3.7 | 4.3 | (14) | 12 |
Australian semi-soft coal | mt | 2.3 | 1.8 | 1.3 | 1.6 | 1.0 | 2.6 | 3.3 | (21) | (57) |
Australian thermal coal (export) | mt | 16.1 | 16.8 | 16.4 | 14.5 | 14.9 | 29.4 | 31.0 | (5) | (7) |
Australian thermal coal (domestic) | mt | 2.2 | 2.2 | 2.4 | 2.0 | 1.7 | 3.7 | 4.0 | (8) | (23) |
South African thermal coal (export) | mt | 2.9 | 3.4 | 2.9 | 3.7 | 3.5 | 7.2 | 6.7 | 7 | 21 |
South African thermal coal (domestic) | mt | 4.1 | 3.7 | 2.8 | 2.5 | 2.5 | 5.0 | 7.4 | (32) | (39) |
Prodeco | mt | 3.7 | 4.0 | 4.3 | 3.8 | - | 3.8 | 7.3 | (48) | (100) |
Cerrejón2 | mt | 2.0 | 2.1 | 2.3 | 2.0 | 0.7 | 2.7 | 4.2 | (36) | (65) |
Total Coal department | mt | 35.0 | 35.8 | 35.5 | 31.9 | 26.2 | 58.1 | 68.2 | (15) | (25) |
- Controlled industrial assets and joint ventures only. Production is on a 100% basis, except for joint ventures, where the Group's attributable share of production is included.
2 The Group's pro-rata share of Cerrejón production (33.3%).
Oil assets
Q2 | Q3 | Q4 | Q1 | Q2 | H1 | H1 | Change | Change | ||
H1 20 vs | Q2 20 vs | |||||||||
2019 | 2019 | 2019 | 2020 | 2020 | 2020 | 2019 | H1 19 | Q2 19 | ||
% | % | |||||||||
Glencore entitlement interest basis | ||||||||||
Equatorial Guinea | kbbl | 423 | 439 | 597 | 522 | 569 | 1,091 | 859 | 27 | 35 |
Chad | kbbl | 672 | 884 | 1,106 | 1,083 | 29 | 1,112 | 1,381 | (19) | (96) |
Cameroon | kbbl | - | 75 | 177 | 201 | 208 | 409 | - | n.m. | n.m. |
Total Oil department | kbbl | 1,095 | 1,398 | 1,880 | 1,806 | 806 | 2,612 | 2,240 | 17 | (26) |
Gross basis | ||||||||||
Equatorial Guinea | kbbl | 2,113 | 2,166 | 2,906 | 3,080 | 2,810 | 5,890 | 4,164 | 41 | 33 |
Chad | kbbl | 919 | 1,209 | 1,511 | 1,481 | 40 | 1,521 | 1,888 | (19) | (96) |
Cameroon | kbbl | - | 216 | 514 | 582 | 603 | 1,185 | - | n.m. | n.m. |
Total Oil department | kbbl | 3,032 | 3,591 | 4,931 | 5,143 | 3,453 | 8,596 | 6,052 | 42 | 14 |
Glencore Half-Year Production Report 2020 | 18 |
Full year 2020 production guidance
Actual | Actual | Actual | Actual | Previous | Current | ||||||
FY | FY | FY | H1 | guidance | guidance | 2020 weighting | |||||
2017 | 2018 | 2019 | 2020 | 2020 | 2020 | H1 | H2 | ||||
Copper | kt | 1,310 | 1,454 | 1,371 | 588 | 1,255 ± 45 | 1,255 ± 35 | 47% | 53% | ||
Cobalt | kt | 27.4 | 42.2 | 46.0 | 14 | 28 | ± 2 | 28 ± 2 | 51% | 49% | |
Zinc | kt | 1,090 | 1,068 | 1,078 | 550 | 1,160 ± 30 | 1,160 ± 30 | 1 | 47% | 53% | |
Nickel | kt | 109 | 124 | 121 | 55 | 122 | ± 5 | 114 ± 4 | 48% | 52% | |
Ferrochrome | kt | 1,531 | 1,580 | 1,438 | 466 | 1,000 ± 25 | 1,000 ± 25 | 47% | 53% | ||
Coal | mt | 121 | 129 | 140 | 58 | 132 | ± 3 | 114 ± 3 | 51% | 49% |
- Excludes Volcan.
Changes in guidance mainly reflects:
- Nickel: 114kt, down 8kt (7%) - decision to operate Koniambo as a single-line operation for the balance of 2020
- Coal: 114mt, down 18mt (14%) - application for Prodeco to remain on extended care and maintenance and targeted volume reductions in Australia in H2, given current market conditions
Glencore Half-Year Production Report 2020 | 19 |
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.
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 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.
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.
Glencore Half-Year Production Report 2020 | 20 |
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Glencore plc published this content on 31 July 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 July 2020 06:10:10 UTC