Glencore Regulatory News (GLEN)

NEWS RELEASE

Baar, 2 February 2022

Full Year 2021 Production Report

Glencore Chief Executive Officer, Gary Nagle:

"The operating environment remained challenging in 2021, with the Covid-19 pandemic again dominating the daily lives of many of 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. Maintaining production in 2021 became increasingly important as many of our products, so crucial for decarbonisation, energy supply and industrial output, saw higher levels of demand.

"Overall, our operations largely performed in line with guidance expectations. We completed the Cerrejon acquisition and Ernest Henry disposal in January, such transactions being consistent with our continued strategy to simplify and align our portfolio with the materials needed for the energy transition and the responsible decline of our coal business."

Production from own sources - Total1

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

Production guidance

• 2022 production guidance unchanged from the Investor Update in December 2021. Purchase of the remaining interest in Cerrejon completed in January 2022, a few months earlier than initially assumed. Changes, if any, to 2022 guidance will be updated in April, together with our Q1 production report.

• The Ernest Henry copper mine (disposed January 2022) produced 44,700 tonnes in 2021, largely accounting for the copper reduction from 2021 to 2022.

1 Excludes Volcan.

Realised prices

The average Newcastle coal (NEWC) settlement prices for 2021 was $137.30/t. After applying a portfolio mix adjustment (component of our regular coal cash flow modelling guidance) of $33.80/t to reflect e.g. movements in the pricing of non-NEWC quality coals, coking coal margins and the lag effect of 2020's JPU fixed-price contracts, an average thermal-equivalent realised price of c. $103.50/t can be applied across all coal sales volumes. Due mainly to weather-related logistics challenges at the port of Newcastle, circa 1.5mt of Australian coal sales volumes, initially expected in December 2021, slipped into 2022.

Production highlights

• Own sourced copper production of 1,195,700 tonnes was 62,400 tonnes (5%) lower than 2020, mainly due to the Mopani disposal (23,800 tonnes), expected lower copper grades at Antapaccay (14,800 tonnes) and lower copper by-products from our mature zinc and nickel mines (26,600 tonnes).

• Own sourced cobalt production of 31,300 tonnes was 3,900 tonnes (14%) higher than 2020 due to the limited restart of production at Mutanda in 2021.

• Own sourced zinc production of 1,117,800 tonnes was 52,600 tonnes (4%) lower than 2020, mainly reflecting:

- the expected decline of Maleevsky mine in Kazakhstan, being lagged by the slower than expected ramp-up of replacement Zhairem mine tonnage (19,600 tonnes);

- Mount Isa producing additional metal from ore stockpile drawdowns in the base period (24,400 tonnes); and

- Kidd lower grades (13,800 tonnes).

These factors were partly offset by stronger zinc production at Antamina, which was suspended for part of 2020 due to Covid restrictions.

• Nickel production of 102.300 tonnes was 7,900 tonnes (7%) lower than in 2020, mainly due to the lengthy scheduled statutory shutdown and maintenance issues at Murrin Murrin earlier in the year.

• Attributable ferrochrome production of 1,468,000 tonnes was 439,000 tonnes (43%) higher than 2020 mainly due to the South African national lockdown in the prior year, and a strong operating performance.

• Coal production of 103.3 million tonnes was 2.9 million tonnes (3%) lower than 2020, reflecting Prodeco's care and maintenance status and lower domestic power demand / export rail capacity constraints in South Africa, offset by higher production at Cerrejón, following a Covid suspension and strike in 2020.

• Entitlement interest production of 5.3 million boe was 1.3 million boe (34%) higher than 2020 mainly due to commencement of the gas phase of the Alen project in Equatorial Guinea. There was no production from the Chad fields in 2021.

Other matters

• In early January 2022 we completed the acquisition of the two-thirds of Cerrejon we did not already own.

• The previously announced Ernest Henry copper mine disposal also completed in early January 2022.

To view the full report please click: https://www.glencore.com/dam/jcr:90d4d8f9-a85e-42ec-ad8a-b75b657f55d2/GLEN_2021-full-year_ProductionReport.pdf 

For further information please contact:

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 135,000 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. Our ambition is to be a net zero total emissions company by 2050.

DisclaimerThe 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.

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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.