Third Quarter 2022 Production Report

Baar, Switzerland
28 October 2022

Glencore Chief Executive Officer, Gary Nagle:

• “Operational performance over the third quarter was impacted by a range of events including extreme weather in Australia, industrial action at nickel assets in Canada and Norway (since resolved) and the emergence of significant supply chain issues in Kazakhstan stemming from the Russia/Ukraine war. Full-year 2022 production guidance has, accordingly, been reduced for those affected commodities.
• “Following the exceptionally strong marketing performance in the first half of the year, we currently expect a significantly reduced, but still above-average second-half contribution, likely exceeding $1.6 billion, being the top end of the pro-rated long-term EBIT guidance range of $2.2 to $3.2 billion p.a.”

Production from own sources – Total¹

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

Production guidance

Changes in guidance, extensively foreshadowed in our Q2 2022 production report, but requiring passage of time to quantify the various impacts, mainly reflects:

• Tightening of the ranges
• Zinc down 65kt (6%) – emerging supply-chain issues in Kazakhstan as the secondary impacts of the Russia/Ukraine war are felt throughout the CIS region
• Nickel down 8kt (7%) – effects of the approximately 15-week strike at Raglan mine and the 10-day strike at Nikkelverk
• Coal down 11mt (9%) – severe flooding in NSW (also higher than average rainfall in Queensland) and associated delays in restoring mine production and logistics infrastructure (primary NSW export rail line closed for approximately 2 weeks). The La Niña weather pattern exhibits a high probability of causing further disruption in Q4, with a wide plus/minus 4mt range reflecting this.

^{1  Excludes Volcan.}

Production highlights

• Own sourced copper production of 770,500 tonnes was 125,000 tonnes (14%) lower than the comparable 2021 period, due to the previously reported land access, geotechnical and processing constraints at Katanga (50,600 tonnes), the basis change arising from the sale of Ernest Henry in January 2022 (34,100 tonnes), Collahuasi lower ore mined due to mine sequencing (23,000 tonnes) and lower copper units produced within Glencore’s zinc business.
• Own sourced zinc production of 699,600 tonnes was 156,200 tonnes (18%) lower than the comparable 2021 period, reflecting progressive reduction in the South American portfolio through disposals and closures (70,700 tonnes), closure of Matagami (20,100 tonnes) and Covid-19 related absenteeism leading to lower development rates and sequence changes at Mount Isa (51,200 tonnes).
• Own sourced nickel production of 81,600 tonnes was 10,500 tonnes (15%) higher than the comparable 2021 period, reflecting Koniambo operating both production lines in 2022 and stable Murrin Murrin operations, compared to a multi-week shutdown for scheduled maintenance in the base period, partially offset by lower production at INO due to strikes at Raglan and Nikkelverk.
• Attributable ferrochrome production of 1,110,000 tonnes was 39,000 tonnes (4%) higher than the comparable 2021 period, reflecting consistent smelter performance.
• Coal production of 81.9 million tonnes was 5.6 million tonnes (7%) higher than the comparable 2021 period, mainly reflecting higher attributable production from Cerrejón, following the acquisition in January 2022 of the remaining two-thirds interest that Glencore did not already own. On a like for like basis, overall Group production declined by 5.6 million tonnes (6%) reflecting lower tonnes from South Africa.
• Entitlement interest oil production of 4.8 million barrels of oil equivalent was 0.7 million barrels (16%) higher than the comparable 2021 period, due to commencement of the gas phase of the Alen project in Equatorial Guinea from March 2021.

Other matters

• Following the exceptionally strong marketing performance in the first half of the year, we currently expect a significantly reduced, but still above-average second-half contribution, likely exceeding $1.6 billion, being the top end of the pro-rated long-term EBIT guidance range of $2.2 to $3.2 billion p.a.
• Glencore’s investor update will be held on 6 December 2022. Further details will be published on our website in due course.

To view the full report please click: https://www.glencore.com/dam/jcr:d6c949c7-bc62-4b81-9bc3-853becbdc371/GLEN_2022-Q3_ProductionReport.pdf

For further information please contact:

Investors

Martin Fewings    
t: +41 41 709 2880    
m: +41 79 737 5642    
martin.fewings@glencore.com

Media

Charles Watenphul    
t: +41 41 709 24 62    
m: +41 79 904 33 20    
charles.watenphul@glencore.com

Glencore LEI: 2138002658CPO9NBH955

Please refer to the end of this document for disclaimers including on forward-looking statements.

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. Through a network of assets, customers and suppliers that spans the globe, we produce, process, recycle, source, market and distribute the commodities that enable decarbonisation while meeting the energy needs of today.

Glencore companies employ around 135,000 people, including contractors. With a strong footprint in over 35 countries in both established and emerging regions for natural resources, our marketing and industrial activities are supported by a global network of more than 40 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 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 recognises our responsibility to contribute to the global effort to achieve the goals of the Paris Agreement. Our ambition is to be a net zero total emissions company by 2050. In August 2021, we increased our medium-term emission reduction target to a 50% reduction by 2035 on 2019 levels and introduced a new short-term target of a 15% reduction by 2026 on 2019 levels.

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.