2015 Half Year Production Report

RNS Number : 8886V

Glencore PLC

13 August 2015

 



Baar, Switzerland

13 August 2015

2015 Half-Year Production Report

-      Own sourced copper production was down 3% to 730,900 tonnes, reflecting anticipated grade changes at Alumbrera and Antamina and planned maintenance activities at Collahuasi, largely offset by period-on-period growth from African copper (Katanga up 6%, Mutanda up 7% and Mopani up 21%).

-      Own sourced zinc production was up 12% to 730,300 tonnes, mainly due to the ramp-up of the expansion projects in Australia (Mount Isa up 25% and McArthur River up 42%).

-      Own sourced nickel production was 48,900 tonnes, consistent with H1 2014. Following the metal leak at Koniambo in late December 2014, remedial work continues to progress in line with expectations. A claim amounting to approximately $235 million has currently been lodged under available insurance policies.

-      Attributable ferrochrome production was 756,000 tonnes, 16% higher than H1 2014, due to the Lion 2 expansion project, now fully ramped-up.

-      Own sourced coal production was 68.7 million tonnes, down 4% on H1 2014, primarily due to the market-driven decision to cut back production.

-      Glencore's oil entitlement production was up 68% to 5.3 million barrels, reflecting increased production from Badila and Mangara in Chad, and Glencore's higher ownership interest in these fields following the Caracal acquisition.

-      Following the sharp decline in oil prices in late 2014 and continuing into 2015, significant amendments were made to Chad's work programme, with the objective of preserving value for the long term, while reducing cash outlays in the near term. This included changes to the fields' capex and production profiles and significantly reducing the number of drilling rigs in operation. As a result, Glencore expects to impair the value of these operations by some $790 million in its interim accounts.

-      As announced on 4 August 2015, Optimum Coal (South Africa) has commenced business rescue proceedings given the continued and unsustainable financial hardship as a result of its agreement with Eskom. The directors of Optimum are of the view that if the supply agreement with Eskom can be renegotiated, there is a reasonable prospect of rescuing Optimum.

-      Industrial capex was c.$3 billion in H1 2015. The target industrial capex ceiling for full year 2015 is now $6 billion, compared to the range of $6.5-$6.8 billion communicated in February 2015.

-      Full year production guidance is provided in the Appendix on page 20.

To view the full report please click here: http://www.glencore.com/assets/investors/doc/reports_and_results/2015/GLEN-2015-Q2-ProductionReport.pdf

For further information please contact:

Investors
Paul Smith	t: [phone]	m: [phone]	[e-mail]
Martin Fewings	t: [phone]	m: [phone]	[e-mail]
Elisa Morniroli	t: [phone]	m: [phone]	[e-mail]
Media
Charles Watenphul	t: [phone]	m: [phone]	[e-mail]
Pam Bell	t: [phone]	m: [phone]	[e-mail]

www.glencore.com

Glencore is one of the world's largest global diversified natural resource companies and a major producer and marketer of more than 90 commodities. The Group's operations comprise of over 150 mining and metallurgical sites, oil production assets and agricultural facilities.

With a strong footprint in both established and emerging regions for natural resources, Glencore's industrial and marketing activities are supported by a global network of more than 90 offices located in over 50 countries. 

Glencore's customers are industrial consumers, such as those in the automotive, steel, power generation, oil and food processing. We also provide financing, logistics and other services to producers and consumers of commodities. Glencore's companies employ around 181,000 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.

 

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