First Quarter 2018 Production Report

RNS Number : 9619M

Glencore PLC

03 May 2018

 

Glencore plc

Baar, Switzerland

3 May 2018

First Quarter 2018 Production Report

Production highlights

·      Production was largely in line with expectations across all commodity groups. Full year guidance is unchanged from that presented in February (refer to page 18).

·      Own sourced copper production of 345,400 tonnes was 21,300 tonnes higher than Q1 2017, reflecting the commissioning of phase 1 of Katanga's whole ore leach project in December 2017, partly offset by the impact of maintenance at the Mount Isa smelter and Alumbrera's expected decline as it moves towards end of mine life.

·      Own sourced zinc production of 242,700 tonnes was 36,500 tonnes (13%) below Q1 2017, mainly reflecting the disposal of Rosh Pinah and Perkoa in August 2017. Adjusting for such, production was in line.

·      Own sourced nickel production of 30,100 tonnes was 5,100 tonnes (21%) higher than the comparable period, reflecting the continuing stabilisation and ramp-up of Koniambo's processing plant, where both production lines are now operational, and stronger performances at Murrin and INO.

·      Attributable ferrochrome production of 409,000 tonnes was 31,000 tonnes (7%) below Q1 2017, mainly reflecting furnace downtime and challenges with the subsequent restart.

·      Coal production of 30.7 million tonnes was in line with Q1 2017, reflecting a stronger contribution from the Australian thermal portfolio (impacted by adverse weather in the base period), offset by weather-related reductions at Prodeco. Full year coal production guidance (unchanged) includes the largely offsetting impacts of the Hail Creek JV acquisition, expected in H2 2018, and lower production now expected from Prodeco in 2018, before returning to higher levels in 2019.

·      Glencore's entitlement interest oil production of 1,156,000 barrels was 209,000 barrels (15%) lower than Q1 2017. This was in line with Q4 2017 as natural field declines in Equatorial Guinea were offset by increasing production in Chad from the drilling campaign that started in H2 2017.

·      Full year 2018 Marketing EBIT expected to be within the top half of the $2.2 billion to $3.2 billion long term guidance range.

For further information please contact:

Investors
Martin Fewings	t: [phone]	m: [phone]	[e-mail]
Ash Lazenby	t: [phone]	m: [phone]	[e-mail]
Media
Charles Watenphul	t: [phone]	m: [phone]	[e-mail]

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 90 commodities. The Group's operations comprise around 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 sectors. We also provide financing, logistics and other services to producers and consumers of commodities. Glencore's companies employ around 146,000 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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Metals and minerals

Production from own sources - total¹

		2018 Q1	2017 Q1	Change %
Copper	kt	345.4	324.1	7
Zinc	kt	242.7	279.2	(13)
Lead	kt	57.4	68.9	(17)
Nickel	kt	30.1	24.9	21
Gold	koz	231	259	(11)
Silver	koz	8,296	9,295	(11)
Cobalt	kt	7.0	6.3	11
Ferrochrome	kt	409	439	(7)

Production from own sources - Copper assets¹

			2018 Q1	2017 Q1	Change %
African Copper (Katanga, Mutanda, Mopani)
	Copper metal	kt	92.9	56.9	63
	Cobalt3	kt	6.1	5.7	7
Collahuasi4
	Copper in concentrates	kt	60.6	57.6	5
	Silver in concentrates	koz	812	774	5
Antamina5
	Copper in concentrates	kt	36.5	30.3	20
	Zinc in concentrates	kt	30.3	24.5	24
	Silver in concentrates	koz	1,321	1,445	(9)
Other South America (Alumbrera, Lomas Bayas, Antapaccay, Punitaqui)
	Copper metal	kt	17.1	20.3	(16)
	Copper in concentrates	kt	56.5	59.4	(5)
	Gold in concentrates and in doré	koz	73	82	(11)
	Silver in concentrates and in doré	koz	417	463	(10)
Australia (Mount Isa, Ernest Henry, Townsville, Cobar)
	Copper metal	kt	32.7	48.5	(33)
	Copper in concentrates	kt	15.1	12.7	19
	Gold	koz	17	17	-
	Silver	koz	370	389	(5)
Total Copper department
	Copper	kt	311.4	285.7	9
	Cobalt	kt	6.1	5.7	7
	Zinc	kt	30.3	24.5	24
	Gold	koz	90	99	(9)
	Silver	koz	2,920	3,071	(5)

 

Metals and minerals

Production from own sources - Zinc assets¹

			2018 Q1	2017 Q1	Change %
Kazzinc
	Zinc metal	kt	49.8	48.1	4
	Lead metal	kt	14.0	11.3	24
	Lead in concentrates	kt	-	2.3	(100)
	Copper metal2	kt	12.0	12.7	(6)
	Gold	koz	133	150	(11)
	Silver	koz	1,388	1,152	20
	Silver in concentrates	koz	-	55	(100)
Australia (Mount Isa, McArthur River)
	Zinc in concentrates	kt	110.2	115.6	(5)
	Lead in concentrates	kt	32.6	40.5	(20)
	Silver in concentrates	koz	1,240	1,935	(36)
North America (Matagami, Kidd)
	Zinc in concentrates	kt	26.1	35.0	(25)
	Copper in concentrates	kt	10.4	12.3	(15)
	Silver in concentrates	koz	601	663	(9)
Other Zinc: South America (Argentina, Bolivia, Peru)6
	Zinc in concentrates	kt	26.3	24.9	6
	Lead metal	kt	2.6	2.6	-
	Lead in concentrates	kt	8.2	11.3	(27)
	Copper in concentrates	kt	1.1	0.5	120
	Silver metal	koz	158	108	46
	Silver in concentrates	koz	1,879	2,081	(10)
Other Zinc: Africa (Rosh Pinah, Perkoa)
	Zinc in concentrates	kt	-	31.1	(100)
	Lead in concentrates	kt	-	0.9	(100)
	Silver in concentrates	koz	-	47	(100)
Total Zinc department
	Zinc	kt	212.4	254.7	(17)
	Lead	kt	57.4	68.9	(17)
	Copper	kt	23.5	25.5	(8)
	Gold	koz	133	150	(11)
	Silver	koz	5,266	6,041	(13)

Metals and minerals

Production from own sources - Nickel assets¹

			2018 Q1	2017 Q1	Change %
Integrated Nickel Operations ("INO") (Sudbury, Raglan, Nikkelverk)
	Nickel metal	kt	15.0	13.9	8
	Nickel in concentrates	kt	0.1	0.2	(50)
	Copper metal	kt	3.6	3.9	(8)
	Copper in concentrates	kt	6.9	9.0	(23)
	Cobalt metal	kt	0.2	0.1	100
	Gold	koz	8	10	(20)
	Silver	koz	110	183	(40)
	Platinum	koz	19	23	(17)
	Palladium	koz	39	37	5
	Rhodium	koz	1	2	(50)
Murrin Murrin
	Nickel metal	kt	8.4	6.2	35
	Cobalt metal	kt	0.7	0.5	40
Koniambo	Nickel in ferronickel	kt	6.6	4.6	43
Total Nickel department
	Nickel	kt	30.1	24.9	21
	Copper	kt	10.5	12.9	(19)
	Cobalt	kt	0.9	0.6	50
	Gold	koz	8	10	(20)
	Silver	koz	110	183	(40)
	Platinum	koz	19	23	(17)
	Palladium	koz	39	37	5
	Rhodium	koz	1	2	(50)

Production from own sources - Ferroalloys assets¹

			2018 Q1	2017 Q1	Change %
Ferrochrome7		kt	409	439	(7)
PGM8	Platinum	koz	16	14	14
	Palladium	koz	11	9	22
	Rhodium	koz	3	2	50
	Gold	koz	-	-	n.m.
	4E	koz	30	25	20
Vanadium Pentoxide		mlb	5.3	5.1	4

Metals and minerals

Total production - Custom metallurgical assets¹

			2018 Q1	2017 Q1	Change %
Copper (Altonorte, Pasar, Horne, CCR)
	Copper metal	kt	117.0	128.2	(9)
	Copper anode	kt	126.5	139.7	(9)
Zinc (Portovesme, San Juan de Nieva, Nordenham, Northfleet)
	Zinc metal	kt	190.0	197.2	(4)
	Lead metal	kt	52.7	53.3	(1)
	Silver	koz	2,907	3,243	(10)

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

2       Copper metal includes copper contained in copper concentrates and blister.

3       Cobalt contained in concentrates and hydroxides.

4       The Group's pro-rata share of Collahuasi production (44%).

5       The Group's pro-rata share of Antamina production (33.75%).

6       South American production excludes Volcan Compania Minera.

7       The Group's attributable 79.5% share of the Glencore-Merafe Chrome Venture.

8       Consolidated 50% of Mototolo and 100% of the Group's PGM recovery plant.

Selected average commodity prices

	2018 Q1	2017 Q1	Change %
S&P GSCI Industrial Metals Index	384	324	19
LME (cash) copper price ($/t)	6,958	5,838	19
LME (cash) zinc price ($/t)	3,413	2,778	23
LME (cash) lead price ($/t)	2,518	2,278	11
LME (cash) nickel price ($/t)	13,273	10,265	29
Gold price ($/oz)	1,330	1,219	9
Silver price ($/oz)	17	18	(6)
Metal Bulletin cobalt price 99.3% ($/lb)	37	20	85
Metal Bulletin ferrochrome 6-8% C basis 60% Cr, max 1.5% Si (¢/lb)	133	137	(3)
Iron ore (Platts 62% CFR North China) price ($/DMT)	71	86	(17)

Metals and minerals

Operating highlights

Copper assets

Own sourced copper production of 345,400 tonnes was 21,300 tonnes higher than Q1 2017, reflecting the commissioning of phase 1 of Katanga's whole ore leach project in December 2017, partly offset by the impact of maintenance at the Mount Isa smelter and Alumbrera's expected decline as it moves towards end of mine life.

African copper

Own sourced copper production of 92,900 tonnes was 36,000 tonnes (63%) ahead of Q1 2017, mainly reflecting the commissioning of phase 1 of Katanga's whole ore leach project in December 2017 (production of 27,700 tonnes in Q1 2018).

Own sourced cobalt production of 6,100 tonnes was 7% over Q1 2017, reflecting a 500 tonnes contribution from Katanga, whose cobalt circuit delivered first metal in March 2018 as scheduled.

Collahuasi

Glencore's share of copper production at 60,600 tonnes was 3,000 tonnes (5%) higher than Q1 2017, reflecting higher throughput.

Antamina

Glencore's share of copper production was 36,500 tonnes and its share of zinc production was 30,300 tonnes, up 20% and 24%, respectively, on Q1 2017. The base period was impacted by flooding in the region, which led to the temporary closure of the concentrates pipeline. Against the more comparable Q4 2017, copper production was up 4% and zinc production was down 12%, within the normal range of expectations for variations in ores processed.

Other South America

Copper production of 73,600 tonnes was down 6,100 tonnes (8%) on Q1 2017, mainly relating to Alumbrera, as noted above.

Australia

Own sourced copper production of 47,800 tonnes was down 13,400 tonnes (23%) on Q1 2017, mainly due to timing of maintenance at the Mount Isa smelter, including a periodic furnace rebricking.

Custom metallurgical assets

Copper cathode production of 117,000 tonnes was 11,200 tonnes (9%) lower than Q1 2017, mainly reflecting issues in Pasar's acid plant, which are being addressed.

Copper anode production of 126,500 tonnes was 13,200 tonnes (10%) lower than Q1 2017, also relating to Pasar.

Zinc assets

Own sourced zinc production of 242,700 tonnes was 36,500 tonnes (13%) below Q1 2017, mainly reflecting the disposal of Rosh Pinah and Perkoa in August 2017. Adjusting for such, production was in line.

Own sourced lead production of 57,400 tonnes was down 11,500 tonnes (17%) on Q1 2017, mainly reflecting expected changes in mine supply at Mount Isa, together with expected lower head grades at Aguilar mine in Argentina.

Note that these totals exclude Volcan, a consolidated but otherwise standalone entity where the Group has a 23% economic interest.

Kazzinc

Total production (own sourced plus third party material) was in line with or ahead of Q1 2017 for all primary products.

Own sourced zinc production of 49,800 tonnes was 1,700 tonnes (4%) ahead of Q1 2017, reflecting certain efficiencies achieved in Kazzinc's smelting operations. Own sourced lead production of 14,000 tonnes was in line with the comparable period. Own sourced copper production of 12,000 tonnes was 700 tonnes (6%) below Q1 2017, reflecting lower grades and a temporary furnace stoppage.

Metals and minerals

Australia

Zinc production of 110,200 tonnes was 5,600 tonnes (5%) below Q1 2017 and lead production of 32,600 tonnes was down 7,900 tonnes (20%), reflecting expected mine planning changes at both operations.

North America

Zinc production of 26,100 tonnes and copper production of 10,400 tonnes were down 25% and 15%, respectively, on Q1 2017, reflecting the expected transition of both Kidd and Matagami towards lower grades and throughput.

South America

Zinc production of 26,300 tonnes was up 1,400 tonnes (6%) on Q1 2017, reflecting stable operations. Lead production of 10,800 tonnes was down 3,100 tonnes (22%), reflecting lower lead grades at Aguilar mine in Argentina.

European custom metallurgical assets

Zinc production of 190,000 tonnes was 7,200 tonnes (4%) below Q1 2017, reflecting certain short-term interruptions, with production expected to be recovered in the coming months. Lead production of 52,700 tonnes was in line with Q1 2017.

Nickel assets

Own sourced nickel production of 30,100 tonnes was 5,200 tonnes (21%) higher than the comparable period, reflecting the continuing stabilisation and ramp-up of Koniambo's processing plant, where both production lines are now operational, and stronger performances at Murrin and INO.

Integrated Nickel Operations ("INO")

Own sourced nickel production of 15,100 tonnes was 1,000 tonnes (7%) higher than the comparable period, reflecting the timing of processing own sourced and third party feeds in the refinery. Total production including third party material of 21,600 tonnes was down 1,200 tonnes on the comparable period which is within the range of normal expected variations.

Own sourced copper production of 10,500 tonnes was 2,400 tonnes (19%) down on the comparable period, reflecting expected declining grades at the Sudbury complex.

Murrin Murrin

Own sourced nickel production of 8,400 tonnes was 2,200 tonnes (35%) higher than the comparable period, which was impacted by a maintenance shutdown.

Koniambo

First metal was tapped from Line 2 in December 2017 and both production lines have increased production progressively through the quarter. Accordingly, production of 6,600 tonnes was 2,000 tonnes (43%) higher than Q1 2017 and 1,400 tonnes (27%) higher than Q4 2017.

Ferroalloys assets

Ferrochrome

Attributable ferrochrome production of 409,000 tonnes was 30,000 tonnes (7%) below Q1 2017, mainly reflecting furnace downtime and challenges with the subsequent restart.

Platinum Group Metals ("PGM")

Production of 30,000 ounces was 5,000 ounces (20%) higher than Q1 2017, mainly reflecting improved grades and milling rates at Mototolo.

Vanadium

Vanadium pentoxide production of 5.3 million pounds was 0.2 million pounds (4%) higher than the comparable 2017 period.

Energy products

Production from own sources

Coal assets¹

		2018 Q1	2017 Q1	Change %
Australian coking coal	mt	1.6	1.7	(6)
Australian semi-soft coal	mt	0.6	1.0	(40)
Australian thermal coal (export)	mt	14.2	12.8	11
Australian thermal coal (domestic)	mt	2.4	1.6	50
South African thermal coal (export)	mt	4.0	4.2	(5)
South African thermal coal (domestic)	mt	2.5	2.6	(4)
Prodeco	mt	3.0	4.2	(29)
Cerrejón2	mt	2.4	2.8	(14)
Total Coal department	mt	30.7	30.9	(1)

1       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

		2018 Q1	2017 Q1	Change %
Glencore entitlement interest basis
Equatorial Guinea	kbbl	517	691	(25)
Chad	kbbl	639	674	(5)
Total Oil department	kbbl	1,156	1,365	(15)
Gross basis
Equatorial Guinea	kbbl	2,395	3,249	(26)
Chad	kbbl	873	921	(5)
Total Oil department	kbbl	3,268	4,170	(22)

Selected average commodity prices

	2018 Q1	2017 Q1	Change %
S&P GSCI Energy Index	214	179	20
Coal API4 ($/t)	93	83	12
Coal Newcastle (6,000 kcal/kg) ($/t)	101	82	23
Oil price - Brent ($/bbl)	67	55	22

Energy products

Operating highlights

Coal assets

Coal production of 30.7 million tonnes was in line with Q1 2017, reflecting a stronger contribution from the Australian thermal portfolio (impacted by adverse weather in Q1 2017), offset by weather-related reductions in at Prodeco.

Australian coking

Production of 1.6 million tonnes was in line with Q1 2017.

Australian thermal and semi-soft

Production of 17.2 million tonnes was 1.8 million tonnes (11%) higher than Q1 2017, which was affected by adverse weather in New South Wales.

South African thermal

Production of 6.5 million tonnes was 0.3 million tonnes (4%) lower than Q1 2017, mainly reflecting the deconsolidation of Wonderfontein mine (Umcebo). Glencore continues to benefit from its stake in this mine, which is now equity accounted.

Prodeco

Production of 3.0 million tonnes was 1.2 million tonnes (29%) lower than Q1 2017, reflecting the impact on truck productivities during unusually heavy rainfall. Quarterly production for the remainder of the year is expected to be at similar levels, reflecting the requirement for additional overburden removal in order to access planned levels of coal in future periods.

Cerrejón

Cerrejón's attributable production decreased by 12% to 2.4 million tonnes as a result of higher strip ratio areas being mined during the period.

Oil assets

Entitlement interest production of 1,156,000 barrels was 209,000 barrels (15%) lower than Q1 2017. This was in line with Q4 2017 as natural field declines in Equatorial Guinea were offset by increasing production in Chad from the drilling campaign that started in H2 2017.

Appendix
Production by quarter - Q1 2017 to Q1 2018

Metals and minerals

Production from own sources - total¹

			Q1 2017	Q2 2017	Q3 2017	Q4 2017	Q1 2018		Change Q1 18 vs Q1 17 %	Change Q1 18 vs Q4 17 %
Copper		kt	324.1	318.8	303.6	363.2	345.4		7	(5)
Zinc		kt	279.2	291.6	256.6	262.8	242.7		(13)	(8)
Lead		kt	68.9	70.3	71.5	61.8	57.4		(17)	(7)
Nickel		kt	24.9	26.3	29.5	28.4	30.1		21	6
Gold		koz	259	265	247	262	231		(11)	(12)
Silver		koz	9,295	10,215	9,298	8,935	8,296		(11)	(7)
Cobalt		kt	6.3	6.4	7.1	7.6	7.0		11	(8)
Ferrochrome		kt	439	397	271	424	409		(7)	(4)

Production from own sources - Copper assets¹

			Q1 2017	Q2 2017	Q3 2017	Q4 2017	Q1 2018		Change Q1 18 vs Q1 17 %	Change Q1 18 vs Q4 17 %
African Copper (Katanga, Mutanda, Mopani)
Katanga	Copper metal	kt	-	-	-	2.2	27.7		n.m.	1,159
	Copper in concentrates	kt	-	-	-	2.7	-		n.m.	(100)
	Cobalt3	kt	-	-	-	-	0.5		n.m.	n.m.
Mutanda	Copper metal	kt	48.8	47.7	44.1	51.5	50.8		4	(1)
	Cobalt3	kt	5.7	5.5	6.0	6.7	5.6		(2)	(16)
Mopani	Copper metal	kt	8.1	6.9	11.7	15.0	14.4		78	(4)
African Copper - total production including third party feed
Mopani	Copper metal	kt	21.9	12.5	23.7	40.8	33.0		51	(19)
	Total Copper metal	kt	56.9	54.6	55.8	68.7	92.9		63	35
	Total Copper in concentrates	kt	-	-	-	2.7	-		n.m.	(100)
	Total Cobalt3	kt	5.7	5.5	6.0	6.7	6.1		7	(9)
Collahuasi4	Copper metal	kt	-	-	-	-	-		n.m.	n.m.
	Copper in concentrates	kt	57.6	51.0	58.4	63.5	60.6		5	(5)
	Silver in concentrates	koz	774	748	766	815	812		5	-
Antamina5	Copper in concentrates	kt	30.3	40.0	37.2	35.1	36.5		20	4
	Zinc in concentrates	kt	24.5	34.5	34.5	34.6	30.3		24	(12)
	Silver in concentrates	koz	1,445	1,882	1,772	1,480	1,321		(9)	(11)

Appendix

Production by quarter - Q1 2017 to Q1 2018

			Q1 2017	Q2 2017	Q3 2017	Q4 2017	Q1 2018		Change Q1 18 vs Q1 17 %	Change Q1 18 vs Q4 17 %
Other South America (Alumbrera, Lomas Bayas, Antapaccay, Punitaqui)
Alumbrera	Copper in concentrates	kt	11.4	9.1	7.3	5.5	6.5		(43)	18
	Gold in concentrates and in doré	koz	48	49	53	38	39		(19)	3
	Silver in concentrates and in doré	koz	119	79	64	44	55		(54)	25
Lomas Bayas	Copper metal	kt	20.3	20.7	19.9	17.2	17.1		(16)	(1)
Antapaccay	Copper in concentrates	kt	46.4	50.1	47.3	62.7	48.9		5	(22)
	Gold in concentrates	koz	29	26	34	50	33		14	(34)
	Silver in concentrates	koz	326	324	359	446	348		7	(22)
Punitaqui	Copper in concentrates	kt	1.6	1.2	1.4	1.3	1.1		(31)	(15)
	Gold in concentrates	koz	5	6	4	6	1		(80)	(83)
	Silver in concentrates	koz	18	17	14	11	14		(22)	27
	Total Copper metal	kt	20.3	20.7	19.9	17.2	17.1		(16)	(1)
	Total Copper in concentrates	kt	59.4	60.4	56.0	69.5	56.5		(5)	(19)
	Total Gold in concentrates and in doré	koz	82	81	91	94	73		(11)	(22)
	Total Silver in concentrates and in doré	koz	463	420	437	501	417		(10)	(17)
Australia (Mount Isa, Ernest Henry, Townsville, Cobar)
Mount Isa, Ernest Henry, Townsville	Copper metal	kt	48.5	42.5	27.0	46.6	32.7		(33)	(30)
	Copper in concentrates	kt	-	-	7.4	5.1	1.9		n.m.	(63)
	Gold	koz	17	21	9	20	17		-	(15)
	Silver	koz	261	196	387	252	235		(10)	(7)
	Silver in concentrates	koz	-	-	38	23	2		n.m.	(100)
Mount Isa, Ernest Henry, Townsville - total production including third party feed
	Copper metal	kt	54.8	62.8	49.2	60.6	45.1		(18)	(26)
	Copper in concentrates	kt	-	-	7.4	5.1	1.9		n.m.	(63)
	Gold	koz	46	43	33	39	29		(37)	(26)
	Silver	koz	349	432	447	253	267		(23)	6
	Silver in concentrates	koz	-	-	38	23	2		n.m.	(91)
Cobar	Copper in concentrates	kt	12.7	12.7	12.3	15.7	13.2		4	(16)
	Silver in concentrates	koz	128	156	134	146	133		4	(9)
	Total Copper	kt	48.5	42.5	27.0	46.6	32.7		(33)	(30)
	Total Copper in concentrates	kt	12.7	12.7	19.7	20.8	15.1		19	(27)
	Total Gold	koz	17	21	9	20	17		-	(15)
	Total Silver	koz	389	352	559	421	370		(5)	(12)
Total Copper department
	Copper	kt	285.7	281.9	274.0	324.1	311.4		9	(4)
	Cobalt	kt	5.7	5.5	6.0	6.7	6.1		7	(9)
	Zinc	kt	24.5	34.5	34.5	34.6	30.3		24	(12)
	Gold	koz	99	102	100	114	90		(9)	(21)
	Silver	koz	3,071	3,402	3,534	3,217	2,920		(5)	(9)

Appendix

Production by quarter - Q1 2017 to Q1 2018

 

Production from own sources - Zinc assets¹

			Q1 2017	Q2 2017	Q3 2017	Q4 2017	Q1 2018		Change Q1 18 vs Q1 17 %	Change Q1 18 vs Q4 17 %
Kazzinc
	Zinc metal	kt	48.1	54.1	54.9	53.4	49.8		4	(7)
	Lead metal	kt	11.3	13.8	16.1	11.7	14.0		24	20
	Lead in concentrates	kt	2.3	1.6	0.8	-	-		(100)	n.m.
	Copper metal2	kt	12.7	15.2	6.3	15.5	12.0		(6)	(23)
	Gold	koz	150	156	138	141	133		(11)	(6)
	Silver	koz	1,152	1,702	1,591	1,335	1,388		20	4
	Silver in concentrates	koz	55	51	19	7	-		(100)	(100)
Kazzinc - total production including third party feed
	Zinc metal	kt	75.3	77.2	81.9	82.4	80.1		6	(3)
	Lead metal	kt	36.5	36.9	38.4	34.5	38.8		6	12
	Lead in concentrates	kt	2.3	1.6	0.8	-	-		(100)	n.m.
	Copper metal	kt	15.2	18.9	7.8	20.8	15.3		1	(26)
	Gold	koz	172	187	169	184	179		4	(3)
	Silver	koz	5,572	6,396	5,201	5,483	5,007		(10)	(9)
	Silver in concentrates	koz	55	51	19	7	-		(100)	(100)
Australia (Mount Isa, McArthur River)
Mount Isa	Zinc in concentrates	kt	68.7	64.0	51.3	42.0	50.1		(27)	19
	Lead in concentrates	kt	31.8	30.1	27.2	22.5	21.1		(34)	(6)
	Silver in concentrates	koz	1,658	1,539	1,251	1,046	829		(50)	(21)
McArthur River	Zinc in concentrates	kt	46.9	38.2	45.6	79.3	60.1		28	(24)
	Lead in concentrates	kt	8.7	8.3	10.8	17.0	11.5		32	(32)
	Silver in concentrates	koz	277	269	400	674	411		48	(39)
	Total Zinc in concentrates	kt	115.6	102.2	96.9	121.3	110.2		(5)	(9)
	Total Lead in concentrates	kt	40.5	38.4	38.0	39.5	32.6		(20)	(17)
	Total Silver in concentrates	koz	1,935	1,808	1,651	1,720	1,240		(36)	(28)
North America (Matagami, Kidd, Brunswick, CEZ Refinery)
Matagami	Zinc in concentrates	kt	11.0	14.0	13.2	13.1	8.9		(19)	(32)
	Copper in concentrates	kt	2.0	2.1	1.3	2.0	1.5		(25)	(25)
Kidd	Zinc in concentrates	kt	24.0	22.2	11.4	14.8	17.2		(28)	16
	Copper in concentrates	kt	10.3	9.2	9.1	11.3	8.9		(14)	(21)
	Silver in concentrates	koz	663	842	379	387	601		(9)	55
	Total Zinc in concentrates	kt	35.0	36.2	24.6	27.9	26.1		(25)	(6)
	Total Copper in concentrates	kt	12.3	11.3	10.4	13.3	10.4		(15)	(22)
	Total Silver in concentrates	koz	663	842	379	387	601		(9)	55
North America - total production including third party feed
Brunswick Smelter	Lead metal	kt	15.7	16.5	17.6	12.7	16.5		5	30
	Silver metal	koz	4,232	3,480	5,025	3,689	3,668		(13)	(1)
CEZ Refinery6	Zinc metal	kt	12.5	12.6	8.5	11.5	17.2		38	50

Appendix

Production by quarter - Q1 2017 to Q1 2018

			Q1 2017	Q2 2017	Q3 2017	Q4 2017	Q1 2018		Change Q1 18 vs Q1 17 %	Change Q1 18 vs Q4 17 %
Other Zinc: South America (Argentina, Bolivia, Peru)7
	Zinc in concentrates	kt	24.9	26.3	23.0	25.6	26.3		6	3
	Lead metal	kt	2.6	3.6	3.5	3.9	2.6		-	(33)
	Lead in concentrates	kt	11.3	11.4	11.8	6.7	8.2		(27)	22
	Copper in concentrates	kt	0.5	0.6	1.0	1.3	1.1		120	(15)
	Silver metal	koz	108	182	155	192	158		46	(18)
	Silver in concentrates	koz	2,081	2,011	1,764	1,919	1,879		(10)	(2)
Other Zinc: Africa (Rosh Pinah, Perkoa)
	Zinc in concentrates	kt	31.1	38.3	22.7	-	-		(100)	n.m.
	Lead in concentrates	kt	0.9	1.5	1.3	-	-		(100)	n.m.
	Silver in concentrates	koz	47	74	36	-	-		(100)	n.m.
Total Zinc department
	Zinc	kt	254.7	257.1	222.1	228.2	212.4		(17)	(7)
	Lead	kt	68.9	70.3	71.5	61.8	57.4		(17)	(7)
	Copper	kt	25.5	27.1	17.7	30.1	23.5		(8)	(22)
	Gold	koz	150	156	138	141	133		(11)	(6)
	Silver	koz	6,041	6,670	5,595	5,560	5,266		(13)	(5)

Appendix

Production by quarter - Q1 2017 to Q1 2018

Production from own sources - Nickel assets¹

			Q1 2017	Q2 2017	Q3 2017	Q4 2017	Q1 2018		Change Q1 18 vs Q1 17 %	Change Q1 18 vs Q4 17 %
Integrated Nickel Operations (Sudbury, Raglan, Nikkelverk)
	Nickel metal	kt	13.9	15.5	14.0	13.6	15.0		8	10
	Nickel in concentrates	kt	0.2	0.1	0.1	0.1	0.1		(50)	-
	Copper metal	kt	3.9	4.2	3.9	3.6	3.6		(8)	-
	Copper in concentrates	kt	9.0	5.6	8.0	5.4	6.9		(23)	28
	Cobalt metal	kt	0.1	0.3	0.2	0.2	0.2		100	-
	Gold	koz	10	7	8	7	8		(20)	14
	Silver	koz	183	143	169	158	110		(40)	(30)
	Platinum	koz	23	13	20	19	19		(17)	-
	Palladium	koz	37	27	38	34	39		5	15
	Rhodium	koz	2	1	1	2	1		(50)	(50)
Integrated Nickel Operations - total production including third party feed
	Nickel metal	kt	22.6	21.2	21.4	21.3	21.4		(5)	-
	Nickel in concentrates	kt	0.2	0.1	0.1	0.2	0.2		-	-
	Copper metal	kt	5.9	5.9	5.9	5.0	5.1		(14)	2
	Copper in concentrates	kt	10.2	6.5	9.6	6.7	7.7		(25)	15
	Cobalt metal	kt	0.8	1.0	0.8	0.9	1.0		25	11
	Gold	koz	13	9	11	10	10		(23)	-
	Silver	koz	275	211	258	232	157		(43)	(32)
	Platinum	koz	30	19	29	25	24		(20)	(4)
	Palladium	koz	50	41	62	58	67		34	16
	Rhodium	koz	2	2	1	2	2		-	-
Murrin Murrin
	Total Nickel metal	kt	6.2	7.3	11.1	9.5	8.4		35	(12)
	Total Cobalt metal	kt	0.5	0.6	0.9	0.7	0.7		40	-
Murrin Murrin - total production including third party feed
	Total Nickel metal	kt	8.2	9.5	13.0	11.3	9.0		10	(20)
	Total Cobalt metal	kt	0.5	0.8	0.9	0.8	0.7		40	(13)
Koniambo	Nickel in ferronickel	kt	4.6	3.4	4.3	5.2	6.6		43	27
Total Nickel department
	Nickel	kt	24.9	26.3	29.5	28.4	30.1		21	6
	Copper	kt	12.9	9.8	11.9	9.0	10.5		(19)	17
	Cobalt	kt	0.6	0.9	1.1	0.9	0.9		50	-
	Gold	koz	10	7	8	7	8		(20)	14
	Silver	koz	183	143	169	158	110		(40)	(30)
	Platinum	koz	23	13	20	19	19		(17)	-
	Palladium	koz	37	27	38	34	39		5	15
	Rhodium	koz	2	1	1	2	1		(50)	(50)

Appendix

Production by quarter - Q1 2017 to Q1 2018

Production from own sources - Ferroalloys assets¹

			Q1 2017	Q2 2017	Q3 2017	Q4 2017	Q1 2018		Change Q1 18 vs Q1 17 %	Change Q1 18 vs Q4 17 %
Ferrochrome8		kt	439	397	271	424	409		(7)	(4)
PGM9	Platinum	koz	14	15	8	4	16		14	300
	Palladium	koz	9	9	5	2	11		22	450
	Rhodium	koz	2	3	1	1	3		50	200
	Gold	koz	-	-	1	-	-		n.m.	n.m.
	4E	koz	25	27	15	7	30		20	329
Vanadium Pentoxide		mlb	5.1	4.4	6.1	5.3	5.3		4	-

Total production - Custom metallurgical assets¹

			Q1 2017	Q2 2017	Q3 2017	Q4 2017	Q1 2018		Change Q1 18 vs Q1 17 %	Change Q1 18 vs Q4 17 %
Copper (Altonorte, Pasar, Horne, CCR)
	Copper metal	kt	128.2	131.3	132.1	135.2	117.0		(9)	(13)
	Copper anode	kt	139.7	124.6	139.5	131.9	126.5		(9)	(4)
Zinc (Portovesme, San Juan de Nieva, Nordenham, Northfleet)
	Zinc metal	kt	197.2	198.0	196.6	196.2	190.0		(4)	(3)
	Lead metal	kt	53.3	46.5	44.1	49.9	52.7		(1)	6
	Silver	koz	3,243	4,222	2,890	3,301	2,907		(10)	(12)

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

2       Copper metal includes copper contained in copper concentrates and blister.

3       Cobalt contained in concentrates and hydroxides.

4       The Group's pro-rata share of Collahuasi production (44%).

5       The Group's pro-rata share of Antamina production (33.75%).

6       The Group's pro-rata share of CEZ production (25%).

7       South American production excludes Volcan Compania Minera.

8       The Group's attributable 79.5% share of the Glencore-Merafe Chrome Venture.

9       Consolidated 50% of Mototolo and 100% of the Group's PGM recovery plant.

Appendix

Production by quarter - Q1 2017 to Q1 2018

Energy products

Production from own sources

Coal assets¹

		Q1 2017	Q2 2017	Q3 2017	Q4 2017	Q1 2018		Change Q1 18 vs Q1 17 %	Change Q1 18 vs Q4 17 %
Australian coking coal	mt	1.7	1.0	1.8	1.6	1.6		(6)	-
Australian semi-soft coal	mt	1.0	1.2	1.0	0.8	0.6		(40)	(25)
Australian thermal coal (export)	mt	12.8	13.4	11.2	11.7	14.2		11	21
Australian thermal coal (domestic)	mt	1.6	1.7	1.6	2.6	2.4		50	(8)
South African thermal coal (export)	mt	4.2	4.5	5.4	4.6	4.0		(5)	(13)
South African thermal coal (domestic)	mt	2.6	2.2	2.7	2.5	2.5		(4)	-
Prodeco	mt	4.2	3.8	3.7	2.9	3.0		(29)	3
Cerrejón2	mt	2.8	2.4	2.5	2.9	2.4		(14)	(17)
Total Coal department	mt	30.9	30.2	29.9	29.6	30.7		(1)	4

1       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

		Q1 2017	Q2 2017	Q3 2017	Q4 2017	Q1 2018		Change Q1 18 vs Q1 17 %	Change Q1 18 vs Q4 17 %
Glencore entitlement interest basis
Equatorial Guinea	kbbl	691	642	622	574	517		(25)	(10)
Chad	kbbl	674	633	624	593	639		(5)	8
Total Oil department	kbbl	1,365	1,275	1,246	1,167	1,156		(15)	(1)
Gross basis
Equatorial Guinea	kbbl	3,249	3,048	2,896	2,721	2,395		(26)	(12)
Chad	kbbl	921	866	853	810	873		(5)	8
Total Oil department	kbbl	4,170	3,914	3,749	3,531	3,268		(22)	(7)

Appendix
Full year 2018 production guidance

Full year 2018 production guidance

		Actual FY 2015	Actual FY 2016	Actual FY 2017	Guidance FY 2018	2018 Weighting H1              H2
Copper	kt	1,502	1,426	1,310	1,465 ±  30	48%	52%	1
Cobalt	kt	23.0	28.3	27.4	39 ±    3	45%	55%	1
Zinc	kt	1,445	1,094	1,090	1,090 ±  30	45%	55%	2
Lead	kt	298	295	273	300 ±  10	40%	60%	2
Nickel	kt	96	115	109	132 ±    5	45%	55%
Ferrochrome	kt	1,462	1,523	1,531	1,600 ±  30	50%	50%
Coal	mt	132	125	121	134 ±    5	47%	53%	3
Oil	mbbl	10.6	7.5	5.1	4.9 ± 0.2	50%	50%

1.      2018 guidance (unchanged) includes ~150kt of copper and ~11kt of cobalt attributable to Katanga, upon commissioning of phase 1 of its whole ore leach project in December 2017 - see below

2.      Excludes Volcan

3.      Coal production guidance (total unchanged) includes the largely offsetting impacts of the Hail Creek JV acquisition (expected in H2 2018) and lower production now expected from Prodeco in 2018, before returning to higher levels in 2019

As previously announced, Katanga's state-owned joint venture partner in the DRC, Gécamines, has commenced legal proceedings in the DRC to dissolve KCC (Katanga's main operating subsidiary) following KCC's earlier failure to address its stand-alone capital deficiency. Katanga believes it has several options to remedy KCC's capital deficiency.

Separately, as previously announced, a company affiliated with Mr Dan Gertler has served freezing orders against Mutanda and KCC (Katanga),  alleging breach of certain royalty agreements. Glencore is assessing the impact of these orders and notes that they may materially adversely affect such operations, including production. Full year production guidance above assumes ordinary course operations at both DRC mines.

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. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. 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 discussed in Glencore's Annual Report 2017.

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. Other than in accordance with its legal or regulatory obligations (including under the UK Listing Rules and the Disclosure and Transparency Rules of the Financial Conduct Authority and the Listing Requirements of the Johannesburg Stock Exchange Limited), 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 no statement in this document should be interpreted to mean that earnings per Glencore share for the current or future financial years would necessarily match or exceed the historical published earnings per Glencore share.

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 making of this document does not constitute a recommendation regarding 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.

 

END

 

 

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