IMS & Third Quarter 2012 Production Report

RNS Number : 0363Q

Glencore International PLC

01 November 2012

 



NEWS RELEASE

Baar, 1 November 2012

IMS & Third Quarter 2012 Production Report

Key Highlights

•  Overall performance in Q3 2012 was good, despite generally weaker commodity prices.

•  Marketing has, once more, demonstrated the robustness of the business model, with low operational gearing and much less direct correlation with commodity prices than industrial activities.

•  Industrial activities performance reflected lower prices, but nevertheless delivered a sequential and year-on-year overall volume improvement as we continued to deliver on and benefit from our growth pipeline.

•  Debt lower and rolling 12 month credit metrics improved. Our balance sheet retains a level of flexibility which is unique amongst a large part of our peer group.

•  Outlook: we are not assuming any short term material improvement in global macro conditions. We are confident that in this environment our business model places us in a strongly competitive position, underpinned by our strong relationships in marketing and our highly capital-efficient low-cost brownfield expansion projects in industrial activities.

Marketing

Glencore's marketing operations have continued to trade strongly. Q3 saw a healthy improvement both year-on-year and sequentially. Agriculture and metals were particularly strong. Glencore's outlook for the remainder of the year in marketing remains positive, based on generally accommodating supply/demand conditions and the compelling business proposition that we provide to our customers and suppliers.

Industrial

Glencore's industrial portfolio saw an overall improved volume performance during Q3 in sequential terms and year-on-year, with the performance of our energy division, particularly noteworthy. Although the financial outcome in our Industrial operations will remain dependent on commodity price levels, the 10-15% annual volume growth forecast from 2011-2015 should continue to provide us with incremental positive operating leverage.

Kazzinc gold production rose 18% year-on-year with recovery rates continuing to improve. On 11 October 2012, Glencore completed the acquisition of 18.91% of Kazzinc, increasing the Group's interest in Kazzinc to 69.61%. At Katanga copper production rose  3% year-on-year, with cathode production up 14%. Copper cathode increased 9% in Q3 2012 compared to Q2 2012. At Mutanda, copper production rose 31% year-on-year, producing at an annualised rate of 81,000 tonnes at the end of September.

There was significant growth in coal production from South Africa, including a large increase in export capacity through Richards Bay Coal Terminal following the inclusion of both Optimum and Umcebo from the start of the year. At Aseng, oil production was ahead of expectation at 62,000 bbls/day. The Alen field is on schedule and budget for first production in H2 2013.

Balance sheet

Committed liquidity headroom at 30 September 2012 was approximately $ 9 billion, at similar levels to 30 June 2012. S&P reaffirmed BBB (watch positive) rating on 25 July 2012 and Moody's confirmed Baa2 rating (outlook under review) on 26 September 2012. In July 2012, Glencore issued CHF 450 million ($ 473 million) 2.625% interest bearing bonds due December 2018, while in October, the 364-day committed $ 1.7 billion metals' working capital borrowing base facility was refinanced with a new equivalent facility at an increased amount of $ 2.22 billion.

Metals and Minerals

Production data

thousand1		Using feed from own sources	Using feed from third party sources	Nine months ended 30 September 2012	Using feed from own sources	Using feed from third party sources	Nine months ended 30 September 2011	Own feed change
Kazzinc
Zinc metal	MT	165.9	58.6	224.5	184.6	40.2	224.8	- 10%
Lead metal ²	MT	18.5	43.9	62.4	27.3	52.0	79.3	- 32%
Copper metal ³	MT	38.6	2.5	41.1	42.0	1.0	43.0	- 8%
Gold	toz	351	66	417	298	29	327	18%
Silver	toz	3 471	11 444	14 915	3 572	3 350	6 922	- 3%
Katanga
Copper metal ³	MT	68.9	-	68.9	67.0	-	67.0	3%
Cobalt	MT	1.59	-	1.59	1.89	-	1.89	- 16%
Mutanda
Copper metal ³	MT	60.6	-	60.6	46.1	-	46.1	31%
Cobalt 4	MT	5.77	-	5.77	5.84	-	5.84	- 1%
Mopani
Copper metal ³	MT	72.2	64.6	136.8	73.6	80.1	153.7	- 2%
Cobalt 4	MT	0.07	0.16	0.23	0.51	0.26	0.77	- 86%
Other Zinc (Los Quenuales, Sinchi Wayra, AR Zinc, Portovesme, Rosh Pinah)
Zinc metal	MT	39.5	60.1	99.6	46.0	69.8	115.8	- 14%
Zinc oxide	DMT	38.5	-	38.5	26.4	-	26.4	46%
Zinc concentrates	DMT	316.1	-	316.1	361.3	-	361.3	- 13%
Lead metal	MT	9.0	-	9.0	9.0	-	9.0	0%
Lead concentrates	DMT	47.8	-	47.8	46.3	-	46.3	3%
Tin concentrates	DMT	2.35	-	2.35	3.35	-	3.35	- 30%
Silver metal	toz	585	-	585	577	-	577	1%
Silver in concentrates	toz	5 316	-	5 316	6 052	-	6 052	- 12%
Other Copper (Cobar, Pasar, Punitaqui, Sable)
Copper metal	MT	-	49.8	49.8	-	121.4	121.4	n.m.
Copper concentrates	DMT	137.5	0.1	137.6	147.7	-	147.7	- 7%
Cobalt	MT	-	0.61	0.61	-	-	-	n.m.
Silver in concentrates	toz	804	-	804	701	-	701	15%
Alumina/Aluminium (Sherwin)
Alumina	MT	-	998	998	-	1 105	1 105	n.m.
Nickel/Cobalt (Murrin Murrin)
Nickel metal	MT	24.05	1.73	25.78	21.13	1.08	22.21	14%
Cobalt	MT	1.71	0.07	1.78	1.45	0.05	1.50	18%
Total Zinc contained	MT	393.3	118.60	511.9	432.7	110.0	542.7	- 9%
Total Copper contained	MT	277.3	116.9	394.2	268.4	202.5	470.9	3%
Total Lead contained	MT	54.5	43.9	98.4	62.6	51.9	114.5	- 13%
Total Tin contained	MT	1.15	-	1.15	1.53	-	1.53	- 25%
Total Gold (incl. Gold equivalents) 5	toz	540	278	818	557	109	666	- 3%
Total Alumina	MT	-	998	998	-	1 105	1 105	n.m.
Total Nickel	MT	24.05	1.73	25.78	21.13	1.08	22.21	14%
Total Cobalt	MT	9.14	0.84	9.98	9.69	0.31	10.00	- 6%
1 Controlled industrial assets only (with the exception in 2011 of Mutanda, which was 40% owned). Production is included on a 100% basis. 2 Lead metal includes lead contained in lead concentrates. 3 Copper metal includes copper contained in copper concentrates and blister copper. 4 Cobalt contained in concentrates and hydroxide. 5 Gold/Silver conversion ratios of 1/53.83 and 1/42.10 for the first three quarters of 2012 and 2011 respectively based on average prices.

Selected average commodity prices

		Nine months ended 30 Sep-tember 2012	Nine months ended 30 Sep-tember 2011	Change
S&P GSCI Industrial Metals Index		383	461	- 17%
LME (cash) zinc price ($/t)		1 948	2 289	- 15%
LME (cash) copper price ($/t)		7 974	9 249	- 14%
LME (cash) lead price ($/t)		2 017	2 533	- 20%
Gold price ($/oz)		1 652	1 536	8%
Metal Bulletin alumina price ($/t)		317	389	- 19%
LME (cash) aluminium price ($/t)		2 029	2 499	- 19%
LME (cash) nickel price ($/t)		17 722	24 339	- 27%
Metal Bulletin cobalt price 99.3% ($/lb)		13	17	- 24%
Iron ore (Platts 62% CFR North China) price ($/DMT)		133	171	- 22%

OPERATIONAL HIGHLIGHTS

Kazzinc (Glencore interest: 69.61%, increased from 50.7% on 11 October 2012)

Gold production from own sources increased 18% over the comparable period in 2011, reflecting the continuing ramp-up at Altyntau Kokshetau and an increase in gold recovered from the lead smelter, following the decision to prioritise gold over lead. The increase in total silver production reflects the increased extraction of silver from purchased concentrates.

Lower lead production reflects reduced throughput during the ramp-up of the new IsaSmelt lead smelter (commissioned in August 2012) and the decision to process gold rich concentrates at the expense of lead prior to such commissioning.

Copper production from own sources was 8% lower than the comparable period, however copper cathode production increased from 9,000 tonnes to 37,000 tonnes as Kazzinc's new copper smelter (commissioned in H2 2011) continued its ramp-up.

On 11 October 2012, Glencore completed the acquisition of 18.91% of Kazzinc, increasing its interest to 69.61%.

Katanga (Glencore interest: 75.2%)

Total ore mined was 4,128,300 tonnes, an increase of 15% over the same period last year, which at a grade of 4.04% resulted in contained copper in ore mined of 166,700 tonnes, a 6% increase.

Ore mined at KTO underground mine was 1,377,900 tonnes, a 15% increase over the comparable 2011 period, at an average grade of 3.65%. Ore mined at KOV open pit was 2,750,400 tonnes, 38% above the same period last year, at an average grade of 4.59%  in Q3 (4.00% for H1 2012) as higher grade ore was accessed, following the removal of mud from the bottom of the KOV pit.

Ore milled at KTC concentrator was 3,511,600 tonnes, an increase of 17% over the comparable 2011 period.

Copper produced in metal and concentrate was 68,900 tonnes, an increase of 3%, with copper metal production increasing by 14% over the same period in 2011.

Copper and cobalt production was hampered by general power disruptions in the DRC during the first nine months of 2012. Total lost production during the period was 1,187 hours or 49 days.

The new power converter under a World Bank power project and the new synchronous condenser as part of Katanga's agreement with SNEL are expected to be commissioned in Q4 2012 and will improve the availability and reliability of power. The commissioning has been affected by the transport industry strike in South Africa during September and October 2012 as well as a strike at the Zambian-DRC border during October 2012. Significant electricity supply improvements are expected in the medium term from the joint Power Project being undertaken between Katanga, Kansuki and Mutanda in partnership with SNEL, as announced in March 2012.

Katanga expects to produce the first copper cathode through the new Solvent Extraction plants and converted electro-winning facility in Q4 2012, also somewhat delayed due to the strikes noted above.

For further information please visit www.katangamining.com

Mutanda (Glencore interest: 60.0%)

Copper production, including cathode and copper in concentrate, was 60,600 tonnes, representing a 31% increase on the comparable period. Cathodes contributed 57,700 tonnes, almost double the prior year period. The ramp-up schedule to reach the installed 110,000 copper tankhouse capacity remains on target.

Cobalt production, including cobalt in hydroxide and cobalt in concentrate was 5,800 tonnes, broadly in line with the prior year period. Mutanda remains on track to complete the cobalt circuit in Q4 2012, resulting in 23,000 tonnes per annum of cobalt in hydroxide production capacity.

A dedicated power generation plant was mechanically completed in Q3 2012 to provide reliable power to the sulphuric acid plant.

Glencore's increase to a 60% indirect equity interest in Mutanda in May 2012 represents a significant first step to achieve the anticipated merger of Mutanda and Kansuki, which is expected to form a combined entity having an installed capacity of 200,000 tonnes per annum of copper and 23,000 tonnes of cobalt in hydroxide by H2 2013. This expansion in capacity from Mutanda's existing 110,000 tonnes per annum to 200,000 tonnes represents the first stage of the combined operations' expansion plans.

Mutanda is also currently preparing a feasibility study for the construction of a 100,000 tonnes (of copper contained) sulphide concentrator. The study is expected to be completed during H1 2013.

Kansuki (Glencore interest: 37.5%)

Glencore holds a 50% interest in Kansuki Investments Sprl which in turn holds a 75% interest in the owner of the Kansuki concession, giving Glencore an effective interest of 37.5%. Kansuki is a 185 square kilometre copper and cobalt pre-development project, bordering the Mutanda concession. $ 387 million of capital expenditure for mine and plant development has been committed, of which $ 298 million had been spent as at 30 September 2012. Exploration of the Kansuki concession is ongoing.

Mopani (Glencore interest: 73.1%)

Year to date contained copper in ore mined was 85,300 tonnes a 2% decline over the same period of 2011. Contained copper in concentrate was 60,800 tonnes.

Gross anode production from the smelter was 12% lower than 2011, reflecting the planned smelter maintenance shutdown that impacted production levels during H1 2012.

Finished copper production from own sources was 72,200 tonnes, a 2% reduction over the corresponding period in 2011. The reduction mainly relates to the Mufulira site, where production was impacted by the planned smelter shutdown. Total finished copper production, including third party purchased materials and toll, was similarly impacted by the smelter shutdown and exacerbated somewhat by the quality and availability of third party material received.

Cobalt production of 229 tonnes was substantially lower than the comparable 2011 period, due to the cobalt roaster being placed on care and maintenance during H2 2011.

The current capital expenditure projects to increase mine production (including the Synclinorium project) and further improve the smelter remain on track to time and budget.

Mopani announced earlier in the year that the smelter upgrade project, including improving sulphur emissions capture to above 97%, is expected to be completed by December 2013, 18 months ahead of the schedule initially agreed with the Zambian authorities.

Other Zinc (Los Quenuales, Sinchi Wayra, AR Zinc, Portovesme, Rosh Pinah)

A shift toward some lower grade ore bodies at Los Quenuales and Sinchi Wayra resulted in lower production of zinc, lead and silver in concentrates.

The nationalisation of the Colquiri mine at Sinchi Wayra resulted in no tin production since June 2012 and this has also impacted lead and zinc production.

A strong performance from AR Zinc and the acquisition of Rosh Pinah have largely succeeded (excluding tin) to offset the negative production impact of head grade reductions and the Colquiri nationalisation.

Other Copper (Cobar, Pasar, Punitaqui, Sable)

Copper metal production was down due to a fire at Pasar in January which stopped production until the restart in July 2012.  Following a month of ramp-up in July, production volumes in August and September were in line with original expectations.

Copper concentrates production from own sources was down 7% over the comparable period due to temporary operational issues at Cobar relating to an electrical line failure and delays to underground backfilling activities.

Alumina/Aluminium

Sherwin Alumina (Glencore interest: 100%)

Production was 997,800 tonnes, a decrease of 10% compared to the prior year period, primarily related to the overhaul of a calciner in Q1 2012.

Ferroalloys/Nickel/Cobalt

Murrin Murrin (Glencore interest: 100%)

Own sourced production was 24,100 tonnes of nickel and 1,700 tonnes of cobalt, higher by 14% and 18% respectively compared to the same period in 2011. This reflected record production during the second and third quarters owing to consistent plant availability and record throughput.

In response to the lower nickel price environment, Murrin has implemented a 'Margin Improvement Plan' designed to deliver sizeable cost and cash savings over the remainder of 2012 and into 2013.

Energy Products

Production data

thousand MT 1	Own	Buy-in Coal	Nine months ended 30 Sep-tember 2012	Own	Buy-in Coal	Nine months ended 30 Sep-tember 2011	Own production change
Thermal coal
Prodeco	11 036	127	11 163	10 912	156	11 068	1%
Shanduka (Export)	347	-	347	323	-	323	7%
Shanduka (Domestic)	4 457	840	5 297	4 014	521	4 535	11%
Umcebo (Export)	180	-	180	-	-	-	n.m.
Umcebo (Domestic)	5 242	19	5 261	-	-	-	n.m.
Optimum (Export)	5 568	-	5 568	-	-	-	n.m.
Optimum (Domestic)	4 783	434	5 217	-	-	-	n.m.
Total	31 613	1 420	33 033	15 249	677	15 926	107%
1 Controlled industrial assets only. Production on a 100% basis.

thousand bbls	Nine months ended 30 Sep-tember 2012	Nine months ended 30 Sep-tember 2011	Change
Oil 1
Block I	16 985	-	n.m.
Total	16 985	-	n.m.
1 On a 100% basis. Glencore's ownership interest in the Aseng field is 23.75%.

Selected average commodity prices

				Nine months ended 30 September 2012	Nine months ended 30 Sep-tember 2011	Change
S&P GSCI Energy Index				333	335	- 1%
Coal API2 ($/t)				94	124	- 24%
Coal API4 ($/t)				95	119	- 20%
Prodeco realised price ($/t) 1				87	94	- 7%
South African Coal average realised export price ($/t)				93	106	- 12%
South African Coal average realised domestic price ($/t)				31	43	- 28%
Oil price - Brent ($/bbl)				112	112	0%
1 As of 30 September 2012, 26 million tonnes had been sold forward at an average price of $ 90 per tonne.

OPERATIONAL HIGHLIGHTS

Prodeco (Glencore interest: 100%)

Own production was 11.0 million tonnes, broadly in line with the 2011 comparable period. Production was impacted by a lengthy strike at the La Jagua mine, concluded in October 2012, which offset the growth achieved during the first half of the year and at the Calenturitas mine.

Prodeco is undertaking a broad expansion project which, excluding some minor effect of the strikes at La Jagua, is progressing to plan and expected to increase annualised production to 20 million tonnes by 2014.

Construction of the new direct loading port, Puerto Nuevo, remains on schedule and budget and is expected to be commissioned in H1 2013. Puerto Nuevo is expected to provide substantially higher annual throughput capacity and at a lower operating cost per tonne.

South African Coal (Glencore interest: Shanduka Coal: 49.99%, Umcebo Mining: 43.66% and Optimum Coal: 64.13%)

In addition to the above consolidated entities, Shanduka Coal has a 30% stake in Kangra Coal.

Own production was 20.6 million tonnes, a nearly five-fold increase versus the comparable 2011 period, reflecting the inclusion of production from Optimum and Umcebo for the first time from 1 January 2012. Volumes of export coal also increased significantly to 6.1 million tonnes predominantly the result of Optimum which exports approximately 6.8 million tonnes per annum of thermal coal through Richards Bay Coal Terminal.

Work is currently proceeding well on a number of expansion and development projects including Wonderfontein, with the rail siding expected to be completed during December 2012 and first coal railed shortly thereafter. At Shanduka and Umcebo, the Springboklaagte project studies are also progressing to schedule and it is expected that the definitive feasibility study will be completed by April 2013; meanwhile, the Argent coal deposit definitive feasibility study is also currently progressing and expected to be completed by April 2013. At Optimum, the Pullenshope Underground brownfield project is proceeding to schedule, with construction due to commence in Q4 2012 and first coal expected in Q2 2013. It is also expected that licensing for Optimum's Koornfontein 4 Seam project will be completed by December 2012, with construction commencing in early 2013. Studies for the two major longer term Optimum growth projects, Remhoogte and TNC, are also proceeding as planned. (Refer to slide 20 of Glencore Interim Results 2012 presentation for more details)

Oil Exploration & Production (Glencore interest: Block I: 23.8%/Block O: 25.0%)

The Aseng field (Block I) in Equatorial Guinea has continued to perform well, producing 17.0 million barrels of cumulative gross production at an average gross rate of 62,000 barrels per day during the first nine months of 2012.

Development of the Alen field (Block O) in Equatorial Guinea remains on budget with first production scheduled for H2 2013. All of the development wells have been drilled and completed and construction of the production platform continues as planned.

Agricultural Products

Production data

thousand MT	Nine months ended 30 Sep-tember 2012	Nine months ended 30 Sep-tember 2012	Change
Farming	599	602	0%
Oilseed crushing	1 939	1 470	32%
Oilseed crushing long term toll agreement	721	710	2%
Biodiesel	372	422	- 12%
Rice milling	213	220	- 3%
Wheat milling	805	804	0%
Sugarcane processing	829	701	18%
Total	5 478	4 929	11%

Selected average commodity prices

				Nine months ended 30 September 2012	Nine months ended 30 Sep-tember 2011	Change
S&P GSCI Agriculture Index				452	510	- 11%
CBOT corn no.2 price (US¢/bu)				681	699	- 3%
ICE cotton price (US¢/lb)				82	151	- 46%
CBOT soya beans (US¢/bu)				1 459	1 365	7%
NYMEX sugar # 11 price (US¢/lb)				22	28	- 21%
CBOT wheat price (US¢/bu)				719	740	- 3%

OPERATIONAL HIGHLIGHTS

Viterra (pending completion)

On 19 March 2012, Glencore announced it had concluded an agreement to acquire Viterra Inc. for CAD 16.25 per share, subject to regulatory and shareholder approvals. Viterra's shareholders subsequently voted to approve the acquisition on 29 May 2012. Substantially all regulatory approvals have now been received including competition and foreign investment clearances in Canada and Australia. The only outstanding approval remaining is MOFCOM (Ministry of Commerce of the People's Republic of China) and, as announced on 26 September 2012, the outside date for completion of the transaction has accordingly been extended to 15 November 2012 or such later date as may be agreed by both parties.

Rio Vermelho (Glencore interest: 100%)

829,100 tonnes of sugarcane was crushed (18% higher than the comparable 2011 period), producing 63,556 tonnes of Very High Pol ('VHP') sugar and 25,500 cubic metres of hydrous ethanol.

Following the successful completion of the first phase of Rio Vermelho's five year expansion plan (construction of the VHP sugar plant in June 2012) progress continues on the remaining elements, including the addition of 80,000 cubic metres of anhydrous ethanol production capacity, as well as a cogeneration plant capable of supplying 200,000 megawatt hours of surplus electricity to the power grid.

Other Agricultural Products

Oilseed crushing

Oilseed crushing volumes have increased 32% following the three recently acquired softseed crushing plants (in Usti, Czech Republic, Bodaczow, Poland and Kharkov, Ukraine) and the recently commissioned plant at Fokto, Hungary.

The joint venture greenfield soyabean crushing plant at Timbues, Argentina was successfully commissioned in October 2012 and is expected to be operational before the end of the year.

For further information please contact:

Investors & analysts Paul Smith/Elisa Morniroli t: [phone]/28 18 e: [e-mail] e: [e-mail]

Media Charles Watenphul t: [phone] e: [e-mail]

Finsbury (Media) Guy Lamming Dorothy Burwell t: [phone]

website: www.glencore.com

Appendix 1 - Q3 2012 vs Q3 2011

METALS AND MINERALS

Production data

thousand 1		Using feed from own sources	Using feed from third party sources	Q3 2012 Total	Using feed from own sources	Using feed from third party sources	Q3 2011 Total	Own feed change
Kazzinc
Zinc metal	MT	52.2	22.8	75.0	58.6	16.9	75.5	- 11%
Lead metal 2	MT	4.6	14.2	18.8	8.5	17.8	26.3	- 46%
Copper metal 3	MT	14.1	1.1	15.2	16.2	0.3	16.5	- 13%
Gold	toz	118	23	141	91	12	103	30%
Silver	toz	835	4 114	4 949	1 276	1 610	2 886	- 35%
Katanga
Copper metal 3	MT	25.8	-	25.8	23.7	-	23.7	9%
Cobalt 4	MT	0.52	-	0.52	0.59	-	0.59	- 12%
Mutanda
Copper metal 3	MT	22.3	-	22.3	20.3	-	20.3	10%
Cobalt 4	MT	2.14	-	2.14	2.25	-	2.25	- 5%
Mopani
Copper metal 3	MT	32.8	18.7	51.5	24.0	27.3	51.3	37%
Cobalt 4	MT	0.03	0.02	0.05	0.10	0.13	0.23	- 70%
Other Zinc (Los Quenuales, Sinchi Wayra, AR Zinc, Portovesme, Rosh Pinah)
Zinc metal	MT	12.9	17.1	30.0	14.7	24.2	38.9	- 12%
Zinc oxide	DMT	15.6	-	15.6	13.2	-	13.2	18%
Zinc concentrates	DMT	115.1	-	115.1	114.1	-	114.1	1%
Lead metal	MT	3.2	-	3.2	3.1	-	3.1	3%
Lead concentrates	DMT	18.2	-	18.2	15.6	-	15.6	17%
Tin concentrates	DMT	-	-	-	1.16	-	1.16	- 100%
Silver metal	toz	196	-	196	209	-	209	- 6%
Silver in concentrates	toz	1 895	-	1 895	1 914	-	1 914	- 1%
Other Copper (Cobar, Pasar, Punitaqui, Sable)
Copper metal	MT	-	32.0	32.0	-	40.8	40.8	n.m.
Copper concentrates	DMT	47.1	-	47.1	53.9	-	53.9	- 13%
Cobalt	MT	-	0.26	0.26	-	-	-	n.m.
Silver in concentrates	toz	208	-	208	313	-	313	- 34%
Alumina/Aluminium (Sherwin)
Alumina	MT	-	364	364	-	354	354	n.m.
Nickel/Cobalt (Murrin Murrin)
Nickel metal	MT	8.72	1.01	9.73	7.18	0.40	7.58	21%
Cobalt	MT	0.63	0.04	0.67	0.54	0.02	0.56	17%
Total Zinc contained	MT	135.0	39.9	174.9	140.1	41.1	181.2	- 4%
Total Copper contained	MT	107.8	51.8	159.6	98.7	68.4	167.1	9%
Total Lead contained	MT	17.5	14.2	31.7	20.8	17.7	38.5	- 16%
Total Tin contained	MT	-	-	-	0.54	-	0.54	- 100%
Total Gold (incl. Gold equivalents) 5	toz	175	97	272	176	49	225	- 1%
Total Alumina	MT	-	364	364	-	354	354	n.m.
Total Nickel	MT	8.72	1.01	9.73	7.18	0.40	7.58	21%
Total Cobalt	MT	3.32	0.32	3.64	3.48	0.15	3.63	- 5%
1 Controlled industrial assets only (with the exception in 2011 of Mutanda, which was 40% owned). Production is included on a 100% basis. 2 Lead metal includes lead contained in lead concentrates. 3 Copper metal includes copper contained in copper concentrates and blister copper. 4 Cobalt contained in concentrates and hydroxide. 5 Gold/Silver conversion ratio of 1/55.22 and 1/43.90 for Q3 2012 and Q3 2011 respectively based on average prices.

Selected average commodity prices

	Q3 2012	Q3 2011	Change
S&P GSCI Industrial Metals Index	367	443	- 17%
LME (cash) zinc price ($/t)	1 888	2 221	- 15%
LME (cash) copper price ($/t)	7 716	8 973	- 14%
LME (cash) lead price ($/t)	1 980	2 450	- 19%
Gold price ($/oz)	1 653	1 706	- 3%
Metal Bulletin alumina price ($/t)	316	372	- 15%
LME (cash) aluminium price ($/t)	1 924	2 398	- 20%
LME (cash) nickel price ($/t)	16 345	22 002	- 26%
Metal Bulletin cobalt price 99.3% ($/lb)	13	16	- 19%
Iron ore (Platts 62% CFR North China) price ($/DMT)	113	178	- 37%

ENERGY PRODUCTS

Production data

thousand MT 1	Own	Buy-in Coal	Q3 2012 Total	Own	Buy-in Coal	Q3 2011 Total	Own production change
Thermal coal
Prodeco	3 092	20	3 112	3 819	62	3 881	- 19%
Shanduka (Export)	148	-	148	73	-	73	103%
Shanduka (Domestic)	1 477	301	1 778	1 514	264	1 778	- 2%
Umcebo (Export)	49	-	49	-	-	-	n.m.
Umcebo (Domestic)	1 622	1	1 623	-	-	-	n.m.
Optimum (Export)	1 799	-	1 799	-	-	-	n.m.
Optimum (Domestic)	1 628	76	1 704	-	-	-	n.m.
Total	9 815	398	10 213	5 406	326	5 732	82%
1 Controlled industrial assets only. Production on a 100% basis.

thousand bbls	Q3 2012 Total	Q3 2011 Total	Change
Oil 1
Block I	5 963	-	n.m.
Total	5 963	-	n.m.
1 On a 100% basis. Glencore's ownership interest in the Aseng field is 23.75%.

Selected average commodity prices

	Q3 2012	Q3 2011	Change
S&P GSCI Energy Index	324	325	0%
Coal API2 ($/t)	91	124	- 27%
Coal API4 ($/t)	87	117	- 26%
Prodeco realised price ($/t)	83	90	- 8%
South African Coal average realised export price ($/t)	86	136	- 37%
South African Coal average realised domestic price ($/t)	32	41	- 22%
Oil price - Brent ($/bbl)	109	112	- 3%

AGRICULTURAL PRODUCTS

Production data

thousand MT	Q3 2012	Q3 2011	Change
Farming	272	411	- 34%
Oilseed crushing	833	559	49%
Oilseed crushing long term toll agreement	325	265	23%
Biodiesel	112	149	- 25%
Rice milling	87	107	- 19%
Wheat milling	271	298	- 9%
Sugarcane processing	578	381	52%
Total	2 478	2 170	14%

Selected average commodity prices

	Q3 2012	Q3 2011	Change
S&P GSCI Agriculture Index	504	486	4%
CBOT corn no.2 price (US¢/bu)	783	696	13%
ICE cotton price (US¢/lb)	73	107	- 32%
CBOT soya beans (US¢/bu)	1 677	1 356	24%
NYMEX sugar # 11 price (US¢/lb)	21	29	- 28%
CBOT wheat price (US¢/bu)	871	690	26%

Appendix 2 - Q3 2012 vs Q2 2012

METALS AND MINERALS

Production data

thousand 1		Using feed from own sources	Using feed from third party sources	Q3 2012 Total	Using feed from own sources	Using feed from third party sources	Q2 2012 Total	Own feed change
Kazzinc
Zinc metal	MT	52.2	22.8	75.0	51.9	22.9	74.8	1%
Lead metal 2	MT	4.6	14.2	18.8	4.4	17.2	21.6	5%
Copper metal 3	MT	14.1	1.1	15.2	10.9	0.8	11.7	29%
Gold	toz	118	23	141	126	25	151	- 6%
Silver	toz	835	4 114	4 949	1 708	3 628	5 336	- 51%
Katanga
Copper metal 3	MT	25.8	-	25.8	24.4	-	24.4	9%
Cobalt 4	MT	0.52	-	0.52	0.48	-	0.48	- 12%
Mutanda
Copper metal 3	MT	22.3	-	22.3	21.7	-	21.7	3%
Cobalt 4	MT	2.14	-	2.14	1.91	-	1.91	12%
Mopani
Copper metal 3	MT	32.8	18.7	51.5	16.7	20.1	36.8	96%
Cobalt 4	MT	0.03	0.02	0.05	-	0.06	0.06	n.m.
Other Zinc (Los Quenuales, Sinchi Wayra, AR Zinc, Portovesme, Rosh Pinah)
Zinc metal	MT	12.9	17.1	30.0	14.7	21.7	36.4	- 12%
Zinc oxide	DMT	15.6	-	15.6	13.1	-	13.1	19%
Zinc concentrates	DMT	115.1	-	115.1	103.3	-	103.3	11%
Lead metal	MT	3.2	-	3.2	3.3	-	3.3	- 3%
Lead concentrates	DMT	18.2	-	18.2	15.0	-	15.0	21%
Tin concentrates	DMT	-	-	-	0.97	-	0.97	- 100%
Silver metal	toz	196	-	196	225	-	225	- 13%
Silver in concentrates	toz	1 895	-	1 895	1 728	-	1 728	10%
Other Copper (Cobar, Pasar, Punitaqui, Sable)
Copper metal	MT	-	32.0	32.0	-	1.9	1.9	n.m.
Copper concentrates	DMT	47.1	-	47.1	42.6	-	42.6	11%
Cobalt	MT	-	0.26	0.26	-	0.18	0.18	n.m.
Silver in concentrates	toz	208	-	208	282	-	282	- 26%
Alumina/Aluminium (Sherwin)
Alumina	MT	-	364	364	-	330	330	n.m.
Nickel/Cobalt (Murrin Murrin)
Nickel metal	MT	8.72	1.01	9.73	9.07	0.52	9.59	- 4%
Cobalt	MT	0.63	0.04	0.67	0.62	0.02	0.64	2%
Total Zinc contained	MT	135.0	39.9	174.9	128.4	44.5	172.9	5%
Total Copper contained	MT	107.8	51.8	159.6	85.0	22.7	107.7	27%
Total Lead contained	MT	17.5	14.2	31.7	16.4	17.2	33.6	7%
Total Tin contained	MT	-	-	-	0.50	-	0.50	- 100%
Total Gold (incl. Gold equivalents) 5	toz	175	97	272	197	92	289	- 11%
Total Alumina	MT	-	364	364	-	330	330	n.m.
Total Nickel	MT	8.72	1.01	9.73	9.07	0.52	9.59	- 4%
Total Cobalt	MT	3.32	0.32	3.64	3.01	0.26	3.27	10%
1 Production is included on a 100% basis. Controlled industrial assets only. 2 Lead metal includes lead contained in lead concentrates. 3 Copper metal includes copper contained in copper concentrates and blister copper. 4 Cobalt contained in concentrates and hydroxide. 5 Gold/Silver conversion ratio of 1/55.22 and 1/54.70 for Q3 2012 and Q2 2012 respectively based on average prices.

Selected average commodity prices

	Q3 2012	Q2 2012	Change
S&P GSCI Industrial Metals Index	367	375	- 2%
LME (cash) zinc price ($/t)	1 888	1 929	- 2%
LME (cash) copper price ($/t)	7 716	7 872	- 2%
LME (cash) lead price ($/t)	1 980	1 976	0%
Gold price ($/oz)	1 653	1 612	3%
Metal Bulletin alumina price ($/t)	316	317	0%
LME (cash) aluminium price ($/t)	1 924	1 980	- 3%
LME (cash) nickel price ($/t)	16 345	17 146	- 5%
Metal Bulletin cobalt price 99.3% ($/lb)	13	14	- 7%
Iron ore (Platts 62% CFR North China) price ($/DMT)	113	141	- 20%

ENERGY PRODUCTS

Production data

thousand MT 1	Own	Buy-in Coal	Q3 2012 Total	Own	Buy-in Coal	Q2 2012 Total	Own production change
Thermal coal
Prodeco	3 092	20	3 112	3 705	49	3 754	- 17%
Shanduka (Export)	148	-	148	93	-	93	59%
Shanduka (Domestic)	1 477	301	1 778	1 552	219	1 771	- 5%
Umcebo (Export)	49	-	49	64	-	64	- 23%
Umcebo (Domestic)	1 622	1	1 623	1 577	10	1 587	3%
Optimum (Export)	1 799	-	1 799	1 944	-	1 944	- 7%
Optimum (Domestic)	1 628	76	1 704	1 572	67	1 639	4%
Total	9 815	398	10 213	10 507	345	10 852	- 7%
1 Controlled industrial assets only. Production on a 100% basis.

thousand bbls	Q3 2012 Total	Q2 2012 Total	Change
Oil 1
Block I	5 963	5 741	4%
Total	5 963	5 741	4%
1 On a 100% basis. Glencore's ownership interest in the Aseng field is 23.75%.

Selected average commodity prices

	Q3 2012	Q2 2012	Change
S&P GSCI Energy Index	324	323	0%
Coal API2 ($/t)	91	90	1%
Coal API4 ($/t)	87	93	- 6%
Prodeco realised price ($/t)	83	82	1%
South African Coal average realised export price ($/t)	86	92	- 7%
South African Coal average realised domestic price ($/t)	32	31	3%
Oil price - Brent ($/bbl)	109	109	0%

AGRICULTURAL PRODUCTS

Production data

thousand MT	Q3 2012	Q2 2012	Change
Farming	272	79	244%
Oilseed crushing	833	667	25%
Oilseed crushing long term toll agreement	325	283	15%
Biodiesel	112	103	9%
Rice milling	87	46	89%
Wheat milling	271	269	1%
Sugarcane processing	578	251	130%
Total	2 478	1 698	46%

Selected average commodity prices

	Q3 2012	Q2 2012	Change
S&P GSCI Agriculture Index	504	417	21%
CBOT corn no.2 price (US¢/bu)	783	618	27%
ICE cotton price (US¢/lb)	73	81	- 10%
CBOT soya beans (US¢/bu)	1 677	1 426	18%
NYMEX sugar # 11 price (US¢/lb)	21	21	0%
CBOT wheat price (US¢/bu)	871	641	36%

Forward looking statements

This document contains statements that are, or may be deemed to be, "forward looking statements". These forward looking statements may be identified by the use of forward looking terminology, including the terms "believes", "estimates", "plans", "projects", "anticipates", "will", "could", or "should" or in each case, their negative or other variations thereon or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward looking statements include all matters that are not historical facts and include, but are not limited to, statements regarding Glencore's beliefs, opinions or current expectations concerning, among other things, the business, financial condition, results of operations, prospects, strategies and plans of Glencore.

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 under "Principal risks and uncertainties" in section 1.7 of Glencore's Annual Report 2011, the section headed "Risks and uncertainties" in Glencore's Interim Report 2012 and the section headed "Risk factors" in Glencore's prospectus dated 31 May 2012 (as supplemented from time to time) filed in connection with the proposed merger with Xstrata plc.

No assurance can be given that such future results will be achieved; actual events or results may differ materially as a result of risks and uncertainties facing Glencore. Such risks and uncertainties could cause actual results to vary materially from the future results indicated, expressed or implied in such forward looking statements.

Forward looking statements speak only 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 Services Authority and the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited), Glencore is not under any obligation and Glencore and its affiliates expressly disclaim any intention or obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise.

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.

 

END

 

 

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