GLENCORE: 2024 production volumes delivered within guidance

Glencore Chief Executive Officer, Gary Nagle in his production report says that 2024 was an important year for Glencore, with the acquisition of EVR and shareholder support for the retention of its coal business. Its Industrial asset teams continue to refine their optimal production pathways and the company reports a net overall addition to its 2024 mineral reserve base, notably in copper at Antamina, bauxite at MRN, and steelmaking coal via the acquisition of EVR, following the significant growth in its Argentina copper resources base reported in 2023.

Updated guidance  covering production and capex for the 2025-28 period, as well as 2025 unit cost guidance, will be provided alongside the release of its 2024 Preliminary results on 19 February.

“2024 production volumes were delivered within our guidance ranges (unchanged from the beginning of the year), reflecting stronger second half (H2) performances across our key commodities. Copper production was 26kt higher in H2 (+6% vs H1), supported by Antapaccay’s recovery from H1 geotechnical issues and higher grades at KCC. In zinc, H2 volumes jumped 71kt (+17% vs H1), reflecting increased contributions across the board, including from Kazzinc, Mount Isa and Antamina. In coal, energy volumes increased 5.2Mt in H2 in line with operational and logistical improvements in Australia and South Africa, while Steelmaking coal added 13.1Mt in H2 (a near-fivefold increase vs H1), reflecting the 12.5Mt contribution from EVR,” said Nagle.

Production highlights

On a like-for-like basis, removing 15,000 tonnes of Cobar (sold in June 2023) volumes from the prior period, own sourced copper production of 951,600 tonnes was 43,500 tonnes (4%) below 2023. This reflected lower planned production at Antapaccay and Collahuasi, further impacted by geotechnical-related delays at Antapaccay and lower grades and unplanned mill downtime at KCC. H2 2024 copper production of 489,000 tonnes was 26,400 tonnes (6%) higher than H1 2024, mainly reflecting improved KCC production due to higher-grade ores, higher than planned run-rates at Mutanda and increased Mount Isa copper production, following a regional flooding event earlier in the year.

• Own sourced cobalt production of 38,200 tonnes was 3,100 tonnes (8%) lower than 2023, mainly reflecting expected lower grades at Mutanda.
• Own sourced zinc production from the zinc department itself (i.e. excluding Antamina) was 51,000 tonnes (7%) higher than 2023.
• Overall own sourced zinc production of 905,000 tonnes was broadly in line with 2023, reflecting lower zinc tonnes from Antamina (64,500 tonnes), given its expected copper/zinc mine sequence during the year, largely offset by the ramp up of Zhairem (Kazzinc, up 53,600 tonnes). H2 2024 zinc production of 487,800 tonnes was 70,600 tonnes (17%) higher than H1 2024.
• Excluding Koniambo (KNS), own sourced nickel production of 77,300 tonnes was 6,900 tonnes (10%) higher than 2023. Overall own sourced nickel production of 82,300 tonnes was 15,300 tonnes (16%) lower than 2023, reflecting KNS’s transition to care and maintenance (22,200 tonnes) in Q1 2024, partially offset by recovery from the INO supply chain constraints seen in the base period (3,700 tonnes) and higher production from Murrin Murrin (3,200 tonnes).
• Attributable ferrochrome production of 1,166,000 tonnes was in line with 2023.
• Steelmaking coal production of 19.9 million tonnes mainly reflects Canadian steelmaking coal production of 12.5 million tonnes, representing the Elk Valley Resources (EVR) business acquired in July 2024. Australian steelmaking coal production was consistent year over year.
• Energy coal production of 99.6 million tonnes was down 6% on 2023, reflecting the progressive impact of scheduled mine closures, longwall moves in Australia in 2024, export rail constraints in South Africa and a combination of permit delays, community blockades and unusually heavy rain at Cerrejón.