Glencore delivers full year production within guidance ranges

Operationally, 2024 was a strong year for Glencore says Glencore’s Chief Executive Officer, Gary Nagle. Industrial assets delivered full year production numbers within their original guidance ranges, which together with the addition of EVR’s steelmaking coal volumes from July 2024, resulted in a c.4% growth in copper equivalent volumes year over year. Basis current production plans for its existing operations, we also model a c.4% compound annual growth rate to 2028 (in copper equivalents) from 2024.

“Our strong operational performance, along with another strong Marketing contribution, supported the generation of Adjusted EBITDA of $14.4 billion and Funds from operations of $10.5 billion during 2024, down 16%, but up 11%, respectively compared to 2023. The decline in Adjusted EBITDA, particularly within the Industrial segment, was mainly a function of lower average energy coal prices year over year,” Nagle continued.

“Aided by the healthy cash generation, along with $1.8 billion of net working capital inflows, we were able to fund $6.7 billion of net capex, the $7 billion acquisition of EVR and $1.9 billion of shareholder returns, all while limiting the increase in year-end Net debt to $11.2 billion, vs $4.9 billion in 2023. Furthermore, the 2024 figure includes $1.2 billion of marketing lease liabilities and $0.6 billion of IFRS consolidated EVR liabilities, neither of which consume capital headroom for consideration of ‘top-up’ shareholder returns. And finally, with a Net debt to Adjusted EBITDA ratio of 0.78x, we continue to have significant financial headroom and strength.

“The strength of our diversified business model across our industrial and marketing businesses, which focus on the commodities needed for today and tomorrow, has proved itself adept in a range of market conditions, giving us a solid foundation to navigate successfully the near-term macroeconomic environment and be well positioned for the future.”

2024 FINANCIAL SCORECARD

• $14.4 billion Adjusted EBITDA, down 16%, primarily reflecting weaker energy coal prices
• Marketing Adjusted EBIT of $3.2 billion, at the top end of our long-term $2.2-$3.2 billon guidance range, albeit 8% lower than 2023. A strong performance from Metals and Minerals was more than offset by the progressive normalisation of energy markets from the severe disruption and extreme volatilities seen in 2022/23
• Industrial Adjusted EBITDA of $10.6 billion, down 20%, primarily driven by lower energy coal prices, partially offset by the addition of EVR’s steelmaking coal business and higher y/y earnings in our zinc business, primarily via its exposure to higher gold prices
• Funds from operations (FFO) of $10.5 billion, up 11%
• Net cash purchase and sale of PP&E: $6.7 billion compared to $5.6 billion in 2023; EVR accounts for majority of the increase
• Net income attributable to equity holders pre-significant items: $3.7 billion; Net loss attributable to equity holders: $1.6 billion
• Adjusted EBITDA mining margins were 28% in our metals operations, 45% in steelmaking coal and 32% in energy coal