TIDMGLEN
RNS Number : 2160P
Glencore PLC
17 June 2022
Glencore plc
Baar, Switzerland
17 June 2022
Glencore trading update
Glencore provides the following updates concerning its coal
Industrial business and Marketing business.
-- Our Industrial coal portfolio produces various quality
specifications in three countries, destined primarily for seaborne
thermal markets, but also for steel and domestic consumption. We
have seen unprecedented dislocation in energy markets over the year
to date, resulting, at times, in record pricing differentials
between the various coal benchmarks and quality categories.
Relative to the Newcastle thermal coal pricing benchmark, our
coal portfolio mix adjustment guidance (which is used to calculate
an overall realised price for the Group's coal portfolio as a
deduction against the Newcastle thermal coal price ) has increased
to reflect these larger differentials and portfolio
composition.
Our February 2022 full year portfolio mix adjustment guidance(1)
of $32.8 per tonne (basis a Newcastle thermal coal forward average
price at the time of $175/t) is expected to increase to a range of
c.$82 to $86 per tonne for the first half of 2022, basis an assumed
Newcastle thermal coal average benchmark price of $318/t over the
half (May YTD plus June forecast).
In line with the higher coal prices, government royalties have
increased significantly relative to our February cost expectations,
which together with higher input costs (including diesel,
explosives, logistics and electricity), are expected to result in
an increase in our reported average FOB thermal unit cost for the
period to c.$75-$78 per tonne, compared to earlier guidance of
$59.3/t for 2022(1) .
-- Our Marketing business has successfully navigated the
extraordinary global challenges faced during the period, being a
source of continuous and reliable commodity supply to our vast
customer base.
Against this challenging and elevated risk backdrop, our
Marketing segment's financial performance has continued to be
supported by periods of heightened to extreme levels of market
volatility, supply disruption and tight physical market conditions,
particularly relating to global energy markets.
Tracking YTD performance, we expect our Marketing segment's
half-year adjusted EBIT to exceed $3.2bn (the top end of our
long-term, through the cycle, Adjusted EBIT annual guidance range
of $2.2-3.2bn). We currently expect more normal market conditions
to prevail in the second half of the year.
We confirm that we will release our first-half production report
on Friday 29 July and our half-year financial results on Thursday 4
August.
(1) Refer to slide 27 of the 2022 Preliminary Results
presentation for prior guidance:
https://www.glencore.com/.rest/api/v1/documents/308f484a1509eeaba27a45ffd8f77bcc/20220215%20GLEN%202021%20Preliminary%20Results%20Presentation-.pdf
For further information please contact:
Investors Media
Martin Fewings Charles Watenphul
t: +41 41 709 2880 t: +41 41 709 2462
m: +41 79 737 56 42 m: +41 79 904 33 20
martin.fewings@glencore.com Charles.watenphul@glencore.com
Glencore LEI: 2138002658CPO9NBH955
This announcement contains inside information.
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 60 responsibly - sourced commodities that advance
everyday life. Through a network of assets, customers and suppliers
that spans the globe, we produce, process, recycle, source, market
and distribute the commodities that enable decarbonisation while
meeting the energy needs of today.
Glencore companies employ around 135,000 people, including
contractors. With a strong footprint in over 35 countries in both
established and emerging regions for natural resources, our
marketing and industrial activities are supported by a global
network of more than 40 offices.
Glencore's customers are industrial consumers, such as those in
the automotive, steel, power generation, battery manufacturing and
oil sectors. We also provide financing, logistics and other
services to producers and consumers of commodities.
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.
Glencore recognises our responsibility to contribute to the
global effort to achieve the goals of the Paris Agreement. Our
ambition is to be a net zero total emissions company by 2050. In
August 2021, we increased our medium-term emission reduction target
to a 50% reduction by 2035 on 2019 levels and introduced a new
short-term target of a 15% reduction by 2026 on 2019 levels.
Disclaimer
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.
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