Glencore Says Operations Performed as Expected in 2021 -- Commodity Comment
February 02 2022 - 2:54AM
Dow Jones News
By Jaime Llinares Taboada
Glencore PLC said Wednesday that its operations performed
largely in line with guidance expectations last year, with copper
output falling 5% on year. Here's what the FTSE 100 mining and
commodity-trading major had to say:
On 2021 performance:
"Overall, our operations largely performed in line with guidance
expectations. We completed the Cerrejon acquisition and Ernest
Henry disposal in January, such transactions being consistent with
our continued strategy to simplify and align our portfolio with the
materials needed for the energy transition and the responsible
decline of our coal business."
"Own sourced copper production of 1,195,700 tonnes was 62,400
tonnes (5%) lower than 2020, mainly due to the Mopani disposal
(23,800 tonnes), expected lower copper grades at Antapaccay (14,800
tonnes) and lower copper by-products from our mature zinc and
nickel mines (26,600 tonnes)."
"Own sourced cobalt production of 31,300 tonnes was 3,900 tonnes
(14%) higher than 2020 due to the limited restart of production at
Mutanda in 2021."
"Own sourced zinc production of 1,117,800 tonnes was 52,600
tonnes (4%) lower than 2020, mainly reflecting the expected decline
of the Maleevsky mine in Kazakhstan, being lagged by the slower
than expected ramp-up of replacement Zhairem mine tonnage (19,600
tonnes); Mount Isa producing additional metal from ore stockpile
drawdowns in the base period (24,400 tonnes); and Kidd lower grades
(13,800 tonnes). These factors were partly offset by stronger zinc
production at Antamina, which was suspended for part of 2020 due to
Covid restrictions."
"Nickel production of 102,300 tonnes was 7,900 tonnes (7%) lower
than in 2020, mainly due to the lengthy scheduled statutory
shutdown and maintenance issues at Murrin Murrin earlier in the
year."
"Attributable ferrochrome production of 1,468,000 tonnes was
439,000 tonnes (43%) higher than 2020 mainly due to the South
African national lockdown in the prior year, and a strong operating
performance."
"Coal production of 103.3 million tonnes was 2.9 million tonnes
(3%) lower than 2020, reflecting Prodeco's care and maintenance
status and lower domestic power demand / export rail capacity
constraints in South Africa, offset by higher production at
Cerrejon, following a Covid suspension and strike in 2020."
"Entitlement interest production of 5.3 million boe was 1.3
million boe (34%) higher than 2020 mainly due to commencement of
the gas phase of the Alen project in Equatorial Guinea. There was
no production from the Chad fields in 2021."
On 2022 guidance:
"2022 production guidance unchanged from the Investor Update in
December 2021. Purchase of the remaining interest in Cerrejon
completed in January 2022, a few months earlier than initially
assumed. Changes, if any, to 2022 guidance will be updated in
April, together with our 1Q production report."
Write to Jaime Llinares Taboada at jaime.llinares@wsj.com;
@JaimeLlinaresT
(END) Dow Jones Newswires
February 02, 2022 02:39 ET (07:39 GMT)
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