# Glencore Q1 production broadly in line with expectations

- Link: https://www.directorstalkinterviews.com/glencore-q1-production-broadly-in-line-with-expectations/4121115887
- Published: 2023-04-21T07:40:58+01:00
- Author: Amilia Stone

**[Glencore plc](https://www.directorstalkinterviews.com/ftse-company/glencore-plc/glen.l)**(
[LON:GLEN](https://www.directorstalkinterviews.com/ftse-company/glencore-plc/glen.l))
has announced its first quarter production report 2023.

> **Glencore Chief Executive Officer, Gary Nagle:**
> _“First quarter production was broadly in line with our expectations, accounting
> for portfolio changes and operational conditions, including the disposals / closures
> of some zinc and lead mines in the Americas during 2022. Full year production 
> guidance is unchanged from that presented at Glencore’s investor presentation 
> in December 2022._
> _“Our Marketing segment continued to perform well through Q1 2023, particularly
> within energy products, such that extrapolating Q1’s Marketing Adjusted EBIT has
> us, once again, on track to exceed the top end of our $2.2-3.2 billion p.a. long-
> term guidance range.”_

**Production from own sources – Total^(1)**

|  |  |  |  |  | 
|  |  | Q1 2023 | Q1 2022 | Change % | 
| Copper |           kt |        244.1 |        257.8 |           (5) | 
| Cobalt |           kt |         10.5 |          9.7 |            8 | 
| Zinc |           kt |        205.3 |        241.5 |          (15) | 
| Lead |           kt |         39.3 |         46.8 |          (16) | 
| Nickel |           kt |         20.9 |         30.7 |          (32) | 
| Gold |          koz |          187 |          189 |           (1) | 
| Silver |          koz |        4,525 |        6,515 |          (31) | 
| Ferrochrome |           kt |          400 |          387 |            3 | 
| Coal |           mt |         26.9 |         28.5 |           (6) |

1. Controlled industrial assets and joint ventures only (excludes Volcan). Production
is on a 100% basis, except as stated later in this report.

**Q1 production highlights**

•      Own sourced copper production of 244,100 tonnes was 13,700 tonnes (5%) lower
than Q1 2022, largely due to planned lower grades in line with the phasing of the
pit at Collahuasi and delays associated with adverse weather conditions at Antamina.

•      Own sourced zinc production of 205,300 tonnes was 36,200 tonnes (15%) lower
than Q1 2022, reflecting the disposal of South American zinc operations (14,400 
tonnes) and the closure of Matagami (8,900 tonnes) in 2022, temporary suspension
of operations due to wet weather at Antamina (5,900 tonnes) and McArthur River temporarily
processing lower-grade feedstocks in accordance with its mine plan (4,700 tonnes).

•      Own sourced nickel production of 20,900 tonnes was 9,800 tonnes (32%) lower
than Q1 2022, primarily reflecting INO prioritising third party feed.

•      Attributable ferrochrome production of 400,000 tonnes was 13,000 tonnes (
3%) above Q1 2022.

•      Coal production of 26.9 million tonnes was 1.6 million tonnes (6%) lower 
than Q1 2022, mainly reflecting the short-term impact of a community blockade at
Cerrejón and mining around geological anomalies in South Africa.

**Production guidance**

|  |  |    Actual
       FY | Previousguidance | Current guidance |  | 2023 weighting | 
|  |  | 2022 | 2023 | 2023 |  | H1 |  | H2 | 
| Copper |      kt |     1,058 | **1,040 ± 30** | **1,040 ± 30** |  | 48% |  | 52% | 
| Cobalt |      kt |      43.8 | **  38 ± 5** | **   38 ± 5** |  | 51% |  | 49% | 
| Zinc |      kt |       939 | **950 ± 30** | **950 ± 30** | ^(  1) | 45% |  | 55% | 
| Nickel |      kt |       108 | **112 ± 5** | **  112 ± 5** |  | 45% |  | 55% | 
| Ferrochrome |      kt |     1,488 | **1,310 ± 30** | **  1,310 ± 30** |  | 54% |  | 46% | 
| Coal |      mt |       110 | **110 ± 5** | **  110 ± 5** |  | 49% |  | 51% |

1 Excludes Volcan

Production guidance is unchanged from that presented in Glencore’s December 2022
investor update.

**Other highlights**

•      The full acquisition of CEZ zinc refinery in Canada completed in March 2023;
prior Glencore ownership was 25%.

•      The Newlands coal mine in Queensland ceased production in February 2023. 
The Liddell coal mine (NSW) is scheduled to cease production later in 2023.

•     Glencore’s Marketing segment continued to perform well through Q1 2023, particularly
within energy products, such that extrapolating Q1’s Marketing Adjusted EBIT has
us, once again, on track to exceed the top end of our $2.2-3.2 billion p.a. long-
term guidance range.

[GLEN_2023-Q1_ProductionReport](https://www.directorstalkinterviews.com/wp-content/uploads/2023/04/GLEN_2023-Q1_ProductionReport.pdf)
[Download](https://www.directorstalkinterviews.com/wp-content/uploads/2023/04/GLEN_2023-Q1_ProductionReport.pdf)

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