Glencore PLC (LSE:GLEN) said its performance in 2021 was in line with expectations in a challenging year dominated by the COVID-19 pandemic.
Its production guidance for the current year is unchanged from the December update, when the commodities trader and miner said there is a “generally steady overall production profile in the 2022-2024 outlook period, with zinc volumes lower in 2024, in line with mine closures”.
Glencore said own sourced copper production declined by 5% to 1.19mln tonnes in 2021, due to the Mopani disposal, lower copper grades at Antapaccay and lower copper by-products from the company's mature zinc and nickel mines.
The company is forecasting 1.15mln tonnes of copper for 2022.
Own sourced cobalt production increased by 14% to 31,300 tonnes last year after a limited restart of production at Mutanda.
The forecast for the current year is 48,000 tonnes of cobalt.
Own sourced zinc production dropped by 4% to 1.12mln tonnes in 2021, reflecting a decline at the Maleevsky mine in Kazakhstan, due to the slower-than-expected ramp-up of replacement Zhairem mine tonnage.
Zinc production was also impacted by Mount Isa producing additional metal from ore stockpile drawdowns 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-19 restrictions.
Forecast zinc production for 2022 is 1.11mln tonnes.
Nickel production fell by 7% last year to 102,300 tonnes due to a lengthy scheduled statutory shutdown and maintenance issues at Murrin Murrin.
Glencore expects nickel production of 115,000 tonnes in the current year.
Attributable ferrochrome production totalled 1.46mln tonnes in 2021, up 43% on 2020 when South Africa was in a national lockdown. The company is forecasting a similar output in 2022.
Coal production of 103.3mln tonnes was 3% lower than 2020, reflecting Prodeco's care and maintenance status and lower domestic power demand and export rail capacity constraints in South Africa. These factors were offset by higher production at Cerrejón, following a Covid suspension and strike in 2020.
Glencore expects coal production to rise to 121mln tonnes this year.
Entitlement interest production increased by 34% to 5.3mln barrels of oil equivalents (boe) last year, primarily because of the start of the gas phase of the Alen project in Equatorial Guinea.
Glencore noted that the purchase of the remaining interest in Cerrejon was completed in January 2022, a few months earlier than expected.
"The operating environment remained challenging in 2021, with the COVID-19 pandemic again dominating the daily lives of many of our colleagues, families, local communities and society at large," said Glencore chief executive officer Gary Nagle.
"Maintaining production in 2021 became increasingly important as many of our products, so crucial for decarbonisation, energy supply and industrial output, saw higher levels of demand.
"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."