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1、GLENCOE Glencore Half-Year Report 2023 NEWS RELEASE Baar,8 August 2023 Glencores Chief Executive Officer,Gary Nagle,commented:“The strength of our diversified business model across industrial and marketing,focusing on metals and energy,has again proved itself adept in a range of market conditions.“A
2、gainst the backdrop of a normalisation of commodity market imbalances and volatility,primarily across the energy spectrum,our Marketing and Industrial segments posted a healthy earnings performance,delivering Group Adjusted EBITDA of$9.4 billion,cash generated by operating activities of$8.4 billion
3、and Net income attributable to equity holders of$4.6 billion.“Reflecting these solid headline earnings,together with a$3.7 billion release of net working capital,including$1.4 billion of readily marketable inventories,net funding remained static over the period,after disbursing$5.2 billion of shareh
4、older returns,$2.5 billion of net capital expenditure and$2.7 billion of final 2022 tax payments in Australia and Colombia.Net debt finished the period at$1.5 billion.“Our shareholder returns framework of managing Net debt,in the ordinary course of business,around a$10 billion cap,with deleveraging
5、periodically returned to shareholders,informed todays announcement of additional“top-up”returns of c.$2.2 billion,lifting total announced shareholder returns this year to c.$9.3 billion.“As the world moves towards a low-carbon economy,we remain focused on supporting the energy needs of today whilst
6、investing in our transition metals portfolio.Over the year to date,we committed$1.25 billion,mainly on purchasing the balance of the large,long-life MARA copper project,not already held by Glencore,and acquiring a minority stake in Alunorte,a world class alumina refinery,thereby providing Glencore w
7、ith long-term exposure to lower-quartile carbon alumina.“We look to the future confident that we have the right pathway to succeed in a Net-zero economy and create sustainable long-term value for all stakeholders,while operating in a responsible and ethical manner across all aspects of our business.
8、”US$million H1 2023 H1 2022 Change%2022 Key statement of income and cash flows highlights1:Revenue 107,415 134,435 (20)255,984 Adjusted EBITDA 9,397 18,918 (50)34,060 Adjusted EBIT 6,305 15,415 (59)26,657 Net income for the period attributable to equity holders 4,568 12,085 (62)17,320 Earnings per s
9、hare(Basic)(US$)0.36 0.92 (61)1.33 US$million 30.06.2023 31.12.2022 Change%Key financial position highlights:Total assets 121,754 132,583 (8)Total equity 41,173 45,219 (9)Net funding2 27,533 27,500 0 Net debt2 1,542 75 1,956 Ratios:Net debt to Adjusted EBITDA3 0.06 0.00 n.m 1 Refer to basis of prese
10、ntation on page 7.2 Refer to page 10.3 H1 2023 ratio based on last 12 months Adjusted EBITDA,refer to APMs section for reconciliation.Adjusted measures referred to as Alternative performance measures(APMs)which are not defined or specified under the requirements of International Financial Reporting
11、Standards;refer to APMs section on page 73 for definitions and reconciliations and to note 3 of the financial statements for reconciliation of Adjusted EBIT/EBITDA.HIGHLIGHTS Glencore Half-Year Report 2023 Marketing Adjusted EBIT of$1.8 billion,annualising above our$2.2-3.2 billion p.a.long-term gui
12、dance range,down 52%period-on-period from last years exceptionally strong performance Industrial Assets Adjusted EBITDA of$7.4 billion,down 51%,impacted primarily by lower pricing,particularly in coal,as well as inflationary cost impacts across the asset base,much of it having lagged and been heavil
13、y influenced by the surge in energy prices during 2022.$9.4 billion Adjusted EBITDA,down 50%,reflecting the normalisation of primarily energy market imbalances and volatility from the extreme levels seen in 2022 Net income attributable to equity holders was$4.6 billion($12.1 billion in H1 2022),down
14、 61%Adjusted EBITDA mining margins were 25%in our metals operations and 50%in our energy operations,compared to 43%and 66%respectively during H1 2022$1.25 billion of recent investment commitments in transition metals,comprising:$700 million to acquire a 30%equity stake in Alunorte and a 45%equity st
15、ake in Mineraco Rio do Norte S.A.,from Norsk Hydro;$475 million to acquire the remaining 56.25%interest in the MARA copper project,not already owned,from Pan American Silver,taking Glencore to 100%ownership;$73 million to acquire the remaining 18%in Polymet not already owned,a 50:50 JV partner in th
16、e New Range Copper Nickel venture with Teck Resources in Minnesota.After consideration of near-term cash commitments and potential M&A,period-end Net debt of$1.5 billion,supported c.$2.2 billion of“top-up”shareholder payments,lifting total 2023 announced shareholder returns to c.$9.3 billion.This ad
17、ditional return will be effected by way of a c.$1 billion($0.08 per share)special cash distribution and a new$1.2 billion buyback programme intended to run until release of our full year results in February 2024.The special cash distribution of$0.08 per share will be paid alongside the$0.22 per shar
18、e second tranche of the cash distribution announced in February 2023 Available committed liquidity of$12.9 billion;bond maturities maintained around a cap of$3 billion in any given year In June 2023,Glencore agreed to dispose of its interest in Viterra in a cash and shares transaction with Bunge.For
19、 its 50%stake,Glencore will receive$1.0 billion in cash and c.$3.1 billion in Bunge stock(basis Bunges stock price at the date of announcement,but worth c.$3.8 billion(up 23%)as of 4 August 2023).The merger is expected to close in mid-2024.Spot illustrative annualised free cash flow generation of c.
20、$7.3 billion from Adjusted EBITDA of c.$17.4 billion Shareholders gave broad support for the progress of our Climate Action Transition Plan at the 2023 AGM,with c.70%voting in favour We recognise that some shareholders chose not to support this resolution and we will continue to engage with sharehol
21、ders so as to ensure their views are fully understood We will publish an update on this engagement,in accordance with the UK Corporate Governance Code,within six months of the 2023 AGM For further information please contact:Investors Martin Fewings t:+41 41 709 2880 m:+41 79 737 5642 Media Charles W
22、atenphul t:+41 41 709 2462 m:+41 79 904 3320 Glencore LEI:2138002658CPO9NBH955 Please refer to the end of this document for disclaimers including on forward-looking statements.HIGHLIGHTS Glencore Half-Year Report 2023 Notes for Editors Glencore is one of the worlds largest global diversified natural
23、 resource companies and a major producer and marketer of more than 60 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 support decarbonisation while meeting the
24、 energy needs of today.With around 140,000 employees and contractors and 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.Glencores customers are in
25、dustrial 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 a
26、nd the International Council on Mining and Metals.We are an active participant in the Extractive Industries Transparency Initiative.We recognise our responsibility to contribute to the global effort to achieve the goals of the Paris Agreement by decarbonising our own operational footprint.We believe
27、 that we should take a holistic approach and have considered our commitment through the lens of our global industrial emissions.Against a 2019 baseline,we are committed to reducing our Scope 1,2 and 3 industrial emissions by 15%by the end of 2026,50%by the end of 2035 and we have an ambition to achi
28、eve net zero industrial emissions by the end of 2050.For more detail see our 2022 Climate Report on the publication page of our website at Half-Year Report 2023 Following 2022,a year characterised by extreme global geopolitical and economic turbulence,generating extraordinary energy market dislocati
29、on,volatility,supply disruption and record prices for many coal and gas benchmarks,2023 has,for the most part,seen energy trade flows rebalance and normalise,with coal,oil and gas prices materially declining over H1 2023.In addition to the significant weakening in energy markets,the recent overall c
30、ycle of inflation,tighter monetary conditions and limited global economic growth,contributed to average period-over-period price reductions in copper,cobalt,nickel and zinc of 11%,59%,13%and 26%respectively.While lower energy prices have recently tempered some of the inflationary pressures in key We
31、stern markets,the restart of previously shuttered energy-intensive industries,including some steel,zinc and aluminium production,has been limited by weak end-user markets,particularly in Europe.At the same time,the reopening of China,following the lifting of Covid restrictions in late 2022,accelerat
32、ed demand from domestic consumer sectors through Q2 2023,which together with continued investment in infrastructure and the energy transition,somewhat neutralised the persistent weakness in the property market,keeping Chinas base metals demand positive and visible inventories low.Against the backdro
33、p of a normalisation of commodity market imbalances and volatility,earnings from our Marketing and Industrial segments fell,reducing Group Adjusted EBITDA to$9.4 billion,down 50%period-on-period.Net income before significant items declined 61%to$4.2 billion,while significant items,largely reflecting
34、 a gain on the sale of Cobar,increased Net Income attributable to equity holders to$4.6 billion.Marketing,nonetheless,posted a robust result,with Adjusted EBIT of$1.8 billion,annualising above our$2.2-3.2 billion p.a.long-term guidance range,albeit it was 52%below last years exceptionally strong per
35、formance.The more subdued energy market environment saw Adjusted EBIT from Energy Products fall 66%to$1.0 billion,while Metals and Minerals Adjusted EBIT fell 18%to$0.8 billion,in line with the generally weaker macroeconomic sentiment.Industrial Adjusted EBITDA declined 51%to$7.4 billion for the per
36、iod,impacted primarily by lower pricing,particularly in coal,as well as inflationary cost impacts across the asset base,much of it having lagged and been heavily influenced by the surge in energy prices during 2022.Coal Adjusted EBITDA decreased 49%to$4.5 billion,while significantly weaker gas marke
37、ts were largely responsible for a 77%reduction in Oil Adjusted EBITDA to$131 million.Similarly in our industrial metals,weaker period-on-period prices were largely responsible for a 48%decline in Adjusted EBITDA to$3.1 billion,with realised cobalt hydroxide pricing,being particularly weak.Lower prod
38、uction was also a factor,including mine sequencing at Collahuasi and the impact of last years Raglan strike on own-source refined nickel production during the period,with both operations expected to strongly recover in H2.Associated with the return to more normal commodity markets and volatility lev
39、els,the prior period required investment in net working capital was partially released,whereby non-RMI net working capital recorded an inflow of$2.2 billion over the half,primarily reflecting a$2.1 billion reduction in net initial margin calls and$1.1 billion of lower net physical forward commodity
40、contract valuations,all primarily due to lower energy prices(oil,gas,coal),less the final amount of$0.5 billion paid in respect of the DOJ resolutions and a$0.9 billion reduction in deferred income.These various inflows were sufficient to settle$2.7 billion,due in H1 2023,in respect of 2022 final in
41、come tax payments in Australia and Colombia,fund$2.5 billion of net capital expenditure and$5.2 billion of shareholder distributions and buybacks,such that net funding was largely flat over the period.Due to a$1.4 billion reduction in RMI,net debt increased from$0.1 billion to$1.5 billion.Our shareh
42、older returns framework of managing Net debt,in the ordinary course of business,around a$10 billion cap,with deleveraging,after the base distribution,periodically returned to shareholders,informs our announcement of additional“top-up”returns of c.$2.2 billion,lifting total shareholder returns this y
43、ear to c.$9.3 billion.This“top-up”payment will be effected by way of a c.$1 billion($0.08 per share)special distribution and a new$1.2 billion buyback programme intended to run until the release of our full year results in February 2024.The special distribution of$0.08 per share will be paid alongsi
44、de the second tranche of the 2022 distribution,lifting the total payment to$0.30 per share on 22 September.At our 2023 AGM,shareholders gave broad support for the progress of our 3-year Climate Action Transition Plan,with c.70%voting in favour,recognising the importance of maintaining a strategy tha
45、t remains resilient to the risks and opportunities of the evolving energy transition,along with encouragement to continue our focus on progressing towards our ambition of achieving net zero industrial emissions by 2050.We recognise that some shareholders chose not to support this resolution and we w
46、ill continue to engage with shareholders so as to ensure their views are fully understood.We will publish an update on this engagement,in accordance with the UK Corporate Governance Code,within six months of the 2023 AGM.CHIEF EXECUTIVE OFFICERS REVIEW Glencore Half-Year Report 2023 We recognise our
47、 ongoing responsibility to not only deliver financial performance but also make a positive contribution to society and create lasting benefits for stakeholders in a manner that is responsible,transparent and respects the rights of all.The implementation of our relaunched SafeWork framework in mid-20
48、21 has been a key focus for our industrial assets and commodity departments.Good progress has been made Group-wide,but I am saddened to report that we recorded the loss of one life at Glencores managed operations over the year to date.We believe that consistent application and reinforcement of our S
49、afeWork framework,through strong visible leadership,can drive and deliver the safety culture and operating discipline we are looking for,and get all our people home safe.Aligned with our business strategy of supporting the energy needs of today,whilst investing in our transition metals portfolio,we
50、are of the view that the likely scale and pace of global mine project development,in certain critical minerals,will struggle to meet the commodity demand that the transition is expected to create and require.Glencore is well placed to participate in bridging this gap in supply through the flexibilit
51、y that exists in our business to respond to global needs.We are directing most of our capital expenditure,in large part funded through the earnings of our energy business,towards development of our transition metals portfolio.Although the following transactions still require final approvals,during t
52、he year to date we concluded an agreement with Norsk Hydro to acquire a 30%equity stake in Alunorte and a 45%equity stake in Mineraco Rio do Norte S.A,securing lower-quartile carbon alumina units for our Marketing business.In copper,we agreed to acquire Pan American Silvers 56.25%interest in the lar
53、ge MARA brownfield copper project in Argentina,taking Glencores stake to 100%,and we also agreed to acquire the remaining minorities(c.18%),in Polymet,being the 50:50 JV partner in the New Range Copper Nickel venture with Teck Resources in Minnesota.On a more transformational scale,we approached Tec
54、k Resources in late March with a proposal to merge Glencore and Teck to create,via a demerger,two leading standalone businesses:MetalsCo:a world-class standalone transition metals focused business,comprising Glencores and Tecks metals and minerals assets,Glencores metals and energy(excluding coal)ma
55、rketing,recycling and distribution businesses;and CoalCo:a highly cash-generative standalone coal and carbon steel materials business comprising Glencores and Tecks coal assets,Glencores ferroalloys assets and Glencores coal and ferroalloys marketing businesses.Our proposal for the merger of the two
56、 companies was rejected by Teck and,while we remain willing to pursue the above merger-demerger,we have submitted an alternative proposal to acquire Tecks steelmaking coal business(“EVR”)for cash,to allow for a value accretive demerger of the combined coal and carbon steel materials business(“CoalCo
57、”).If such a transaction were to materialise,Glencore would demerge CoalCo,once Glencore has sufficiently delevered,which is expected approximately 12-24 months from close.In this regard,Glencore would manage its post-demerger balance sheet,post servicing its formulaic base distribution,to a revised
58、 c.US$5 billion net debt cap,down from the current level of c.US$10 billion,alongside our continued commitment to minimum strong BBB/Baa ratings.In the calculation of“top-up”shareholder returns for the current period,we positioned for an amount of$2.0 billion towards such potential transaction,as a
59、reasonable balance between rewarding shareholders today,and ensuring that the company is appropriately capitalised to seamlessly effect an EVR transaction and allow for the subsequent demerger of CoalCo as soon as practicable.Glencore is fully committed to ensuring that a transaction with Teck would
60、 benefit Canada and is open to working with Teck to identify a comprehensive suite of commitments for the benefit of all relevant stakeholders.Furthermore,in June 2023,Glencore,Canada Pension Plan Investment Board and British Columbia Investment Management Corporation(collectively the JV partners in
61、 Viterra),concluded an agreement to merge Viterra with Bunge in a cash and stock transaction to create a premier diversified global agribusiness solutions company.For its 50%stake,Glencore will receive$1.0 billion in cash and c.$3.1 billion in Bunge stock(basis Bunges stock price at the date of anno
62、uncement,but worth c.$3.8 billion(up 23%)as of 4 August 2023).The merger is expected to close in mid-2024.Glencore continues to cooperate with the previously disclosed and ongoing investigation by the Office of the Attorney General of Switzerland into Glencore International AG for failure to have th
63、e organisational measures in place to prevent alleged corruption and an investigation of similar scope by the Dutch Public Prosecution Service.The timing and outcome of these investigations remain uncertain.The independent compliance monitors mandated under our resolutions with the DOJ have been app
64、ointed and commenced their work.We look forward to working with them co-operatively and constructively as they review our Ethics and Compliance programme.CHIEF EXECUTIVE OFFICERS REVIEW Glencore Half-Year Report 2023 Moderating inflation and supportive government policy in China across key end-user
65、sectors,are bringing a more positive macroeconomic backdrop in H2 2023.Low metal inventories,higher production costs,geopolitical uncertainty and energy transition demand are all supportive of above-average real-term prices through the cycle and into the longer term.The strength of our diversified b
66、usiness model across industrial and marketing,focusing on metals and energy,has proved itself adept in a range of market conditions,giving us a solid foundation to successfully navigate the near-term macroeconomic uncertainty,as well as meet the resource needs of the future.I would like to thank all
67、 our employees for their efforts and significant contribution during the first half.As always,we remain focused on operating responsibly and ethically and creating sustainable long-term value for all our stakeholders.Gary Nagle Chief Executive Officer Glencore Half-Year Report 2023 The financial inf
68、ormation in the Financial and Operational Review is presented on a segmental measurement basis,including all references to revenue(see note 3)and has been prepared on the basis as outlined in note 2 of the condensed consolidated interim financial statements,with the exception of the accounting treat
69、ment applied to relevant material associates and joint ventures for which Glencores attributable share of revenues and expenses are presented.In addition,the Peruvian listed Volcan,while a subsidiary of the Group,is accounted for using the equity method for internal reporting and analysis due to the
70、 relatively low economic interest(23%)held by the Group.The Groups results are presented on an“adjusted”basis,using alternative performance measures(APMs)which are not defined or specified under the requirements of IFRS,but are derived from the financial statements,prepared in accordance with IFRS,r
71、eflecting how Glencores management assesses the performance of the Group.The APMs are provided in addition to IFRS measures to aid in the comparability of information between reporting periods and segments and to aid in the understanding of the activities taking place across the Group by adjusting f
72、or Significant items and by aggregating or disaggregating(notably in the case of relevant material associates and joint ventures accounted for on an equity basis)certain IFRS measures.APMs are also used to approximate the underlying operating cash flow generation of the operations(Adjusted EBITDA).S
73、ignificant items(see reconciliation below)are items of income and expense,which,due to their nature and variable financial impact or the expected infrequency of the events giving rise to them,are separated for internal reporting,and analysis of Glencores results,to aid in providing an understanding
74、and comparative basis of the underlying financial performance.APMs used by Glencore may not be comparable with similarly titled measures and disclosures by other companies.APMs have limitations as an analytical tool,and a user of the financial statements should not consider these measures in isolati
75、on from,or as a substitute for,analysis of the Groups results of operations;and they may not be indicative of the Groups historical operating results,nor are they meant to be a projection or forecast of its future results.Alternative performance measures are denoted by the symbol and are further def
76、ined and reconciled to the underlying IFRS measures in the APMs section on page 73.Select average commodity prices Spot 30 Jun 2023 Spot 31 Dec 2022 Average H1 2023 Average H1 2022 Change in average%S&P GSCI Industrial Metals Index 408 451 443 534 (17)S&P GSCI Energy Index 245 288 258 350 (26)LME(ca
77、sh)copper price($/t)8,322 8,365 8,709 9,759 (11)LME(cash)zinc price($/t)2,382 3,003 2,839 3,819 (26)LME(cash)lead price($/t)2,144 2,337 2,127 2,261 (6)LME(cash)nickel price($/t)20,346 29,886 24,185 27,659 (13)Gold price($/oz)1,919 1,824 1,934 1,876 3 Silver price($/oz)23 24 23 23 Fastmarkets cobalt
78、standard grade,Rotterdam($/lb)(low-end)14 19 15 37 (59)Ferro-chrome 50%Cr import,CIF main Chinese ports,contained Cr(/lb)101 100 106 116 (9)Iron ore(Platts 62%CFR North China)price($/DMT)109 112 112 130 (14)Coal API4($/t)100 185 129 277 (53)Coal Newcastle(6,000)($/t)138 399 204 321 (36)Oil price Bre
79、nt($/bbl)75 86 80 102 (22)Currency table Spot 30 Jun 2023 Spot 31 Dec 2022 Average H1 2023 Average H1 2022 Change in average%AUD:USD 0.67 0.68 0.68 0.72 (6)USD:CAD 1.32 1.36 1.35 1.27 6 EUR:USD 1.09 1.08 1.08 1.10 (2)GBP:USD 1.27 1.20 1.23 1.30 (5)USD:CHF 0.90 0.92 0.91 0.94 (3)USD:KZT 451 463 452 4
80、50 USD:ZAR 18.85 17.04 18.22 15.40 18 FINANCIAL AND OPERATIONAL REVIEW Glencore Half-Year Report 2023 Following 2022,a year characterised by extreme global macroeconomic and geopolitical events resulting in extraordinary energy market dislocation,volatility,risk,supply disruptions and record prices
81、for various coal and gas benchmarks,2023 has,for the most part,seen international energy trade flows rebalance and normalise,with coal,oil and gas prices materially declining.In this context,income for the period attributable to equity holders decreased from$12,085 million in H1 2022 to$4,568 millio
82、n in H1 2023 and EPS decreased from$0.92 per share to$0.36 per share.Further to such vastly different energy environment,the recent cycle of inflation,tighter monetary conditions and limited Chinese economic growth,contributed to average period-over-period price reductions in copper,cobalt,nickel an
83、d zinc of 11%,59%,13%and 26%respectively.Overall,largely reflecting the lower commodity prices and market volatility,Adjusted EBITDA was$9,397 million and Adjusted EBIT was$6,305 million in H1 2023,decreases of 50%and 59%respectively compared to H1 2022.The H1 2023 Adjusted EBIT contribution from th
84、e Marketing segment was$1,773 million,a decrease of 52%from the record H1 2022 period,reflecting the return to a more stable market environment,following the extreme market volatility levels,dislocations and complexities exhibited during H1 2022.The Adjusted EBITDA contribution from the Industrial s
85、egment was$7,410 million,a decrease of 51%period-over-period,largely due to lower coal prices,where average Newc and API4 index prices were down 36%and 53%respectively from H1 2022.In Metals,cobalt metal pricing and low payabilities for cobalt hydroxides weighed heavily on our African Copper operati
86、ons,while own source production was lower at INO(nickel)and Collahuasi(copper)due,respectively,to a lengthy prior year strike and mine phasing,with both operations expected to strongly recover in H2.Furthermore,the lag effect of 2022s continuing higher inflation reads,ultimately significantly impact
87、ed H1 2023s period-over-period earnings,although we are seeing these cost headwinds now moderating.Adjusted EBITDA mining margins were 25%in our metal operations and 50%in our energy operations,compared to 43%and 66%respectively during H1 2022.See pages 19 and 20.Adjusted EBITDA/EBIT Adjusted EBITDA
88、 by business segment is as follows:H1 2023 H1 2022 US$million Marketing activities Industrial activities Adjusted EBITDA Marketing activities Industrial activities Adjusted EBITDA Change%Metals and minerals 833 3,056 3,889 1,013 5,877 6,890 (44)Energy products 1,193 4,658 5,851 3,177 9,465 12,642 (5
89、4)Corporate and other1 (39)(304)(343)(303)(311)(614)(44)Total 1,987 7,410 9,397 3,887 15,031 18,918 (50)Adjusted EBIT by business segment is as follows:H1 2023 H1 2022 US$million Marketing activities Industrial activities Adjusted EBIT Marketing activities Industrial activities Adjusted EBIT Change%
90、Metals and minerals 803 1,301 2,104 985 3,969 4,954 (58)Energy products 1,009 3,557 4,566 2,986 8,124 11,110 (59)Corporate and other1 (39)(326)(365)(303)(346)(649)(44)Total 1,773 4,532 6,305 3,668 11,747 15,415 (59)1 Corporate and other Marketing activities includes$132 million pre-significant items
91、(2022:$284 million)of Glencores equity accounted share of Viterra.Marketing activities Marketing delivered strong results,in a return to a more normal backdrop,following the elevated levels of market volatility,disruption and rapidly changing global commodity flows which characterised much of H1 202
92、2.Such rebalancing and calming of markets can be seen in our lower reported VaR levels,discussed below.Marketing Adjusted EBITDA and EBIT,at$1,987 million and$1,773 million respectively,were lower by 49%and 52%compared to H1 2022,mainly driven by our oil and gas departments exceptionally high base p
93、eriod.Metals and minerals Adjusted EBIT was down 18%over H1 2022,largely reflecting the negative economic headwinds stemming from slowing global growth,inflationary pressures,central bank interest rate rises,and only limited growth in the key Chinese market.During the period,agricultural markets als
94、o saw relatively more stable conditions compared to H1 2022,albeit market volatilities were still elevated.Our 50%share of earnings(captured within Corporate and Other)was$132 million(post-interest and tax and pre-significant items)compared to$284 million in the comparable period.In June 2023,Glenco
95、re agreed to dispose of its interest in Viterra in a cash-and-shares transaction with Bunge(see note 16).Industrial activities Industrial Adjusted EBITDA declined by 51%to$7,410 million(Adjusted EBIT was$4,532 million,compared to$11,747 million in 2022),driven by a$4.4 billion lower contribution fro
96、m our Coal operations,owing to the substantial average period-over-period decreases in key pricing benchmarks,as well as markedly lower cobalt hydroxide realisations,some temporary constraints on own source production in H1,and significant inflationary cost pressures as noted above.FINANCIAL AND OPE
97、RATIONAL REVIEW Glencore Half-Year Report 2023 Earnings A summary of the differences between reported Adjusted EBIT and income attributable to equity holders,including significant items,is set out in the following table:US$million H1 2023 H1 2022 Adjusted EBIT 6,305 15,415 Net finance and income tax
98、 expense in relevant material associates and joint ventures1 (269)(366)Proportionate adjustment Volcan1 91 70 Net finance costs (839)(596)Income tax expense2 (1,364)(3,633)Non-controlling interests 281 (41)Income attributable to equity holders of the Parent pre-significant items 4,205 10,849 Earning
99、s per share(Basic)pre-significant items(US$)3 0.33 0.82 Significant items Share of Associates significant items4 (79)Movement in unrealised inter-segment profit elimination5 176 488 Gain on acquisitions and disposals of non-current assets6 679 1,463 Other expense net7 (18)(502)(Impairments)/reversal
100、 of impairments8 (47)40 Income tax expense2 (367)(284)Non-controlling interests share of significant items9 19 31 Total significant items 363 1,236 Income attributable to equity holders of the Parent 4,568 12,085 Earnings per share(Basic)(US$)0.36 0.92 1 Refer to note 3 of the interim financial stat
101、ements and to APMs section for reconciliations.2 Refer to other reconciliations section for the allocation of the total income tax expense between pre-significant and significant items.3 Based on weighted average number of shares,refer to note 18 of the interim financial statements.4 Recognised with
102、in share of income from associates and joint ventures,see note 3 of the interim financial statements.5 Recognised within cost of goods sold,see note 3 of the interim financial statements.6 Refer to note 5 of the interim financial statements and to APMs section for reconciliations.7 Recognised within
103、 other income/(expense)net,see note 6 of the interim financial statements and to APMs section for reconciliations.8 Refer to note 8 of the interim financial statements and to APMs section for reconciliations.9 Recognised within non-controlling interests,refer to APMs section.Significant items Signif
104、icant items are items of income and expense,which,due to their nature and variable financial impact or the expected infrequency of the events giving rise to them,are separated for internal reporting,and analysis of Glencores results,to aid in providing an understanding and comparative basis of the u
105、nderlying financial performance.In H1 2023,Glencore recognised a net income,after tax and non-controlling interests,of$363 million(2022:$1,236 million)in significant items comprised primarily of:Movement in unrealised inter-segment profit elimination of$176 million(2022:$488 million).See note 3.Gain
106、 on acquisitions and disposals of non-current assets of$679 million(2022:$1,463 million),primarily related to the disposal of Cobar in June 2023.The 2022 gain resulted from the acquisition of the remaining 66.67%interest in Cerrejn($1,029 million)and the disposal of Ernest Henry($512 million).See no
107、te 5.Other net income/(expense)net expense of$18 million(2022:$502 million)see note 6.Balance primarily comprises:$190 million(2022:net losses of$290 million)of net foreign exchange gains,whereby 2022 primarily related to realised foreign currency losses,recycled from other comprehensive income,reco
108、gnised on intragroup restructuring.$81 million(2022:$153 million)relating to various legal matters and related costs(legal,expert and compliance),including in respect of the various investigations(see note 28).$87 million(2022:gain of$41 million)of mark-to-market losses on equity investments/derivat
109、ive positions accounted for as held for trading,including the commodity price linked deferred consideration related to the sale of Mototolo in 2018 and the ARM Coal non-discretionary dividend obligation.$Nil(2022:$83 million)of closed site rehabilitation provisioning,being the movements in restorati
110、on,rehabilitation and decommissioning estimates related to sites that are no longer operational.Impairments of$47 million(2022:reversal of impairments of$40 million),see note 8.The current period charge relates to advances and loans,with no individually material item.The 2022 various impairment reve
111、rsals resulted from significantly improved conditions in the oil and gas markets,particularly over the short-term,none of which were individually material.Income tax expenses of$367 million(2022:$284 million)see income taxes below.FINANCIAL AND OPERATIONAL REVIEW Glencore Half-Year Report 2023 Net f
112、inance costs Net finance costs were$839 million during H1 2023,up$243 million(27%)compared to$596 million in the comparable reporting period.Interest expense for 2023 was$1,160 million,up 58%compared to H1 2022,due to higher average base floating rates(mainly SOFR).Interest income was$321 million,up
113、 from$140 million in H1 2022,due also to higher average base rates.Income taxes An income tax expense of$1,731 million was recognised during H1 2023,compared to an expense of$3,917 million during H1 2022.Adjusting for$367 million of income tax expenses(2022:$284 million)relating to significant items
114、(primarily on account of foreign exchange fluctuations and tax losses not recognised),the H1 2023 pre-significant items income tax expense was$1,364 million(2022:$3,633 million).The 2023 calculated effective tax rate,pre-significant items,was 31.9%,compared to 27.9%in H1 2022.Current and non-current
115、 assets Total assets were$121,754 million as at 30 June 2023,compared to$132,583 million as at 31 December 2022.Current assets decreased from$69,223 million to$62,833 million,due primarily to a decrease in inventories,trade receivables,fair values of our physical forward contracts and derivative hed
116、ging instruments(other financial assets),as well as margin calls paid in respect of the Groups hedging activities,all on account of lower commodity prices at period end relative to 31 December 2022.Non-current assets decreased from$63,360 million to$58,921 million,primarily due to the reclassificati
117、on of the investment in Viterra($3.8 billion)to assets held for sale(see note 16),following the announcement of an agreed disposal of this business,and a net decrease in property,plant and equipment with capital expenditure over the period being below depreciation and amortisation expense.Current an
118、d non-current liabilities Total liabilities were$80,581 million as at 30 June 2023,compared to$87,364 million as at 31 December 2022.Current liabilities decreased from$53,420 million to$46,643 million,primarily due to a decrease in fair values of our physical forward contracts and derivative hedging
119、 instruments(other financial liabilities),on account of the lower energy related commodity prices noted above,income tax payable,following the settlement of 2022 income tax accruals notably in Australia and Colombia,provisions(final payment of the DOJ resolutions see note 22)and a decrease in curren
120、t borrowings(see note 20).Non-current liabilities as at period end were$33,944 million,consistent with the prior year.Movements relating to current and non-current borrowings are set out below in the net funding and net debt movement reconciliation and in note 20.Equity Total equity was$41,173 milli
121、on as at 30 June 2023,compared to$45,219 million as at 31 December 2022,the movements being primarily the income for the period of$4,268 million,including non-controlling interests and a decrease in other comprehensive income noted below,offset by$8,028 million of approved shareholder distributions
122、and buybacks concluded during the period.Other comprehensive income/(loss)A loss of$285 million was recognised during H1 2023,compared to an loss of$641 million during H1 2022,relating to net mark-to-market losses of$13 million(2022:$1,139 million)with respect to various minority investments(see not
123、e 12)and foreign exchange translation loss of foreign operations of$315 million(2022:$188 million loss),primarily our South African ZAR-denominated subsidiaries,offset by foreign exchange losses recycled to the statement of income of$Nil(2022:$509 million)and net defined benefit plan remeasurements
124、of$31 million(2022:$115 million).Cash flow and net funding/debt Net funding US$million 30.06.2023 31.12.2022 Total borrowings as per financial statements 28,662 28,777 Proportionate adjustment net funding2 734 646 Cash and cash equivalents (1,863)(1,923)Net funding 27,533 27,500 FINANCIAL AND OPERAT
125、IONAL REVIEW Glencore Half-Year Report 2023 Cash and non-cash movements in net funding US$million H1 2023 H1 2022 H2 2022 Cash generated by operating activities before working capital changes 8,408 18,290 14,625 Proportionate adjustment Adjusted EBITDA1 1,011 1,236 1,166 Non-cash adjustments include
126、d within EBITDA 24 11 24 Net interest paid1 (631)(465)(604)Tax paid1 (5,462)(3,735)(2,169)Dividends received from associates1 362 88 471 Funds from operations 3,712 15,425 13,513 Net working capital changes2 3,651 (8,725)(4,758)Increase in long-term advances and loans (200)Acquisition and disposal o
127、f subsidiaries net2 571 762 (153)Purchase and sale of investments net2 (33)(164)292 Purchase and sale of property,plant and equipment net2 (2,478)(2,044)(2,499)Margin receipts/(payments)in respect of financing related hedging activities 258 (1,389)(435)Proceeds received on acquisition of non-control
128、ling interests in subsidiaries 9 Distributions paid and transactions of own shares net (5,181)(2,164)(5,375)Cash movement in net funding 509 1,501 585 Net funding acquired in business combinations (6)(20)Change in lease obligations (341)(149)(230)Foreign currency revaluation of borrowings and other
129、non-cash items (195)1,518 132 Total movement in net funding (33)2,850 487 Net funding,beginning of period (27,500)(30,837)(27,987)Net funding,end of period (27,533)(27,987)(27,500)Less:Readily marketable inventories1 25,991 25,679 27,425 Net debt,end of period (1,542)(2,308)(75)1 Refer to APMs secti
130、on for definition and reconciliations.2 Refer to Other reconciliations section.The reconciliation in the table above is the method by which management reviews movements in net funding and net debt and comprises key movements in cash and any significant non-cash items.Net funding as at 30 June 2023 w
131、as$27,533 million,consistent with the prior year and net debt(net funding less readily marketable inventories)increased by$1.5 billion over the period to$1,542 million.Funds from operations were$3,712 million,heavily constrained by the lag effect of settlement in H1 2023,of 2022 final income tax pay
132、ments,most notably in Australia($1.8 billion)and Colombia($0.9 billion),due to the high coal concentrated industrial earnings in 2022.RMI reduced by$1.4 billion,while$2.2 billion of net non-RMI working capital inflows were realised during the period,mainly on account of a$2.1 billion reduction in ne
133、t initial margin calls and lower net physical forward commodity contract valuations of$1.1 billion,all due primarily to lower energy prices(oil,gas,coal),less the final amount of$0.5 billion paid in respect of the DOJ investigations and a$0.9 billion reduction in deferred income.These various inflow
134、s countered$2,478 million of net capital expenditure and$5,181 million of shareholder distributions and buybacks,such that net funding was largely flat over the period,with a$1.5 billion increase in net debt to$1,542 million.Business and investment acquisitions and disposals Net inflows from busines
135、s acquisitions were$547 million over the period,compared to an inflow of$598 million in H1 2022,mainly comprising proceeds from the sale of Cobar($761 million),offset by the purchase of the remaining 75%interest,not previously owned,in the Noranda Income Fund(Canadian electrolytic zinc refinery)for$
136、199 million(including assumed debt).The net inflow in 2022 comprised proceeds from the sale of Ernest Henry for$584 million(see note 24).Liquidity and funding activities In April 2023(effective May 2023),Glencore refinanced its core short-and medium-term revolving credit facilities.As at 30 June 202
137、3,the overall facilities comprise:$9,060 million one-year revolving credit facility with a one-year borrowers term-out option(to May 2025);and$3,900 million medium-term revolving credit facility(to May 2028).As in previous years,these committed unsecured facilities contain no financial covenants,no
138、rating triggers,no material adverse change clauses and no external factor clauses.As at 30 June 2023,Glencore had available committed liquidity amounting to$12,926 million(31 December 2022:$13,000 million).In light of the Groups extensive funding activities,maintaining investment grade credit rating
139、 status is a financial priority.The Groups credit ratings are currently Baa1(positive outlook)from Moodys and BBB+(positive outlook)from Standard&Poors.Glencores publicly stated objective,as part of its overall financial policy package,is to seek and maintain a minimum of strong Baa/BBB credit ratin
140、gs from Moodys and Standard&Poors respectively.In support thereof,Glencore targets a maximum 2x Net debt/Adjusted EBITDA ratio through the cycle,augmented by a Net debt cap of c.$10 billion.FINANCIAL AND OPERATIONAL REVIEW Glencore Half-Year Report 2023 The Group is exposed to a number of risks and
141、uncertainties in its business which could impact its ability to effectively execute its strategy over the remaining six months of the year and cause actual results to differ materially from expected and/or historical results.The Directors consider that the principal risks and uncertainties as summar
142、ised below and detailed in the Glencore 2022 Annual Report on pages 89 to 103,available at ,remain appropriate for the remainder of 2023,when read together with the information provided in this report.Being a resources company,we are subject to the inherent risk of sustained low prices for our main
143、commodities,particularly affecting our Industrial business.The revenue and earnings of substantial parts of our Industrial asset activities and,to a lesser extent,our Marketing activities,are dependent upon prevailing commodity prices.Liquidity risk is the risk that we are unable to meet our payment
144、 obligations when due,or are unable,on an ongoing basis,to borrow funds in the market at an acceptable price to fund our commitments.This affects us as a global company usually selling in US dollars but having costs in a large variety of other currencies.We are subject to the risk of non-performance
145、 by our suppliers,customers,and hedging counterparties,in particular via our Marketing activities.We control and operate assets in many countries across the globe,some of which are categorised as developing,complex or having unstable political or social environments.As a result,we are exposed to a w
146、ide range of political,economic,regulatory,social and tax environments.Regulatory regimes applicable to resource companies can often be subject to adverse and short-term changes.We are exposed to extensive laws and regulations,including those relating to bribery and corruption,sanctions,taxation,ant
147、i-trust,financial markets regulation and rules,environmental protection,use of hazardous substances,product safety and dangerous goods regulations,post-closure reclamation,employment of labour and occupational health and safety standards.In addition,there are a number of high expectations regarding
148、the need to act ethically in our business and we are exposed to the risk that unethical business practices may,by themselves,harm our ability to engage with certain business partners,and/or give rise to questions whether we are committed to complying with applicable laws.The ever-increasing reliance
149、 on digital technologies has brought with it a corresponding rise in cyber-related risks,ranging from the proliferation of ransomware to nation-state activity and the monetisation of cybercrime.Our industrial production,operations,environmental management,health and safety management,communications,
150、transaction processing,and risk management all rely on information technologies,while our long supply chains involve numerous third parties that are exposed to the same cyber risks.Industrial operations are inherently hazardous.The success of Glencores business is dependent on a safe and healthy wor
151、kforce and work environment.Our operations around the world can have direct or indirect impacts on the environment and host communities.Our ability to manage and mitigate these may impact maintenance of our operating licences as well as affect future projects,acquisitions and our reputation.FINANCIA
152、L AND OPERATIONAL REVIEW Glencore Half-Year Report 2023 We have a geographically diverse business,operating in both developed and developing countries in an array of different contexts.A perception that we are not respecting human rights or generating local sustainable benefits could have a negative
153、 impact on our ability to operate effectively,our reputation with stakeholders,our ability to secure access to new resources,our capacity to attract and retain the best talent and ultimately,our financial performance.Catastrophic or natural disaster events at our industrial assets can have disastrou
154、s impacts on workers,communities and the environment,while also impacting production and resulting in substantial financial costs and harm to our reputation.These events may arise due to natural causes(flood,earthquake,drought)or due to infrastructure or equipment failure(tailing storage facility fa
155、ilure),or both.Climate change may increase physical risks to our assets and related infrastructure,largely driven from extreme weather events and water-related risks such as flooding or water scarcity.Our industrial activities are subject to significant risks throughout each operations life cycle,fr
156、om project planning through initiation,development,operation and/or expansion and ultimate closure.The global transition to a low-carbon economy may affect our business through regulations to reduce emissions,carbon pricing mechanisms,reduced access to capital,permitting risks and fluctuating energy
157、 costs,as well as changing demand for the commodities we produce and market.As at 30 June 2023,Glencore had available committed liquidity amounting to$12,926 million.Based on these available liquidity resources and the Groups financial forecasts and projections,which take into account reasonably pos
158、sible changes in performance and consideration of the principal risks and uncertainties noted above,the Directors believe the Group can continue as a going concern for the foreseeable future,a period not less than 12 months from the date of this report.The Investigations Committee is continuing to m
159、anage the Companys response to the government investigations(see notes 22 and 28)and the Company continues to cooperate with the relevant authorities.The timing and outcome of the outstanding investigations remain uncertain.One of the tools used by Glencore to monitor and limit its primary market ri
160、sk exposure,namely commodity price risk related to its physical marketing activities,is the use of a value at risk(VaR)computation.VaR is a risk measurement technique,which estimates the potential loss that could occur on risk positions as a result of movements in risk factors over a specified time
161、horizon,given a specific level of confidence.The VaR methodology is a statistically defined,probability-based approach that takes into account market volatilities,as well as risk diversification by recognising offsetting positions and correlations between commodities and markets.In this way,risks ca
162、n be measured consistently across markets and commodities and risk measures can be aggregated to derive a single risk value.Glencores Board,as part of its annual review process in H2 2022,approved a Group VaR limit(excluding LNG)of$150 million,while maintaining a separate multipronged LNG risk repor
163、ting and control structure,including the calculation and highlighting of VaR outcomes including LNG.Glencore uses a one-day VaR approach based on a Monte Carlo simulation with a weighted data history computed at a 95%confidence level.Average market risk VaR(one day 95%)during H1 2023,excluding LNG,w
164、as$95 million,with an observable high of$130 million and a low of$39 million.Including LNG,average market risk VaR(one day 95%)during H1 2023 was$115 million,while the equivalent average VaR during H1 2022 was$138 million.The Groups market risk VaR(one day 95%),excluding LNG,as at 30 June 2023 was$3
165、9 million($73 million,including LNG).There were no limit breaches during the period.FINANCIAL AND OPERATIONAL REVIEW Glencore Half-Year Report 2023 Earlier in 2023,the Directors recommended a cash distribution,in respect of the 2022 financial year,of$0.44 per share amounting to some$5.6 billion,acco
166、unting for own shares held as at 31 December 2022,which was approved at the Companys AGM.The first tranche of the distribution of$0.22 per ordinary share amounting to$2,749 million was paid on 1 June 2023.The second tranche of$0.22 per ordinary share is due on 22 September 2023,in accordance with th
167、e Companys announcement of the 2023 Distribution timetable made on 15 February 2023.The Directors have now declared a further cash distribution of$0.08 per ordinary share,amounting to c.$1 billion,to be paid concurrently with the$0.22 per ordinary share second tranche of the previously approved dist
168、ribution.The Company will also conduct a buy-back of its own shares up to the value of$1.2 billion,with intended completion by the time of the Groups full year results announcement in February 2024.The cash distribution is to be effected as a reduction of the capital contribution reserves of the Com
169、pany.As such,this distribution would be exempt from Swiss withholding tax.As at 30 June 2023,Glencore plc had CHF11 billion of such capital contribution reserves in its statutory accounts.The distribution is ordinarily paid in US dollars.Shareholders on the Jersey register may elect to receive the d
170、istribution in sterling,euros or Swiss francs,the exchange rates of which will be determined by reference to the rates applicable to the US dollar at the time.Shareholders on the Johannesburg register will receive their distribution in South African rand.Further details on distribution payments,toge
171、ther with currency election and distribution mandate forms,are available from the Groups website()or from the Companys Registrars.In May 2023,Patrice Merrin retired from the Board.Following her retirement,the following changes in the composition of the Board Committees have taken place:ECC Committee
172、:Cynthia Carroll has replaced Patrice Merrin as Chair of the Committee;Remuneration Committee:Martin Gilbert has replaced Cynthia Carroll as Chair of the Committee.Cynthia Carroll remains a member of the Committee;Investigations Committee:Liz Hewitt has replaced Patrice Merrin as a member of the Com
173、mittee.Glencore Half-Year Report 2023 Marketing Adjusted EBIT of$1,773 million was a strong result in the context of the last 10 years,consistent with H1 2021 and some 12%lower than H1 2020.However,reflecting the presence of extreme market volatility and dislocation that prevailed for much of 2022,p
174、articularly in energy markets,Marketing Adjusted EBIT in H1 2023 was 52%lower than in H1 2022.2023 is characterised to date by international energy trade flows,due to various supply and demand factors,largely rebalancing and normalising,with oil and notably natural gas prices having therefore trende
175、d lower.Coal prices,including due to their high correlation with LNG,also materially reduced.While the resulting lower energy price environment offers some relief for businesses and consumers,the recent cycle of cost inflation taking hold,associated central bank interest rate rises to contain such i
176、nflation and only modest Chinese economic growth,have all collectively limited global growth.High profile banking failures in the U.S.and Europe also contributed to risk aversion,with metals prices,in addition to energy,responding accordingly.Nevertheless,there have been pockets of strong demand(EVs
177、,aerospace,renewables,power transmission spending,etc)and relevant geographic/sector-specific metals premiums have been relatively strong.Against the above backdrop,Adjusted EBIT from the Energy products business was$1,009 million,a 66%decrease from the record-setting prior period,and Adjusted EBIT
178、from Metals and minerals was$803 million,a decrease of 18%compared to H1 2022.Viterra(reported within corporate and other)contributed$132 million on an attributable,after-tax basis,which was$152 million(54%)lower than in H1 2022.In June 2023,Glencore agreed to dispose of its interest in Viterra in a
179、 cash-and-shares transaction with Bunge(see note 16).US$million Metals and minerals Energy products Corporate and other1 H1 2023 Metals and minerals Energy products Corporate and other1 H1 2022 Revenue 34,952 56,479 91,431 43,013 71,298 114,311 Adjusted EBITDA 833 1,193 (39)1,987 1,013 3,177 (303)3,
180、887 Adjusted EBIT 803 1,009 (39)1,773 985 2,986 (303)3,668 Adjusted EBITDA margin 2.4%2.1%n.m.2.2%2.4%4.5%n.m.3.4%1 Corporate and other Marketing activities includes$132 million pre-significant items(H1 2022:$284 million)of Glencores equity accounted share of Viterra.Selected marketing volumes sold
181、Units H1 2023 H1 2022 Change%Copper metal and concentrates1 mt 1.7 1.7 Zinc metal and concentrates1 mt 1.2 1.3 (8)Lead metal and concentrates1 mt 0.4 0.4 Gold toz 992 979 1 Silver toz 26,177 35,657 (27)Nickel kt 174 186 (6)Ferroalloys2 mt 4.6 4.6 Alumina/aluminium mt 4.8 5.2 (8)Iron ore mt 41.1 30.7
182、 34 Thermal coal2 mt 36 35 3 Metallurgical coal2 mt 1.2 1.7 (29)Crude oil mbbl 307 302 2 Oil products mbbl 272 279 (3)1 Estimated metal unit contained.2 Includes agency volumes.Having started the year at$8,365/t,the improving demand outlook from China,following relaxation of Covid-19 restrictions in
183、 late 2022,and weak mine supply growth,supported prices moving rapidly to the$9,300/t level in early H1 2023.Demand sentiment in North America and Europe has since weakened and the outlook for China remains uncertain,such that speculative positioning moved net-short during the latter part of H1 2023
184、,with prices progressively declining,ending H1 2023 effectively unchanged over the period,supported by a tightly balanced market and low visible inventories.North American and European cathode markets remained relatively stable during H1 2023,with generally good order books and consumption.In China,
185、solid refined copper demand was supported by strong energy transition demand.Spot smelter treatment and refining charges moved higher during H1 2023,after logistics disruptions to flows of copper concentrate earlier in the year and Chinese smelters undertaking seasonal maintenance.The expectation of
186、 a progressive increase in concentrate mine supply during 2023 continued to drive treatment and refining charges higher,with Chinas CSPT setting its Q3 2023 import buying guidance at$95/9.5c,the highest level in 5 years.However,given scheduled expansions in smelting capacity over the next few years,
187、there is likely to be increased competition for concentrates from late 2024.Looking forward,we continue to expect mine supply growth to be constrained by aging assets,a diminished project pipeline and geopolitical conditions,with new projects likely to experience delays.In the near term,global deman
188、d sentiment is dependent on MARKETING ACTIVITIES Glencore Half-Year Report 2023 the outlook for and implications of fiscal policies,and stimulus measures taken by China to support its economic growth.In the longer term,demand will be driven by population growth and rising living standards in emergin
189、g economies,supported by climate change policies and decarbonisation measures,expected to result in increased copper usage,given its crucial role in accelerating the clean energy transition,from renewable power generation and distribution,to energy storage and electric vehicles(EVs).Cobalt metal pri
190、ces averaged$15.21/lb in H1 2023,59%lower than H1 2022.Pricing commenced the year at$18.75/lb amid a downward trend,reaching$15/lb in late February.Consumer goods demand,post the negative demand shock in 2022,showed sequential improvement each month through H1 2023,albeit off a low base.By late Q2,d
191、emand had progressed to the extent that hydroxide availability in China was tightening.Elsewhere,demand in key metal segments,such as aerospace,continued to post double digit demand growth,helping to lift metal pricing to$14.25/lb as at end of June 2023,bouncing off the lows of around$12.90/lb in ea
192、rly June,with alloy grade premiums in excess of$2/lb.Cobalt hydroxide payabilities commenced the year at 58-61%,reflecting the large hydroxide stock overhang,basis the 2022 consumer goods demand shock and large supply chain destocking.By May,the payable range reached historical lows of 51-53%,with s
193、ubsequent market tightening factors then inducing a rally to 63-66%by the end of H1.For much of the first half,the cobalt market was heavily influenced by negative factors,both on the demand and supply side,which resulted in continued inventory build.However,consumer goods demand,which still rivals
194、EVs among the largest demand segments,continues to show sequential recovery.EV supply chain demand has underwhelmed somewhat YTD,despite healthy sales.We believe that the structural cobalt demand fundamentals remain intact,as we move closer to a step-up in cobalt-intensive Western EV build-out.Exces
195、s hydroxide stocks should erode as demand sectors synchronise growth,accelerated by strategic and proactive stockpiling of critical minerals.We note that since the reporting period closed,China has embarked on its latest,and most significant,round of strategic stockpiling.Zinc demand growth slightly
196、 recovered in China versus 2022,albeit from a low base,yet it remains sluggish in the rest of the world(RoW).China imported metal towards the end of Q2 for the first time in 18 months,with net imports being 50kt YTD May 2023,compared to a net export position in 2022,with imports expected to continue
197、 in H2 2023.The combination of additional zinc smelting capacity,and fragility of demand in some sectors,particularly construction,saw average zinc prices decline by 26%from$3,819/t in H1 2022 to$2,839/t in H1 2023.Despite Chinas capacity expansions,visible metal inventories continue to be at histor
198、ically low levels of around 5 days of global consumption,which,combined with pockets of stronger demand recovery in the US and Europe,sustained ex-China metal premiums at elevated levels.In the concentrates market,2023 annual benchmark smelting terms were agreed at$274/dmt(up$44/dmt from 2022)with p
199、rice participation,supported mainly by the surplus of concentrates accumulated in 2022,amid a large proportion of European zinc smelter capacity being offline.Ex-China mine supply faced various operational disruptions in 2023,as well as mines going onto price-driven care and maintenance,leading spot
200、 TCs lower from highs of$270/dmt early in the year to$160-190/dmt by June 2023.In the lead market,average LME prices declined to$2,127/mt in H1 2023(-6%vs H1 2022),with exchange stocks nearing historical lows in both SHFE and LME.Annual 2023 benchmark terms for concentrates were agreed at$111/dmt(-1
201、5%year-over-year(YoY),the low spot TCs and elevated lead metal premiums in the RoW indicating continued tight market conditions.Amid mounting macro headwinds and subdued manufacturing activity,global stainless steel production,which makes up over 60%of primary nickel demand,was down year-on-year,as
202、growth in China(+4.5%)was insufficient to offset the drop in RoW(-10%).In contrast,nickel consumption from batteries continues to increase,supported by the sharp rise of EV demand in the US and Europe,while nickel consumption growth in China is being held back by the high penetration of nickel-free
203、LFP batteries.At the same time,nickel demand from the alloy and special steel segments remains robust,buoyed by strong end-use demand from key sectors such as oil&gas,aerospace and defence.The low-grade(or Class II)nickel market remains in surplus,due to the ongoing expansion of nickel pig iron(NPI)
204、production in Indonesia.Furthermore,intermediates production(mixed hydroxide precipitate and nickel matte)continued to ramp up in Indonesia,which is being used as feed in support of new nickel cathode production in China,resulting in the high-grade(or Class I)market shifting into a modest surplus.Th
205、e LME nickel price has been trending lower since the beginning of the year.Visible inventories appear to have bottomed in Q2 2023,with stock levels remaining at multiyear lows.Global demand for ferrochrome remained flat in H1 2023 compared to the previous year,primarily due to strong consumption in
206、China being offset by weak demand from RoW.More seaborne ferrochrome units were directed to China,with imports up 69%YoY.Chrome ore prices were up 20%YoY,due to limited supply growth and ongoing logistics constraints out of South Africa.Ferrovanadium prices decreased by 13%during H1 2023,due to weak
207、 demand from the steel sector and a 15%YoY increase in Chinese production.Vanadium consumption in the aerospace sector remains robust having recovered to pre-pandemic levels.MARKETING ACTIVITIES Glencore Half-Year Report 2023 Global pig iron production recovered around 1%YoY in H1 2023,mostly from C
208、hina(+3%)and India(+5%),offsetting losses elsewhere.However,the landscape in China has shifted,whereby lower consumer confidence has impacted real estate,but manufacturing and infrastructure spending beat market expectations.Iron ore seaborne supply remained strong in H1 2023(+4%YoY),largely due to
209、minimal weather disruption.Owing to Chinese steel-mill profitability remaining relatively low,mills have generally maintained low inventories and interest in lower-value feedstock.China has also indicated that it might curb steel output during H2,which would clearly be relevant to iron ore markets.C
210、ompared to the highly volatile 2022,the aluminium price environment in H1 2023 was significantly more stable.In January,the 3m price reached a high of$2,680/t,reflecting a stronger macroeconomic outlook in China and RoW.However,disappointing economic data from China and rising interest rates thereaf
211、ter,resulted in price declines to between$2,150/t and$2,500/t,with the half-year period ending around the lower end at$2,152/t.After a steep decline in H2 2022,premiums in Europe and the US retraced somewhat during the period.The Midwest premium closed the period at 23c/lb,with the CIF Main Japanese
212、 Port Premium increasing from$75/t to$115/t,supported by robust demand in adjacent Asian markets.Alumina prices started and finished the period around$330/t,although they temporarily increased earlier in the year to around$370/t.On 19 June 2023,the SHFE became the first futures exchange to launch a
213、physical deliverable alumina contract,with Glencore being the buyer of the first transaction on the exchange.Bauxite prices remained rangebound,albeit at historically elevated levels,during H1 2023.An Indonesian export ban came into effect on 11 June 2023,with Guinea having progressively increased i
214、ts output to make up for the supply shortfall.Global seaborne thermal coal demand grew 10%YoY during H1 2023.Chinese imported coal demand was a significant growth driver,more than offsetting declines in demand from Europe,Japan,Korea and Taiwan.In terms of supply,Indonesian coal production and expor
215、ts grew significantly during H1 2023,with exports rising 20%YoY,while weather and other operational disruptions were less severe in H1 2023,compared to H1 2022.Average index prices for the period were:GCNewc($204/t),API4($129/t)and API2($136/t),down 43%,52%and 53%respectively from their 2022 average
216、s.Global production of blast furnace pig iron,the main driver of coking coal demand increased by c.1%YoY with growth in China and India offsetting weakness elsewhere.Premium HCC prices averaged$294/t YTD 2023,19%below the$364/t average in 2022.Crude oil prices in H1 2023 traded in a much narrower ra
217、nge compared to 2022.The initial rally in January,driven by optimism around a China post-Covid recovery and expected supply disruptions from Russia,saw prices reach$90/bbl.Concerns around Chinas economic recovery,global monetary tightening,dollar strength and growing recessionary fears then hurt the
218、 near-term outlook for oil,exacerbated by turmoil in the US and European banking sector,pushing oil prices,in March,down to a 15-month low of$73/bbl.For the remainder of H1,uncertainty,regarding the strength of Chinas demand recovery,and consensus on potential Opec+cuts,trapped the market in a narro
219、w trading range of$70-$80/bbl.Gas prices declined sharply over the course of H1 to close at$12/mmbtu($23/mmbtu:31 December 2022),a continuation of the trend towards the end of 2022.Unseasonally mild weather in the northern hemisphere,lower gas demand and improving supply fundamentals weighed on spot
220、 gas prices across all key markets.Oil refining margins remained elevated versus historical averages.In shipping,overall tanker freight markets weakened in H1 2023 from 2022 highs,but earnings in all tanker sectors remained strong on a multi-year cycle.Glencore Half-Year Report 2023 Industrial Adjus
221、ted EBITDA declined by 51%to$7,410 million compared to$15,031 million in H1 2022.This decrease substantially relates to lower coal Adjusted EBITDA,reflecting the progressive significant reductions in energy prices,including coal,from the heavily disrupted market dislocation levels seen in H1 2022.Ad
222、justed EBITDA from Metals and minerals assets of$3,056 million decreased by 48%compared to the prior period.In particular,lower cobalt pricing weighed heavily on African Copper earnings,with period-over-period cobalt hydroxide realisations(via lower payabilities)underperforming the already sharp nea
223、rly 60%fall in average metal prices,as discussed above in the Marketing section.Lower own source production from INO(nickel)and Collahuasi(copper),due to a lengthy prior year strike and mine phasing,respectively,had a sizeable negative period-over-period earnings impact,with both operations expected
224、 to strongly increase production levels in H2 2023.Furthermore,cost inflation,across a broad range of categories,increased our overall period-over-period unit cost positions,as the lag effect of 2022s accelerating inflation readings took hold in our businesses,although we are seeing these pressures
225、now moderating.Adjusted EBITDA from Energy products assets was$4,658 million compared to$9,465 million in the comparable period,due to the significantly lower coal prices,and to a lesser extent oil and gas,as noted above.As a result,Adjusted EBITDA mining margins were 25%(43%in H1 2022)in our metals
226、 operations and 50%(H1 2022:66%)in our energy operations.Industrial capex at$2,469 million was 26%higher than the comparable period.US$million Metals and minerals Energy products Corporate and other H1 2023 Metals and minerals Energy products Corporate and other H1 2022 Revenue 17,423 13,137 4 30,56
227、4 21,206 19,574 3 40,783 Adjusted EBITDA 3,056 4,658 (304)7,410 5,877 9,465 (311)15,031 Adjusted EBIT 1,301 3,557 (326)4,532 3,969 8,124 (346)11,747 Adjusted EBITDA mining margin 25%50%35%43%66%54%Production from own sources Total1 H1 2023 H1 2022 Change%Copper kt 488.0 510.2 (4)Cobalt kt 21.7 20.7
228、5 Zinc kt 434.7 480.7 (10)Lead kt 87.4 95.1 (8)Nickel kt 46.4 57.8 (20)Gold koz 369 334 10 Silver koz 9,446 12,579 (25)Ferrochrome kt 717 786 (9)Coal mt 54.2 55.4 (2)1 Controlled industrial assets and joint ventures only.Production is on a 100%basis,except for joint ventures,where the Groups attribu
229、table share of production is included.INDUSTRIAL ACTIVITIES Glencore Half-Year Report 2023 US$million Revenue Adjusted EBITDA Adjusted EBITDA mining margin2,3 Depreciation and amortisation Adjusted EBIT Capital expenditure Sustaining Expansionary Total Copper assets Africa 1,173 172 15%(297)(125)212
230、 37 249 Collahuasi1 978 610 62%(139)471 116 262 378 Antamina1 709 519 73%(180)339 165 5 170 Other South America 1,101 529 48%(317)212 235 31 266 Australia 164 24 15%(5)19 Polymet (17)(17)1 1 2 Custom metallurgical 5,029 287 (85)202 102 11 113 Intergroup revenue elimination (101)Copper 9,053 2,124 45
231、%(1,023)1,101 831 347 1,178 Zinc assets Kazzinc 1,801 337 19%(293)44 134 21 155 Australia 1,604 (16)(1%)(125)(141)111 8 119 European custom metallurgical 1,796 153 (51)102 30 6 36 North America 575 83 (24)59 27 27 Volcan 27 27 Other Zinc 8 1 13%1 Zinc 5,784 585 9%(493)92 302 35 337 Nickel assets Int
232、egrated Nickel Operations 688 88 13%(158)(70)91 137 228 Australia 463 144 31%(14)130 7 7 Koniambo 180 (252)(140%)(14)(266)Nickel 1,331 (20)(2%)(186)(206)98 137 235 Ferroalloys 1,255 398 32%(53)345 49 7 56 Aluminium/Alumina (31)(31)2 2 Metals and minerals 17,423 3,056 25%(1,755)1,301 1,282 526 1,808
233、Coking Australia 1,070 542 51%(127)415 65 65 Thermal Australia 5,888 3,434 58%(610)2,824 321 321 Thermal South Africa 784 191 24%(146)45 87 87 Cerrejn 1,242 390 31%(124)266 118 118 Prodeco (30)(1)(31)1 1 Coal(own production)8,984 4,527 50%(1,008)3,519 592 592 Coal other revenue(buy-in coal)670 Oil E
234、&P assets 209 94 45%(55)39 3 3 Oil refining assets 3,274 37 (38)(1)35 1 36 Energy products 13,137 4,658 50%(1,101)3,557 630 1 631 Corporate and other 4 (304)(22)(326)30 30 Total Industrial activities 30,564 7,410 35%(2,878)4,532 1,912 557 2,469 1 Represents the Groups share of these JVs.2 Adjusted E
235、BITDA mining margin for Metals and Minerals is Adjusted EBITDA excluding non-mining assets as described below($2,537 million(H1 2022:$5,387 million)divided by Revenue excluding non-mining assets and intergroup revenue elimination($10,124 million(H1 2022:$12,611 million)i.e.the weighted average EBITD
236、A margin of the mining assets.Non-mining assets are the Copper custom metallurgical assets,Zinc European custom metallurgical assets,Zinc North America(principally smelting/processing),the Aluminium/Alumina group and Volcan(equity accounted with no relevant revenue)as noted in the table above.Glenco
237、re Half-Year Report 2023 US$million Revenue Adjusted EBITDA Adjusted EBITDA mining margin2,3 Depreciation and amortisation Adjusted EBIT Capital expenditure Sustaining Expansionary Total Copper assets Africa 1,834 987 54%(240)747 170 20 190 Collahuasi1 1,097 799 73%(143)656 78 43 121 Antamina1 833 6
238、26 75%(166)460 149 2 151 Other South America 1,119 567 51%(255)312 245 245 Australia 198 54 27%(31)23 44 44 Polymet (7)(7)4 4 Custom metallurgical 5,362 265 (85)180 79 79 Intergroup revenue elimination (200)Copper 10,243 3,291 60%(920)2,371 769 65 834 Zinc assets Kazzinc 1,893 547 29%(281)266 111 29
239、 140 Australia 1,869 450 24%(320)130 179 11 190 European custom metallurgical 2,366 78 (59)19 34 25 59 North America 1,067 113 (57)56 12 12 Volcan 6 6 Other Zinc 141 29 21%(12)17 8 8 Zinc 7,336 1,223 26%(729)494 344 65 409 Nickel assets Integrated Nickel Operations 1,201 596 50%(165)431 69 137 206 A
240、ustralia 634 284 45%(13)271 12 12 Koniambo 440 (14)(3%)(19)(33)5 5 Nickel 2,275 866 38%(197)669 86 137 223 Ferroalloys 1,352 470 35%(62)408 48 4 52 Aluminium/Alumina 28 28 2 2 Iron ore (1)(1)Metals and minerals 21,206 5,877 43%(1,908)3,969 1,249 271 1,520 Coking Australia 1,440 923 64%(103)820 55 55
241、 Thermal Australia 7,635 5,031 66%(718)4,313 174 174 Thermal South Africa 1,587 993 63%(209)784 54 54 Cerrejn 2,936 2,037 69%(219)1,818 92 92 Prodeco (77)(77)Coal(own production)13,598 8,907 66%(1,249)7,658 375 375 Coal other revenue(buy-in coal)888 Oil E&P assets 498 443 89%(55)388 10 10 Oil refini
242、ng assets 4,590 115 (37)78 51 51 Energy products 19,574 9,465 66%(1,341)8,124 436 436 Corporate and other 3 (311)(35)(346)11 11 Total Industrial activities 40,783 15,031 54%(3,284)11,747 1,685 282 1,967 3 Energy products EBITDA margin is Adjusted EBITDA for coal and Oil E&P(but excluding Oil refinin
243、g)($4,621 million(H1 2022:$9,350 million),divided by the sum of coal revenue from own production and Oil E&P revenue($9,193 million(H1 2022:$14,096 million).INDUSTRIAL ACTIVITIES Glencore Half Year Report 2023 Production from own sources Copper assets1 H1 2023 H1 2022 Change%African Copper(Katanga,M
244、utanda)Copper metal kt 120.2 110.0 9 Cobalt2 kt 20.4 19.0 7 Collahuasi3 Copper in concentrates kt 114.4 127.8 (10)Silver in concentrates koz 1,612 1,803 (11)Gold in concentrates koz 20 19 5 Antamina4 Copper in concentrates kt 68.3 77.2 (12)Zinc in concentrates kt 77.1 72.2 7 Silver in concentrates k
245、oz 1,950 2,606 (25)Other South America(Antapaccay,Lomas Bayas)Copper metal kt 29.8 35.0 (15)Copper in concentrates kt 82.7 73.7 12 Gold in concentrates and in dor koz 56 29 93 Silver in concentrates and in dor koz 609 643 (5)Cobar Copper in concentrates kt 15.0 18.8 (20)Silver in concentrates koz 18
246、0 212 (15)Total Copper department Copper kt 430.4 442.5 (3)Cobalt kt 20.4 19.0 7 Zinc kt 77.1 72.2 7 Gold koz 76 48 58 Silver koz 4,351 5,264 (17)Production from own sources Zinc assets1 H1 2023 H1 2022 Change%Kazzinc Zinc metal kt 49.5 67.5 (27)Zinc in concentrates kt 22.5 6.4 252 Lead metal kt 8.8
247、 9.8 (10)Lead in concentrates kt 7.5 n.m.Copper metal5 kt 5.0 10.3 (51)Gold koz 288 277 4 Silver koz 1,107 1,440 (23)Silver in concentrates koz 263 n.m.Australia(Mount Isa,Townsville,McArthur River)Zinc in concentrates kt 263.4 276.0 (5)Copper metal kt 35.1 29.0 21 Lead in concentrates kt 71.1 79.9
248、(11)Silver koz 338 238 42 Silver in concentrates koz 2,421 2,690 (10)North America(Matagami,Kidd)6 Zinc in concentrates kt 22.2 39.9 (44)Copper in concentrates kt 11.4 16.3 (30)Silver in concentrates koz 869 749 16 Other Zinc:South America(Bolivia,Peru)6 Zinc in concentrates kt 18.7 (100)Lead in con
249、centrates kt 5.4 (100)Copper in concentrates kt 0.7 (100)Silver in concentrates koz 2,108 (100)Total Zinc department Zinc kt 357.6 408.5 (12)Lead kt 87.4 95.1 (8)Copper kt 51.5 56.3 (9)Gold koz 288 277 4 Silver koz 4,998 7,225 (31)INDUSTRIAL ACTIVITIES Glencore Half-Year Report 2023 Production from
250、own sources Nickel assets1 H1 2023 H1 2022 Change%Integrated Nickel Operations(INO)(Sudbury,Raglan,Nikkelverk)Nickel metal kt 18.1 27.7 (35)Nickel in concentrates kt 0.1 (100)Copper metal kt 3.9 7.2 (46)Copper in concentrates kt 2.2 4.2 (48)Cobalt metal kt 0.2 0.3 (33)Gold koz 5 9 (44)Silver koz 97
251、90 8 Platinum koz 12 17 (29)Palladium koz 33 50 (34)Rhodium koz 1 2 (50)Murrin Murrin Nickel metal kt 15.6 17.1 (9)Cobalt metal kt 1.1 1.4 (21)Koniambo Nickel in ferronickel kt 12.7 12.9 (2)Total Nickel department Nickel kt 46.4 57.8 (20)Copper kt 6.1 11.4 (46)Cobalt kt 1.3 1.7 (24)Gold koz 5 9 (44)
252、Silver koz 97 90 8 Platinum koz 12 17 (29)Palladium koz 33 50 (34)Rhodium koz 1 2 (50)Production from own sources Ferroalloys assets1 H1 2023 H1 2022 Change%Ferrochrome7 kt 717 786 (9)Vanadium Pentoxide mlb 9.3 9.9 (6)Total production Custom metallurgical assets1 H1 2023 H1 2022 Change%Copper(Altono
253、rte,Pasar,Horne,CCR)Copper metal kt 251.4 232.0 8 Copper anode kt 225.3 238.2 (5)Zinc(Portovesme,San Juan de Nieva,Nordenham,Northfleet,CEZ Refinery)Zinc metal kt 345.3 350.9 (2)Lead metal kt 123.7 159.0 (22)Coal assets1 H1 2023 H1 2022 Change%Australian coking coal mt 3.7 3.9 (5)Australian semi-sof
254、t coal mt 1.9 1.8 6 Australian thermal coal(export)mt 26.7 27.6 (3)Australian thermal coal(domestic)mt 3.2 3.0 7 South African thermal coal(export)mt 6.6 6.3 5 South African thermal coal(domestic)mt 1.9 2.0 (5)Cerrejn mt 10.2 10.8 (6)Total Coal department mt 54.2 55.4 (2)Oil assets H1 2023 H1 2022 C
255、hange%Glencore entitlement interest basis Equatorial Guinea kboe 1,996 2,545 (22)Cameroon kbbl 354 587 (40)Total Oil department kboe 2,350 3,132 (25)1 Controlled industrial assets and joint ventures only.Production is on a 100%basis,except for joint ventures,where the Groups attributable share of pr
256、oduction is included.2 Cobalt contained in concentrates and hydroxides.3 The Groups pro-rata share of Collahuasi production(44%).4 The Groups pro-rata share of Antamina production(33.75%).5 Copper metal includes copper contained in copper concentrates and blister.6 North and South American assets so
257、ld or closed since the beginning of 2022:Matagami(Canada)completed mining in June 2022,Bolivian Zinc sold in March 2022,Peruvian Zinc sold in December 2022.7 The Groups attributable 79.5%share of the Glencore-Merafe Chrome Venture INDUSTRIAL ACTIVITIES Glencore Half-Year Report 2023 Copper assets Ow
258、n sourced copper production of 488,000 tonnes was 22,200 tonnes(4%)lower than H1 2022,consistent with our expectations around mining sequences at Collahuasi and Antamina,and lower copper by-products outside the Copper department.African Copper Own sourced copper production of 120,200 tonnes was 10,2
259、00 tonnes(9%)higher than H1 2022,mainly reflecting higher milling throughput at Mutanda and the ongoing management of geotechnical constraints at Katanga.Own sourced cobalt production of 20,400 tonnes was 1,400 tonnes(7%)higher than H1 2022,reflecting improved cobalt recoveries at Katanga.Collahuasi
260、 Attributable copper production of 114,400 tonnes was 13,400 tonnes(10%)lower than H1 2022,which is aligned with planned lower grades as the next phase of the mine plan is developed.Higher grades and throughput are expected in H2 2023.Antamina Aligned with planned mining sequencing,attributable copp
261、er production of 68,300 tonnes was 8,900 tonnes(12%)lower than H1 2022,while zinc production of 77,100 tonnes was 4,900 tonnes(7%)higher.The impact of heavy rains in March,which temporarily disrupted the pipeline from mine to port,has been resolved.Other South America Copper production of 112,500 to
262、nnes was 3,800 tonnes(3%)higher than H1 2022,reflecting higher copper grades and recoveries at Antapaccay(9,000 tonnes),partially offset by anticipated lower grades(5,200 tonnes)at Lomas Bayas.Cobar Cobar(Australian copper)mine was sold on 16 June 2023.Copper custom metallurgical assets Copper anode
263、 production of 225,300 tonnes was 12,900 tonnes(5%)lower than H1 2022,reflecting maintenance at Altonorte and a scheduled 17-day maintenance shutdown at Horne.Copper cathode production of 251,400 tonnes was 19,400 tonnes(8%)higher than H1 2022,reflecting increased contributions from CCR and Pasar.Zi
264、nc assets Own sourced zinc production of 434,700 tonnes was 46,000 tonnes(10%)lower than H1 2022,mainly reflecting the 2022 disposals of South American zinc operations(18,700 tonnes)and the closure of Matagami(17,300 tonnes).Kazzinc Own sourced zinc production of 72,000 tonnes was in line with H1 20
265、22,reflecting Zhairems ramp-up offset by delayed processing of own-sourced material at Kazzincs smelters,in favour of third-party material.Own sourced lead production of 16,300 tonnes was 6,500 tonnes(66%)higher than H1 2022,due to Zhairems ramp up.Own sourced copper production of 5,000 tonnes was 5
266、,300(51%)lower than H1 2022,due to lower copper grades at the Maleevsky mine,together with furnace downtime at the copper smelter.Own sourced gold production of 288,000 ounces was 4%higher than H1 2022.Australia Zinc production of 263,400 tonnes was 12,600 tonnes(5%)lower than H1 2022,as heavy rains
267、 impacted Mount Isa production in Q1 2023 and McArthur River processed lower-grade feedstocks in accordance with its mine plan.Lead production of 71,100 tonnes was 8,800 tonnes(11%)lower than H1 2022 for the same reasons.Copper production of 35,100 tonnes was 6,100 tonnes(21%)higher than H1 2022,ref
268、lecting partial recovery from Covid-related absenteeism and other issues in the base period.North America Zinc production of 22,200 tonnes was 17,700 tonnes(44%)lower than H1 2022,mainly reflecting the closure of Matagami mine in mid-2022.Kidd production was broadly in line with H1 2022.South Americ
269、a Following disposal of the Bolivian mines at the end of H1 2022 and Los Quenuales in December 2022,no operating assets remain in this grouping.Zinc custom metallurgical assets Zinc metal production of 345,300 tonnes was broadly in line with H1 2022,reflecting the suspension of Nordenham in H2 2022,
270、given recent periods of high European power prices,largely offset by production from CEZ,consolidated from April 2023,following Glencores increased ownership from 25%to 100%.Lead metal production of 123,700 tonnes was 35,300 tonnes(22%)lower than H1 2022,reflecting lower bullion received at Northfle
271、et from Mount Isa,Portovesmes partial care and maintenance,and planned lower production from the active Nordenham lead line.INDUSTRIAL ACTIVITIES Glencore Half-Year Report 2023 Nickel assets Own sourced nickel production of 46,400 tonnes was 11,400 tonnes(20%)lower than H1 2022,primarily reflecting
272、higher INO third party production(versus own sourced),in large part necessitated by the strike at Raglan mine in 2022.Integrated Nickel Operations(INO)Own sourced nickel production of 18,100 tonnes was 9,700 tonnes(35%)lower than H1 2022,due to the strike at Raglan in 2022,which impacted H1 2023 nic
273、kel production,given the long lead time from ore mining in Northern Quebec to finished nickel production in Norway.Total refinery production of 47,100 tonnes was 4,700 tonnes(11%)higher than H1 2022.Murrin Murrin Own sourced nickel production of 15,600 tonnes was 1,500 tonnes(9%)lower than H1 2022 d
274、ue to longer than planned maintenance.Koniambo Nickel production of 12,700 tonnes was broadly in line with H1 2022.The sequential improvement over Q1 2023(2,700 tonnes or 54%)reflected furnace modifications made during Q1s planned maintenance.Ferroalloys assets Attributable ferrochrome production of
275、 717,000 tonnes was 69,000 tonnes(9%)below H1 2022 due to planned additional smelter offline days.Coal assets Coal production of 54.2 million tonnes was broadly in line with H1 2022.Australian coking Production of 3.7 million tonnes was 0.2 million tonnes(5%)lower than H1 2022,with the Newlands mine
276、 ceasing production in February 2023.Australian thermal and semi-soft Production of 31.8 million tonnes was 0.6 million tonnes(2%)lower than H1 2022,mainly reflecting the Newlands closure,partially offset by increased production from Mangoola and Ulan,both operationally constrained during the base p
277、eriod.South African thermal Production of 8.5 million tonnes was modestly(2%)higher than H1 2022.Cerrejn Production of 10.2 million tonnes was 0.6 million tonnes(6%)lower than H1 2022,reflecting community blockades and weather impacts.Oil assets(non-operated)Exploration and production Entitlement in
278、terest oil and gas production of 2.4 million barrels of oil equivalent was 0.8 million barrels(25%)lower than H1 2022,due to natural field decline at Bolongo in Cameroon and the reduction of Glencores entitlement percentage interest in an Equatorial Guinea block,following the recovery of historical
279、costs under a production sharing contract.Glencore Half-Year Report 2023 We confirm that to the best of our knowledge:the condensed set of consolidated financial statements has been prepared in accordance with IAS 34 Interim Financial Reporting as endorsed and adopted by the United Kingdom;the inter
280、im report includes a fair review of the information required by DTR 4.2.7R(being an indication of important events that have occurred during the first six months of the financial year,and their impact on the interim report and a description of the principal risks and uncertainties for the remaining
281、six months of the financial year);and the interim report includes a fair review of the information required by DTR 4.2.8R(being disclosure of related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial positio
282、n or the performance of the Group during that period and any changes in the related party transactions described in the last annual report that could have a material effect on the financial position or performance of the Group in the first six months of the current financial year).By order of the Bo
283、ard,Gary Nagle Chief Executive Officer 7 August 2023Glencore Half-Year Report 2023 We have been engaged by Glencore plc(“the Company”)to review the condensed consolidated interim financial statements in the half-yearly financial report for the six months ended 30 June 2023(the“2023 Half-Year Report”
284、)which comprises the condensed consolidated statement of income,the condensed consolidated statement of comprehensive income,the condensed consolidated statement of financial position,the condensed consolidated statement of cash flows,the condensed consolidated statement of changes in equity and rel
285、ated notes 1 to 30.Based on our review,nothing has come to our attention that causes us to believe that the condensed set of financial statements in the 2023 Half-Year Report for the six months ended 30 June 2023 is not prepared,in all material respects,in accordance with United Kingdom adopted Inte
286、rnational Accounting Standard 34 and the Disclosure Guidance and Transparency Rules of the United Kingdoms Financial Conduct Authority.We conducted our review in accordance with International Standard on Review Engagements(UK)2410“Review of Interim Financial Information Performed by the Independent
287、Auditor of the Entity”issued by the Financial Reporting Council for use in the United Kingdom(ISRE(UK)2410).A review of interim financial information consists of making inquiries,primarily of persons responsible for financial and accounting matters,and applying analytical and other review procedures
288、.A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing(UK)and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit.Accordingly,we do not express
289、an audit opinion.The annual financial statements of the Company are prepared in accordance with United Kingdom adopted international accounting standards.The condensed consolidated interim financial statements included in this 2023 Half-Year Report have been prepared in accordance with United Kingdo
290、m adopted International Accounting Standard 34,“Interim Financial Reporting”.Based on our review procedures,which are less extensive than those performed in an audit as described in the Basis for Conclusion section of this report,nothing has come to our attention to suggest that the directors have i
291、nappropriately adopted the going concern basis of accounting or that the directors have identified material uncertainties relating to going concern that are not appropriately disclosed.This conclusion is based on the review procedures performed in accordance with ISRE(UK)2410,however future events o
292、r conditions may cause the entity to cease to continue as a going concern.The directors are responsible for preparing the 2023 Half-Year Report in accordance with the Disclosure Guidance and Transparency Rules of the United Kingdoms Financial Conduct Authority.In preparing the 2023 Half-Year Report,
293、the directors are responsible for assessing the Companys ability to continue as a going concern,disclosing as applicable,matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations,or have no real
294、istic alternative but to do so.In reviewing the 2023 Half-Year Report,we are responsible for expressing to the Company a conclusion on the condensed set of financial statements in the 2023 Half-Year Report.Our Conclusion,including our Conclusion Relating to Going Concern,are based on procedures that
295、 are less extensive than audit procedures,as described in the Basis for Conclusion paragraph of this report.This report is made solely to the Company in accordance with ISRE(UK)2410.Our work has been undertaken so that we might state to the company those matters we are required to state to it in an
296、independent review report and for no other purpose.To the fullest extent permitted by law,we do not accept or assume responsibility to anyone other than the company,for our review work,for this report,or for the conclusions we have formed.Deloitte LLP Recognised Auditor London,United Kingdom 7 Augus
297、t 2023FOR THE SIX MONTHS ENDED 30 JUNE(UNAUDITED)Glencore Half-Year Report 2023 US$million Notes 2023 2022 Revenue 4 107,415 134,435 Cost of goods sold1 (100,906)(118,712)Net expected credit losses1 13/15 (12)(53)Selling and administrative expenses (1,030)(1,360)Share of income from associates and j
298、oint ventures 12 755 1,254 Gain on acquisitions and disposals of non-current assets 5 679 1,463 Other income 6 256 71 Other expense 6 (274)(573)(Impairments)/reversal of impairments of non-current assets 8 (56)37 Reversal of impairments of financial assets 8 9 3 Dividend income 12 2 43 Interest inco
299、me 7 321 140 Interest expense 7 (1,160)(736)Income before income taxes 5,999 16,012 Income tax expense 9 (1,731)(3,917)Income for the period 4,268 12,095 Attributable to:Non-controlling interests (300)10 Equity holders of the Parent 4,568 12,085 Earnings per share:Basic(US$)18 0.36 0.92 Diluted(US$)
300、18 0.36 0.92 1 In the current period,net expected credit losses on financial assets at amortised cost have been disaggregated from cost of goods sold.The prior period balances have been restated to conform with current period presentation.The full year 2022 disaggregation amounted to$256 million.All
301、 amounts presented are derived from continuing operations.The accompanying notes are an integral part of the condensed consolidated interim financial statements.FOR THE SIX MONTHS ENDED 30 JUNE(UNAUDITED)Glencore Half-Year Report 2023 US$million Notes 2023 2022 Income for the period 4,268 12,095 Oth
302、er comprehensive income/(loss)Items not to be reclassified to the statement of income in subsequent periods:Defined benefit plan remeasurements 54 166 Tax charge on defined benefit plan remeasurements (23)(51)Loss on equity investments accounted for at fair value through other comprehensive income 1
303、2 (13)(1,139)Tax(charge)/credit on equity investments accounted for at fair value through other comprehensive income (1)3 Loss due to changes in credit risk on financial liabilities accounted for at fair value through profit and loss (14)(14)Net items not to be reclassified to the statement of incom
304、e in subsequent periods 3 (1,035)Items that have been or may be reclassified to the statement of income in subsequent periods:Exchange loss on translation of foreign operations (315)(188)Items recycled to the statement of income1 6/24 509 Gain/(loss)on cash flow hedges 65 (89)Tax credit on loss on c
305、ash flow hedges 4 2 Cash flow hedges reclassified to the statement of income (63)138 Tax charge on cash flow hedges reclassified to the statement of income (2)(2)Share of other comprehensive income from associates and joint ventures 12 23 24 Net items that have been or may be reclassified to the sta
306、tement of income in subsequent periods (288)394 Other comprehensive loss (285)(641)Total comprehensive income 3,983 11,454 Attributable to:Non-controlling interests (328)Equity holders of the Parent 4,311 11,454 1 2022 comprised foreign exchange translation losses recycled upon disposal of subsidiar
307、ies of$78 million(see note 24)and restructuring of intragroup debt of$431 million(see note 6).All amounts presented are derived from continuing operations.The accompanying notes are an integral part of the condensed consolidated interim financial statements.AS AT 30 JUNE 2023 AND 31 DECEMBER 2022 Gl
308、encore Half-Year Report 2023 2023 2022 US$million Notes(unaudited)(audited)Assets Non-current assets Property,plant and equipment 10 38,905 39,564 Intangible assets 11 6,043 6,160 Investments in associates and joint ventures 12 8,105 11,878 Other investments 12 471 456 Advances and loans 13 2,888 2,
309、654 Other financial assets 25 146 206 Inventories 14 589 605 Deferred tax assets 1,774 1,837 58,921 63,360 Current assets Inventories 14 31,806 33,460 Accounts receivable 15 17,308 24,565 Other financial assets 25 4,783 6,109 Income tax receivable 9 908 401 Prepaid expenses 402 325 Cash and cash equ
310、ivalents 1,863 1,923 57,070 66,783 Assets held for sale 16 5,763 2,440 62,833 69,223 Total assets 121,754 132,583 Equity and liabilities Capital and reserves attributable to equity holders Share capital 17 137 141 Reserves and retained earnings 45,517 49,269 45,654 49,410 Non-controlling interests (
311、4,481)(4,191)Total equity 41,173 45,219 Non-current liabilities Borrowings 20 19,481 18,851 Deferred income 21 1,440 1,547 Deferred tax liabilities 3,275 3,651 Other financial liabilities 25 1,878 2,055 Provisions 22 7,174 7,163 Post-retirement and other employee benefits 690 677 33,938 33,944 Curre
312、nt liabilities Borrowings 20 9,181 9,926 Accounts payable 23 29,941 29,726 Deferred income 21 622 1,060 Provisions 22 905 1,425 Other financial liabilities 25 2,447 4,882 Income tax payable 9 1,980 4,660 45,076 51,679 Liabilities held for sale 16 1,567 1,741 46,643 53,420 Total equity and liabilitie
313、s 121,754 132,583 The accompanying notes are an integral part of the condensed consolidated interim financial statements.FOR THE SIX MONTHS ENDED 30 JUNE(UNAUDITED)Glencore Half-Year Report 2023 US$million Notes 2023 2022 Operating activities Income before income taxes 5,999 16,012 Adjustments for:D
314、epreciation and amortisation 2,773 3,306 Share of income from associates and joint ventures 12 (755)(1,254)Streaming revenue and other non-current provisions (33)48 Gain on acquisitions and disposals of non-current assets 5 (679)(1,463)Unrealised mark-to-market movements on other investments 6 87 (4
315、1)Impairments/(reversal of impairments)8 47 (40)Other non-cash items net1 130 1,126 Interest expense net 7 839 596 Cash generated by operating activities before working capital changes,interest and tax 8,408 18,290 Working capital changes Decrease/(increase)in accounts receivable2 8,529 (10,242)Decr
316、ease/(increase)in inventories 1,770 (1,684)(Decrease)/increase in accounts payable3 (6,931)2,884 Total working capital changes 3,368 (9,042)Income taxes paid (5,116)(3,023)Interest received 281 67 Interest paid (928)(556)Net cash generated by operating activities 6,013 5,736 Investing activities Inc
317、rease in long-term advances and loans 13 (200)Net cash(used)/received in acquisition of subsidiaries 24 (199)321 Net cash received on disposal of subsidiaries 24 770 610 Purchase of investments (88)(183)Proceeds from sale of investments 55 19 Purchase of property,plant and equipment (2,080)(1,876)Pr
318、oceeds from sale of property,plant and equipment 133 29 Dividends received from associates and joint ventures 12 879 1,058 Net cash used by investing activities (530)(222)1 See reconciliation below.2 Includes movements in other financial assets,prepaid expenses and certain long-term advances and loa
319、ns.3 Includes movements in other financial liabilities,provisions and deferred income.Other non-cash items comprise the following:US$million Notes 2023 2022 Net foreign exchange(gains)/losses 6 (190)290 Closed site rehabilitation provisioning 6 83 Share based and deferred remuneration costs 237 749
320、Other 83 4 Total 130 1,126 All amounts presented are derived from continuing operations.The accompanying notes are an integral part of the condensed consolidated interim financial statements.FOR THE SIX MONTHS ENDED 30 JUNE(UNAUDITED)Glencore Half-Year Report 2023 US$million Notes 2023 2022 Financin
321、g activities1 Proceeds from issuance of capital market notes2 995 Repayment of capital market notes (1,500)(1,392)Repurchase of capital market notes (103)Proceeds from/(repayment of)revolving credit facility 1,539 (1,863)Proceeds from other non-current borrowings 14 414 Repayment of other non-curren
322、t borrowings (95)(78)Repayment of lease liabilities (281)(301)Margin receipts/(payments)in respect of financing related hedging activities 258 (1,389)(Repayments of)/proceeds from current borrowings (1,613)1,910 Proceeds from/(repayment of)U.S.commercial papers 307 (1,150)Acquisition of non-controll
323、ing interests in subsidiaries 9 Return of capital/distributions to non-controlling interests (4)(218)Purchase of own shares 17 (2,428)(486)Disposal of own shares3 247 Distributions paid to equity holders of the Parent 19 (2,749)(1,707)Net cash used by financing activities (5,548)(6,116)Decrease in c
324、ash and cash equivalents (65)(602)Effect of foreign exchange rate changes (20)(25)Cash and cash equivalents,beginning of period 1,998 3,308 Cash and cash equivalents,end of period 1,913 2,681 Cash and cash equivalents reported in the statement of financial position 1,863 2,636 Cash and cash equivale
325、nts attributable to assets held for sale 50 45 1 Refer to note 20 for reconciliation of movement in borrowings.2 Amount net of issuance costs relating to capital market notes of$5 million(2022:$Nil).3 Comprises primarily cash received from the exercise of share-based option awards assumed in previou
326、s business combinations.There are no outstanding options as at 30 June 2023.All amounts presented are derived from continuing operations.The accompanying notes are an integral part of the condensed consolidated interim financial statements.FOR THE SIX MONTHS ENDED 30 JUNE(UNAUDITED)Glencore Half-Yea
327、r Report 2023 Retained earnings Share premium Other reserves Own shares(Note 17)Total reserves and retained earnings Share capital Total equity attributable to equity holders Non-controlling interests Total equity 1 January 2022 7,914 43,679 (5,931)(5,877)39,785 146 39,931 (3,014)36,917 Income for t
328、he period 12,085 12,085 12,085 10 12,095 Other comprehensive income/(loss)139 (770)(631)(631)(10)(641)Total comprehensive income 12,224 (770)11,454 11,454 11,454 Own share disposals(see note 17)(125)430 305 305 305 Own share purchases(see note 17)(486)(486)(486)(486)Equity-settled share-based expens
329、es (121)(121)(121)(121)Change in ownership interest in subsidiaries 5 5 Acquisition/disposal of business(see note 23)(5)(5)Distributions(see note 19)(3,400)(3,400)(3,400)(218)(3,618)30 June 2022 19,892 40,279 (6,701)(5,933)47,537 146 47,683 (3,232)44,451 Retained earnings Share premium Other reserve
330、s Own shares(Note 17)Total reserves and retained earnings Share capital Total equity attributable to equity holders Non-controlling interests Total equity 1 January 2023 25,246 36,717 (6,833)(5,861)49,269 141 49,410 (4,191)45,219 Income for the period 4,568 4,568 4,568 (300)4,268 Other comprehensive
331、 income/(loss)54 (311)(257)(257)(28)(285)Total comprehensive income 4,622 (311)4,311 4,311 (328)3,983 Own share disposals(see note 17)(96)186 90 90 90 Own share purchases(see note 17)(2,428)(2,428)(2,428)(2,428)Equity-settled share-based expenses (119)(119)(119)(119)Change in ownership interest in s
332、ubsidiaries (10)(10)(10)42 32 Cancellation of shares(see note 17)(1,449)1,453 4 (4)Distributions(see note 19)(5,600)(5,600)(5,600)(4)(5,604)30 June 2023 29,653 29,668 (7,154)(6,650)45,517 137 45,654 (4,481)41,173 The accompanying notes are an integral part of the condensed consolidated interim finan
333、cial statements.NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS Glencore Half-Year Report 2023 Glencore plc(the“Company”,“Parent”,the“Group”or“Glencore”)is a leading integrated producer and marketer of natural resources,with worldwide activities in the production,refinement,processing,storage,transport and marketing of metals and minerals and energy products.Glencore ope