Make Kitco Your Homepage

Global natural resources group Glencore posts net income of $17.3 billion in 2022, up 248% from 2021

Kitco News

(Kitco News) - Global mining and natural resources group Glencore today reported net income attributable to equity holders of $17.3 billion for the full year 2022, up 248% from 2021.

In a statement, the company said that "unprecedented developments" in global energy markets were material drivers for both its marketing and industrial businesses, lifting group adjusted EBITDA to $34.1 billion, up $12.8 billion over the period.

The company also announced shareholder returns of $7.1 billion (c.$0.56/share,) comprising a proposed $0.40/share ($5.1 billion) base distribution in respect of 2022 cash flows, alongside an additional 'top-up' $0.5 billion ($0.04/share) cash distribution and a new $1.5 billion (c$0.12/share) share buyback programme.

Previously, Glencore reported that its own sourced copper production in 2022 of 1,058,100 tonnes was 12% lower than 2021, due to the basis change arising from the sale of Ernest Henry in January 2022, the ongoing geotechnical constraints at Katanga, Collahuasi planned mining sequence changes and a lower contribution from Mount Isa.

The company's own sourced cobalt production in 2022 of 43,800 tonnes was 40% higher than 2021 following Mutanda's restart in Q4 2021. Own sourced zinc production of 938,500 tonnes was 16% lower than 2021, reflecting the disposal / cessation of South America operations, closure of Matagami and lower volumes from Mount Isa, as Lady Loretta approaches end of mine life.

Own sourced nickel production of 107,500 tonnes was 5% higher than 2021, reflecting Murrin Murrin's scheduled major maintenance shut in the prior year and Koniambo running two production lines for the majority of 2022, partially offset by lower production at INO due to strike action in Canada and Norway.

The company also reported 2022 own sourced gold production of 661 koz (2021: 809 koz), and own sourced silver production of 23,750 koz (2021: 31,519 koz).

CEO Gary Nagle said, "High inflation rates and associated tighter monetary conditions present some risk to the economic outlook in 2023. China's reopening, however, together with a continued global focus on energy security and decarbonisation / electrification, mean that demand for many of our commodities is likely to remain healthy, while supply constraints persist and inventories remain relatively low.

"Recent government policies, such as the US Inflation Reduction Act and the EU's proposed Green Deal Industrial Plan, demonstrate the growing need for critical raw materials through to the end of the decade and beyond, necessitating fresh investment in both primary supply and recycling."

Glencore is one of the world's largest global diversified natural resource companies and a major producer and marketer of more than 60 commodities. Glencore companies employ around 135,000 people, including contractors.

Senior copper miner First Quantum reports net income of $1 billion in 'challenging' 2022

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.