December 3, 2019 / 1:36 PM / 2 days ago

BRIEF-Glencore's 2019 Coal Production Guidance Reduced By 5Mt To 140Mt

Dec 3 (Reuters) - Glencore PLC:

* 2019 COAL PRODUCTION GUIDANCE REDUCED BY 5MT TO 140MT

* FIRST OF KATANGA’S TWO COBALT DRYERS HAS BEEN RESTARTED. REALISATION OF FULL DRYING CAPACITY EXPECTED MID-2020

* TARGETING ANNUALISED STEADY STATE PRODUCTION OF 300KTPY CU AND 30KTPY CO TOWARDS THE END OF 2020 FROM KATANGA

* SEES 2020-2022 INDUSTRIAL CAPEX AVERAGE OF ABOUT $5.0BN PER ANNUM

* CURRENT MARKET CONDITIONS SUGGEST 2020 EARNINGS TOWARDS THE MIDDLE OF THE LONG-TERM RANGE

* 30-40KTPY NI IN FENI PLANNED OVER THE NEXT 3 YEARS FROM KONIAMBO

* REITERATE TARGET OF AT LEAST $1BN FROM NON-CORE LONG-TERM ASSET MONETISATIONS DURING 2019/2020

* BASIS $65/BBL, EBITDA GENERATION IS FORECAST TO EXCEED $650M BY 2022 FOR INDUSTRIAL OIL

* TARGETING REDUCTION IN NET DEBT TO ADJUSTED. EBITDA TOWARDS 1X OVER THE NEXT 12 MONTHS (1.24X AT 30 JUNE)

* LONG-TERM MARKETING ADJUSTED EBIT UNCHANGED GUIDANCE RANGE OF $2.2 TO $3.2BN

* REITERATE TARGET OF AT LEAST $1BN FROM NON-CORE LONG-TERM ASSET MONETISATIONS DURING 2019/2020 (C.$0.3BN COMPLETED TO DATE)

* CURRENT $2BN BUYBACK PROGRAM TO RUN TO YEAR END

* LARGELY FLAT PRODUCTION PROFILE OVER THE NEXT THREE YEARS

* SEES MODEST DECLINE IN COPPER PRODUCTION OVER 2019-2022 PERIOD, PRIMARILY REFLECTING TRANSITION OF MUTANDA TO CARE & MAINTENANCE IN Q4 2019

* SEES 2019 COPPER GROUP PRODUCTION 1385 ± 35 KT

* 2020-2022 GUIDANCE SUSTAINING CAPEX AVERAGE AT $3.7 BN

* GLENCORE SEES 2021 ZINC PRODUCTION OF 1400 KT, ± 30 KT

* GLENCORE SEES 2022 ZINC PRODUCTION OF 1200 KT, ± 30 KT Source text: (bit.ly/34MwNyG) Further company coverage:

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