GLENCOÂE
NEWS RELEASE
Baar, 15 February 2023

Glencore’s Chief Executive Officer, Gary Nagle, commented:“The global pandemic, recovery from it and years of underinvestment, followed by conflict in Europe, exposed pre-existing
vulnerabilities in energy security and supply chains, underpinning the generally high and volatile 2022 commodity priceenvironment, which enabled the Group to generate record profitability for the year.
”The unprecedented developments in global energy markets were material drivers for both our marketing and industrial
businesses, lifting Group Adjusted EBITDA to $34.1 billion, up $12.8 billion over the period. Marketing posted another record
performance, with Adjusted EBIT of $6.4 billion, up 73% year on year, driven primarily by our energy departments successfully
navigating the extreme market imbalances, volatility and dislocations across crude oil, LNG, refined products, coal and logistics
infrastructure. Industrial EBITDA increased by $10.2 billion to $27.3 billion, benefitting primarily from record prices for our key coalbenchmarks, amplified by the incremental contribution from the two-thirds of Cerrejón, acquired in January 2022, that Glencore
did not previously own.
“Aligned with the record Adjusted EBITDA results, particularly in marketing, our net working capital significantly increased during
the period, reflecting materially higher energy prices and elevated commodity market volatilities, where such additional
investment in working capital should be considered in the context of the $3.8 billion increase in Energy Marketing Adjusted EBIT to$5.2 billion. Accounting for this build, significant surplus cash generation reduced Net debt to $0.1 billion, allowing for today’s
announcement of $7.1 billion (c.$0.56/share) of shareholder returns, comprising a $5.1 billion base cash distribution ($0.40/share), an
additional $0.5 billion “top-up” cash distribution ($0.04/share) and a new $1.5 billion buy back programme (c.$0.12/share).
“High inflation rates and associated tighter monetary conditions present some risk to the economic outlook in 2023. China’s
reopening, however, together with a continued global focus on energy security and decarbonisation / electrification, mean thatdemand for many of our commodities is likely to remain healthy, while supply constraints persist and inventories remain relatively
low.
“Recent government policies, such as the US Inflation Reduction Act and the EU’s proposed Green Deal Industrial Plan,
demonstrate the growing need for critical raw materials through to the end of the decade and beyond, necessitating fresh
investment in both primary supply and recycling.
“The strength of our diversified business model across industrial and marketing, focusing on metals and energy, has proved itself
adept in a range of market conditions, giving us a solid foundation to successfully navigate shorter-term challenges that may
arise, as well as meet the resource needs of the future. I would like to thank all our employees for their efforts and tremendous
contribution during the challenging, but very successful, 2022. As always, we remain focused on operating responsibly and ethicallyand creating sustainable long-term value for all our stakeholders.”
US$ million

Key statement of income and cash flows highlights1:
Revenue
Adjusted EBITDA◊
Adjusted EBIT◊
Net income for the year attributable to equity holders
Earnings per share (Basic) (US$)
Funds from operations (FFO)◊

US$ million

Key financial position highlights:
Total assets
Total equity
Net funding◊
Net debt◊
Ratios:Net debt to Adjusted EBITDA◊

2022

2021

Change %255,984
34,06026,657
17,3201.33
28,938203,751
21,323
14,495
4,974
0.38
17,057

26
60
84
248
250
70

31.12.2022

31.12.2021

Change %132,583
45,21927,50075

127,51036,91730,837
6,042

4
22
(11)
(99)

0.00

0.28

(99)

1 Refer to basis of presentation on page 6.
◊ Adjusted measures referred to as Alternative performance measures (APMs) which are not defined or specified under the requirements of International Financial ReportingStandards; refer to APMs section on page 116 for definitions and reconciliations and to note 2 of the financial statements for reconciliation of Adjusted EBIT/EBITDA.

Glencore Preliminary Results 2022

HIGHLIGHTS–$34.1 billion Adjusted EBITDA, up 60% year-on-year (y/y), underpinned by robust Marketing and Industrial results–

Net income, pre-significant items: $18.9 billion, up 107%–

Post significant items, Net income attributable to equity holders was $17.3 billion, up 248%. Significant items reflect various
impairments recorded and a gain on the acquisition of Cerrejón–

Net cash purchase and sale of PP&E: $4.5 billion, up 19%–

Shareholder returns of $7.1 billion (c.$0.56/share) announced, comprising a proposed $0.40/share ($5.1 billion) basedistribution 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–

Industrial Assets Adjusted EBITDA $27.3 billion, up 59%, primarily reflecting a $13.0 billion increase from energy products, inline with significantly higher coal prices, as well as the Cerrejon partner buy-out contribution–

Metals $9.3 billion, down $2.7 billion, reflecting higher costs and lower volumes; Energy $18.6 billion, up $13.0 billion (+232%)–

Unit cost results: Cu 80¢/lb (+13¢/lb y/y); Zn 38¢/lb (+42¢/lb y/y, whereby 2022 is net of 23¢/lb of non-cash inventory
adjustments); Ni 631¢/lb (+177¢/lb y/y); coal $79/t ($166/t margin)–

Marketing Adjusted EBIT $6.4 billion, up 73% y/y–

Energy Adjusted EBIT: $5.2 billion (+273%), as already tight post-pandemic energy markets were jolted by significant
dislocation, generating extreme volatility in oil, refining margins, freight, gas and coal, with prices (absolute and in relation toquality and location differentials) reaching multi-year highs or records in many cases–

Metals Adjusted EBIT: $1.6 billion (-34%), mainly reflecting challenging conditions arising from China’s prolonged Covid-19
lockdowns as well as higher overall inflation, triggering tighter monetary conditions and demand uncertainty–

Glencore’s equity accounted share of Viterra rose 4% to $494 million–

Net debt being managed around a $10 billion cap, with sustainable deleveraging (after base distribution) below such cap
periodically returned to shareholders via top-up cash distributions / buybacks, as appropriate.

–

Year-end Net debt of $0.1 billion allows for $2.0 billion of additional shareholder returns under our “top-up” framework, taking
into account the base distribution of $5.1 billion and $2.9 billion of pro-forma debt-like other cash commitments at year-end–

Net debt to Adjusted EBITDA of 0.00x–

Available committed liquidity of $13 billion; bond maturities capped at c.$3 billion in any given year–

Spot illustrative annualised free cash flow generation of c.$10.6 billion from Adjusted EBITDA of c.$22.6 billion–

Extensive stakeholder engagement on progress with our Climate Action Transition Plan during the year.

–

There was broad support for our climate strategy, recognising the importance of maintaining a strategy that remains
resilient to the risks and opportunities of the evolving energy transition, and encouragement to continue our focus onprogressing towards our ambition of achieving a net zero total emissions footprint by 2050.

–

A limited number of shareholders looked for opportunities to accelerate our current total emissions reduction pathway (50%reduction by 2035), while some raised the prospects for incremental growth in our coal production. However, theoverwhelming majority of shareholders reiterated their support for our current responsibly managed coal decline strategy
and associated targets.

–

Our emissions reduction targets remain sector leading for total emissions (Scope 1+2+3) along with our ambition to achieve
Net-zero total emissions by 2050, with a supportive policy environment.

–

Our strategy of responsibly depleting our coal portfolio over time reflects our belief that the energy transition will be nonlinear through time and geography, with the responsible decline of our coal portfolio meeting critical energy needs throughthis evolution.

–

We will continue to engage with our stakeholders as we progress the implementation of our strategy and respond to theglobal challenges of climate change and the energy transition.

Glencore Preliminary Results 2022

HIGHLIGHTS

For further information please contact:
Investors
Martin Fewings

t: +41 41 709 2880

m: +41 79 737 5642

martin.fewings@glencore.com

t: +41 41 709 2462

m: +41 79 904 3320

charles.watenphul@glencore.com

Media
Charles Watenphul
www.glencore.com
Glencore LEI: 2138002658CPO9NBH955
This announcement contains inside information.
Notes for Editors
Glencore is one of the world’s largest global diversified natural resource companies and a major producer and marketer of morethan 60 responsibly-sourced commodities that advance everyday life. Through a network of assets, customers and suppliers thatspans the globe, we produce, process, recycle, source, market and distribute the commodities that enable decarbonisation while
meeting the energy needs of today.
Glencore companies employ around 135,000 people, including contractors. With a strong footprint in over 35 countries in bothestablished and emerging regions for natural resources, our marketing and industrial activities are supported by a global network ofmore than 40 offices.
Glencore's customers are industrial 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 and the International Council on
Mining and Metals. We are an active participant in the Extractive Industries Transparency Initiative.
Glencore recognises our responsibility to contribute to the global effort to achieve the goals of the Paris Agreement. Our ambition is
to be a net zero total emissions company by 2050. In August 2021, we increased our medium-term emission reduction target to a
50% reduction by 2035 on 2019 levels and introduced a new short-term target of a 15% reduction by 2026 on 2019 levels.

Glencore Preliminary Results 2022

The global pandemic, recovery from it and years of underinvestment, followed by conflict in Europe, exposed pre-existing
vulnerabilities in energy security and supply chains, underpinning the generally high and volatile 2022 commodity priceenvironment, which enabled the Group to generate record profitability for the year.
Weather and logistics constraints, high energy costs, project delays, and community and employee protest campaigns, meant 2022
was a year of supply challenges. Against such backdrop, nothwithstanding the progressive tightening of monetary conditions anddeclining consumer sentiment in many key markets over the second half of the year, together with stalling industrial activity inEurope and China’s zero-Covid policy, physical commodity markets remained generally healthy, with prices well supported.
In copper, mined supply underperformed initial projections by c.1.3 million tonnes (c.6%). Good electrification demand for copper,
largely offset weakness in other sectors, supporting annual average prices just 6% below 2021’s average. Aluminium and zincmarkets also experienced meaningful supply cuts with high energy prices forcing smelter curtailments, keeping both markets tightand inventories at lows levels. In nickel, solid demand for the more limited high-quality material buoyed LME-grade prices, despite
the expansion of low-grade production and weak stainless markets.
Russia’s invasion of Ukraine generated one of the largest dislocations in global energy markets in recent history. Most relevant to
Glencore were the large coal price moves, where both high energy (NEWC) and low energy (API5) thermal coal markets jumped torecord levels in 2022, with average prices up 163% and 112% respectively. The legacy of general sector underinvestment, along withhigh rates of mine disruption in Australia, Indonesia and Colombia, left supply unable to easily respond to the stronger demandbrought on by the rapid changes in Europe’s energy mix.

The unprecedented 2022 developments in global energy markets were material drivers for both our marketing and industrial
businesses, lifting Group Adjusted EBITDA to $34.1 billion, up $12.8 billion over the period. Net income before significant items
increased $9.8 billion to $18.9 billion, while significant items, reflecting various impairments recorded and a gain on the acquisition ofCerrejón, reduced Net Income attributable to equity holders to $17.3 billion.
Marketing posted another record performance, with Adjusted EBIT of $6.4 billion, up 73% year on year, driven primarily by ourenergy departments, successfully navigating the extreme market imbalances, volatility and dislocations across crude oil, LNG,
refined products, coal and logistics infrastructure. Metals marketing Adjusted EBIT of $1.6 billion was 34% below 2021, reflecting moresubdued market conditions in the second half, amid rising interest rates, recession fears and the effects of China’s zero-Covid policy.
Industrial Adjusted EBITDA increased by $10.2 billion to $27.3 billion for the period, benefitting primarily from record prices for our
key coal benchmarks, amplified by the incremental contribution from the two-thirds of Cerrejón, acquired in January 2022, that
Glencore did not previously own. Excluding this transaction, on a like for like basis, coal production actually declined by almost 9
million tonnes (7%), primarily due to abnormally wet weather. Coal Adjusted EBITDA increased by $12.7 billion to $17.9 billion, whilestrong oil and gas markets also supported our oil E&P assets, with Adjusted EBITDA rising by $552 million to $781 million.
Earnings from our metals industrial business declined by $2.7 billion, largely reflecting higher costs, primarily energy-driven, andareas of lower production across the portfolio. Reduced copper and zinc volumes incorporate the base effect of asset sales (notably
Ernest Henry and South American zinc assets), Katanga’s geotechnical constraints, and end of life variability / declines at particularMount Isa and Kazzinc mines.
Aligned with the record Adjusted EBITDA results, particularly in marketing, our net working capital significantly increased during
the period, reflecting materially higher energy prices and elevated commodity market volatilities. Marketing accounted for some
$5 billion of net working capital investment (unchanged from H1 2022) across 3 key categories:- a) $0.7 billion net increase in physicalforward commodity related contracts (which are not margined), b) $1.9 billion net increase in trade receivables / payables, whereby
we previously obtained higher than average payment terms from various Russian suppliers, along with a specific slow-moving
exposure expected to be settled in 2023 and c) $2.4 billion net increase in net margins calls paid, in excess of derivative fair values.
The various commodity exchanges significantly increased their initial margining requirements during the period, resulting in theposting of an additional $2.2 billion from $1.9 billion to $4.1 billion. This additional investment in working capital should be consideredin the context of the $3.8 billion increase in Energy Marketing Adjusted EBIT to $5.2 billion.
Accounting for this working capital build and, after effecting $7.1 billion of Glencore shareholder distributions and buybacks during2022, significant surplus cash was generated during the year, which reduced Net funding and Net debt to $27.5 billion and$0.1 billion respectively from the prior period levels of $30.8 billion and $6.0 billion, allowing for further “top-up” returns under ourshareholder returns framework.

Reflecting our strong financial performance, we significantly increased shareholder returns in 2022. Our framework of managing
Net debt around a $10 billion cap, with deleveraging, after the base distribution, periodically returned to shareholders, allowed us toannounce c.$8.5 billion of returns, up from $2.8 billion in 2021. These returns comprised a $3.4 billion base distribution in respect of
2021 cashflows, along with $5.1 billion of top-up returns, encompassing a c.$1.5 billion cash element and $3.6 billion cumulative sharebuybacks for completion in February 2023.
For 2023, basis 2022 cash flows, we are recommending to shareholders a $0.40 per share (c.$5.1 billion) base distribution, made up of$1 billion from Marketing cash flows and 25% ($4.1 billion) of Industrial attributable cash flows.
Our “Top up” returns capital allocation framework generates an additional c.$2 billion for return, applied in the form of anincremental c$0.5 billion cash distribution ($0.04 per share) and $1.5 billion of further share buybacks. Payment of the aggregate
cash distribution of $0.44 per share will be effected 50% in each of June 2023 and September 2023.

Glencore Preliminary Results 2022

CHIEF EXECUTIVE OFFICER’S REVIEW

During the year we engaged extensively on progress with our Climate Action Transition Plan. Our shareholders continue to reinforce
that climate strategy is an important area of focus. There was broad support for our climate strategy, recognising the importance of
maintaining a strategy that remains resilient to the risks and opportunities of the evolving energy transition, and encouragement tocontinue our focus on progressing towards our ambition of achieving a net zero total emissions footprint by 2050.
A limited number of shareholders looked for opportunities to accelerate our current total emissions reduction pathway (50%reduction by 2035), while some raised the prospects for incremental growth in our coal production. However, the overwhelming
majority of shareholders reiterated their support for our current responsibly managed coal decline strategy and associated targets.
Our 2026 and 2035 emissions reduction targets of 15% and 50% respectively, remain on track. During the period 2019 to 2035, ourplanning includes the closure of at least 12 coal mines across our global coal portfolio. We have continued to make meaningfulprogress in the identification of carbon abatement opportunities across the portfolio and significantly expanded our Marginal
Abatement Cost Curve (MACC) to include more than 14 million tonnes of potential Scope 1+2 abatement initiatives. These potential
initiatives range from renewable power purchases and on-site renewable power generation, through to energy storage systems,
operational efficiency initiatives and electrification. Our carbon abatement initiatives have also advanced with a key CCUS (CTSCo)
project EIS progressing to public consultation. In addition, we took steps to grow our global recycling footprint and advancecircularity of critical minerals through new partnerships and investments to expand our recycling capabilities.
Our emissions reduction strategy remains sector leading for total emissions (Scope 1+2+3) along with our ambition to achieve Netzero total emissions by 2050 with a supportive policy enviroment. Our strategy of responsibly depleting our coal portfolio over timereflects our belief that the energy transition will be non-linear through time and geography, with the responsible decline of our coalportfolio meeting critical energy needs through this evolution.
We look forward to continuing engagement with our stakeholders as we progress the implementation of our strategy and respondto the global challenges of climate change and the energy transition.

The safety and security of our workforce and communities living around our industrial assets are a priority in all our operational
activities. Our ambition is to prevent fatalities, occupational diseases and injuries wherever we operate. Unfortunately, we recorded
the loss of four lives at Glencore’s managed operations in 2022. We believe that consistent application and reinforcement of our
SafeWork framework, through strong visible leadership, can drive and deliver the safety culture and operating discipline we arelooking for, and get our people home safe.
Glencore resolved the previously disclosed investigations by authorities in the United States, the United Kingdom and Brazil during
the period. These investigations into past activities in certain Group businesses related to bribery, and separate US investigations
related to market manipulation. We acknowledge the misconduct identified in these investigations and have cooperated with theauthorities. This type of behaviour has no place in the Glencore of today, and the Board, management team and I are very clear
about the culture that we want and our commitment to be a responsible and ethical operator wherever we work.
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 the organisational measures in place to prevent alleged corruption andan investigation of similar scope by the Dutch Public Prosecution Service. The timing and outcome of these investigations remain
uncertain.

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 thatdemand 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 into bothprimary supply and recycling.
The strength of our diversified business 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 shorter-term challenges that may arise,
as well as meet the resource needs of the future. I would like to thank all our employees for their efforts and tremendous
contribution during the challenging, but very successful, 2022. As always, we remain focused on operating responsibly and ethicallyand creating sustainable long-term value for all our stakeholders.

Chief Executive Officer

Glencore Preliminary Results 2022

The financial information in the Financial and Operational Review is presented on a segmental measurement basis, including allreferences to revenue (see note 2) and has been prepared on the basis as outlined in note 1 of the financial statements, with the
exception of the accounting treatment applied to relevant material associates and joint ventures for which Glencore’s attributableshare 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 relatively low economic interest (23%) held by the Group.
The Group’s 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,
reflecting how Glencore’s 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 for Significant items and by aggregating or disaggregating (notably in thecase 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). Significant items (seereconciliation 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 Glencore’s results, to aid inproviding an understanding 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 isolation from, or as a
substitute for, analysis of the Group’s results of operations; and they may not be indicative of the Group’s 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 defined and reconciled to the underlying IFRS
measures in the APMs section on page 116.

Selected average commodity prices
S&P GSCI Industrial Metals Index
S&P GSCI Energy Index
LME (cash) copper price ($/t)
LME (cash) zinc price ($/t)
LME (cash) lead price ($/t)
LME (cash) nickel price ($/t)
Gold price ($/oz)
Silver price ($/oz)
Metal Bulletin cobalt standard grade, in-warehouse
Rotterdam ($/lb)
Ferro-chrome 50% Cr import, CIF main Chinese ports,
contained Cr (¢/lb)
Iron ore (Platts 62% CFR North China) price ($/DMT)
Coal API4 ($/t)
Coal Newcastle (6,000) ($/t)
Oil price – Brent ($/bbl)

Spot
31 Dec 2022

Spot
31 Dec 2021

Average
2022

Average2021

Change inaverage %

451
288

499
252

480
334

457
230

5
45

8,365
3,003
2,337
29,886
1,824
24
19

9,741
3,590
2,338
20,881
1,829
23
34

8,805
3,475
2,147
25,623
1,802
22
30

9,320
3,005
2,202
18,474
1,799
25
24

(6)
16
(2)
39
–
(12)
25

100

114

106

113

(6)

112

113

113

156

(28)

185
399
86

126
166
78

271
360
99

125
137
71

117
163
39

Spot
31 Dec 2022

Spot
31 Dec 2021

Average
2022

Average2021

Change inaverage %

0.68
1.36
1.08
1.20
0.92
463
17.04

0.72
1.26
1.14
1.35
0.91
435
15.94

0.69
1.30
1.05
1.23
0.95
461
16.37

0.75
1.25
1.18
1.37
0.91
427
14.79

(8)
4
(11)
(10)
4
8
11

Currency table
AUD : USD
USD : CAD
EUR : USD
GBP : USD
USD : CHF
USD : KZTUSD : ZAR

Glencore Preliminary Results 2022

FINANCIAL AND OPERATIONAL REVIEW

Towards the end of 2021, energy prices were already at elevated levels, on account of supply underinvestment and tighter productavailability, as many parts of the world were recovering from Covid. Moving into 2022, the impact of these price developments on
manufactured goods and consumer inputs more broadly, translated into increasingly higher inflation being reported in many key
economies, providing the impetus for interest rate hikes and an overall monetary tightening cycle. The US Federal Reserve started
raising rates in March 2022.
The Russia/Ukraine war, commencing in February, with its associated sanctions regimes, intensified supply-side shocks in energy,
agricultural products and commodities trading markets in general. Material trade flows needed to adjust for the now nonavailability of Russian material into many of its traditional routes and/or flows through Russia itself. Furthermore, many westerncompanies meaningfully withdrew from legal Russian trade (self-sanctioning) as ESG risk became increasingly unacceptable. In thisenvironment, commodity prices and volatility, particularly in the energy sector, surged in the first half.
Our business overall benefitted greatly from our strategic exposure to energy, via our industrial coal portfolio and oil marketingbusiness (both liquids and LNG).
In this environment, direct commodity price-related input costs rose, such as diesel fuel, with production unit costs generally also
increasing on account of:•indirect inflationary pressure on goods and services (particularly energy related flow-through impacts on explosives,
chemicals, reagents and OEM spare parts);•

competition for skilled employees and contractors, reflecting some residual Covid restrictions impacting labour mobility;•

government revenue-linked royalties; and•supply chain pressures, including their secondary effects on shipping and handling costs, as trade flows adjusted in
response to the war.

Chinese domestic policies were a further material macro force in 2022. In particular, its commitment to zero-Covid dampened
industrial and consumer demand, with a resulting drag on metals prices in the June-August period, with prices broadly stable overthe balance of the year.
Average year-over-year price increases for coal (Newc), and Brent crude were 163% and 39%, respectively. Metals moved in different
directions: zinc and nickel increased on average, while copper and ferrochrome declined modestly. Although average cobalt metal
prices were higher year-over-year, lower payabilities resulted in hydroxide realised prices being broadly compatible with 2021. Owing
mainly to such higher overall prices, offset somewhat by the higher costs noted above, Adjusted EBITDA was a record of$34,060 million and Adjusted EBIT was $26,657 million in 2022 respectively, compared to $21,323 million and $14,495 million in 2021.
Overall production was mixed year-over-year, reflecting portfolio disposals (Ernest Henry (copper/gold) and South American zincassets), end of mine life volume impacts / variability (Kazzinc, Mount Isa) and geotechnical processing challenges at Katanga, offset
by additional contribution (via partner stake purchases) from Cerrejón. Adjusted EBITDA mining margins were 36% (2021: 45%) in our
metal operations and 66% (2021: 47%) in our energy operations. See page 18.
Combining the various factors above, income attributable to equity holders was a record $17,320 million (2021: $4,974 million), after
recognising various significant items (particularly in our metals’ industrial assets where cost inflation had the largest impact) as
discussed below. EPS increased from $0.38 per share to $1.33 per share.

Adjusted EBITDA/EBIT◊

Adjusted EBITDA by business segment is as follows:

US$ million

Metals and minerals
Energy products
Corporate and other1
Total

Marketingactivities

2022
Industrial
activities

Adjusted
EBITDA

Marketingactivities

2021
Industrial
activities

Adjusted
EBITDA

Change
%

1,694
5,558
(457)
6,795

9,274
18,590(599)
27,265

10,96824,148(1,056)
34,060

2,588
1,829
(194)
4,223

12,017
5,603(520)
17,10014,605
7,432(714)
21,323

(25)
225
48
60

Marketingactivities

2022
Industrial
activities

Adjusted
EBIT

Marketingactivities

2021
Industrial
activities

Adjusted
EBIT

Change
%

1,640
5,199
(457)
6,382

5,082
15,850(657)
20,275

6,722
21,049(1,114)26,657

2,494
1,395
(194)
3,695

8,128
3,252
(580)
10,80010,622
4,647(774)
14,495

(37)
353
44
84

Adjusted EBIT by business segment is as follows:

US$ million

Metals and minerals
Energy products
Corporate and other1
Total
1

Corporate and other Marketing activities includes $494 million (2021: $473 million) of Glencore’s equity accounted share of Viterra.

Glencore Preliminary Results 2022

FINANCIAL AND OPERATIONAL REVIEW

Marketing activities
Marketing delivered record results, successfully navigating the elevated levels of market volatility, disruption, rapidly and materiallychanging underlying commodity flows, and a constant reassessment of forward-looking supply and demand scenarios, particularly
relating to energy markets, as noted above. Marketing Adjusted EBITDA and EBIT increased, respectively, over prior year, by 61% to$6,795 million and by 73% to $6,382 million, driven by our oil and gas department, as it capitalised on the extreme energy market
imbalances, volatility and dislocations across crude oil, LNG, refined products and logistics infrastructure. Metals and minerals
Adjusted EBIT was down 34% over 2021, due to the more challenging market conditions prevailing for much of 2022, reflecting
global recessionary fears and a Chinese economy impacted by lockdown restrictions.
In 2022, agricultural markets also saw elevated prices and volatility, such that Viterra reported an EBITDA and Net Income of$2.0 billion and $1.0 billion respectively. Our 50% share of earnings (captured within Corporate and Other) was $494 million (postinterest and tax) compared to $473 million in the prior year. Viterra’s recently-completed Gavilon acquisition (primarily US market
presence) provides further benefits of scale and synergy opportunities.

Industrial activities

Industrial Adjusted EBITDA increased by 59% to $27,265 million (Adjusted EBIT was $20,275 million, compared to $10,800 million in2021). As noted above, the increase was primarily driven by stronger average year-over-year commodity prices, particularly related toour coal operations and the additional contribution from the increased ownership in Cerrejón. Metals industrial EBITDA was down
23% to $9,274 million compared to prior year, where other than in relation to lower prices (e.g. copper) the largest contributors were:•

African copper – EBITDA down $0.6 billion compared to 2021, as a result of significant geotechnical and other operating
challenges impacting Katanga during the year, resulting in a decrease of 44kt of copper production; and•Australia zinc – EBITDA down $0.5 billion compared to 2021, owing to inflationary cost pressures, lower zinc volumes andgrades as Lady Loretta approaches end of mine life, challenging copper operating conditions and various NRV non-cash
inventory-related valuation adjustments.

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

2022

2021

Adjusted EBIT◊Net finance and income tax expense in relevant material associates and joint ventures1
Proportionate adjustment Volcan1
Net finance costs
Income tax expense2
Non-controlling interests
Income attributable to equity holders of the Parent pre-significant items◊
Earnings per share (Basic) pre-significant items (US$)3◊

26,657(710)
62(1,336)(6,169)378
18,882
1.44

14,495(1,207)179(1,140)(3,163)
(39)
9,125
0.69

Significant items◊
Share of Associates’ significant items4
Movement in unrealised inter-segment profit elimination5
Gain/(loss) on acquisitions and disposals of non-current assets6
Other expense – net7
Impairments8
Income tax (expense)/credit2
Non-controlling interests’ share of significant items9
Total significant items
Income attributable to equity holders of the Parent
Earnings per share (Basic) (US$)3

(9)
1,176
1,287
(911)
(3,337)(199)
431(1,562)
17,320
1.33

(11)
(549)
(607)
(1,947)(1,838)137
664(4,151)
4,974
0.38

1
2
3
4
5
6
7
8
9

Refer to note 2 of the financial statements and to APMs section for reconciliations.
Refer to other reconciliations section for the allocation of the total income tax expense between pre-significant and significant items.
Based on weighted average number of shares, refer to note 18 of the financial statements.
Recognised within share of income from associates and joint ventures, see note 2 of the financial statements.
Recognised within cost of goods sold, see note 2 of the financial statements.
Refer to note 4 of the financial statements and to APMs section for reconciliations.
Recognised within other income/(expense) – net, see note 5 of the financial statements and to APMs section for reconciliations.
Refer to notes 7 and 11 of the financial statements and to APMs section for reconciliations.
Recognised within non-controlling interests, refer to APMs section.

Glencore Preliminary Results 2022

FINANCIAL AND OPERATIONAL REVIEW

Significant items
Significant 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 Glencore’s results, to aid inproviding an understanding and comparative basis of the underlying financial performance.
In 2022, Glencore recognised a net expense, after tax and non-controlling interests, of $1,562 million (2021: $4,151 million) in significant
items comprised of:• Expenses of $9 million (2021: $11 million) relating to Glencore’s share of significant expenses recognised directly by our associates.
• Gain on acquisitions and disposals of non-current assets of $1,287 million (2021: loss of $607 million) primarily related to the gains
recognised on the acquisition of the remaining 66.67% interest in Cerrejón ($1,029 million) and the disposal of Ernest Henry($512 million).
• Other income/(expense) – net expense of $911 million (2021: $1,947 million) see note 5. Balance primarily comprises:–$106 million (2021: gains of $64 million) of mark-to-market losses on equity investments / derivative positions accounted foras 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.

–$349 million net loss (2021: $187 million) of net foreign exchange losses, whereby 2022 primarily relates to realised foreign
currency losses recycled from other comprehensive income recognised in respect of an intragroup restructuring.

–$302 million (2021: $1,640 million) relating to various legal matters and related costs (legal, expert and compliance), including
in respect of the government investigations (see notes 23 and 31).

–$370 million (2021: $177 million), comprising movements in restoration, rehabilitation and decommissioning estimates
relating to sites that are no longer operational.

• Impairments of $3,337 million (2021: $1,838 million), see note 7. The corresponding net impact, after income taxes and noncontrolling interests was $2,341 million (2021: $1,137 million). The 2022 charge primarily relates to Mt. Isa Copper ($656 million), Mt.
Isa Zinc ($455 million), Zhairem ($185 million) and Koniambo ($227 milllion), due to significant changes to key macro estimates,
heavily influenced by the the Russian/Ukrainian war, and operational challenges in certain areas, Mopani advance ($422 million)
and outstanding VAT claims in the DRC of $632 million. The 2021 impairment related primarily to Koniambo ($1,170 million), HG
Storage ($331 million), outstanding VAT claims ($151 million) and net $98 million reversal of impairments of certain loans andphysical advances.
• Income tax expense of $199 million (2021: credit of $137 million) – see income taxes below.

Net finance costs

Net finance costs were $1,336 million during 2022, a 17% increase compared to $1,140 million in the comparable reporting period.
Interest expense for 2022 was $1,771 million, up 31% over 2021 due to higher average floating base rates (mainly SOFR). Interest
income was $435 million compared to $208 million in the prior year, also due to the higher average floating base rates. See note 6.

Income taxes

An income tax expense of $6,368 million was recognised during 2022, compared to an expense of $3,026 million in 2021. The
effective tax rate is 27.8%, however when adjusting for significant items (primarily impairments, foreign exchange adjustments andtax losses not recognised), the effective tax rate increases to 28.1% (33.5% in 2021).

Glencore Preliminary Results 2022

FINANCIAL AND OPERATIONAL REVIEWCurrent and non-current assets

Total assets were $132,583 million as at 31 December 2022, compared to $127,510 million as at 31 December 2021. Current assets
increased from $57,776 million to $69,223 million, due primarily to an increase in receivables, including margin calls paid in respect of
the Group’s hedging activities, on account of higher energy commodity prices at year end relative to the prior year and higher
inventories, in part reflecting slower sales into China amid Covid lockdowns and shipping bottlenecks and delays in respect ofrealignment of trade flows post the Ukraine war. Non-current assets decreased from $69,734 million to $63,360 million, primarily due
to capital expenditure over the period being below depreciation and amortisation expense, $1,982 million of impairments toproperty, plant and equipment, $2,440 million of asset values reclassified to held for sale and mark-to-market losses recognised onother investments (see below and notes 7, 16 and 11).

Current and non-current liabilities
Total liabilities were $87,364 million as at 31 December 2022, compared to $90,593 million as at 31 December 2021. Current liabilities
increased from $49,459 million to $53,420 million, primarily due to an increase in income tax payable of $2,875 million, reflecting theaggregate catch-up cashflow timing impact of final settlement of 2022 income taxes due in 2023 (e.g. final Australian 2022 income
taxes are due on 1 June 2023) and an increase in current borrowings (see note 21). Non-current liabilities decreased from$41,134 million to $33,944 million, primarily due to a decrease of non-current borrowings (see note 21).
Movements relating to current and non-current borrowings are set out below in the net funding and net debt movement
reconciliation and in note 21.

EquityTotal equity was $45,219 million as at 31 December 2022, compared to $36,917 million as at 31 December 2021, the movements being
primarily the income for the year of $16,511 million, including non-controlling interests and a decrease in other comprehensive
income noted below, offset by shareholder distributions and buybacks ($7,097 million) concluded during the year.

Other comprehensive income/(loss)
A loss of $788 million was recognised during 2022, compared to an income of $42 million in 2021, primarily relating to net mark-tomarket losses of $1,124 million (2021: $52 million) with respect to various minority investments, comprising mainly our holdings in
EN+ and Rossneft (see note 11), and exchange losses on translation of foreign operations of $307 million (2021: $87 million), primarily
our South African ZAR-denominated subsidiaries, offset by foreign exchange losses recycled to the statement of income of$481 million (2021: $Nil) and net defined benefit plan remeasurements of $231 million (2021: $223 million).

Glencore Preliminary Results 2022

FINANCIAL AND OPERATIONAL REVIEWCash flow and net funding/debt
Net funding
US$ million

Total borrowings as per financial statements
Proportionate adjustment – net funding1
Cash and cash equivalents
Net funding◊1

31.12.2022

31.12.2021

28,777646(1,923)27,50034,641(563)(3,241)30,837

Refer to APMs section for definition and reconciliations.

Cash and non-cash movements in net funding
US$ million

2022

2021

Cash generated by operating activities before working capital changes, interest and tax
Proportionate adjustment – Adjusted EBITDA1
Non-cash adjustments included within EBITDA
Net interest paid1
Tax paid1
Dividends received from associates1
Funds from operations◊

32,9152,402
35(1,069)(5,904)559
28,93816,725
3,619
–
(853)
(2,676)242
17,057

Net movement in inventories2
Net other working capital changes2
Increase in long-term advances and loans2
Acquisition and disposal of subsidiaries – net2
Purchase and sale of investments – net2
Purchase and sale of property, plant and equipment – net2
Margin payments in respect of financing related hedging activities
Proceeds received on acquisition of non-controlling interests in subsidiaries
Distributions paid and transactions of own shares – net
Cash movement in net funding
Net funding acquired in business combinations
Change in lease obligations
Foreign currency revaluation of borrowings and other non-cash items
Total movement in net funding
Net funding◊, beginning of the year
Net funding◊, end of year
Less: Readily marketable inventories2
Net debt◊, end of year

(5,149)(8,334)
(200)
609
128
(4,543)(1,824)–(7,539)
2,086
(20)
(379)
1,650
3,337
(30,837)(27,500)
27,425(75)(5,689)
400
–
252
108
(3,802)(970)
10(3,024)
4,342
–
(915)
1,164
4,591
(35,428)(30,837)
24,795(6,042)

1 Refer to APMs section 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 andcomprises key movements in cash and any significant non-cash items.
Net funding as at 31 December 2022 decreased by $3.3 billion to $27,500 million and net debt (net funding less readily marketable
inventories) decreased by $6.0 billion to $75 million, as funds from operations of $28,938 million significantly exceeded the$4,543 million of net capital expenditure, $7,539 million of distribution to shareholders, non-controlling interests and purchase ofown shares and respectively, $5,149 million and $8,334 million in inventory and net other working capital outflows.
The latter primarily includes a $1.1 billion reduction in deferred income, $0.9 billion paid during the period towards settlement of thevarious legal investigations (see note 21), a $0.5 billion reduction in other provisions (mainly remuneration and rehabilitation related),
a $1.9 billion net increase in trade receivables / payables (see notes 14 and 25), a $0.7 billion net increase in physical forward
commodity related contracts (see note 29), and a $2.4 billion net increase in net margins calls paid, in excess of the movement incurrent financial assets / liabilities (our derivative commodity related contracts / hedging instruments, excluding physical forwards)(see notes 14 and 25), whereby the various commodity exchanges significantly increased their initial margining requirements during
the period, resulting in the posting of an additional $2.2 billion from $1.9 billion to $4.1 billion. The latter 3 categories, aggregating tosome $5 billion, substantially relate to our Energy marketing activities (oil, gas and coal), whereby the additional investment inworking capital, should be considered in the context of a 273% increase in Energy Marketing EBIT from $1.4 billion to $5.2 billion.
The non-RMI inventory balance increased by $2.5 billion over the year, including the $1.2 billion inter-segment profit-in-stock
elimination adjustment (see note 2), whereby a positive corresponding cashflow effect is reported within ‘cash generated byoperating activities’ above. The remaining variance primarily comprises Astron oil refinery ($0.3 billion), as we initiated its restart in
Q4 2022, requiring parallel crude and product stocks to be held for a period of time, the build-up of additional inventory capacity at
African copper ($0.2 billion) to assist with processing complexities and supply-chain challenges, as well as higher Kazzinc inventories($0.2 billion), owing to supply-chain challenges resulting from the Russian/Ukraine war.

Glencore Preliminary Results 2022

FINANCIAL AND OPERATIONAL REVIEWBusiness and investment acquisitions and disposals
Net inflows from business and investment disposals/acquisitions were $737 million over the year, compared to $370 million in 2021.
The net inflow mainly comprises the proceeds from the sale of Ernest Henry for $584 million (see note 26). The net inflow in 2021
comprises mainly the proceeds from the sale of Chemoil Terminals (oil storage facilities in the US) for $248 million (see note 26). In
May, Glencore subscribed for $200 million of convertible debt in Li-Cycle, a leading lithium-ion battery recycler in North America (seenote 12).

Liquidity and funding activities

In March 2022 (effective May 2022), Glencore refinanced its short-term revolving credit facility (RCF). As at 31 December 2022, theoverall RCF facilities comprise:–a $6,535 million one-year revolving credit facility with a one-year borrower’s term-out option (to May 2024);–

a $450 million medium-term revolving credit facility (to May 2025); and–a $4,200 million medium-term revolving credit facility (to May 2026).

As in previous years, these committed unsecured facilities contain no financial covenants, no rating triggers, no material adversechange clauses and no external factor clauses.
As at 31 December 2022, Glencore had available committed liquidity amounting to $13.0 billion (31 December 2021: $10.3 billion).

In light of the Group’s extensive funding activities, maintaining investment grade credit rating status is a financial priority. The
Group’s credit ratings are currently Baa1 (positive outlook) from Moody’s and BBB+ (positive outlook) from Standard & Poor’s.
Glencore’s publicly stated objective, as part of its overall financial policy package, is to seek and maintain a minimum of strong
Baa/BBB credit ratings from Moody’s and Standard & Poor’s 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.

One of the tools used by Glencore to monitor and limit its primary market risk 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 horizon, given a
specific level of confidence. The VaR methodology is a statistically defined, probability-based approach that takes into accountmarket volatilities, as well as risk diversification by recognising offsetting positions and correlations between commodities andmarkets. In this way, risks can be measured consistently across markets and commodities and risk measures can be aggregated toderive a single risk value.
Glencore uses a VaR approach based on Monte Carlo simulations computed at a 95% confidence level and utilising a weighted data
history for a one-day time horizon. Glencore’s Board, as part of its annual review process in H2 2021, approved an increase in theGroup’s consolidated VaR limit (one day 95% confidence level) from $100 million to $150 million, with effect from 1 January 2022,
which represents approximately 0.3% of total equity.
Prior to the Russia/Ukraine conflict, Glencore operated within the $150 million limit. Around the time of the invasion, the Group’s VaR
spiked due to the unprecedented levels of volatility in commodity markets (primarily energy but also certain metals), rather thandue to any change in the Group’s marketing positions or trading strategies. Given the market backdrop, prior to any likely breach,the Chief Risk Officer proactively consulted with the Board and received a temporary waiver from the application of a Group VaRlimit. During the waiver period, the Chief Risk Officer reported regularly to the Board.
In mid-May, as some non-energy markets started to normalise, the temporary waiver was rescinded and replaced with a VaR limit of$200 million, to account for the statistically elevated energy market risk environment. Similarly, prior to any breach, a temporary
waiver was approved in mid-August due to the increasing LNG risks as the European gas market was under significant pressure. In
mid-September, following a comprehensive review, the Board determined it was appropriate to revert to the prior VaR limit of$150 million, but to exclude LNG from the Group VaR limit, while maintaining a separate multipronged LNG risk reporting andcontrol structure, including the continued calculation and highlighting of VaR outcomes.
The year-end VaR (one day 95%), excluding LNG, was $76 million ($88 million, including LNG), comfortably within the Group’s$150 million limit. Average Group VaR, excluding LNG since its exclusion in mid-September, was $70 million. Including LNG, average
market risk VaR (one day 95%) during 2022 was $158 million, with an observable high of $451 million and a low of $66 million, while
average equivalent VaR during 2021 was $54 million.

In accordance with the Company’s shareholder return policy, the Directors have recommended a 2022 financial year base cash
distribution of $0.40 per share amounting to $5.1 billion, accounting for own shares held as at 10 February 2022. In addition, theDirectors have recommended a ‘top-up’ cash distribution of $0.04 per share amounting to some $0.5 billion, whereby payment of
the aggregate distribution of $0.44 per share will be effected as a $0.22 per share distribution in June 2023 and a $0.22 per share
distribution in September 2023 (in accordance with the Company’s announcement of the 2023 Distribution timetable made on
15 February 2023). The Company will also conduct a buy-back of its own shares to the value of up to $1.5 billion, with intended
completion by the time of the Group’s interim results announcement in August 2023.

Glencore Preliminary Results 2022

FINANCIAL AND OPERATIONAL REVIEWThe cash distribution is to be effected as a reduction of the capital contribution reserves of the Company. As such, this distribution
would be exempt from Swiss withholding tax. As at 31 December 2022, Glencore plc had CHF 18 billion of such capital contribution
reserves in its statutory accounts. The distribution is subject to shareholders’ approval at Glencore’s AGM on 26 May 2023.
The distribution is ordinarily paid in US dollars. Shareholders on the Jersey register may elect to receive the distribution 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 thetime. Shareholders on the Johannesburg register will receive their distribution in South African rand. Further details on distribution
payments, together with currency election and distribution mandate forms, are available from the Group’s website(www.glencore.com) or from the Company’s Registrars.

Liz Hewitt was appointed as Independent Non-Executive Director on 18 July 2022. From March 2023, she will replace Gill Marcus as
Chair of the Audit Committee, who will remain a member of the Committee. Gill Marcus replaced Martin Gilbert as Senior
Independent Director on 2 December 2022, who remains on the Board as an Independent Non-Executive Director.

Glencore Preliminary Results 2022

Marketing Adjusted EBIT of $6,382 million was 73% higher than in 2021, having successfully navigated the extraordinary supply-side
shocks in global energy and agricultural markets stemming from the Russia/Ukraine war and demand uncertainty related to mainly
ex-China rising inflation and tightening monetary conditions, in conjunction with China’s commitment to its zero-Covid policy overmuch of 2022.
The Russian invasion of Ukraine in February 2022, led to significant upheaval, uncertainty and ultimately realignment of global tradeflows, most notably in the energy complex. Already challenged oil and gas markets responded accordingly, with prices (absoluteand in relation to quality and location differentials) reaching multi-year highs or records in many cases, before easing over Q4 in theface of the relatively mild weather start to winter, with high gas inventory levels having been built up. European coal imports werematerially higher during the year, reflecting substitution for gas, at the same time as supply was limited by an Indonesian export ban
earlier in the year and weather disruptions in Australia, South Africa and Colombia.
Against this challenging and elevated risk backdrop, as evidenced by our Value at Risk analysis discussed in note 27, Adjusted EBIT
from the Energy products business was $5,199 million, a near four-fold increase over the prior year.
Metals and minerals Adjusted EBIT decreased by 34% to $1,640 million, reflecting the weak Chinese construction, manufacturing
and consumer spending activity levels noted below, as well, in % terms, the strong 2021 contribution.
Viterra (reported within corporate and other) contributed $494 million on an attributable, after-tax basis, matching 2021’s record
performance.

US$ million

Revenue
Adjusted EBITDA◊
Adjusted EBIT◊
Adjusted EBITDA margin
1

Metals andminerals

Energyproducts

Corporate
and other1

2022

Metals andminerals

Energyproducts

Corporate
and other1

2021

77,382
1,694
1,640
2.2%

137,720
5,558
5,199
4.0%

–
(457)
(457)
n.m.

215,102
6,795
6,382
3.2%

71,318
2,588
2,494
3.6%

106,265
1,829
1,395
1.7%

–
(194)
(194)
n.m.

177,583
4,223
3,695
2.4%

Corporate and other Marketing activities includes $494 million (2021: $473 million) of Glencore’s equity accounted share of Viterra.

Selected marketing volumes sold
Units

2022

2021

Change %Copper metal and concentrates1
Zinc metal and concentrates1
Lead metal and concentrates1
Gold
SilverNickelFerroalloys (incl. agency)
Alumina/aluminium
Iron ore

mt
mt
mt
moz
moz
kt
mt
mt
mt

3.6
2.4
0.8
1.9
69.0
263
8.4
10.0
71.0

3.1
2.7
1.1
1.8
65.5
202
9.3
8.9
49.9

16
(11)
(27)
6
5
30
(10)
12
42

Thermal coal2
Metallurgical coal2
Crude oilOil products

mt
mt
mbbl
mbbl

78.4
2.5
535
544

67.7
4.6
706
704

16
(46)
(24)
(23)

1 Estimated metal unit contained.
2 Includes agency volumes.

Having started the year marginally below $10,000/t, the continuation of supportive financial conditions, low level of refinedinventories and limited mine supply growth buoyed copper prices in early 2022, with the LME three-month copper price reaching$10,845/t in March. The negative impact of declining sentiment emerged in April, with concerns related to tightening monetary
policies, Covid outbreaks in China and the impact of the war in Ukraine, leading to progressive US dollar appreciation andspeculative positions moving net-short, with prices drifting below $8,000/t through Q3 and early Q4. Improving copper
consumption in China, following various accommodative monetary policy measures taken to stabilise the domestic economy,
resulted in global refined inventories declining to their lowest level in more than 15 years during Q4 and spot cathode premiums
reaching record levels. Copper prices ended the reporting period modestly below $8,500/t.
Spot smelter treatment and refining charges, paid by mines to smelters, continued to move higher during the year, reaching levels
last seen in 2018, as increases in mine supply allowed concentrate supply chains to replenish stocks.
Looking forward, we expect mine supply growth to be constrained by aging assets, a diminished project pipeline and geopoliticalconditions, with new projects likely to experience delays. In the near term, global demand sentiment will be dependent on theoutlook for fiscal tightening measures, and improving industrial activity and recovery in the construction sector in China. In thelonger term, demand growth will be driven by population growth and rising living standards in emerging economies, supported by

Glencore Preliminary Results 2022

MARKETING ACTIVITIES

climate change policies and action expected to be a key driver for copper growth sectors, given their crucial role in accelerating theclean energy transition, from renewable power generation and distribution, to energy storage and electric vehicles (EVs).

Cobalt commenced the year in a strong position, with growing EV demand supplemented by post-Covid recovery in key metal
sectors including aerospace. Metal priced at $33.50/lb in early January, reaching a high of $39.75/lb in late April. Meanwhile hydroxidepayables maintained levels in the high 80%s, reflecting robust aggregate lithium-ion battery demand.
Fundamentals deteriorated progressively from Q2, with China’s protracted Covid lockdowns and global recessionary concerns. The
Chinese consumer goods sector exhibited the largest cobalt demand contraction, with mobile phone sales seeing double-digit
year-on-year declines. Meanwhile cobalt production growth remained robust, fuelling an oversupply.
Metal prices declined progressively during the year to the low $20/lb levels, while hydroxide payables drifted to low 60% levels. By
year end, cobalt metal dropped to $18.75/lb, down 44% versus the end of 2021. Hydroxide payables dipped below 60%, resulting in ahydroxide price down 63% versus end of 2021.
EV segment demand exhibited robust growth in 2022, and the trend of strong cobalt demand from EVs looks set to continue. This
sector is now well established in China and Europe, while the North American market continues to emerge as a major EV growth
region, accelerated by supportive policies including the Inflation Reduction Act which have induced a wave of EV supply chain
investments.
Within the EV sector, the average cobalt required per kWh continues to diminish, however strong cobalt demand remains
underpinned by the rate of EV sales growth, and while it may take some time, given current excess inventory levels, cobalt
fundamentals are expected to improve, also once China begins its recovery phase, which should see a turnaround in consumer
goods battery demand.

Physical indicators, such as metal premiums increasing to c.$700/t in the US and c.$500/ in the EU, backwardated spreads, andvisible metal exchange inventories reaching the lowest level in more than three decades, signalled tight market conditions in 2022.
The average zinc price increased by 16% YoY from $3,005/t in 2021 to $3,485/t in 2022.
On the supply side, both mined and refined metal production underperformed initial expectations and prior year. Delays in projectramp-ups, operational issues, and soaring production costs affected mine (c. -1.0% YoY) and metal (c. -3% YoY) supply. European zincsmelters, accounting for c.30% of ex-China zinc metal production, were the most affected by the high energy price environment
resulting in extended periods of production shutdowns or curtailments. Zinc mine and metal supply are expected to recover in 2023,
although the risk of continued disruptions remains high.
Ex-China demand for zinc was healthy in H1, with orders reducing in H2, due to US/EU recession fears, rising interest rates, andpower-related demand destruction in Europe. China’s zinc demand materially decreased in 2022, as the country’s economic activity
suffered from property industry slowdown and the effects of the zero-Covid policy. This resulted in China being a net exporter of zincmetal in 2022 for the first time in decades, with such flows helping to balance the RoW zinc metal markets. We expect China toreturn to importing metal in 2023, as consumption recovers with China’s reopening after the reversal of zero Covid.
In the lead market, the 2022 average price declined by 2% YoY to $2,153/t due to demand weakness, despite visible metal exchange
inventories down by 60% YoY (LME and ShFE combined). News of lead smelter disruptions in Q4, as well as lead’s inclusion in the
Bloomberg Commodity Index (BCOM) resulted in an end-of-year price uptick, ending the year at $2,337/t.

While all base metal prices were volatile following the start of the war in Ukraine, the disruption to the nickel market was truly
exceptional. The LME market was suspended in March 2022 having briefly reached $100,000/t. Since its restoration, liquidity in the
Nickel contract has remained particularly thin, with increased price volatility. The LME has committed to implement a number ofmeasures in an attempt to restore confidence in the Nickel contract exchange.
Following a sharp rebound in 2021, primary Ni demand saw more modest growth of 4% in 2022 as core manufacturing demand forstainless steel dropped in all regions, offset by growth in batteries and alloys. Chinese stainless steel production, accounting for morethan half of global nickel demand, was down on the prior year, impacted by its zero-Covid policy. In other regions, notably Europe,
the energy crisis and weak end-use demand weighed on metal consumption. Nickel demand from alloys and specialty steels was
supported by the recovery of the oil & gas and aerospace sectors while EV sales continued to increase.
While the supply of LME grade Nickel remains tight, a significant excess of non-LME grade units has incentivised the conversion ofthese units into Nickel matte and Nickel sulphate, both eligible for the battery segment and feedstock for LME grade production.

Input cost increases were largely passed through to the market, notwithstanding lower demand due to reduced stainless steel
production. Limited chrome ore supply growth in South Africa, coupled with inland and portside logistics constraints, resulted inchrome ore exports remaining flat year-on-year.
Vanadium demand was overall stable as the aerospace sector began to recover to pre-pandemic levels, offsetting steel sector
reductions. Geopolitical supply concerns regarding Russian vanadium also contributed to price increases.

Glencore Preliminary Results 2022

MARKETING ACTIVITIESThe aluminium market experienced a highly volatile 2022. After rallying in Q1, peaking at an all-time high of $4,074/t in March on theback of tightening supply and margining issues, the LME three-month contract retreated by 49% to $2,081/t by the end of
September. Covid-19 lockdowns and a weak construction sector in China, as well as high inflation and rising interest rates in theWest, led to a deteriorating demand outlook. Despite most regions showing deficits, the weight of macro factors and US dollar
strength kept the prices subdued for the rest of the year, finishing at $2,350/t.
Premiums in Europe and the Americas reached all-time highs in H1, basis supply-side logistical challenges, before retracing, due tothe weaker macroeconomic backdrop. The Midwest Premium closed the year at 22c/lb, while the CIF Main Japanese Port Spot
Premium decreased from $170/t in May to $75/t at year end.
The alumina market followed a similar pattern in 2022, peaking at $530/t in March before retracing to c.$370/t by the end of H1. With
China’s significant addition of new refining capacity and power-related aluminium curtailments, the import window was closed formuch of H2 2022. Together with similar curtailments amongst European aluminium smelters, and with new alumina production
from Indonesia and Jamalco (restart), alumina prices fell further in H2 2022, trading mainly between $310/t to $330/t.

The iron ore market was impacted by geopolitical uncertainty and slow economic growth, particularly in China. Other than a shortterm supply impact due to the Ukraine war and changes in Indian export duties, for most of the year iron ore was oversupplied. ExChina, inflation and broader recessionary caution undermined steel demand, while in China, zero-Covid policy put pressure onindustrial activities, including the construction sector. As a result, many steelmakers’ margins were breakeven to negative, with lowgrade ore often then preferred, where cost-cutting was the main theme. However, with China lifting its zero-Covid policy inDecember, Chinese mills have actively sought to restock in preparation for the upcoming spring.

Coal supply disruptions, particularly from Indonesia, Australia and Colombia, and increased coal demand into Europe and India
contributed to coal supply shortfalls in 2022, which, correlating with the significantly higher global gas prices, resulted in record
average 2022 prices for GCNewc ($363/t), API4 ($272/t) and API2 ($292/t), up 163%, 117% and 148% respectively from their 2021
averages.
While demand for seaborne thermal coal was down c.2% in Pacific markets, largely due to Chinese domestic production growth, theglobal seaborne thermal coal market grew by c.2% in 2022, as European demand increased by c.30Mt.
Australian thermal coal exports declined c.20Mt YoY, primarily due to reduced Newcastle coal exports, which together with lower
Colombian volumes, contributed to a substantial reduction in the supply of higher energy, low ash coals into the seaborne market.
Indonesian exports recovered after an export ban during Q1, with YoY total volumes increasing by c.29Mt, with growth primarily
coming from coals with energy content below 4000kcal/kg NAR.
Global production of blast furnace pig iron, the main driver of coking coal and PCI demand fell by c.3% YoY as a combination of highenergy prices and weaker steel demand curtailed European and Asian blast furnaces. This lower demand for metallurgical coals wasoffset by reduced supply from Australia due to weather and a swing of PCI coals into thermal markets, as the latter were pricing
higher for much of 2022. Premium HCC prices averaged $364/t during 2022, 63% above the $224/t average in 2021.

Russia’s invasion of Ukraine resulted in the biggest dislocation in global energy markets in recent history. Oil prices had seen asteady recovery post-pandemic driven by demand recovery and low inventory levels. The impact of the invasion resulted in a supply
shock, with Brent reaching a multi-year high of $127/bbl in March. Brent Oil prices remained volatile in the $100-120/bbl range for theremainder of H1 as the market struggled to rebalance the unprecedented structural changes to oil markets, particularly in Europe.
During H2, oil prices weakened considerably driven by a deteriorating macroeconomic outlook and resilient oil supply. Weaker
demand from China due to extended lockdowns contributed to lower demand with Brent ending the year at $86/bbl.
Gas markets, already tight given low storage levels heading into the European 2021/22 winter, were even more disrupted by the
Ukraine invasion, resulting in a surge in gas prices with the European TTF natural gas benchmark price reaching a peak of$99/mmbtu ($23/mmbtu: 31 December 2021). The elevated European gas prices drove large flows of LNG into Europe to meetdemand following curtailed pipeline flows of Russian natural gas. Milder temperatures drove weaker demand in H2, which together
with near-full storage levels, saw gas prices recede, whereby the TTF price closed the year around starting year levels.
Refined product markets were impacted by the Ukraine invasion, supply interruptions from US and European refinery outages andby reduced exports from China in Q2-Q3. Global refined product balances tightened amidst sustained stock draws, resulting inhistorically low levels of product inventories worldwide. Refined oil product cracks, in particular transportation fuels, surged tohistorical highs during the first half of 2022. Diesel cracks remained strong throughout most of the year, however gasoline cracks
weakened substantially in H2, due to a combination of lower than expected demand during peak driving season (especially in theUS), an excess supply of non-refinery gasoline blendstocks and a surge in Chinese exports in Q4.
In shipping, long-standing trade patterns were materially disrupted by the invasion of Ukraine, increasing demand for longer haulroutes, sending overall freight rates significantly higher. Tonnage availability remained tight throughout most of the year.

Glencore Preliminary Results 2022

Industrial Adjusted EBITDA increased by 59% to a record $27,265 million compared to $17,100 million in 2021. The increase
substantially comprises the higher coal Adjusted EBITDA (a more than three-fold increase over prior year), on account of the muchstronger coal prices over the year, including the incremental contribution of the two-thirds of Cerrejón, acquired in January 2022,
that Glencore did not previously own.
Adjusted EBITDA contribution from Metals and minerals assets was $9,274 million, down 23% compared to the prior year. Our
business saw overall production volume reductions including in relation to portfolio disposals (Ernest Henry (copper/gold) and SouthAmerican zinc assets); end of mine life volume impacts / variability (Kazzinc, Mount Isa); mining sequencing during the period(Collahuasi, Antapaccay); operational and ramp-up constraints (Katanga, Kazzinc, Mount Isa); and labour action (INO). Energy-driven
direct and indirect input costs rose substantially across the board, notably with respect to higher diesel spend and increased power
costs at our more energy-intensive metals’ smelting and refining assets.
Adjusted EBITDA contribution from Energy products assets was $18,590 million, compared to $5,603 million in 2021, mainly due tothe significantly higher prices across the energy complex as noted in the Marketing section.
Reflecting the above, Adjusted EBITDA mining margins were 36% (2021: 45%) in our metals operations and 66% (2021: 47%) in ourenergy operations.
Capex of $4,807 million (2021: $4,423 million) was $384 million (9%) higher year over year, including $113 million in relation to the
66.7% of Cerrejón we did not previously own.
US$ million

Revenue◊
Adjusted EBITDA◊
Adjusted EBIT◊
Adjusted EBITDA mining margin

Metals andminerals

Energyproducts

Corporate
and other

38,993
9,274
5,082
36%

39,333
18,59015,850
66%

6
(599)
(657)

2022

Metals andminerals

Energyproducts

Corporate
and other

78,332
27,265
20,27551%

41,53512,017
8,128
45%

19,269
5,603
3,252
47%

6
(520)
(580)

2021

60,81017,10010,80044%

Production from own sources – Total1
CopperCobaltZinc
Lead
NickelGold
SilverFerrochrome
Coal
Oil (entitlement interest basis)
1

2022

2021

Change %

kt
kt
kt
kt
kt
koz
koz
kt

1,058.1
43.8
938.5
191.6
107.5
661
23,7501,488

1,195.7
31.3
1,117.8
222.3
102.3
809
31,519
1,468

(12)
40
(16)
(14)
5
(18)
(25)
1

mt
kboe

110.0
6,131

103.3
5,274

6
16

Controlled industrial assets and joint ventures only. Production is on a 100% basis, except for joint ventures, where the Group’s attributable share of production is included.

Glencore Preliminary Results 2022

INDUSTRIAL ACTIVITIES

US$ million

Copper assets
AfricaCollahuasi1
Antamina1
Other South America
Australia
PolymetCustom metallurgicalIntergroup revenue elimination
CopperZinc assets
Kazzinc
Australia
European custom metallurgicalNorth America
VolcanOther Zinc
Zinc
Nickel assets
Integrated Nickel Operations
Australia
Koniambo
NickelFerroalloys
Aluminium/Alumina
Iron ore
Metals and minerals
Coking Australia
Thermal Australia
Thermal South Africa
Cerrejón2
ProdecoCoal (own production)
Coal other revenue (buy-in coal)
Oil E&P assets
Oil refining assets
Energy products
Corporate and otherTotal Industrial activities◊

Revenue◊ Adjusted EBITDA◊

Depreciation andamortisation

Adjusted EBIT◊

Sustaining

Expansionary

Total

44%
71%
75%
46%
20%

(826)
(290)
(351)
(548)
(63)
–
(179)
–
(2,257)

725
1,211
835
421
7
(16)
288
–
3,471

379
159
355
575
85
–
200
–
1,753

61
173
7
47
–
8
2
–
298

440
332
362
622
85
8
202
–
2,051

(596)
(611)
(115)
(87)
–
(15)
(1,424)

211
(196)
4
40
(2)
(4)
53

271
397
104
24
–
22
818

75
21
43
–
–
–
139

346
418
147
24
–
22
957

(327)
(27)
(40)
(394)
(116)
(1)
–
(4,192)(208)(1,430)
(461)
(438)
–
(2,537)

559
456
(112)
903
603
54
(2)
5,082
1,151
9,980
1,194
3,171
(113)
15,383

155
26
19
200
109
5
–
2,885
186
547
146
169
–
1,048

265
–
–
265
10
–
–
712
–
–
–
–
–
–

420
26
19
465
119
5
–
3,597
186
547
146
169
–
1,048

(128)
(75)
(2,740)(58)(6,990)653(186)
15,850(657)
20,275

11
82
1,141
–
4,026

–
31
31
38
781

11
113
1,172
38
4,807

3,526
2,120
1,575
2,120
351
–
9,769
(355)
19,106

1,551
1,501
1,186
969
70
(16)
467
–
5,728

3,564
3,767
4,260
1,770
–
203
13,564

807
415
119
127
(2)
11
1,477

23%
11%

2,028
1,186
713
3,927
2,396
–
–
38,993
2,468
16,890
2,767
5,393
–
27,518
1,961
1,004
8,850
39,333
6
78,332

886
483
(72)
1,297
719
55
(2)
9,274
1,359
11,410
1,655
3,609
(113)
17,920

44%
41%
(10%)
33%
30%

781
(111)
18,590(599)
27,265

78%

54%

5%
16%

36%
55%
68%
60%
67%
65%

66%

1 Represents the Group’s share of these JVs.
2 In January 2022, Glencore acquired the remaining 66.67% of Cerrejón. 2021 numbers represent Glencore’s 33.33% interest in Cerrejón.

Glencore Preliminary Results 2022

Capital expenditure◊

Adjusted EBITDA
mining margin3,4◊51%

INDUSTRIAL ACTIVITIES

US$ million

Copper assets
AfricaCollahuasi1
Antamina1
Other South America
Australia
PolymetCustom metallurgicalIntergroup revenue elimination
CopperZinc assets
Kazzinc
Australia
European custom metallurgicalNorth America
VolcanOther Zinc
Intergroup revenue elimination
Zinc
Nickel assets
Integrated Nickel Operations
Australia
Koniambo
NickelFerroalloys
Aluminium/Alumina
Iron ore
Metals and minerals
Coking Australia
Thermal Australia
Thermal South Africa
Cerrejón2
ProdecoCoal (own production)
Coal other revenue (buy-in coal)
Oil E&P assets
Oil refining assets
Energy products
Corporate and otherTotal Industrial activities◊

Revenue◊ Adjusted EBITDA◊

Capital expenditure◊

Adjusted EBITDA
mining margin3,4◊Depreciation andamortisation

Adjusted EBIT◊

Sustaining

Expansionary

Total

(504)
(287)
(311)
(515)
(125)
–
(159)
–
(1,901)

1,670
1,846
1,105
885
352
(13)
166
–
6,011

258
292
287
658
81
7
164
–
1,747

42
95
9
26
–
–
–
–
172

300
387
296
684
81
7
164
–
1,919

(437)
(566)
(132)
(129)
–
(102)
–
(1,366)

666
380
(61)
152
9
9
–
1,155

252
281
89
33
–
48
–
703

90
2
87
2
–
–
–
181

342
283
176
35
–
48
–
884

(396)
(29)
(81)
(506)
(115)
(1)
–
(3,889)(229)(1,398)
(438)
(89)
(11)
(2,165)

440
167
(245)
362
694
(92)
(2)
8,128
730
1,872
125
363
(29)
3,061

258
51
16
325
104
5
–
2,884
132
279
126
30
–
567

312
–
–
312
24
–
–
689
8
146
3
–
–
157

570
51
16
637
128
5
–
3,573
140
425
129
30
–
724

(110)
(76)
(2,351)(60)(6,300)

119
72
3,252
(580)
10,800

35
60
662
–
3,546

–
–
157
31
877

35
60
819
31
4,423

4,256
2,599
1,791
2,494
889
–
10,186(249)
21,966

2,174
2,133
1,416
1,400
477
(13)
325
–
7,912

51%
82%
79%
56%
54%

3,501
4,246
4,035
1,964
–
524
(10)
14,260

1,103
946
71
281
9
111
–
2,521

32%
22%

1,811
763
242
2,816
2,493
–
–
41,535
1,975
6,976
1,488
772
–
11,211
865
294
6,899
19,2696
60,810

836
196
(164)
868
809
(91)
(2)
12,017
959
3,270
563
452
(18)
5,226

46%
26%
(68%)
31%
32%

229
148
5,603
(520)
17,100

78%

63%

21%
26%

45%
49%
47%
38%
59%
47%

47%
44%

3 Adjusted EBITDA mining margin for Metals and Minerals is Adjusted EBITDA excluding non-mining assets as described below ($8,508 million (2021: $11,422 million)) divided by Revenue excluding non-mining assets and intergroup revenue elimination($23,549 million (2021: $25,609 million) i.e. the weighted average EBITDA 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.
4 Energy products EBITDA margin is Adjusted EBITDA for coal and Oil E&P (but excluding Oil refining) ($18,701 million (2021: $5,455 million)), divided by the sum of coal revenue from own production and Oil E&P revenue ($28,522 million (2021: $11,505 million)).
Glencore Preliminary Results 2022

INDUSTRIAL ACTIVITIES

Production from own sources – Copper assets1
African Copper (Katanga, Mutanda, Mopani)
Copper metal
Cobalt2
Collahuasi3
Copper in concentrates
Silver in concentrates
Gold in concentrates
Antamina4
Copper in concentrates
Zinc in concentrates
Silver in concentrates
Other South America (Antapaccay, Lomas Bayas)
Copper metal
Copper in concentrates
Gold in concentrates and in doréSilver in concentrates and in doré
Australia (Ernest Henry, Cobar)
Copper metal
Copper in concentrates
Gold
SilverTotal Copper department
CopperCobaltZinc
Gold
Silver2022

2021

Change %

kt
kt

253.4
40.2

277.2
27.7

(9)
45

kt
koz
koz

251.1
3,350
38

277.2
4,219
45

(9)
(21)
(16)

kt
kt
koz

152.5
144.3
4,964

150.0
153.7
6,135

2
(6)
(19)

kt
kt
koz
koz

72.6
151.0
61
1,222

64.3
170.8
90
1,382

13
(12)
(32)
(12)

kt
kt
koz
koz

–
37.3
–
446

44.8
40.5
64
654

(100)
(8)
(100)
(32)

kt
kt
kt
koz
koz

917.9
40.2
144.3
99
9,982

1,024.8
27.7
153.7
199
12,390

(10)
45
(6)
(50)
(19)

2022

2021

Change %

kt
kt
kt
kt
kt
koz
koz
koz

125.7
20.7
16.9
0.4
20.5
546
2,721
12

147.9
–
19.8
–
25.6
595
2,921
–

(15)
n.m.
(15)
n.m.
(20)
(8)
(7)
n.m.

kt
kt
kt
koz
koz

564.0
70.5
165.9
557
5,592

609.4
91.5
188.1
625
6,521

(7)
(23)
(12)
(11)
(14)

kt
kt
koz

56.5
28.3
1,346

96.1
30.3
1,383

(41)
(7)
(3)

kt
kt
kt
koz

27.3
8.4
1.4
3,345

110.7
14.4
1.7
7,383

(75)
(42)
(18)
(55)

kt
kt
kt
koz
koz

794.2
191.6
120.7
546
13,573

964.1
222.3
149.1
595
18,833

(18)
(14)
(19)
(8)
(28)

Production from own sources – Zinc assets1
Kazzinc
Zinc metal
Zinc in concentrates
Lead metal
Lead in concentrates
Copper metal5Gold
SilverSilver in concentrates
Australia (Mount Isa, Townsville, McArthur River)
Zinc in concentrates
Copper metal
Lead in concentrates
SilverSilver in concentrates
North America (Matagami, Kidd)
Zinc in concentrates
Copper in concentrates
Silver in concentrates
Other Zinc: South America (Bolivia, Peru)6
Zinc in concentrates
Lead in concentrates
Copper in concentrates
Silver in concentrates
Total Zinc department
Zinc
Lead
CopperGold
SilverGlencore Preliminary Results 2022

INDUSTRIAL ACTIVITIES

Production from own sources – Nickel assets1
Integrated Nickel Operations (INO) (Sudbury, Raglan, Nikkelverk)
Nickel metal
Nickel in concentrates
Copper metal
Copper in concentrates
Cobalt metalGold
SilverPlatinum
Palladium
Rhodium
Murrin Murrin
Nickel metal
Cobalt metal
Koniambo
Nickel in ferronickel
Total Nickel department
NickelCopperCobaltGold
SilverPlatinum
Palladium
Rhodium

2022

2021

Change %

kt
kt
kt
kt
kt
koz
koz
koz
koz
koz

46.2
0.2
11.9
7.6
0.6
16
195
32
83
4

55.0
0.2
13.5
8.3
1.1
15
296
33
83
4

(16)
–
(12)
(8)
(45)
7
(34)
(3)
–
–

kt
kt

35.7
3.0

30.1
2.5

19
20

kt

25.4

17.0

49

kt
kt
kt
koz
koz
koz
koz
koz

107.5
19.5
3.6
16
195
32
83
4

102.3
21.8
3.6
15
296
33
83
4

5
(11)
–
7
(34)
(3)
–
–

2022

2021

Change %

kt
mlb

1,488
19.8

1,468
20.5

1
(3)

2022

2021

Change %

kt
kt

456.9
474.9

490.6
454.0

(7)
5

kt
kt

683.0
273.4

800.6
244.9

(15)
12

Production from own sources – Ferroalloys assets1
Ferrochrome7
Vanadium Pentoxide

Total production – Custom metallurgical assets1
Copper (Altonorte, Pasar, Horne, CCR)
Copper metal
Copper anode
Zinc (Portovesme, San Juan de Nieva, Nordenham, Northfleet)
Zinc metal
Lead metal

Glencore Preliminary Results 2022

INDUSTRIAL ACTIVITIESCoal assets1
Australian coking coal
Australian semi-soft coal
Australian thermal coal (export)
Australian thermal coal (domestic)
South African thermal coal (export)
South African thermal coal (domestic)
Cerrejón8
Total Coal department

mt
mt
mt
mt
mt
mt
mt
mt

2022

2021

Change %

8.7
4.0
53.4
7.8
12.7
3.7
19.7
110.0

9.1
4.5
55.9
6.0
14.7
5.3
7.8
103.3

(4)
(11)
(4)
30
(14)
(30)
153
6

2022

2021

Change %

5,107
1,024
6,131

4,141
1,133
5,274

23
(10)
16

Oil assets
Glencore entitlement interest basis
Equatorial Guinea
Cameroon
Total Oil department
1
2
3
4
5
6
7
8

kboe
kbbl
kboe

Controlled industrial assets and joint ventures only. Production is on a 100% basis, except for joint ventures, where the Group’s attributable share of production is included.
Cobalt contained in concentrates and hydroxides.
The Group’s pro-rata share of Collahuasi production (44%).
The Group’s pro-rata share of Antamina production (33.75%).
Copper metal includes copper contained in copper concentrates and blister.
South American production excludes Volcan Compania Minera.
The Group’s attributable 79.5% share of the Glencore-Merafe Chrome Venture.
2021 numbers represented the Group’s pro-rata share of Cerrejón production (33.3%). Glencore acquired the remaining 66.7% of Cerrejón in January 2022, such that 2022 production ispresented on a 100% basis.

Copper assets

Own sourced copper production of 1,058,100 tonnes was 137,600 tonnes (12%) lower than 2021, due to the basis change arising fromthe sale of Ernest Henry in January 2022 (44,800 tonnes), the ongoing geotechnical constraints at Katanga (44,300 tonnes),
Collahuasi planned mining sequence changes (26,100 tonnes) and a lower contribution from Mount Isa (21,000 tonnes, shown in the
Zinc section below).

African Copper

Own sourced copper production of 253,400 tonnes was 23,800 tonnes (9%) below 2021, mainly reflecting the previously disclosed
geotechnical constraints related to Katanga’s open pit, unplanned downtime at the acid plant and sporadic power supply
interruptions, partially offset by Mutanda’s restart in H2 2021.
Own sourced cobalt production of 40,200 tonnes was 12,500 tonnes (45%) higher than 2021, driven by Mutanda’s restart.

Collahuasi
Attributable copper production of 251,100 tonnes was 26,100 tonnes (9%) lower than 2021, due to lower ore mined, reflecting planned
mining sequence and intermittent Covid-related absenteeism.

Antamina
Attributable copper production of 152,500 tonnes was 2,500 tonnes (2%) higher than 2021, due to higher copper grades.
Attributable zinc production of 144,300 tonnes was 9,400 tonnes (6%) lower than 2021, reflecting lower zinc grades.

Other South America

Copper production of 223,600 tonnes was 11,500 tonnes (5%) lower than 2021, mainly reflecting mining sequence planning at
Antapaccay, with higher production expected in 2023. Lomas Bayas recorded 8,300 tonnes more than in 2021, due to leaching
improvements and expansion of the leaching surface area.

Australia

Own sourced copper production of 37,300 tonnes was 48,000 tonnes (56%) lower than 2021, mainly due to the basis change effect ofErnest Henry having been sold in early January 2022.

Custom metallurgical assets

Copper anode production of 474,900 tonnes was 20,900 tonnes (5%) higher than 2021, mainly reflecting maintenance at Altonorte in
the base period, partially offset by lower production at Horne due to supply constraints and planned maintenance.
Copper cathode production of 456,900 tonnes was 33,700 tonnes (7%) lower than 2021, due to lower CCR production resulting from
Horne’s lower than planned output and planned maintenance at Pasar.

Glencore Preliminary Results 2022

INDUSTRIAL ACTIVITIESZinc assets

Own sourced zinc production of 938,500 tonnes was 179,300 tonnes (16%) lower than 2021, reflecting the disposal / cessation of SouthAmerica operations (83,400 tonnes), closure of Matagami (30,100 tonnes) and lower volumes from Mount Isa (39,600 tonnes), as
Lady Loretta approaches end of mine life.

Kazzinc

Own sourced zinc production of 146,400 tonnes was 1,500 tonnes (1%) lower than 2021, reflecting lower grades from the Maleevsky
mine due to its progressive depletion, partly offset by increased Zhairem production.
Own sourced lead production of 17,300 tonnes was 2,500 tonnes (14%) lower than 2021, mainly reflecting the extended closure of thelead smelter in September/October for a safety investigation.
Own sourced copper production of 20,500 tonnes was 5,100 tonnes (20%) lower than 2021, mainly due to Maleevsky’s progressive
depletion.
Own sourced gold production of 546,000 ounces was 49,000 ounces (8%) lower than 2021, due to displacement of own units(expected to be processed in 2023) in favour of third party units. Total gold production of 912,000 ounces was in line with 2021.

Australia

Zinc production of 564,000 tonnes was 45,400 tonnes (7%) lower than 2021, mostly related to lower volume and grade at Lady
Loretta, reflecting reserves depletion as the mine approaches end of life.
Lead production of 165,900 tonnes was 22,200 tonnes (12%) down on 2021, for the same reasons as zinc.
Copper production of 70,500 tonnes was 21,000 tonnes (23%) lower than 2021, reflecting Covid-19 related absenteeism and loss of ahigh-grade stope due to ground conditions and a damaged orepass.

North America

Zinc production of 56,500 tonnes was 39,600 tonnes (41%) lower than 2021, reflecting the progressive depletion of both Kidd andMatagami, the latter closing in June 2022.

South America
Zinc production of 27,300 tonnes was 75% lower than 2021, reflecting disposal of the Bolivian mines at the end of Q1 2022 andcessation of mining at Iscaycruz in Q3 2021. Los Quenuales was sold in December 2022, following which, no operating assets remainin this grouping.

European custom metallurgical assets

Zinc metal production of 683,000 tonnes was 117,600 tonnes (15%) lower than 2021, mainly relating to partial curtailment ofoperations at Portovesme from Q4 2021 and a full suspension at Nordenham from November 2022, in each case due to highEuropean power prices.
Lead metal production of 273,400 tonnes was 28,500 tonnes (12%) higher than 2021, reflecting the contribution of the Nordenham
Metal lead smelter acquired in September 2021.

Nickel assets

Own sourced nickel production of 107,500 tonnes was 5,200 tonnes (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 bylower production at INO due to strike action in Canada and Norway.

Integrated Nickel Operations (INO)

Own sourced nickel production of 46,400 tonnes was 8,800 tonnes (16%) lower than the comparable 2021 period, reflecting Raglan
mine industrial action from May to September 2022 and a short industry-based strike at Nikkelverk.

Murrin Murrin

Own sourced nickel production of 35,700 tonnes was 5,600 tonnes (19%) higher than 2021, and own sourced cobalt production of
3,000 tonnes was 20% higher, in each case, primarily due to the scheduled periodic lengthy plant maintenance shut down carriedout in the base period (May-June 2021).

Koniambo

Nickel production of 25,400 tonnes was 8,400 tonnes (49%) higher than 2021, as the plant operated with both processing lines forthe majority of 2022.

Ferroalloys assets

Attributable ferrochrome production of 1,488,000 tonnes was in line with 2021.

Glencore Preliminary Results 2022

INDUSTRIAL ACTIVITIESCoal assets
Coal production of 110.0 million tonnes was 6.7 million tonnes (6%) higher than 2021, reflecting higher attributable production from
Cerrejón, following the acquisition in January 2022 of the remaining two-thirds interest that Glencore did not already own, lessdeclines elsewhere in the portfolio.
On a like for like basis, overall Group production declined by 8.9 million tonnes (7%), primarily due to wet weather challenges and an
extended community blockade in Colombia.

Australian coking

Production of 8.7 million tonnes was 0.4 million tonnes (4%) lower than 2021, reflecting mining sequencing changes at Hail Creek
and abnormally wet weather.

Australian thermal and semi-soft

Production of 65.2 million tonnes was 1.2 million tonnes (2%) lower than 2021, with production impacted by extreme wet weather
conditions.

South African thermal

Production of 16.4 million tonnes was 3.6 million tonnes (18%) lower than 2021, due to the disposal of Middelburg (1.2 million tonnes
impact), wet weather challenges and continued export rail constraints.

Cerrejón
On a like-for-like basis, production of 19.7 million tonnes was 3.7 million tonnes (16%) lower than 2021, due to heavy rains in the June
to November period and community blockades impacting operations in early September, with ramp-up challenges thereafter.

Oil assets
Exploration and production

Entitlement interest oil production of 6.1 million barrels of oil equivalent was 0.9 million barrels (16%) higher than 2021, due to a fullyear of production from the Alen gas project in Equatorial Guinea, following its commencement in March 2021.

Glencore Preliminary Results 2022

FOR THE YEAR ENDED 31 DECEMBER 2022

US$ million

Revenue
Cost of goods soldSelling and administrative expenses
Share of income from associates and joint ventures
Gain/(loss) on acquisitions and disposals of non-current assets
Other income
Other expense
Impairments of non-current assets(Impairments)/reversal of impairments of financial assets
Dividend income
Interest income
Interest expense
Income before income taxes
Income tax expense
Income for the year

Notes

2022

2021

3

255,984(228,723)(2,430)
2,300
1,287
365
(1,276)(3,285)(52)
45435(1,771)
22,879(6,368)16,511

203,751(191,370)(2,115)
2,618
(607)
186
(2,133)(1,905)67
23
208(1,348)7,375(3,026)
4,349

(809)
17,320

(625)
4,974

1.33
1.32

0.38
0.37

11
4
5
5
7
7
11
6
6
8

Attributable to:Non-controlling interests
Equity holders of the Parent
Earnings per share:
Basic (US$)
Diluted (US$)

18
18

All amounts presented are derived from continuing operations. The accompanying notes are an integral part of the consolidated
financial statements.

Glencore Preliminary Results 2022

FOR THE YEAR ENDED 31 DECEMBER 2022

US$ million

Notes

2022

2021

16,511

4,349

24

298
(67)

284
(61)

11

(1,124)

(52)

2

(4)

Income for the year
Other comprehensive income
Items not to be reclassified to the statement of income in subsequent periods:
Defined benefit plan remeasurements
Tax charge on defined benefit plan remeasurements
Fair value loss on equity investments accounted for at fair value through othercomprehensive income
Tax credit/(charge) on equity investments accounted for at fair value through othercomprehensive income
Gain/(loss) due to changes in credit risk on financial liabilities accounted for at fair value
through profit and loss
Net items not to be reclassified to the statement of income in subsequent periods
Items that have been or may be reclassified to the statement of income in subsequent
periods:
Exchange loss on translation of foreign operations
Items recycled to the statement of income1
Loss on cash flow hedges
Tax credit on loss on cash flow hedges
Cash flow hedges reclassified to the statement of income
Tax charge on cash flow hedges reclassified to the statement of income
Share of other comprehensive loss from associates and joint ventures
Net items that have been or may be reclassified to the statement of income
in subsequent periods
Other comprehensive (loss)/income
Total comprehensive income
Attributable to:Non-controlling interests
Equity holders of the Parent
1

5/26

11

2

(7)

(889)

160

(307)
481
(38)
2
65
(2)
(100)

(87)
–
(212)
–
241
(2)
(58)

101
(788)
15,723

(118)
42
4,391

(824)
16,547

(645)
5,036

Comprises foreign exchange translation losses recycled upon disposal of subsidiaries ($50 million)(see notes 17 and 26) and restructuring of intragroup debt ($431 million)(see note 5).

All amounts presented are derived from continuing operations. The accompanying notes are an integral part of the consolidated
financial statements.

Glencore Preliminary Results 2022

AS AT 31 DECEMBER 2022

US$ million

AssetsNon-current assets
Property, plant and equipment
Intangible assets
Investments in associates and joint ventures
Other investments
Advances and loans
Other financial assets
Inventories
Deferred tax assets
Current assets
Inventories
Accounts receivable
Other financial assets
Income tax receivable
Prepaid expenses
Cash and cash equivalents
Assets held for sale

Notes

2022

2021

9
10
11
11
12
28
13
8

39,564
6,160
11,878
456
2,654
206
605
1,837
63,36043,1596,235
12,294
1,620
3,527
458
662
1,779
69,73413
1428
833,46024,565
6,109
401
325
1,923
66,783
2,440
69,223
132,583

28,434
19,493
4,636
364
287
3,241
56,455
1,321
57,776
127,510141
49,26949,410(4,191)45,219146
39,78539,931(3,014)36,91715
16

Total assets
Equity and liabilities
Capital and reserves – attributable to equity holders
Share capital
Reserves and retained earnings
Non-controlling interests
Total equity

17
17
34

Non-current liabilities
Borrowings
Deferred income
Deferred tax liabilities
Other financial liabilities
Provisions
Post-retirement and other employee benefits

21
22
8
28
23
24

Current liabilities
Borrowings
Accounts payable
Deferred income
Provisions
Other financial liabilities
Income tax payable

18,851
1,547
3,651
2,055
7,163
677
33,944

26,811
2,088
4,469
710
6,117
939
41,134

21
25
22
23
28
8

Liabilities held for sale

16

9,926
29,726
1,060
1,425
4,882
4,660
51,6791,741
53,420132,5837,830
29,313
1,573
2,093
6,077
1,785
48,671
788
49,459127,510

Total equity and liabilities

The accompanying notes are an integral part of the consolidated financial statements.

Glencore Preliminary Results 2022

FOR THE YEAR ENDED 31 DECEMBER 2022

US$ million

Operating activities
Income before income taxes
Adjustments for:
Depreciation and amortisation
Share of income from associates and joint ventures
Streaming revenue and other non-current provisions(Gain)/loss on acquisitions and disposals of non-current assets
Unrealised mark-to-market movements on other investments
Impairments
Other non-cash items – net1
Interest expense – net
Cash generated by operating activities before working capital changes, interest and tax
Working capital changes
Increase in accounts receivable2
Increase in inventories(Decrease)/increase in accounts payable3
Total working capital changes
Income taxes paid
Interest received
Interest paid
Net cash generated by operating activities
Investing activities
Increase in long-term advances and loans
Net cash received in acquisition of subsidiaries
Net cash received from disposal of subsidiaries
Purchase of investments
Proceeds from sale of investments
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Dividends received from associates and joint ventures
Net cash used by investing activities

Notes

2022

2021

22,879

7,375

6,987
(2,300)65(1,287)
106
3,337
1,792
1,336
32,915

6,335(2,618)
(280)
607
(64)
1,838
2,392
1,140
16,725(4,942)(5,035)(3,292)(13,269)(4,881)234(1,340)13,659(5,888)(5,660)
6,423(5,125)(1,837)100(1,003)
8,860

(200)
321
455
(476)
604
(4,177)63
1,691(1,719)

–
–
252
(86)
194
(3,618)
342
2,375
(541)

Notes

2022

2021

5
5
20
5/23

349
370
1,134
–
(61)
1,792

187
177
476
1,556
(4)
2,392

11
4
5
7
6

12
26
26

11

1 See reconciliation below.
2 Includes movements in other financial assets, prepaid expenses and other long-term advances and loans.
3 Includes movements in other financial liabilities, provisions and deferred income.

Other non-cash items comprise the following:
US$ million

Net foreign exchange losses
Closed sites rehabilitation provisioning
Share based and deferred remuneration costs
Legal and regulatory proceedings
Other
Total

All amounts presented are derived from continuing operations. The accompanying notes are an integral part of the consolidated
financial statements.

Glencore Preliminary Results 2022

FOR THE YEAR ENDED 31 DECEMBER 2022

US$ million

Financing activities1
Proceeds from issuance of capital market notes2
Repayment of capital market notes
Repurchase of capital market notes
Repayment of revolving credit facility
Proceeds from other non-current borrowings
Rrepayment of other non-current borrowings
Repayment of lease liabilities
Margin payments in respect of financing related hedging activities
Proceeds from/(repayment of) current borrowings
Repayment of/(proceeds from) U.S. commercial papers
Proceeds received on acquisition of non-controlling interests in subsidiaries
Payments on acquisition of non-controlling interests in subsidiaries
Return of capital/distributions to non-controlling interests
Purchase of own shares
Disposal of own shares3
Distributions paid to equity holders of the Parent
Net cash used by financing activities(Decrease)/increase in cash and cash equivalents
Effect of foreign exchange rate changes
Cash and cash equivalents, beginning of year
Cash and cash equivalents, end of year
Cash and cash equivalents reported in the statement of financial position
Cash and cash equivalents attributable to assets held for sale

Notes

17
19

15
16

2022

2021

–
(2,850)(103)(2,563)
430
(73)
(577)
(1,824)
3,306(1,407)––(442)(2,503)238(4,832)(13,200)(1,260)
(50)
3,308
1,998
1,923
75

4,877
(2,807)(125)(2,244)
231
(493)
(634)
(970)
(2,016)
675
55
(45)
(163)
(746)
–
(2,115)(6,520)
1,799
11
1,498
3,308
3,241
67

1 Refer to note 21 for reconciliation of movement in borrowings.
2 2021 amount net of issuance costs relating to capital market notes of $48 million.
3 Comprises primarily cash received from the exercise of share-based option awards assumed in previous business combinations. There are no outstanding options as at 31 December
2022.

All amounts presented are derived from continuing operations. The accompanying notes are an integral part of the consolidated
financial statements.

Glencore Preliminary Results 2022

FOR THE YEAR ENDED 31 DECEMBER 2022

1 January 2021
Income for the year
Other comprehensive
income/(loss)
Total comprehensive income
Own share disposal (see note 17)
Own share purchases (see note 17)
Equity-settled share-based
expenses (see note 20)
Change in ownership interestin subsidiaries (see note 33)
Acquisition/disposal of business(see note 26)
Reclassifications
Distributions paid (see note 19)
31 December 2021

1 January 2022
Income for the year
Other comprehensive
income/(loss)
Total comprehensive income
Own share disposal (see note 17)
Own share purchases (see note 17)
Equity-settled share-based
expenses (see note 20)
Change in ownership interestin subsidiaries (see note 33)
Acquisition/disposal of business(see note 26)
Reclassifications
Cancellation of shares (see note20)
Distributions paid (see note 19)
31 December 2022

Own
shares(Note 17)

Total
reserves
andretainedearnings

Retainedearnings

Sharepremium

2,849
4,974

45,794–(5,848)–(5,304)–37,491
4,974

146
–

37,637
4,974(3,235)(625)

34,402
4,349

164

–

(102)

–

62

–

62

(20)

42

5,138
(78)
–

–
–
–

(102)
–
–

–
173
(746)

5,036
95
(746)

–
–
–

5,036
95
(746)

(645)
–
–

4,391
95
(746)

30

–

–

–

30

–

30

–

30

–

–

(6)

–

(6)

–

(6)

14

8

–
(25)
–
7,914

–
–
(2,115)43,679–25–(5,931)–––(5,877)––(2,115)39,785

–
–
–
146

–
–
(2,115)39,931

1,017
(2)
(163)
(3,014)1,017(2)(2,278)36,917Own
shares(Note 17)

Total
reserves
andretainedearnings

Total equity
Nonattributable controllingShare
to equityinterests
capitalholders(Note 33)

Total
equityTotalequityRetainedearnings

Sharepremium

Other
reserves(Note 17)

7,914
17,32043,679–(5,931)–(5,877)–39,785
17,320146–

39,931
17,320(3,014)(809)

36,917
16,511

129

–

(902)

–

(773)

–

(773)

(15)

(788)

17,449
(81)
–

–
–
–

(902)
–
–

–
430
(2,549)16,547349(2,549)–––16,547349(2,549)(824)––

15,723349(2,549)

(32)

–

–

–

(32)

–

(32)

–

(32)

–

–

(3)

–

(3)

–

(3)

115

112

–
(4)

–
–

–
3

–
–

–
(1)

–
–

–
(1)

(28)
2

(28)
1

–
–
25,246(2,130)(4,832)
36,717––(6,833)2,135–(5,861)

5(4,832)49,269

(5)
–
141

–
(4,832)
49,410–(442)(4,191)–(5,274)45,219The accompanying notes are an integral part of the consolidated financial statements.

Glencore Preliminary Results 2022

Total equity
Nonattributable controllingShare
to equityinterests
capitalholders(Note 33)

Other
reserves(Note 17)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 andminerals and energy products. Glencore operates on a global scale, marketing and distributing physical commodities sourced fromthird party producers and own production to industrial consumers, such as those in the battery, electronic, construction,
automotive, steel, energy and oil industries. Glencore also provides financing, logistics and other services to producers andconsumers of commodities. In this regard, Glencore seeks to capture value throughout the commodity supply chain. Glencore’slong experience as a commodity producer and merchant has allowed it to develop and build upon its expertise in the commodities
which it markets and cultivate long-term relationships with a broad supplier and customer base across diverse industries and in
multiple geographic regions.
Glencore is a publicly traded limited company incorporated in Jersey and domiciled in Switzerland, at Baarermattstrasse 3, 6340
Baar. Its ordinary shares are traded on the London and Johannesburg stock exchanges.
This preliminary announcement was authorised for issue in accordance with a Directors’ resolution on 14 February 2023.
The unaudited financial information for the year ended 31 December 2022 and audited financial information for the year ended
31 December 2021 contained in this document do not constitute statutory accounts as defined in Article 105 of Companies (Jersey)
Law 1991. The financial information for the year ended 31 December 2022 will be included in the financial statements of Glencore
which will be delivered to the Registrar in due course. The audit report for 31 December 2022 is yet to be signed by the auditor.

The financial information included in this preliminary announcement has been prepared in accordance with the recognition andmeasurement criteria of:• International Financial Reporting Standards (IFRS) adopted by the United Kingdom; and• IFRS as issued by the International Accounting Standards Board (IASB).
This announcement does not itself contain sufficient information to comply with those standards. The Company expects to publish
full financial statements that comply with IFRS Standards in March 2023.

The preparation of the consolidated financial statements requires management to make judgements, estimates and assumptions
that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the date of thefinancial statements and the reported amounts of revenues and expenses during the reporting period. Estimates and assumptions
are continually evaluated and are based on historical experience and other factors, including expectations of future events that are
believed to be reasonable and relevant under the circumstances, independent estimates, quoted market prices and common
industry standard modelling techniques. Actual outcomes could result in a material adjustment to the carrying amount of assets or
liabilities affected in future periods.
Glencore has identified the following areas as being critical to understanding Glencore’s financial position as they require
management to make complex and/or subjective judgements, estimates and assumptions about matters that are inherently
uncertain:

In the process of applying Glencore’s accounting policies, management has made the following judgements based on the relevantfacts and circumstances including macro-economic circumstances and, where applicable, interpretation of underlying agreements,
which have the most significant effect on the amounts recognised in the consolidated financial statements.

(i) Determination of control of subsidiaries and joint arrangements
Judgement is required to determine when Glencore has control of subsidiaries or joint control of joint or other unincorporated
arrangements. This requires an assessment of the relevant activities (those relating to the operating and capital decisions of thearrangement, such as: the approval of the capital expenditure programme for each year, and appointing, remunerating
and terminating the key management personnel or service providers of the operations) and when the decisions in relation to those
activities are under the control of Glencore or require unanimous consent. See note 26 for a summary of the acquisitions ofsubsidiaries completed during 2022 and 2021 and the key judgements made in determining control thereof.
Judgement is also required in determining the classification of a joint arrangement between a joint venture or a joint operation
through an evaluation of the rights and obligations arising from the arrangement and in particular, if the joint arrangement has
been structured through a separate vehicle, further consideration is required of whether:(1) the legal form of the separate vehicle gives the parties rights to the assets and obligations for the liabilities;(2) the contractual terms and conditions give the parties rights to the assets and obligations for the liabilities; and(3) other facts and circumstances give the parties rights to the assets and obligations for the liabilities.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

Joint arrangements in which the primary activity is the provision of output to the shareholders, typically convey substantially all the
economic benefits of the assets to the parties and judgement is required in assessing whether the terms of the offtake agreements
and any other obligations for liabilities of the arrangement result in the parties being substantially the only source of cash flows
contributing to the continuity of the operations of the arrangement.
Certain joint arrangements that are structured through separate vehicles including Collahuasi and Viterra are accounted for as joint
ventures. The Collahuasi arrangement is primarily designed for the provision of output to the shareholders sharing joint control, theofftake terms of which are at prevailing market prices and the parties are not obligated to cover any potential funding shortfalls. In
management’s judgement, Glencore is not the only possible source of funding and does not have a direct or indirect obligation to
the liabilities of the arrangement, but rather shares in its net assets and, therefore, such arrangements have been accounted for as
joint ventures.
Differing conclusions around these judgements may materially impact how these businesses are presented in the consolidated
financial statements – under the full consolidation method, equity method or recognition of Glencore’s share of assets, liabilities,
revenue and expenses, including any assets or liabilities held jointly. See note 11 for a summary of these joint arrangements and the
key judgements made in determining the applicable accounting treatment for any material joint arrangements entered during theyear.

(ii) Classification of transactions which contain a financing element (notes 21, 22 and 25)

Transactions for the purchase of commodities may contain a financing element such as extended payment terms. Under such anarrangement, a financial institution may issue a letter of credit on behalf of Glencore and act as the paying party upon delivery of
product by the supplier and Glencore will subsequently settle the liability directly with the financial institution, generally from 30 up
to 90 days after physical supply. Judgement is required to determine the most appropriate classification and presentation of thesetransactions within the statements of cash flows and financial position. In determining the appropriate classification, management
considers the underlying economic substance of the transaction and the significance of the financing element to the transaction.
Typically, the economic substance of the transaction is determined to be operating in nature as the financing element is
insignificant and the time frame in which the original arrangement is extended by, is consistent and within supply terms commonly
provided in the market. As a result, the entire cash flow is presented as operating in the statement of cash flows with acorresponding trade payable in the statement of financial position. As at 31 December 2022, trade payables include $7,504 million(2021: $8,565 million) of such liabilities arising from supplier financing arrangements, the weighted average of which extended
settlement of the original payable to 67 days (2021: 77 days) after physical supply and are due for settlement 35 days (2021: 33 days)
after year end. There was no significant exposure to any individual financial institution under these arrangements. These payables
are not included within net funding and net debt as defined in the APMs section.

(iii) Classification of physical liquefied natural gas (LNG) purchase and sale contracts at amortised cost or fair value
through profit and loss (notes 28 and 29)

Judgement is required to determine the appropriate IFRS 9 classification of physical LNG purchase and sale contracts as being
measured at amortised cost or fair value through profit and loss. This requires an assessment of whether the contracts to buy or sell
LNG (a non-financial item) can be settled net in cash or with another financial instrument, or by exchanging financial instruments, as
if the contracts were financial instruments, and whether there is a past practise of net settling similar contracts. Those physical LNG
contracts that can be net settled are considered to be derivatives, measured at fair value through profit or loss (see notes 28 and 29).
Contracts that do not meet the definition of derivatives are considered own use contacts and are to be accounted for as executory
contracts measured at amortised cost.
Differing conclusions around classification of these contracts, may materially impact their presentation as financial assets or
liabilities and any fair value adjustments recognised through profit and loss. As at 31 December 2022, the net fair value of physical
LNG contracts on the statement of financial position is $2,533 million (2021: $912 million), comprising a $2,552 million forward physicalasset and a $19 million forward physical liability (2021: $1,786 million forward physical asset and $874 million forward physical liability).

(iv) Investigations by regulatory and enforcement authorities and claims against the company in connection with
the investigations – Critical judgement in relation to whether a present obligation exists (note 31).
(v) Impact of carbon pricing. No material change to the Group’s related accounting estimates is expected within thenext financial year as a result of this judgement.
(vi) Valuation of investments in EN+ and Rosneft (note 11). No material change to the Group’s related accounting
estimates is expected within the next financial year as a result of this judgement.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

In the process of applying Glencore’s accounting policies, management has made key estimates and assumptions concerning thefuture and other key sources of estimation uncertainty. The key assumptions and estimates at the reporting date that have asignificant risk of resulting in a material adjustment to the carrying amount of assets and liabilities within the next financial year, aredescribed below. Actual results may differ from these estimates under different assumptions and conditions and may materiallyaffect financial results or the financial position reported in future periods.

(i) Recognition of deferred tax assets and uncertain tax positions (note 8)

Deferred tax assets are recognised only to the extent it is considered probable that those assets will be recoverable. This involves anassessment of when those deferred tax assets are likely to reverse, and a judgement as to whether there will be sufficient taxable
income available to offset the tax assets when they do reverse. These judgements and estimates are subject to risk and uncertainty
and therefore, to the extent assumptions regarding future profitability change, there can be a material increase or decrease in theamounts recognised in the consolidated statement of income in the period in which the change occurs, notably the deferred tax
asset and uncertain tax position of the Group’s DRC operations as outlined in note 8. The recoverability of the Group’s deferred tax
assets and the completeness and accuracy of its uncertain tax positions, including the estimates and assumptions contained
therein are reviewed regularly by management.

(ii) Impairments and impairment reversals (note 7)

Investments in associates and joint ventures, advances and loans, property, plant and equipment and intangible assets are reviewed
for impairment whenever events or changes in circumstances indicate that the carrying value of an individual asset or a cashgenerating unit (CGU) may not be fully recoverable, or at least annually for CGUs to which goodwill and other indefinite life
intangible assets have been allocated. Indicators of impairment may include changes in the Group’s operating and economic
assumptions, including those arising from changes in reserves or mine planning, updates to the Group’s commodity supply,
demand and price forecasts, or the possible impacts from emerging risks such as those related to climate change and the transition
to a lower carbon economy. If an asset or CGU’s recoverable amount is less than its carrying amount, an impairment loss isrecognised in the consolidated statement of income. For those assets or CGUs which were impaired in prior periods, if theirrecoverable amount exceeds their carrying amount, an impairment reversal is recorded in the consolidated statement of income.
Future cash flow estimates which are used to calculate the asset’s or CGU’s recoverable amount are discounted using asset or CGU
specific discount rates and are based on expectations about future operations, using a combination of internal sources and those
inputs available to a market participant, which primarily comprise estimates about production and sales volumes, commodity prices(considering current and future prices and price trends including factors such as the current global trajectory of climate change),reserves and resources, operating costs and capital expenditures. Estimates are reviewed regularly by management. Changes insuch estimates and in particular, deterioration in the commodity pricing outlook, could impact the recoverable amounts of theseassets or CGUs, whereby some or all of the carrying amount may be impaired or the impairment charge reversed (if pricing outlook
improves significantly or the service potential of the asset or CGU has otherwise increased from the time of the previous
impairment) with the impact recorded in the statement of income.
As referred to above and further described below in the ‘impairment or impairment reversals’ accounting policy, the Group carriesout, at least annually, an impairment assessment. Following this review, indicators of impairment or impairment reversal wereidentified for various CGUs, including those due to changes in the underlying commodity price environment most influencing therespective operation. The Group assessed the recoverable amounts of these CGUs and as at 31 December 2022, except for those
CGUs disclosed in note 7, the estimated recoverable amounts exceeded the carrying values. For certain CGUs where no impairment
was recognised, should there be a significant deterioration or improvement in the key assumptions, a material impairment orreversal could result within the next financial year. A summary of the carrying values, the key / most sensitive assumptions and asensitivity impact of potential movements in these assumptions for each such CGU with limited headroom (relative to its estimatedrecoverable amount) is shown below. In providing sensitivity analysis (and particularly on commodity price assumptions), a 10%change, representing a typical deviation parameter common in the industry, has generally been provided. Where a higher or lower
percentage is reasonably possible on an operational assumption, this has been clearly identified.
Katanga
Katanga’s non-current capital employed is carried at approximately $3,800 million. The valuation is sensitive to price and adeterioration in this key assumption could result in an impairment. The short to long-term copper and cobalt price assumptions
were $8,200-$7,400/t and $24.50-$22.50/lb respectively. A 10% reduction in the copper price assumption across the curve could
result in a $440 million impairment. A 10% reduction in the cobalt price assumption across the curve is not expected to result in an
impairment.
MutandaMutanda’s non-current capital employed is carried at approximately $2,300 million, inclusive of a $109 million intangible asset
recognised during the year and net of an accumulated impairment of $955 million. Following care and maintenance status since2019, a limited restart of operations commenced in 2021, utilising stockpiles of oxide ore. The valuation includes value attributable tothe long-term copper / cobalt sulphide mining and processing development potential. The valuation is sensitive to price andeventual commercialisation and ramp-up of the sulphide project, and deteriorations or improvements in these key assumptions
may result in additional impairments or reversals.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

The short to long-term copper and cobalt price assumptions were $8,200-$7,400/t and $24.50-$22.50/lb respectively. A 10%
reduction in the copper price assumption across the curve is not expected to result in a further impairment, whereas a 10%
reduction in the realised cobalt price assumption (across the curve) could result in a further $150 million impairment. Should thecopper and cobalt assumptions rise by 10% (across the curve), the previously recognised impairment could be reversed in its
entirety.
Kazzinc Smelting
Management has assessed that the Kazzinc business comprises three CGUs: the core Kazzinc Smelting (integrated mining andsmelting operations); the Zhairem zinc/lead mine; and the Vasilkovsky gold mine.
Kazzinc Smelting has not been impaired in the past or in the current year. However, industry cost pressures, including energy inputs
and additional taxes, are such that there is no appreciable difference between carrying value and recoverable value. Should zincprices move higher in line with the industry cost curve and/or stronger demand, the recoverable value could increase. Conversely, ina recessionary scenario the recoverable value could be lower than the carrying value.
Kazzinc Smelting’s non-current capital employed is carried at approximately $1,300 million. The valuation is sensitive to price and therealisation of certain operational efficiencies, and deteriorations in these key assumptions may result in an impairment.
The short to long-term zinc price assumption was $3,250 - $2,450/t and the discount rate was 11%. A 10% reduction in the zinc priceassumption (across the curve) could result in a $200 million impairment. A 1% increase in the discount rate could result in a $130
million impairment. Equivalent upside sensitivities are materially symmetrical with the downsides illustrated.
Zhairem has been impaired in 2022 (refer note 7).
Management does not expect that any reasonably possible changes in assumptions could lead to an impairment of Vasilkovsky
within the next financial year.
AstronAstron’s non-current capital employed is carried at approximately $800 million. The valuation is sensitive to oil refining margins. Achange in oil refining margin assumptions (across the curve) of $1/bbl is reasonably possible and could result in a $240 million
change (increase or decrease) to the carrying value of the Astron Energy CGU.

(iii) Restoration, rehabilitation and decommissioning costs (note 23)

A provision for future restoration, rehabilitation and decommissioning costs requires estimates and assumptions to be made aroundthe relevant regulatory framework, the magnitude of the possible disturbance and the timing, extent and costs of the required
closure and rehabilitation activities. Most of these rehabilitation and decommissioning events are expected to take place many years
in the future and the currently estimated requirements and costs that will have to be met when the restoration event occurs are
inherently uncertain and could materially change over time.
In calculating the appropriate provision for the expected restoration, rehabilitation or decommissioning obligations, cost estimatesof the future potential cash outflows based on current studies of the expected rehabilitation activities and timing thereof, areprepared. These forecasts are then discounted to their present value using a risk-free rate specific to the liability and the currency inwhich they are denominated.
Any changes in the expected future costs or risk-free rate are initially reflected in both the provision and the asset and subsequently
in the consolidated statement of income over the remaining economic life of the asset. As the actual future costs can differ from theestimates due to changes in laws, regulations, technology, costs and timing, the provisions including the estimates andassumptions contained therein are reviewed regularly by management. A material change in the provision within the next financial
year could arise from changes in risk-free rates. The aggregate effect of changes within the next financial year as a result of revisions
to cost and timing assumptions is not expected to be material.

The following clarification revisions to existing accounting pronouncements became effective as of 1 January 2022 and have been
adopted by the Group.

(i) Onerous Contracts – Cost of Fulfilling a Contract (Amendments to IAS 37) – effective for year ends beginning on orafter 1 January 2022

The amendments specify that the ‘cost of fulfilling’ a contract comprises the ‘costs that relate directly to the contract’. Costs that
relate directly to a contract can either be incremental costs of fulfilling that contract or an allocation of other costs that relate directly
to fulfilling contracts. The Group has applied the amendments to contracts for which the Group has not yet fulfilled all its obligationsas at 1 January 2022.

(ii) Property, Plant and Equipment – Proceeds before intended use (Amendments to IAS 16) – effective for year ends
beginning on or after 1 January 2022
The amendments prohibit an entity from deducting from the cost of an item of property, plant and equipment, any proceeds
received from selling items produced while preparing the assets for its intended use. Instead, any entity recognises the proceedsfrom selling such items, and the costs of producing those items, in the statement of income.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS(iii) Reference to the Conceptual Framework (Amendments to IFRS 3) – effective for year ends beginning on or after
1 January 2022
The amendments update the references to the Conceptual Framework for Financial Reporting and add an exception for therecognition of liabilities and contingent liabilities within the scope of IAS 37 Provisions, Contingent Liabilities and Contingent Assets
and IFRIC 21 Levies. The amendments also confirm that contingent assets should not be recognised at the acquisition date.
These amendments did not have a material impact on the Group.

At the date of the authorisation of this preliminary annoucement, the following revised IFRS standards, which are applicable to
Glencore, were issued but not yet effective:(i) Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12) – effective
for year ends beginning on or after 1 January 2023
The amendments specify how companies should account for deferred tax on transactions such as leases and decommissioning
obligations, and clarify that the initial recognition exception does not apply to transactions where both an asset and a liability arerecognised in a single transaction. Accordingly, deferred tax is required to be recognised on such transactions.

(i) Definition of Accounting Estimates (Amendments to IAS 8) – effective for year ends beginning on or after
1 January 2023
The amendments introduce the definition of accounting estimates and include other amendments to IAS 8 to help entities
distinguish changes in accounting estimates from changes in accounting policies.

(iii) Materiality of Accounting Policy Disclosure (Amendments to IAS 1) – effective for year ends beginning on or after
1 January 2023
The amendments require companies to disclose their material accounting policy information rather than their significant
accounting policies.

(iv) Classification of Liabilities as current or non-current (Amendments to IAS 1) – effective for year ends beginning on
or after 1 January 2023
The amendments clarify that the classification of liabilities as current or non-current is based on rights that are in existence at theend of the reporting period, specify that classification is unaffected by expectations about whether an entity will exercise its right todefer settlement of a liability, explain that rights are in existence if covenants are complied with at the end of the reporting period,and introduce a definition of ‘settlement’ to make clear that settlement refers to the transfer to the counterparty of cash, equity
instruments, other assets or services.
No significant changes to presentation or disclosures within these financial statements are expected following the adoption of theseamendments.

The preliminary announcement is prepared under the historical cost convention except for certain financial assets, liabilities,
marketing inventories and pension obligations that are measured at revalued amounts or fair values at the end of each reporting
period as explained in the accounting policies below. Historical cost is defined as the amount of cash or cash equivalents paid or thefair value of the consideration given to acquire them at the time of their acquisition. The principal accounting policies adopted are
set out below.
The Directors have assessed that they have, at the time of approving this preliminary announcement, a reasonable expectation that
the Group has adequate resources to continue in operational existence for the 12 months from the expected date of approval of the2022 Annual Report and Accounts. Therefore, they continue to adopt the going concern basis of accounting in preparing thesefinancial statements. The Directors have made this assessment after consideration of the Group’s budgeted cash flows and related
assumptions including appropriate stress testing of the identified uncertainties (being primarily commodity prices and currency
exchange rates) and access to undrawn credit facilities and monitoring of debt maturities. Further information on Glencore’s
objectives, policies and processes for managing its capital and financial risks is detailed in note 27.
All amounts are expressed in millions of United States Dollars, the presentation currency of the Group, unless otherwise stated.

The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company
and its subsidiaries.
Control is achieved when Glencore is exposed, or has rights, to variable returns from its involvement with the investee and has theability to affect those returns through its power over the investee. Specifically, Glencore controls an investee if, and only if, Glencore
has all of the following:• Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee);• Exposure, or rights, to variable returns from its involvement with the investee; and• The ability to use its power over the investee to affect its returns.
Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

When Glencore has less than a majority of the voting rights of an investee or similar rights of an investee, it considers all relevantfacts and circumstances in assessing whether it has power over the investee including:• The size of Glencore’s holding of voting rights relative to the size and dispersion of holdings of the other vote holders;• Potential voting rights held by Glencore, other vote holders or other parties;• Rights arising from other contractual arrangements; and• Any additional facts and circumstances that indicate that Glencore has, or does not have, the current ability to direct the relevant
activities at the time that decisions need to be made, including voting patterns at previous shareholders’ meetings.
The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one
or more of the three elements of control listed above. Consolidation of a subsidiary begins when Glencore obtains control over thesubsidiary and ceases when Glencore loses control of the subsidiary. Specifically, income and expenses of a subsidiary acquired or
disposed of during the year are included in the consolidated statement of income and other comprehensive income from the dateGlencore gains control until the date when Glencore ceases to control the subsidiary.
Profit or loss and each component of other comprehensive income are attributed to the owners of the Company and to the noncontrolling interests. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the noncontrolling interests even if this results in the non-controlling interests having a deficit balance.
When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with
the Group’s accounting policies. All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions
between members of the Group are eliminated in full on consolidation.
Changes in Glencore’s interests in subsidiaries that do not result in a loss of control are accounted for as equity transactions with any
difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paidor received being recognised directly in equity and attributed to equity holders of Glencore.
When Glencore loses control of a subsidiary, a gain or loss is recognised in the consolidated statement of income and is calculated as
the difference between (i) the aggregate of the fair value of the consideration received and the fair value of any retained interest and(ii) the previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any non-controlling interests.
All amounts previously recognised in other comprehensive income in relation to that subsidiary are accounted for as if Glencore had
directly disposed of the related assets or liabilities of the subsidiary (i.e. reclassified to profit or loss or transferred to another categoryof equity as specified/permitted by applicable IFRSs). The fair value of any investment retained in the former subsidiary at the datewhen control is lost is regarded as the fair value on initial recognition for subsequent accounting under IFRS 9, when applicable,or the cost on the initial recognition of an investment in an associate or a joint venture.

Associates and joint ventures (together “Associates”) in which Glencore exercises significant influence or joint control are accounted
for using the equity method. Significant influence is the power to participate in the financial and operating policy decisions of theinvestee but is not control or joint control over those policies. Significant influence is presumed if Glencore holds between 20% and
50% of the voting rights, unless evidence exists to the contrary. A joint venture is a joint arrangement whereby the parties that havejoint control of the arrangement have rights to the net assets of the joint arrangement. Joint control is the contractually agreed
sharing of control over an arrangement, which exists only when decisions about relevant strategic and/or key operating decisions
require unanimous consent of the parties sharing control.
Equity accounting involves Glencore recording its share of the Associate’s net income and equity. Glencore’s interest in an Associate
is initially recorded at cost and is subsequently adjusted for Glencore’s share of changes in net assets of the Associate, less any
impairment in the value of individual investments. Where Glencore transacts with an Associate, unrealised profits and losses are
eliminated to the extent of Glencore’s interest in that Associate.
Changes in Glencore’s interests in Associates are accounted for as a gain or loss on disposal with any difference between theamount by which the carrying value of the Associate is adjusted and the fair value of the consideration received being recognised
directly in the consolidated statement of income.

A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement, have rights to the assets andobligations for the liabilities relating to the arrangement.
When Glencore undertakes its activities under joint operations, Glencore recognises in relation to its interest in a joint operation:• Its assets, including its share of any assets held jointly;• Its liabilities, including its share of any liabilities incurred jointly;• Its revenue from the sale of its share of the output arising from the joint operation;• Its share of the revenue from the sale of the output by the joint operation; and• Its expenses, including its share of any expenses incurred jointly.
Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

The Group accounts for the assets, liabilities, revenues and expenses relating to its interest in a joint operation in accordance with
the IFRSs applicable to the particular assets, liabilities, revenues and expenses.
Where Glencore transacts with a joint operation, unrealised profits and losses are eliminated to the extent of Glencore’s interestin that joint operation.

In some cases, Glencore participates in unincorporated arrangements where it has the rights to its share of the assets andobligations for its share of the liabilities of the arrangement, rather than a right to the net returns of the arrangement, but does notshare joint control. In such cases, Glencore accounts for its share of the assets, liabilities, revenues and expenses in accordance with
the IFRSs applicable to the particular assets, liabilities, revenues and expenses and obligations for the liabilities relating to thearrangement, similar to a joint operation noted above.

Acquisitions of subsidiaries and businesses are accounted for using the acquisition method of accounting. The cost of theacquisition is measured at fair value, which is calculated as the sum of the acquisition date fair values of the assets transferred,
liabilities incurred to the former owners of the acquiree and the equity interests issued in exchange for control of the acquiree. The
identifiable assets, liabilities and contingent liabilities (“identifiable net assets”) are recognised at their fair value at the date ofacquisition. Acquisition related costs are recognised in the consolidated statement of income as incurred.
Where a business combination is achieved in stages, Glencore’s previously held interests in the acquired entity are remeasured tofair value at the acquisition date (i.e. the date Glencore attains control) and the resulting gain or loss, if any, is recognised in the
consolidated statement of income.
Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controlling interests in theacquiree, and the fair value of the acquirer’s previously held equity interest in the acquiree (if any) over the net of the acquisitiondate amounts of the identifiable assets acquired and the liabilities assumed.
After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment
testing, goodwill acquired in a business combination is, from the acquisition date, allocated to the CGUs that are expected to benefit
from the synergies of the combination. CGUs to which goodwill has been allocated are tested for impairment annually, or more
frequently when there is an indication that the unit may be impaired. If the recoverable amount of the CGU is less than its carrying
amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to theother assets of the unit pro-rata based on the carrying amount of each asset in the unit.
Any impairment loss is recognised directly in profit or loss. An impairment loss recognised for goodwill is not able to be reversed insubsequent periods.
On disposal of the relevant CGU, the attributable amount of goodwill is included in the determination of the profit or loss
on disposal.
If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination
occurs, Glencore reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts areadjusted for additional information obtained during the “measurement period” (which cannot exceed one year from the acquisitiondate) about facts and circumstances that existed at the acquisition date that, if known, would have affected the amounts
recognised at that date.
Non-controlling interests that are present ownership interests and entitle their holders to a proportionate share of the entity’s net
assets in the event of liquidation may be initially measured either at fair value or at the non-controlling interests’ proportionate shareof the recognised amounts of the acquiree’s identifiable net assets. The choice of measurement basis is made on a transaction-bytransaction basis. Other types of non-controlling interests are measured at fair value or, when applicable, on the basis specified inanother IFRS.
Similar procedures are applied in accounting for the purchases of interests in Associates and joint operations. Any goodwill arisingfrom such purchases is included within the carrying amount of the investment in Associates, but not amortised thereafter. Any
excess of Glencore’s share of the net fair value of the Associate’s identifiable net assets over the cost of the investment is includedin the consolidated statement of income in the period of the purchase.

Non-current assets, liabilities and those included in disposal groups are classified as held for sale if their carrying amount will
be recovered principally through a sale transaction rather than through continuing use, they are available for immediate disposal
and the sale is highly probable. Non-current assets, liabilities and those included in disposal groups held for sale are measured at thelower of their carrying amount or fair value less costs to sell.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

Revenue is derived principally from the sale of goods (sale of commodities) and in some instances the goods are sold on Cost andFreight (CFR) or Cost, Insurance and Freight (CIF) Incoterms. When goods are sold on a CFR or CIF basis, the Group is responsible forproviding these services (shipping and insurance) to the customer, sometimes after the date at which Glencore has lost control of
the goods. Revenue is recognised when the performance obligations have been satisfied, which is once control of the goods and/or
services has transferred from Glencore to the buyer. Revenue is measured based on consideration specified in the contract with acustomer and excludes amounts collected on behalf of third parties. The same recognition and presentation principles apply torevenues arising from physical settlement of forward sale contracts that do not meet the own use exemption.
Revenue related to the sale of goods is recognised when the product is delivered to the destination specified by the customer,
which is typically the vessel on which it is shipped, the destination port or the customer’s premises and the buyer has gained control
through their ability to direct the use of and obtain substantially all the benefits from the asset. Where the sale of goods isconnected with an agreement to repurchase goods at a later date, revenue is recognised when the repurchase terms are atprevailing market prices, the goods repurchased are readily available in the market, and the buyer gained control of the goods
originally sold to them. Should it be determined that control has not transferred or the buyer does not have the ability to benefit
substantially from ownership of the asset, revenue is not recognised and any proceeds received are accounted for as a financing
arrangement.
For certain commodities, the sales price is determined on a provisional basis at the date of sale as the final selling price is subject
to movements in market prices up to the date of final pricing, normally ranging from 30 to 90 days after initial booking (provisionally
priced sales). Revenue on provisionally priced sales is recognised based on the estimated fair value of the total consideration
receivable. The revenue adjustment mechanism embedded within provisionally priced sales arrangements has the character of acommodity derivative.
Accordingly, the fair value of the final sales price adjustment is re-estimated continuously and changes in fair value are recognised
as an adjustment to revenue. In all cases, fair value is estimated by reference to forward market prices.
Revenue from the sale of material by-products are included within revenue. Where a by-product is not regarded as significant,revenue may be credited against cost of goods sold.
Revenue related to the provision of shipping and insurance related activities is recognised over time as the service is rendered.
Payments received for future metal (primarily gold and silver) deliveries (prepayments) are accounted for as executory contracts
whereby the prepayment is initially recorded as deferred revenue in the consolidated statement of financial position. The initialdeferred revenue amount is unwound and revenue is recognised in the consolidated statement of income as and when Glencore
physically delivers the metal and loses control of it. Where these prepayments are in excess of one year and contain a significant
financing component, the amount of the deferred revenue is adjusted for the effects of the time value of money. Glencore applies
the practical expedient to not adjust the promised amount of consideration for the effects of time value of money if the period
between delivery and the respective payment is one year or less.
Royalty, interest and dividend income is recognised when the right to receive payment has been established, it is probable that theeconomic benefits will flow to Glencore and the amount of income can be measured reliably. Royalty revenue is recognised on an
accruals basis in accordance with the substance of the relevant agreement. Interest income is accrued on a time basis, by reference
to the principal outstanding and the applicable effective interest rate.

Glencore’s reporting currency and the functional currency of the majority of its operations is the U.S. dollar as this is assessed to be
the principal currency of the economic environment in which it operates.

(i) Foreign currency transactions

Transactions in foreign currencies are converted into the functional currency of each entity using the exchange rate prevailing at thetransaction date. Monetary assets and liabilities outstanding at year-end are converted at year-end rates. Non-monetary items
measured in terms of historical cost are translated using the exchange rate at the date of the transaction. The resulting exchange
differences are recorded in the consolidated statement of income.

(ii) Translation of financial statements
For the purposes of consolidation, assets and liabilities of group companies whose functional currency is in a currency other than the
U.S. dollar are translated into U.S. dollars using year-end exchange rates, while their statements of income are translated using
average rates of exchange for the year. Translation adjustments are included as a separate component of shareholders’ equity andhave no consolidated statement of income impact to the extent that no disposal of the foreign operation has occurred. Where an
intragroup balance is, in substance, part of the Group’s net investment in an entity, exchange gains and losses on that balance aretaken to the currency translation reserve. Cumulative translation differences are recycled from equity and recognised as income or
expense on partial disposal of the net investment in an entity, which includes repayments of capital and loans. On such partial
disposals, when the Group’s percentage of equity ownerships do not change, the ‘absolute’ approach is applied. Under thisapproach, the amounts held in the foreign currency translation reserve are reclassified to income or expense based on the
proportionate share of total cumulative translation differences recognised in the net investment.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

Goodwill and fair value adjustments arising from the acquisition of a foreign operation are treated as assets and liabilities of theforeign operation and are translated at the closing rate.

Borrowing costs are expensed as incurred except where they relate to the financing of construction or development of qualifying
assets in which case they are capitalised up to the date when the qualifying asset is ready for its intended use.

Wages, salaries, bonuses, social security contributions, paid annual and sick leave are accrued in the period in which the associatedservices are rendered by the employees of the Group.
Glencore operates various pension schemes in accordance with local requirements and practices of the respective countries. The
annual costs for defined contribution plans that are funded by payments to separate trustee administered funds or insurancecompanies equal the contributions that are required under the plans and accounted for as an expense.
For defined benefit retirement plans, the cost of providing benefits is determined using the Projected Unit Credit Method, withactuarial valuations being carried out at the end of each annual reporting period. Remeasurements comprising actuarial gains andlosses, the effect of the asset ceiling (if applicable) and the return on plan assets (excluding interest) are recognised immediately inthe statement of financial position with a charge or credit to other comprehensive income in the period in which they occur.
Remeasurements recognised in other comprehensive income are not reclassified. Past service cost is recognised in profit or loss
when the plan amendment or curtailment occurs, or when the Group recognises related restructuring costs or termination benefits,
if earlier. Gains or losses on settlement of a defined benefit plan are recognised when the settlement occurs. Net interest is
calculated by applying a discount rate to the net defined benefit liability or asset.
Defined benefit costs are split into three categories:• service costs, which includes current service cost, past service cost and gains and losses on curtailments and settlements;• net interest expense or income; and• remeasurements.
The Group recognises service costs within the consolidated statement of income.
Net interest expense or income is recognised within interest expense or income within the consolidated statement of income.
Any past service cost (or the gain or loss on settlement) is calculated by measuring the defined benefit liability (asset) using updated
assumptions and comparing benefits offered and plan assets before and after the plan amendment (or curtailment or settlement)
but ignoring the effect of the asset ceiling (that may arise when the defined benefit plan is in a surplus position). The Group uses the
updated assumptions from this remeasurement to determine current service cost and net interest for the remainder of thereporting period after the change to the plan. In the case of the net interest for the period post-plan amendment, the net interest is
calculated by multiplying the net defined benefit liability (asset) as remeasured with the discount rate used in the remeasurement(also taking into account the effect of contributions and benefit payments on the net defined benefit liability (asset)).
The retirement benefit obligation recognised in the consolidated statement of financial position represents the deficit or surplus in
the Group’s defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any economic benefits
available in the form of refunds from the plans or reductions in future contributions to the plans.
Glencore also provides post-retirement healthcare benefits to certain employees in Canada, South Africa and the United States.
These are accounted for in a similar manner to the defined benefit pension plans, however are unfunded.

(i) Equity-settled share-based payments

Equity-settled share-based payments are measured at the fair value of the awards based on the market value of the shares at the
grant date. Fair value excludes the effect of non-market-based vesting conditions. The fair value is charged to the consolidated
statement of income and credited to retained earnings on a straight-line basis over the period the estimated awards are expected
to vest.
At each balance sheet date, the Company revises its estimate of the number of equity instruments expected to vest as a result of theeffect of non-market-based vesting conditions. The impact of the revision of the original estimates, if any, is recognised in the
consolidated statement of income such that the cumulative expense reflects the revised estimate, with a corresponding
adjustment to retained earnings.

(ii) Cash-settled share-based payments
For cash-settled share-based payments, a liability is initially recognised at fair value based on the estimated number of awards thatare expected to vest, adjusting for market and non-market-based performance conditions. Subsequently, at each reporting period
until the liability is settled, it is remeasured to fair value with any changes in fair value recognised in the consolidated statementof income.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

Income taxes consist of current and deferred income taxes. Current taxes represent income taxes expected to be payable based onenacted or substantively enacted tax rates at the period end on expected current taxable income, and any adjustment to tax
payable in respect of previous years. Deferred taxes are recognised for temporary differences between the carrying amounts ofassets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable income, using
enacted or substantively enacted income tax rates which are expected to be effective at the time of reversal of the underlying
temporary difference. Deferred tax assets and unused tax losses are only recognised to the extent that their recoverability isprobable. Deferred tax assets are reviewed at reporting period end and amended to the extent that it is no longer probable that therelated benefit will be realised. To the extent that a deferred tax asset not previously recognised subsequently fulfils the criteria forrecognition, an asset is then recognised.
Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same authority and Glencore has both
the right and the intention to settle its current tax assets and liabilities on a net or simultaneous basis. The tax effect of certain
temporary differences is not recognised principally with respect to the initial recognition of an asset or liability (other than thosearising in a business combination or in a manner that initially impacted accounting or taxable profit) and temporary differences
relating to investments in subsidiaries and Associates to the extent that Glencore can control the timing of the reversal of thetemporary difference and it is probable the temporary difference will not reverse in the foreseeable future. Deferred tax is provided
in respect of fair value adjustments on acquisitions. These adjustments may relate to assets such as extraction rights that, in general,are not eligible for income tax allowances.
Current and deferred tax are recognised as an expense or income in the consolidated statement of income, except when they relate
to items that are recognised outside the consolidated statement of income (whether in other comprehensive income or directly inequity) or where they arise from the initial accounting for a business combination.
Royalties, extraction taxes and other levies/taxes are treated as taxation arrangements when they have the characteristics of an
income tax, including being imposed and determined in accordance with regulations established by the respective government’s
taxation authority and the amount payable is based on taxable income – rather than physical quantities produced or as apercentage of revenues – after adjustment for temporary differences. For such arrangements, current and deferred tax is provided
on the same basis as described above for other forms of taxation. Obligations arising from royalty arrangements that do not satisfy
these criteria are recognised as current provisions and included in cost of goods sold.
Glencore assesses its liabilities and contingencies for all tax years open to audit based upon the latest information available. Inherent
uncertainties exist in estimates of tax contingencies due to complexities of interpretation and changes in tax laws. For those matterswhere it is probable that an adjustment will be made, the Group records its best estimate of these tax liabilities, including related
interest charges, taking into account the range of possible outcomes.

Property, plant and equipment are stated at cost, being the fair value of the consideration given to acquire or construct the asset,
including directly attributable costs required to bring the asset to the location or to a condition necessary for operation andthe direct cost of dismantling and removing the asset, less accumulated depreciation and any accumulated impairment losses.
Property, plant and equipment are depreciated to their estimated residual value over the estimated useful life of the specific asset
concerned, or the estimated remaining life of the associated mine (LOM), field or lease.
Depreciation commences when the asset is available for use. The major categories of property, plant and equipment are
depreciated/amortised on a units of production (UOP) and/or straight-line basis as follows:
Buildings
Freehold land
Plant and equipment
Right-of-use assets
Mineral and petroleum rights
Deferred mining costs

10 – 45 years
not depreciated3 – 30 years/UOP
2 – 20 years
UOP
UOP(i) Mineral and petroleum rights
Mineral and petroleum reserves, resources and rights (together “Mineral and petroleum rights”) which can be reasonably valued,
are recognised in the assessment of fair values on acquisition. Mineral and petroleum rights for which values cannot be reasonably
determined are not recognised. Exploitable Mineral and petroleum rights are amortised using the UOP basis over the commercially
recoverable reserves and, in certain circumstances, other mineral resources. Mineral resources are included in amortisation
calculations where there is a high degree of confidence that they will be extracted in an economic manner.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS(ii) Exploration and evaluation expenditure

Exploration and evaluation expenditure relates to costs incurred in the exploration and evaluation of potential mineral andpetroleum resources and includes costs such as exploration and production licences, researching and analysing historical
exploration data, exploratory drilling, trenching, sampling and the costs of pre-feasibility studies. Exploration and evaluation
expenditure for each area of interest, other than that acquired from another entity, is charged to the consolidated statement ofincome as incurred except when the expenditure is expected to be recouped from future exploitation or sale of the area of interestand it is planned to continue with active and significant operations in relation to the area, or at the reporting period end, the activity
has not reached a stage which permits a reasonable assessment of the existence of commercially recoverable reserves, in whichcase the expenditure is capitalised. As the intangible component (i.e. licences) represents an insignificant and indistinguishable
portion of the overall expected tangible amount to be incurred and recouped from future exploitation, these costs along with othercapitalised exploration and evaluation expenditure are recorded as a component of property, plant and equipment. Purchased
exploration and evaluation assets are recognised at their fair value at acquisition.
As the capitalised exploration and evaluation expenditure asset is not available for use, it is not depreciated. All capitalised
exploration and evaluation expenditure is monitored for indications of impairment. Where a potential impairment is indicated, anassessment is performed for each area of interest or at the CGU level. To the extent that capitalised expenditure is not expected tobe recovered it is charged to the consolidated statement of income.
Administration costs that are not directly attributable to a specific exploration area are charged to the consolidated statement ofincome. Licence costs paid in connection with a right to explore in an existing exploration area are capitalised and amortised over
the term of the permit.

When commercially recoverable reserves are determined and such proposed development receives the appropriate approvals,
capitalised exploration and evaluation expenditure is transferred to construction in progress, a component within the plant andequipment asset sub-category. All subsequent development expenditure is similarly capitalised, provided commercial viability
conditions continue to be satisfied.
Proceeds from the sale of product extracted during the development phase are recognised in the statement of income. Uponcompletion of development and commencement of production, capitalised development costs are further transferred, as required,to the appropriate plant and equipment asset category and depreciated using the unit of production method (UOP) or straight-line
basis.

Deferred mining costs
Mainly comprises certain capitalised costs related to underground mining as well as pre-production and in-production stripping
activities as outlined below. Deferred mining costs are amortised using the UOP basis over the life of the ore body to which thosecosts relate.

Stripping costs incurred in the development of a mine (or pit) before production commences are capitalised as part of the cost of
constructing the mine (or pit) and subsequently amortised over the life of the mine (or pit) on a UOP basis.
In-production stripping costs related to accessing an identifiable component of the ore body to realise benefits in the form of
improved access to ore to be mined in the future (stripping activity asset), are capitalised within deferred mining costs provided all
the following conditions are met:(a) it is probable that the future economic benefit associated with the stripping activity will be realised;(b) the component of the ore body for which access has been improved can be identified; and(c) the costs relating to the stripping activity associated with the improved access can be reliably measured.
If all of the criteria are not met, the production stripping costs are charged to the consolidated statement of income as they are
incurred.
The stripping activity asset is subsequently depreciated on a UOP basis over the life of the identified component of the ore body that
became more accessible as a result of the stripping activity and is then stated at cost less accumulated depreciation and any
accumulated impairment losses.

As lessee, the Group assesses whether a contract contains a lease at inception of the contract. The Group recognises a right-of-use
asset and corresponding lease liability in the statement of financial position for all lease arrangements where it is the lessee, except
for short-term leases with a term of twelve months or less and leases of low value assets. For these leases, the Group recognises thelease payments as an operating expense on a straight-line basis over the term of the lease.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

The lease liability is initially measured at the present value of the future lease payments from the commencement date of the lease.
The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, the asset andcompany specific incremental borrowing rates. Lease liabilities are recognised within borrowings on the statement of financial
position. The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using
the effective interest method) and by reducing the carrying amount to reflect the lease payments made. The Group remeasures thelease liability, with a corresponding adjustment to the related right-of-use assets, whenever:• The lease term changes or there is a significant event or change in circumstances resulting in a change in the assessment of
exercise of a purchase option, in which case the lease liability is remeasured by discounting the revised lease payments using arevised discount rate;• The lease payments change due to the changes in an index or rate or a change in expected payment under a guaranteed residual
value, in which case the lease liability is remeasured by discounting the revised lease payments using an unchanged discountrate; or
• A lease contract is modified and the lease modification is not accounted for as a separate lease, in which case the lease liability isremeasured based on the lease term of the modified lease by discounting the revised lease payments using a revised discountrate at the effective date of modification.
The right-of-use assets are initially recognised on the balance sheet at cost, which comprises the amount of the initial measurementof the corresponding lease liability, adjusted for any lease payments made at or prior to the commencement date of the lease, anylease incentive received and any initial direct costs incurred, and expected costs for obligations to dismantle and remove right-ofuse assets when they are no longer used. Right-of-use assets are recognised within property, plant and equipment on thestatement of financial position. Right-of-use assets are depreciated on a straight-line basis from the commencement date of thelease over the shorter of the useful life of the right-of-use asset or the end of the lease term.
The Group enters into lease arrangements as a lessor with respect to some of its time charter vessels. Leases for which the Group is
an intermediate lessor are classified as finance or operating leases by reference to the right-of-use asset arising from the head lease.
Income from operating leases is recognised on a straight-line basis over the term of the relevant lease. Amounts due from lessees
under finance leases are recognised as receivables at the amount of the Group’s net investment in the leases. Finance lease income
is allocated to accounting periods so as to reflect a constant periodic rate of return on the Group’s net investment outstanding inrespect of these leases.

Restoration, rehabilitation and decommissioning costs arising from the installation of plant and other site preparation work,
discounted using a risk-free rate specific to the liability and the currency in which they are denominated to their net present value,
are provided for and capitalised at the time such an obligation arises. The costs are charged to the consolidated statement ofincome over the life of the operation through depreciation of the asset and the unwinding of the discount on the provision.
Costs for restoration of subsequent site disturbance, which is created on an ongoing basis during production, are provided for attheir net present values and charged to the consolidated statement of income as extraction progresses.
Changes in the estimated timing of the rehabilitation or changes to the estimated future costs are accounted for prospectively byrecognising an adjustment to the rehabilitation liability and a corresponding adjustment to the asset to which it relates, provided
a reduction, if any, in the provision is not greater than the depreciated capitalised cost of the related asset, in which case thecapitalised cost is reduced to Nil and the remaining adjustment recognised in the consolidated statement of income. In the case of
closed sites, changes to estimated costs are recognised immediately in the consolidated statement of income.

Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a businesscombination is their fair value at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any
accumulated amortisation (calculated on a straight-line basis over their useful lives) and accumulated impairment losses, if any.
Internally generated intangibles are not capitalised. Instead, the related expenditure is recognised in the consolidated statement ofincome in the period in which the expenditure is incurred.
Identifiable intangible assets with a finite life are amortised on a straight-line basis over their expected useful life. The amortisation
method and period are reviewed annually and impairment testing is undertaken when circumstances indicate the carrying amount
may not be recoverable. Other than goodwill which is not amortised, Glencore has no identifiable intangible assets with anindefinite life.
The major categories of intangibles are amortised on a units of production (UOP) and/or straight-line basis as follows:
Port allocation rights
Licences, trademarks and software
Customer relationships

Glencore Preliminary Results 2022

UOP
3 – 20 years
5 – 9 years

NOTES TO THE FINANCIAL STATEMENTS

Goodwill impairment testing

For the purpose of impairment testing, goodwill has been allocated to the CGUs, or groups of CGUs, that are expected to benefit
from the synergies of the business combination and which represent the level at which management monitors and manages the
goodwill. In assessing whether an impairment is required, the carrying value of the CGU is compared with its recoverable amount.
The recoverable amount is the higher of its fair value less costs of disposal (FVLCD) and its value in use (VIU). If the recoverable
amount of the CGU is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amountof any goodwill allocated to the unit and then to the other assets of the unit on a pro-rata basis of the carrying amount of each asset
in the unit. Any impairment loss for goodwill is recognised directly in the consolidated statement of income. An impairment loss
recognised for goodwill can not be reversed in subsequent periods.

Equity investments, other than investments in Associates, are recorded at fair value. Glencore designated investments that are notheld for trading as at fair value through other comprehensive income (FVTOCI). As a result, changes in fair value are recorded in the
consolidated statement of other comprehensive income. Dividends from these investments are recognised in the consolidated
statement of income, unless the dividend represents a recovery of part of the cost of the equity investment. Investments that areheld for trading are subsequently measured at fair value through profit or loss (FVTPL).

Glencore conducts, at least annually, an internal review of asset values which is used as a source of information to assess for any
indications of impairment or impairment reversal. Formal impairment tests are carried out, at least annually, for cash-generating
units containing goodwill and for all other non-current assets, when events or changes in circumstances indicate the carrying value
may not be recoverable.
A formal impairment or reversal test involves determining whether the carrying amounts are in excess (or below, as the case maybe) of their recoverable amounts. An asset’s recoverable amount is determined as the higher of its FVLCD and its VIU. Such reviews
are undertaken on an asset-by-asset basis, except where assets do not generate cash flows independent of other assets, in whichcase the review is undertaken at the CGU level.
If the carrying amount of an asset exceeds its recoverable amount, an impairment loss is recorded in the consolidated statement ofincome to reflect the asset at the lower amount.
For those assets which were impaired in prior periods, if their recoverable amount exceeds their carrying amount, and the change intheir recoverable amount is not solely due to the passage of time, an impairment reversal is recorded in the consolidated statementof income to reflect the asset at the higher amount to the extent the increased carrying amount does not exceed the carrying valueof the asset that would have been determined had no impairment previously been recognised. Goodwill impairments cannot be
subsequently reversed.

Provisions are recognised when Glencore has a present obligation (legal or constructive), as a result of past events, and it is probablethat an outflow of resources embodying economic benefits that can be reliably estimated will be required to settle the liability.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at thebalance sheet date, taking into account the risks and uncertainties surrounding the obligation, including interpretation of specificlaws and likelihood of settlement. Where a provision is measured using the cash flow estimated to settle the present obligation, its
carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

An onerous contract is considered to exist where Glencore has a contract under which the unavoidable costs of meeting theobligations under the contract exceed the economic benefits expected to be received from the contract. Present obligations arisingunder onerous contracts are recognised and measured as provisions.

An unfavourable contract is considered to exist when Glencore, in a business combination, acquires a contract under which theterms of the contract require Glencore to sell or purchase products or services on terms which are economically unfavourable
compared to current market terms at the time of the business combination. Unfavourable contracts are recognised at the present
value of the economic loss and amortised into the statement of income over the term of the contract.

The vast majority of inventories attributable to the marketing activities are valued at fair value less costs of disposal with theremainder valued at the lower of cost or net realisable value, with costs allocated using the first-in-first-out (FIFO) method.
Unrealised gains and losses from changes in fair value are reported in cost of goods sold.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

Inventories held by the industrial activities are valued at the lower of cost or net realisable value. Cost is determined using FIFO or
the weighted average method and comprises material costs, labour costs and allocated production related overhead costs. Typically
raw materials and consumables are measured using the FIFO method and work in progress inventories using the weighted
average method. Where the production process results in more than one product being produced (joint products), cost is allocatedbetween the various products according to the ratio of contribution of these metals to gross sales revenue. Financing and storage
costs related to inventory are expensed as incurred.
Non-current inventories primarily relate to stockpiles which are not expected to be utlised within the normal operating cycle.

The Group enters into physical advances and prepayment agreements with certain suppliers and customers. When such advancesand prepayments are primarily settled in cash or another financial asset, they are classified as financial assets or financial liabilities(see below). Where such advances and prepayments are settled through physical delivery or receipt of an underlying product they
are classified as non-financial assets or non-financial liabilities. Such advances and prepayments are initially recorded at the amountof the cash paid or received and are subsequently reduced by the relevant contractual volumes of physical deliveries made. Certain
physically-settled advances and prepayments which relate to contracts to buy or sell commodities that can be settled on a net basis
are accounted for under IFRS 9 as if they were financial instruments.

Financial assets and financial liabilities are recognised in the Group’s consolidated statement of financial position when the Group
becomes a party to the contractual provisions of the instrument. Contractual maturities of such financial assets and financial
liabilities may be longer than one year. However, in the normal course of trading activities, derivative financial instruments are often
settled before their maturity date, and therefore classified as current assets or current liabilities.
Financial assets are classified as either financial assets at amortised cost, at fair value through other comprehensive income (FVTOCI)or at fair value through profit or loss (FVTPL) depending upon the business model for managing the financial assets and the natureof the contractual cash flow characteristics of the financial asset. Financial assets are initially recognised at fair value on the tradedate, including, in the case of instruments not subsequently measured at fair value through profit or loss, directly attributabletransaction costs. Trade receivables with no provisional price features and where there is no significant financing component, areinitially recognised at their transaction price. Subsequently, other investments, provisionally priced trade receivables and derivatives
are carried at fair value and trade receivables that do not contain provisional price features, loans and other receivables are carried atamortised cost.
Financial liabilities, other than derivatives and those containing provisional price features, are initially recognised at fair value ofconsideration received net of transaction costs as appropriate and subsequently carried at amortised cost. Financial liabilities that
contain provisional pricing features (accounted for as embedded derivatives) were designated in their entirety as at FVTPL.
Derivatives are carried at FVTPL.
Where financial assets and financial liabilities recognised at fair value are managed and reported to key management personnel on
the basis of its net exposure to either market risks or credit risk, fair value of that group of financial assets and financial liabilities ismeasured on the basis of the net price that would be received to sell the long position and to transfer the short position for aparticular risk exposure of the specific financial asset or liability being measured. When the group of financial assets and/or financial
liabilities are not presented on a net basis in the statement of financial position, any portfolio level adjustments are allocated to theindividual instruments that make up the group on an appropriate basis.

(i) Impairment of financial assets

A loss allowance for expected credit losses is determined for all financial assets (as well as for issued loan commitments and financial
guarantee contracts), other than those at FVTPL and investments in equity instruments measured at FVTOCI, at the end of eachreporting period. The expected credit loss recognised represents a probability-weighted estimate of credit losses over the expected
life of the financial instrument.
The Group applies the simplified approach to measure the loss allowance for trade receivables classified at amortised cost, using the
lifetime expected loss provision. The expected credit losses on these financial assets are estimated using a provision matrix byreference to past default experience and an equivalent credit rating, adjusted as appropriate for current observable data andforward-looking information.
For all other financial assets at amortised cost, the Group recognises lifetime expected credit losses when there has been asignificant increase in credit risk since initial recognition, which is determined by:• A review of overdue amounts;• Comparing the risk of default at the reporting date and at the date of initial recognition; and• An assessment of relevant historical and forward-looking quantitative and qualitative information.
For those balances that are beyond 30 days overdue, such is presumed to be an indicator of a significant increase in credit risk.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

If the credit risk on the financial instrument has not increased significantly since initial recognition, the Group measures the loss
allowance for that financial instrument at an amount equal to 12-month expected credit loss, which comprises the expected lifetime
loss from the instrument were a default to occur within 12 months of the reporting date.
The Group considers an event of default has materialised and the financial asset is credit impaired when information developed
internally or obtained from external sources indicates that the debtor is unlikely to pay the Group without taking into account any
collateral held by the Group or if the financial asset is more than 90 days past due, unless the Group has reasonable and supportable
information to demonstrate that a more lagging default criterion is more appropriate. The Group writes off a financial asset when
there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery.

(ii) Derecognition of financial assets and financial liabilities

The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers thefinancial asset and substantially all the risks and rewards of ownership of the asset to another party. If the Group neither transfers nor
retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Group recognises its
retained interest in the asset and an associated liability for amounts it may have to pay. If the Group retains substantially all the risks
and rewards of ownership of a transferred financial asset, the Group continues to recognise the financial asset and also recognises
a collateralised borrowing for the proceeds received.
The Group derecognises financial liabilities when the Group’s obligations are discharged, cancelled or have expired.
On derecognition of a financial asset/financial liability in its entirety, the difference between the carrying amount of the financial
asset/financial liability and the sum of the consideration received and receivable/paid and payable is recognised in profit and loss. On
derecognition of equity investments designated and measured at FVTOCI, the cumulative gain or loss recognised in othercomprehensive income is reclassified directly to retained earnings.

The cost of purchases of own shares is deducted from equity. Where they are purchased, issued to employees or sold, no gain or loss
is recognised in the consolidated statement of income. Such gains and losses are recognised directly in equity. Any proceeds
received on disposal of the shares or transfers to employees are recognised in equity.

Derivative instruments, which include physical contracts to sell or purchase commodities that do not meet the own use exemption,
are initially recognised at fair value when Glencore becomes a party to the contractual provisions of the instrument and aresubsequently remeasured to fair value at the end of each reporting period. Fair values are determined using quoted market prices,dealer price quotations or using models and other valuation techniques, the key inputs for which include current market andcontractual prices for the underlying instrument, time to expiry, yield curves, volatility of the underlying instrument andcounterparty risk.
Gains and losses on derivative instruments for which hedge accounting is not applied, other than the revenue adjustment
mechanism embedded within provisionally priced sales and mark-to-market movements on physical forward sales contracts, arerecognised in cost of goods sold.
Those derivatives qualifying and designated as hedges are either (i) a Fair Value Hedge of the change in fair value of a recognised
asset or liability or an unrecognised firm commitment, or (ii) a Cash Flow Hedge of the change in cash flows to be received or paid
relating to a recognised asset or liability or a highly probable transaction.
At the inception of the hedge and on an ongoing basis, Glencore documents whether the hedging instrument is effective inoffsetting changes in fair values or cash flows of the hedged item attributable to the hedged risk, which is when the hedging
relationship meets the qualifying hedge effectiveness requirements.
Glencore discontinues hedge accounting when the qualifying criteria for the hedged relationship is no longer met.
A change in the fair value of derivatives designated as a Fair Value Hedge is reflected together with the change in the fair value ofthe hedged item in the consolidated statement of income.
A change in the fair value of derivatives designated as a Cash Flow Hedge is initially recognised in the consolidated statement ofcomprehensive income and accumulated in the cash flow hedge reserve in shareholders’ equity. The deferred amount is thenreleased to the consolidated statement of income in the same periods during which the hedged transaction affects theconsolidated statement of income. Hedge ineffectiveness is recorded in the consolidated statement of income when it occurs.
When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any cumulative
gain or loss existing in equity at that time remains in shareholders’ equity and is recognised in the consolidated statement ofincome when the committed or forecast transaction is ultimately recognised in the consolidated statement of income. However, if aforecast or committed transaction is no longer expected to occur, the cumulative gain or loss that was recognised in equity isimmediately transferred to the consolidated statement of income.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

A derivative may be embedded in a non-derivative “host contract” such as provisionally priced sales and purchases. Suchcombinations are known as hybrid instruments. If a hybrid contract contains a host that is a financial asset within the scope of IFRS
9, then the relevant classification and measurement requirements are applied to the entire contract at the date of initial recognition.
Should the host contract not be a financial asset within the scope of IFRS 9, the embedded derivative is separated from the hostcontract, if it is not closely related to the host contract, and accounted for as a standalone derivative. Where the embedded
derivative is separated, the host contract is accounted for in accordance with its relevant accounting policy, unless the entire
instrument is designated at FVTPL in accordance with IFRS 9.

Financial guarantee contracts are accounted for in accordance with IFRS 9 as financial liabilities. After initial recognition, any suchcontracts are subsequently measured at the higher of the amount of the provision for expected credit losses and the amountinitially recognised less any income recognised in accordance with the principles of IFRS 15.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

Glencore is organised and operates on a worldwide basis in two core business segments – Marketing activities and Industrial
activities, reflecting the reporting lines and structure used by Glencore’s Management to allocate resources and assess theperformance of Glencore.
The business segments’ contributions to the Group are primarily derived from a) the net margin or premium earned from physicalMarketing activities (net sale and purchase of physical commodities) and the provision of marketing and related value-add services
and b) the net margin earned from Industrial asset activities (resulting from the sale of physical commodities over the cost of
production and/or cost of sales). The marketing related operating segments have been aggregated under the Marketing reportablesegment as their economic characteristics (historic and expected long-term Adjusted EBITDA margins and the nature of themarketing services provided) are similar. The industrial related operating segments have been aggregated under the Industrial
reportable segment as the core activities (extracting raw material and / or processing it further into saleable product, as required,
and then selling it at prevailing market prices), the exposure to long-term economic risks (price movements, technology, sovereign
and production substitution) and the longer-term average Adjusted EBITDA margins are similar. The economic and operational
characteristics of our coal operating and commercial units are not expected to change in the foreseeable future and continue to be
included within the industrial assets and marketing reporting segments respectively.
Corporate and other: consolidated statement of income amounts represent Group related income and expenses (including share of
Viterra earnings and certain variable bonus charges). Statement of financial position amounts represent Group related balances.
The financial performance of the operating segments is principally evaluated by management with reference to Adjusted
EBIT/EBITDA. Adjusted EBIT is the net result of segmental revenue (revenue including Proportionate adjustments as defined in the
Alternative performance measure section) less cost of goods sold and selling and administrative expenses plus share of income
from associates and joint ventures, dividend income and the attributable share of Adjusted EBIT of relevant material associates andjoint ventures, which are accounted for internally by means of proportionate consolidation, excluding significant items. Adjusted
EBITDA consists of Adjusted EBIT plus depreciation and amortisation, including the related Proportionate adjustments. In addition,
Volcan, while a subsidiary of the Group, is accounted for under the equity method for internal reporting and analysis due to therelatively low economic ownership held by the Group.
The accounting policies of the operating segments are the same as those described in note 2 with the exception of the Antamina
copper/zinc mine, the Collahuasi joint venture and Volcan. Under IAS 28 and IFRS 11, Glencore’s investment in the Antamina
copper/zinc mine (34% owned) is considered to be an associate as it is not subject to joint control and the Collahuasi copper mine
(44% owned) is considered to be a joint venture. Associates and joint ventures are required to be accounted for in Glencore’s
financial statements under the equity method. For internal reporting and analysis, Glencore evaluates the performance of theseinvestments under the proportionate consolidation method, reflecting Glencore’s proportionate share of the revenues, expenses,
assets and liabilities of the investments. For internal reporting and analysis, management evaluates the performance of Volcan
under the equity method, reflecting the Group’s relatively low 23.3% economic ownership in this fully ring-fenced listed entity, with
its stand-alone, independent and separate capital structure. The balances as presented for internal reporting purposes arereconciled to Glencore’s statutory disclosures in the following tables and/or in the Alternative performance measures section.
In January 2022, Glencore completed the acquisition of the remaining 66.67% interest in Cerrejón (coal), that it did not previously
own (see note 26), increasing Glencore’s ownership to 100% and providing it with the ability to exercise control and fully consolidate
Cerrejón. Prior to the transaction, Glencore evaluated the performance of its 33.33% interest in Cerrejón under the proportionate
consolidation method, such that 2021 segment comparatives reflect Glencore’s proportionate share of the revenues, expenses,
assets and liabilities of the investment.
In Q4 2022, Glencore commenced a process exploring the possible disposal of its 23.3% economic interest in Volcan. As a result, thecarrying amounts of Volcan assets and liabilities as at 31 December 2022 are classified as held for sale (see note 16). For segmental
reporting purposes, Volcan continues to be accounted for as an equity accounted associate.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

Glencore accounts for intra-segment sales and transfers where applicable as if the sales or transfers were to third parties, i.e. at arm’s
length commercial terms.
2022
US$ million

Revenue
Metals and minerals
Energy products
Corporate and other
Revenue – segmental
Proportionate adjustment – revenue1
Revenue – reported measure
Metals and minerals
Adjusted EBITDA
Depreciation and amortisation
Proportionate adjustment – depreciation1
Adjusted EBIT
Energy products
Adjusted EBITDA
Depreciation and amortisation
Adjusted EBIT
Corporate and other
Adjusted EBITDA2
Depreciation and amortisation
Adjusted EBIT
Total Adjusted EBITDA
Total depreciation and amortisation
Total depreciation proportionate adjustment
Total Adjusted EBIT
Share of associates' significant items1,3
Movement in unrealised inter-segment profit elimination adjustments4
Gain on acquisitions and disposals of non-current assets
Other expense – net
Impairments
Interest expense – net
Income tax expense
Proportionate adjustment – net finance, impairment and income tax
expense1
Income for the year
12
3
4

Marketingactivities

Industrial
activities

Inter-segment
eliminations

Total

77,382
137,720–
215,102–
215,102

38,99339,333
6
78,332(2,695)75,637(25,499)(9,256)–(34,755)–(34,755)

90,876
167,7976
258,679(2,695)
255,984

1,694
(54)
–
1,640

9,274
(3,776)
(416)
5,082

–
–
–
–

10,968(3,830)
(416)
6,722

5,558
(359)
5,199

18,590(2,740)15,850–––24,148(3,099)21,049

(457)
–
(457)
6,795
(413)
–
6,382

(599)
(58)
(657)
27,265(6,574)(416)
20,275

–
–
–
–
–
–
–

(1,056)(58)(1,114)34,060(6,987)(416)
26,657
(9)
1,176
1,287
(911)
(3,337)(1,336)(6,368)(648)
16,511

Refer to segment information on previous page and APMs section for definition.
Marketing activities include $494 million of Glencore’s equity accounted share of Viterra.
Share of associates’ significant items comprise Glencore’s share of significant charges relating to impairments and other items booked directly by various associates.
Represents the required adjustment to eliminate unrealised profit or losses arising on inter-segment transactions, i.e. before ultimate sale to a third party. For Glencore, suchadjustments arise on the sale of product, in the ordinary course of business, from its Industrial to Marketing operations. Management assesses segment performance prior to any suchadjustments, as if the sales were to third parties.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

2021
US$ million

Revenue
Metals and minerals1
Energy products1
Corporate and other
Revenue – segmental
Proportionate adjustment – revenue2
Revenue – reported measure
Metals and minerals
Adjusted EBITDA
Depreciation and amortisation
Proportionate adjustment – depreciation2
Adjusted EBIT
Energy products
Adjusted EBITDA
Depreciation and amortisation
Proportionate adjustment – depreciation2
Adjusted EBIT
Corporate and other
Adjusted EBITDA3
Depreciation and amortisation
Adjusted EBIT
Total Adjusted EBITDA
Total depreciation and amortisation
Total depreciation proportionate adjustment
Total Adjusted EBIT
Share of associates' significant items2,4
Movement in unrealised inter-segment profit elimination adjustments5
Loss on acquisitions and disposals of non-current assets
Other expense – net
Impairments
Interest expense – net
Income tax expense
Proportionate adjustment – net finance, impairment and income tax
expense2
Income for the year
1
2
3
4
5

Marketingactivities

Industrial
activities

Inter-segment
eliminations

Total

71,318106,265–
177,583–
177,583

41,535
19,2696
60,810(4,181)
56,629(26,506)(3,955)–(30,461)–(30,461)

86,347
121,5796
207,932(4,181)
203,751

2,588
(94)
–
2,494

12,017(3,485)
(404)
8,128

–
–
–
–

14,605(3,579)(404)
10,622

1,829
(434)
–
1,395

5,603
(2,262)
(89)
3,252

–
–
–
–

7,432
(2,696)
(89)
4,647

(194)
–
(194)
4,223
(528)
–
3,695

(520)
(60)
(580)
17,100(5,807)(493)
10,800

–
–
–
–
–
–
–

(714)
(60)
(774)
21,323(6,335)(493)
14,495
(11)
(549)
(607)
(1,947)(1,838)(1,140)(3,026)(1,028)4,349

Certain prior year balances have been restated to conform with current year presentation of inter-segment eliminations.
Refer to segment information above and APMs section for definition.
Marketing activities include $473 million of Glencore’s equity accounted share of Viterra.
Share of associates’ significant items comprise Glencore’s share of significant charges relating to impairments and other items booked directly by various associates.
Represents the required adjustment to eliminate unrealised profit or losses arising on inter-segment transactions, i.e. before ultimate sale to a third party. For Glencore, suchadjustments arise on the sale of product, in the ordinary course of business, from its Industrial to Marketing operations. Management assesses segment performance prior to any suchadjustments, as if the sales were to third parties.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

2022
US$ million

Current assets
Current liabilities
Allocatable current capital employed
Property, plant and equipment
Intangible assets
Investments in associates and other investments
Non-current advances and loans
Inventories
Allocatable non-current capital employed
Other assets1
Other liabilities2
Total net assets
Capital expenditure
Metals and minerals
Energy products
Corporate and other
Capital expenditure – segmental
Proportionate adjustment – capital expenditure3
Capital expenditure – reported measure4

2021
US$ million

Current assets
Current liabilities
Allocatable current capital employed
Property, plant and equipment
Intangible assets
Investments in associates and other investments
Non-current advances and loans
Inventories
Allocatable non-current capital employed
Other assets1
Other liabilities2
Total net assets
Capital expenditure
Metals and minerals
Energy products
Corporate and other
Capital expenditure – segmental
Proportionate adjustment – capital expenditure3
Capital expenditure – reported measure4

Marketingactivities
47,534(32,495)
15,039
920
5,142
4,509
1,666
–
12,237

Industrial
activities
17,326(9,258)
8,068
38,644
1,018
7,825
988
605
49,08057,148

Corporate
and other
–
–
–
–
–
–
–
–
–
6,406
(45,611)(39,205)

64,860(41,753)
23,10739,564
6,160
12,3342,654
605
61,317
6,406(45,611)45,21927,276

60
239
–
299
–
299

3,597
1,172
38
4,807
(461)
4,346

–
–
–
–
–
–

3,657
1,411
38
5,106
(461)
4,645

Marketingactivities
38,080(33,553)
4,527
961
5,149
5,565
1,943
5
13,623

Industrial
activities
15,134(7,288)
7,846
42,198
1,086
8,349
1,584
657
53,874

18,15061,720

Corporate
and other
–
–
–
–
–
–
–
–
–
6,799
(49,752)(42,953)

53,214(40,841)
12,37343,1596,235
13,914
3,527
662
67,497
6,799(49,752)
36,917

145
656
–
801
–
801

3,573
819
31
4,423
(516)
3,907

–
–
–
–
–
–

3,718
1,475
31
5,224
(516)
4,708

Total

Total

1 Other assets include non-current financial assets, deferred tax assets, cash and cash equivalents and assets held for sale.
2 Other liabilities include borrowings, non-current deferred income, deferred tax liabilities, non-current provisions, non-current post-retirement and other employee benefits, noncurrent financial liabilities and liabilities held for sale.
3 Refer to APMs section for definition.
4 Includes $425 million (2021: $1,006 million), comprising $219 million (2021: $648 million) in Marketing activities and $206 million (2021: $358 million) in Industrial activities, of ‘right-of-use
assets’ capitalised in accordance with IFRS 16 – Leases.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

US$ million

Revenue from third parties1
The Americas
EuropeAsia
AfricaOceania
Non-current assets2
The Americas
EuropeAsia
AfricaOceania

2022

2021

44,354
87,662
104,861
13,238
5,869
255,984

37,93064,28486,576
9,991
4,970
203,751

17,183
11,297
3,966
11,30014,461
58,207

16,963
11,152
4,683
12,38917,16362,350

1

Revenue by geographical destination is based on the country of incorporation of the sales counterparty, however this may not necessarily be the country of the counterparty’s
ultimate parent and/or final destination of product.
2 Non-current assets are non-current assets excluding other investments, advances and loans, other financial assets and deferred tax assets. Non-current assets comprise assets inAustralia of $14,164 million (2021: $16,714 million), in Peru of $5,519 million (2021: $7,243 million) and the DRC of $6,074 million (2021: $6,555 million).

US$ million

Sale of commodities
Freight, storage and other services
Total

2022

2021

252,356
3,628
255,984

201,113
2,638
203,751

Revenue is derived principally from the sale of commodities, recognised once control of the goods has transferred from Glencore to
the buyer. Revenue from sale of commodities includes $78 million (2021: $710 million) of mark-to-market related adjustments onprovisionally priced sales arrangements. Revenue derived from freight, storage and other services is recognised over time as theservice is rendered. Revenue is measured based on consideration specified in the contract with the customer and is presented netof amounts prepaid as incentives and/or rebates paid to customers, and excludes amounts collected on behalf of third parties. This isconsistent with the revenue information disclosed for each reportable segment (see note 2).

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

US$ million

Gain on bargain purchase of Cerrejón
Gain on sale of Ernest Henry
Loss on sale of Bolivia Zinc
Loss on sale of E&P ChadGain on sale of BaseCore
Loss on sale of Los Quenuales
Loss on sale of Access World
Derecognition of non-controlling interest on disposal of Mopani
Gain on sale of Chemoil Terminals
Net gain on sale of other investments/operations(Loss)/gain on disposal of property, plant and equipment
Total

Notes

2022

2021

26
26
26
26
11
26
26
26
26

1,029
512
(104)
(34)
131
(180)
(23)
–
–
71
(115)
1,287

–
–
–
–
–
–
–
(1,022)
110
98
207
(607)

In January 2022, Glencore completed the acquisition of the remaining 66.67% interest in Cerrejón, a coal mine in Colombia, resulting
in a bargain purchase gain of $1,029 million (see note 26).

In January 2022, Glencore completed the disposal of its interest in Ernest Henry Mining Pty Ltd, a copper-gold mine in Queensland,
Australia, resulting in a gain on sale of $512 million (see note 26).

In March 2022, Glencore completed the disposal of its interest in the Bolivia zinc assets (Sinchi Wayra and Illapa), resulting in a loss
on sale of $104 million (see note 26).

In June 2022, Glencore completed the disposal of its Chad upstream oil operations, resulting in a loss on sale of $34 million (see note
26).

In July 2022, BaseCore Metals (a Glencore joint venture) completed the disposal of a royalty package to Sandstrom Gold Ltd,
resulting in an overall gain on sale to Glencore of $131 million (see note 11).

In December 2022, Glencore completed the disposal of its Los Quenuales zinc, lead, silver operations in Peru, facilitated by the earlier
settlement of an underlying silver streaming arrangement, resulting in a loss on sale of $180 million (see note 26).

In December 2022, Glencore completed the disposal of its interest in the Access World Group, a global commodities storage andlogistics group, resulting in a loss on sale of $23 million (see note 26).

In March 2021, Glencore completed the disposal of its interest in Mopani to ZCCM Investments Holdings plc. The net loss on disposal
reflects the derecognition to the statement of income of the previously recognised book value of the non-controlling interest equity
balance, which largely related to the non-controlling interests’ share of historical impairments and losses, and net liabilities in
Mopani (see note 26).

In December 2021, Glencore completed the disposal of its 100% interest in Chemoil Terminals LLC, which owns the Long Beach andCarson oil products storage terminals in California, resulting in a gain of $110 million (see note 26).

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

US$ million

Net changes in mark-to-market valuations
Release of unfavourable contract provision
Gain on energy contracts
Other income – net
Total other income
Net changes in mark-to-market valuations
Net foreign exchange losses
Legal and regulatory proceedings
Closed sites rehabilitation provisioning
Other expenses – net
Total other expenses
Total other expense – net

Notes

22

2022

2021

–
–
264
101
365
(106)
(349)
(302)
(370)
(149)
(1,276)
(911)

64
122
–
–
186
–
(187)
(1,640)(177)(129)(2,133)(1,947)

Together with foreign exchange movements and mark-to-market valuations, other net income / (expense) includes other items
that, due to their nature and variable financial impact or infrequency of the events giving rise to these items, are reported separatelyfrom operating segment results.

Following the significant appreciation in European traded power prices in the summer of 2022, the Group recognised a $264 million
gain over a number of its physically settled electricity contracts within its European metallurgical operations.

Primarily relates to movements on interests in investments and loans (see notes 11 and 14), the ARM Coal non-discretionary dividend
obligation (see note 29) and deferred consideration related to Mototolo stake sale in 2018 (see notes 12 and 14), all carried at fair value.

2022 net foreign exchange losses include realised foreign currency losses of $431 million (see page 26) recognised on the
restructuring and partial repayment of ZAR-denominated intragroup debt and return of capital that were part of the Group’s net
investment in its South African operations. These repayments are considered a partial disposal of a net investment in a subsidiary,
and thus a proportionate share of the total accumulated foreign exchange losses recognised in the net investment were recycled tothe statement of income upon these repayments.

Comprises various investigations (legal, expert and compliance) related costs and other costs for ongoing legal matters of$122 million (2021: $1,584 million) and a settlement with the DRC authorities of $180 million (see notes 23 and 32).

Comprises movements in restoration, rehabilitation and decommissioning estimates related to sites that are no longer operational(see note 23).

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

US$ million

Bank deposits and other financial assets
Interest income and accretion on certain advances repayable with product
Loans to associates
Interest income

Notes

12

Interest expense for financial liabilities not classified at FVTPL
Capital market notes
Revolving credit facilities
Lease liabilities
Other bank loans
Less: capitalised interest
Other interest

9

Other interest expense
Post-retirement employee benefits
Deferred income
Restoration and rehabilitation
Other provisions
Other interest

24
22
23
23

Interest expense

Glencore Preliminary Results 2022

9

2022

2021

290
133
12
435

110
90
8
208

(869)
(118)
(88)
(225)
31
(178)
(1,447)

(733)
(55)
(98)
(93)
33
(65)
(1,011)

(19)
(97)
(155)
(36)
(17)
(324)
(1,771)

(23)
(115)
(153)
(33)
(13)
(337)
(1,348)NOTES TO THE FINANCIAL STATEMENTS

US$ million

Notes

2022

2021

(Impairments)/reversal of impairments of non-current assets
Property, plant and equipment and intangible assets
Investments
Advances and loans - current and non-current
VAT receivable - non-current
Inventory and other

9/10
11
12/14
12

(1,984)
(167)
(389)
(632)
(113)
(3,285)(1,452)
(333)
31
(151)
–
(1,905)

12/14

(52)
(52)
(3,337)67
67(1,838)(Impairments)/reversal of impairments of financial assets
Advances and loans - current and non-current
Total impairments1
1

Impairments recognised during the year are allocated to Glencore’s operating segments as follows: Marketing activities $515 million (2021: $270 million) and Industrial activities$2,822 million (2021: $1,568 million).

As part of a regular portfolio review, Glencore carries out an assessment of whether there are indicators of cash-generating unit
(CGU) or asset impairments or whether a previously recorded impairment may no longer be required.
The recoverable amounts of the property, plant and equipment and intangible assets were measured based on fair value less costsof disposal (FVLCD). The FVLCD of all CGUs are determined by discounted cash flow techniques based on the most recent approved
financial budgets, underpinned and supported by the life of asset plans of the respective operations. The valuation models use acombination of internal sources and those inputs available to a market participant, which comprise the most recent reserve andresource estimates, relevant cost assumptions and where possible, market forecasts of commodity price and foreign exchange rate
assumptions, discounted using operation specific post-tax real discount rates (unless otherwise indicated) ranging from 7.4% – 14.9%(2021: 6.7% – 15.5%). The valuations generally remain most sensitive to price and a deterioration / improvement in the pricing outlook
may result in additional impairments/reversals. The determination of FVLCD used Level 3 valuation techniques for both years. In
providing sensitivity analysis (and particularly on commodity price assumptions), a 10% change, representing a typical deviation
parameter common in the industry, has been provided. Where a higher percentage is reasonably possible on an operational
assumption, that has been clearly identified.
As a result of the regular impairment assessment, the following significant impairment charges were recognised:

Property, plant and equipment and intangible assets

During 2022, significant changes to key macro estimates ensued, exacerbated by the Russian/Ukrainian war, which contributed tosignificant supply/demand imbalances, extreme commodity price volatility, higher energy prices and, in some cases, which are
generally linked, emboldening governments to raise royalties and taxes. 2022 saw broad based cost increases, reflecting:–direct and indirect inflationary pressures on goods and services (particularly energy related flow-through impacts onelectricity costs, coal, diesel, steel, explosives, chemicals, reagents and Original Equipment Manufacturer spare parts);–

competition for skilled employees and contractors;–

supply chain pressures, including their secondary effects on shipping and handling costs, as trade flows adjusted in responseto the war.

The weighting of the above macro factors on certain CGUs, combined with various operational challenges, resulted in a number of
impairments in our Industrial activities segment, almost exclusively related to metals and minerals’ CGUs. The valuations are mostsensitive to price and discount rate assumptions and a deterioration/improvement in these assumptions could result in additional
impairments/reversal of impairments. See below.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

2022 impairment/(reversal of impairment)
US$ million

Cash-generating unit
Mt. Isa copper3
Mt. Isa zinc
McArthur River zinc
Zhairem zinc
Portovesme zinc3
Volcan zinc
Koniambo nickel3
Various otherpre tax

post tax

Capitalemployed1

Discount Short to Long-term
rate
price assumption

656
455
172
185
143
164
227
(18)
1,984

460
318
96
148
105
116
227
(18)
1,452

–
630
869
565
72
1,243
–
–
3,379

9.7%
Cu: 8,157 - 7,400
9.7%
Zn: 3,250 - 2,450
8.7%
Zn: 3,250 - 2,450
11.0%
Zn: 3,250 - 2,450
9.9%
Zn: 3,250 - 2,450
9.4%
Zn: 3,250 - 2,450
10.7% Ni: 19,500 - 18,400

Impairments/(reversal of impairments)
resulting from changes in key assumptions
Decrease/(increase)
Increase/(decrease)in price of 10%2
in discount rate of 1%

–
504
396
161
–
303
–

–
(318)
(96)
(148)
–
(242)
–

–
50
63
21
–
69
–

–
(58)
(71)
(22)
–
(96)
–

1,364

(804)

203

(247)

1

Estimated recoverable non-current capital employed, post impairment. Non-current capital employed includes property, plant and equipment, non-current inventory, lessrehabilitation provisions and net deferred tax liabilities.
2 Across the curve.
3 The estimated recoverable value of non-current capital employed of these CGUs is estimated to be de minimis. No reasonably possible change in assumptions would materially
impact this value, hence no sensitivity analysis is presented.

• $656 million, Mt. Isa Copper CGU. During the year, various options for copper mining activities were considered in the context ofhigher costs due to the above macro factors. These factors outweighed the significant efforts made over the past few years tomake the operation more competitive, such that the entire carrying value of this CGU was impaired.
• $455 million, Mt. Isa Zinc CGU and $172 million, McArthur River Zinc CGU. Resulting primarily from the above noted macro
impacts, during 2022, the zinc market and its related treatment and refinery cost / revenue / profit drivers were significantly
impacted, particularly in relation to ex-China smelting, where updated Group assumptions have significantly impacted Australia
Zinc’s long-term through-the-cycle expected mining returns.
• $185 million, Zhairem zinc/lead CGU. In addition to the above noted macro impacts, the Zhairem CGU, located in Kazakhstan, wassignificantly impacted by additional logistical impositions, as traditional supply chains were re-routed and the Kazakhstan
government increased mineral extraction tax by some 50% (e.g. the rate applicable to zinc increased from 7% to 10.5%).
• $143 million, Portovesme zinc/lead CGU. As a result of the above noted macro impacts, particularly relating to increases in
European energy costs, Portovesme curtailed its primary zinc and lead smelting operations, with its remaining focus then being
the treatment / recycling of waelz oxides. These macro factors outweighed the significant efforts made over the past few years tomake the primary operations more competitive, such that the entire carrying value of these CGUs, other than the waelz-oxide line,
was impaired.
• $164 million, Volcan zinc CGU. Resulting primarily from the above noted macro impacts, during 2022, the zinc market and its
related treatment and refinery cost / revenue / profit drivers were significantly impacted, particularly in relation to ex-China
smelting, whereby updated assumptions, including in relation to Peru’s increasing political challenges, have impacted the longterm through-the-cycle expected returns of Volcan’s southern cluster CGU.
• $227 million, Koniambo nickel CGU. As a result of persistent operational challenges, high ferro-nickel price discounts, and theabove noted macro impacts, which have produced significantly higher energy and other costs, a strategic review of the long-term
viability of Koniambo was initiated with one of the options being the potential cessation of operations. These factors outweigh thesignificant efforts made over the past few years to make the operation more competitive, such that the entire carrying value of
this CGU was impaired.
• Net $18 million reversal of impairments. The balance of the impairment charges of $70 million on property, plant and equipment(none of which were individually material) relate to specific assets (Industrial activities segment) where utilisation is no longer
required or to projects no longer progressed due to changes in production and development plans, net of reversals of impairmentof $88 million on property, plant and equipment (none of which were individually material) as a result of improved market
conditions in the oil and gas market (Industrial activities segment).

Investments

Primarily comprises impairment charges of $55 million in respect of our 26.3% interest in Trevali Mining Corporation (Industrial
activities segment), reflecting the company obtaining creditor protection, following a serious mining incident at its Perkoa Mine in
Burkina Faso in April 2022, and $54 million in respect of our 2.1% interest in Britishvolt (Marketing activities segment), owing to its
financial difficulties and recent entering into administration. As a result, the entire carrying values of these investments wereimpaired.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

Advances and loans – current and non-current

During 2022, the originally expected production rate at Mopani was not achieved, in part due to a lack of funding. The newshareholder has conducted operational and strategic reviews, resulting in Mopani seeking additional funding and to restructureand extend repayment of the transaction debt (see note 12). As a result, the advance was impaired by $422 million to a value of$596 million. The valuation assumes a long-term copper price of $7,400/t and an asset specific discount rate of 19%, which isreflective of an increase in emerging market risk premiums and underlying interest rates. The valuation remains most sensitive to
price, receipt of physical copper and discount rate assumptions, and a deterioration in these assumptions could result in additional
impairments. Should the price assumptions fall by 10% (across the curve), a further $43 million of impairment would be recognised.
Should the discount rate increase by 1%, a further $36 million of impairment would be recognised, while a 10% decrease in physicalcopper estimates could result in an additional impairment of $19 million. Conversely, a 10% increase in price assumptions (across thecurve) would result in an impairment reversal of $44 million or a 10% increase in physical copper receipts would result in an
impairment reversal of $18 million.

VAT receivable – non-current

As a result of the continued delay and non-performance by the DRC government in settling long outstanding Value Added Tax(“VAT”) claims, impairment charges of $632 million were recognised in respect of balances outstanding at our Mutanda and Katanga
CGUs (Industrial activities segment).

Inventories – non-current

As a result of geotechnical and other operational challenges, the Katanga CGU undertook an extensive technical review andoperational optimisation exercise, resulting in a significant reduction in its shorter term production forecasts over the next 3-4 years,
such that $113 million of inventory stockpile value has been impaired, consistent with its latest life of mine model.

Property, plant and equipment and intangible assets• In H1 2021, Koniambo incurred failures at its power plant and suffered a slag leak in line 2 of its metallurgical plant, resulting in asuspension of production. Extensive investigation into the cause of the leak ensued, following which it was determined to target
lower throughput, revise certain grade and process recovery assumptions and increase the frequency of major maintenanceshut-downs, with the intention of delivering more sustainable long-term operations. These revised changes in volume and cost
assumptions and the emergence of higher discounts on non-battery application nickel relative to the LME nickel benchmark
price, resulted in a reduction of Koniambo’s estimated recoverable value (Industrial activities segment) to $550 million and an
impairment of $1,170 million. The valuation assumed a long-term realised nickel price of approximately $13,700/t and an operation
specific discount rate of 9.8%. Further revisions to the operating plans are possible. As at 31 December 2021, a 10% reduction ineither the long-term realised nickel price or life of mine production could have resulted in the remaining carrying value being fully
impaired. A 10% increase in variable operating costs could have resulted in an additional impairment of $170 million. Conversely, a
10% increase in the long-term realised nickel price could have resulted in an impairment reversal of $450 million.
• The balance of the impairment charges on property, plant and equipment (none of which were individually material) relate tospecific assets where utilisation is no longer required or to projects no longer progressed due to changes in production anddevelopment plans. As a result, the full carrying amount of these assets/projects was impaired, with $282 million recognised in our
Industrial activities segment.

Investments
Primarily comprises an impairment charge of $331 million in respect of our 49% investment in HG Storage (Marketing activities
segment), to an estimated recoverable value of $189 million following a review of the carrying value against valuation benchmarks.
As at 31 December 2021, the valuation of this investment is not considered to be a significant source of estimation uncertainty as nochange in assumptions reasonably possible within the next 12 months would materially affect the carrying value.

Advances and loans – current and non-current

In 2021, impairment reversals on advances and loans of $98 million (none of which were individually material) were recognised
following an improvement in the underlying financial condition of various counterparties, with $63 million recognised in ourMarketing activities segment and $35 million recognised in our Industrial activities segment. Of the total $98 million of impairment
reversals, $67 million relate to financial assets and $31 million relate to non-financial assets.

VAT receivable – non-current

As a result of continued challenge and non-performance by certain government authorities in settling long outstanding VAT claims,
an impairment charge of $151 million was recognised in our Industrial activities segment.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

Income taxes consist of the following:
US$ million

Current income tax expense
Adjustments in respect of prior year current income tax
Deferred income tax credit/(expense)
Adjustments in respect of prior year deferred income tax
Total tax expense reported in the statement of income
Deferred income tax expense recognised directly in other comprehensive income
Total tax expense recognised directly in other comprehensive income

2022

2021

(7,165)
(274)
998
73
(6,368)(2,923)
158
(92)
(169)
(3,026)

(65)
(65)

(67)
(67)

The effective Group tax rate is different from the statutory Swiss income tax rate applicable to the Company for the following
reasons:
US$ million

Income before income taxes
Less: Share of income from associates and joint ventures
Parent Company’s and subsidiaries’ income before income tax and attribution
Income tax expense calculated at the Swiss income tax rate of 12% (2021: 12%)
Tax effects of:Different tax rates from the standard Swiss income tax rate
Tax-exempt income ($360 million (2021: $207 million) from recurring items
and $178 million (2021: $25 million) from non-recurring items)
Items not tax deductible ($670 million (2021: $987 million) from recurring items
and $582 million (2021: $378 million) from non-recurring items)
Foreign exchange fluctuations
Changes in tax rates
Utilisation and changes in recognition of tax losses and temporary differences
Tax losses not recognised
Adjustments in respect of prior years
Other
Income tax expense

2022

2021

22,879(2,300)20,579(2,469)7,375(2,618)
4,757
(571)

(3,057)(1,486)538

232(1,252)
(187)
(47)
385
(98)
(201)
20
(6,368)(1,365)
52
15
101
15
(11)
(8)
(3,026)

The non-tax deductible items of $1,252 million (2021: $1,365 million) primarily relate to financing costs, impairments and various otherexpenses.
The impact of tax-exempt income of $538 million (2021: $232 million) primarily relates to non-taxable dividends, income that is noteffectively connected to the taxable jurisdiction, and various other items.
The tax impact of foreign exchange fluctuations relates to the foreign currency movements on deferred tax balances where theunderlying tax balances are denominated in a currency different to the functional currency determined for accounting purposes.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

Deferred taxes as at 31 December 2022 and 2021 are attributable to the items in the table below:
Recognised in
Recognised inotherthe statement comprehensiveof incomeincomeBusiness
combinationand disposal ofsubsidiaries

Foreigncurrency
exchange
movements

Other

2021

US$ million

2022

Deferred tax assets1
Tax losses carried forward
Other
Total

1,515
322
1,837

116
(18)
98

–
(2)
(2)

(4)
(17)
(21)

1
(2)
(1)

(16)
–
(16)

1,418
361
1,779

Deferred tax liabilities1
Depreciation and amortisation
Mark-to-market valuations
Other
Total
Total Deferred tax - net(3,299)(125)(227)(3,651)(1,814)

1,254
(1)
(280)
973
1,071

–
(2)
(61)
(63)
(65)

(625)
5
295
(325)
(346)

60
–
5
65
64

168
–
–
168
152

(4,156)(127)(186)(4,469)(2,690)Recognised in
Recognised inotherthe statement comprehensiveof incomeincomeBusiness
combinationand disposal ofsubsidiaries

Foreigncurrency
exchange
movements

Other

2020

US$ million

2021

Deferred tax assets1
Tax losses carried forward
Other
Total

1,418
361
1,779

(532)
115
(417)

–
(10)
(10)

–
–
–

–
(2)
(2)

(1)
(43)
(44)

1,951
301
2,252

(4,156)(127)(186)(4,469)(2,690)

(150)
7
299
156
(261)

–
(6)
(51)
(57)
(67)

19
–
–
19
19

98
–
(3)
95
93

–
–
39
39
(5)

(4,123)(128)(470)(4,721)(2,469)Deferred tax liabilities1
Depreciation and amortisation
Mark-to-market valuations
Other
Total
Total Deferred tax - net
1

Asset and liability positions in the same category reflect the impact of tax assets and liabilities arising in local tax jurisdictions that cannot be offset against tax assets and liabilities
arising in other tax jurisdictions.

Deferred tax assets are net of $311 million (2021: $287 million) of uncertain tax liabilities related to tax estimation and judgement
uncertainties with respect to various open tax disputes discussed below.
Deferred tax assets are recognised for tax losses carried forward only to the extent that realisation of the related tax benefit isprobable. As at 31 December 2022, $1,915 million (2021: $2,016 million) of deferred tax assets related to available loss carry forwards
have been brought to account, of which $1,515 million (2021: $1,418 million) are disclosed as deferred tax assets with the remainingbalance being offset against deferred tax liabilities arising in the same tax entity. This balance is primarily comprised of:• $652 million (2021: $629 million) in entities domiciled in the DRC;
• $493 million (2021: $482 million) in entities domiciled in Switzerland; and• $277 million (2021: $238 million) in entities domiciled in the U.S.
In evaluating whether it is probable that taxable profits will be earned in future accounting periods prior to any tax loss expiry as may
be the case, all available evidence was considered, including approved budgets, forecasts and business plans and, in certain cases,
analysis of historical operating results. These forecasts are consistent with those prepared and used internally for business planningand impairment testing purposes. Following this evaluation, it was determined there would be sufficient taxable income generated
to realise the benefit of the deferred tax assets. With the exception of the deferred tax assets raised in respect of the Group’s DRC
operations (see below), no reasonably possible change in any of the key assumptions would result in a material reduction in forecast
headroom of tax profits so that the recognised deferred tax asset would not be realised.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

The recognised losses carried forward in the DRC primarily relate to historical development, ramp-up and financing related costs at
KCC. The losses carried forward have an unlimited carry forward period, but are subject to annual utilisation limitation. Deferredtaxation assets have been recognised for the full estimated available tax losses at 31 December 2022 as sufficient future taxable
profits are expected to fully utilise the recognised carry forward tax losses. In recognising these deferred tax assets, consideration
was given to the range of possible outcomes to determine the expected value of the tax losses available for future offset, including
to what extent previously incurred tax losses would be available to offset future taxable profits. Any adverse challenge by the DRC
tax authorities could materially impact the currently recognised tax losses and could result in a reversal of part or all of therecognised deferred tax assets.
The recognised losses carried forward in Switzerland primarily relate to non-recurring events. Based on the core business activities
conducted in Switzerland and taxable income forecasts going forward, sufficient taxable profits are expected to fully utilise therecognised tax losses prior to expiration.
The recognised losses carried forward in the U.S. primarily relate to non-recurring events in 2011 and have a carry forward period of
20 years. The U.S. entities comprise our core U.S. marketing activities and based on taxable income forecasts going forward,
sufficient taxable profits are expected to fully utilise the recognised tax losses prior to expiration.

US$ million

Income tax receivable
Income tax payable
Net income tax payable

2022

2021

401
(4,660)(4,259)364(1,785)(1,421)

Glencore assesses its liabilities and contingencies for all tax years open to audit based upon the latest information available. Inherent
uncertainties exist in estimates of tax contingencies due to complexities of interpretation and changes in tax laws. For those matterswhere it is probable that an adjustment will be made, the Group records its reasoned estimate of these tax liabilities, including
related interest charges. These current open tax matters are spread across numerous jurisdictions and consist primarily of legacytransfer pricing matters that have been open for a number of years and may take several more years to resolve. In recognising aprovision for these taxation exposures, consideration was given to the range of possible outcomes to determine the Group’s best
estimate of the amount to provide. As at 31 December 2022, the Group has recognised $1,486 million (2021: $880 million) of uncertain
tax liabilities related to possible adverse outcomes of these open matters, of which, $311 million (2021: $287 million) has beenrecognised net of deferred tax assets, with the balance of $1,175 million (2021: $593 million) recognised as an income tax payable. Thechange in the total uncertain tax position during the year reflects the issuance of various new assessments and the outcome ofcertain settlements and court rulings.

UK Tax Audit
In previous periods, HMRC have issued formal transfer pricing, unallowable purposes and diverted profits tax assessments for the
2008-2018 tax years, amounting to $746 million. The Group has appealed against, and continues to vigorously contest, theseassessments, following, over the years, various legal opinions received and detailed analysis conducted, supporting its positions andpolicies applied. Therefore, the Group has not fully provided for the amount assessed. The matter is now proceeding through the
Mutual Agreement Process, pursuant to article 24 of the Switzerland – United Kingdom Income Tax Treaty 1977. Management does
not anticipate a significant risk of material changes in estimates in this matter within the next financial year.

DRC Tax Audit
As a matter of course, various tax authorities in the DRC issue draft assessments adjusting revenue and denying costs and otheritems, along with customs related claims for alleged non-compliance or incorrect coding on certain filings. Upon receipt of suchdraft assessments, the Group engages with the tax authorities to defend its filing positions. As at 31 December 2022, there arevarious ongoing technical discussions and challenges, the ultimate outcome of which remains uncertain, and therefore there
remains a risk that the outcome could materially impact the recognised balances within the next financial year. It is impractical toprovide further sensitivity estimates of potential downside variances.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

Available gross tax losses carried forward and deductible temporary differences, for which no deferred tax assets have beenrecognised in the consolidated financial statements, are detailed below and will expire as follows:
US$ million

2022

2021

1 year
2 years
3 years
Thereafter
Unlimited
Total

115
48
44
9,642
13,80623,655

1,024
425
41
11,095
10,33522,920As at 31 December 2022, unremitted earnings of $62,829 million (2021: $50,116 million) have been retained by subsidiaries forreinvestment. No provision is made for income taxes.

US$ million

Gross carrying amount:
1 January 2022
Business combination
Disposal of subsidiaries
Additions
Disposals
Effect of foreign currency
exchange movements
Reclassification to held for sale
Other movements1
31 December 2022
Accumulated depreciation andimpairment:
1 January 2022
Disposal of subsidiaries
Disposals
Depreciation
Impairment
Effect of foreign currency
exchange movements
Reclassification to held for sale
Other movements1
31 December 2022
Net book value 31 December 2022
1

Freehold land
Notes and buildings

Plant andequipment

Right-of-use
assetsMineral andpetroleumrightsExploration
andevaluation

Deferredmining costs

Total

6,854
542
(169)
67
(59)

44,580
1,009
(256)
3,179
(1,127)

3,048
20
(37)
425
(169)

30,019
961
(163)
84
(94)

665
–
(255)
–
(4)

15,552
271
(382)
876
(186)

100,718
2,803(1,262)
4,631(1,639)

(8)

(171)

(1)

(145)

2

(30)

(353)

(897)
174
6,504

(953)
(411)
45,850

(86)
(2)
3,198

(3,824)417
27,255–5413(1,199)192
15,094(6,959)375
98,314

2,940
(137)
(53)
383
91

27,361(199)(1,003)
2,610
910

1,343
(33)
(134)
573
–

15,777
(113)
(50)
1,993
323

577
(210)
(2)
–
(2)

9,561
(323)
(185)
1,269
660

57,559(1,015)(1,427)
6,828
1,982

(3)

(89)

(2)

(54)

(1)

(7)

(156)

(447)
33
2,807
3,697

(474)
26
29,142
16,708

(21)
–
1,726
1,472

(3,490)(39)
14,347
12,908

–
–
362
51

(609)
–
10,366
4,728(5,041)20
58,75039,564

26
26

16

26
7
16

Primarily consists of increases in rehabilitation costs of $399 million and reclassifications within the various property, plant and equipment headings.

Plant and equipment includes expenditure for construction in progress of $3,731 million (2021: $3,387 million). Mineral and petroleum
rights include biological assets of $25 million (2021: $24 million). Depreciation expenses included in cost of goods sold are$6,782 million (2021: $6,129 million) and in selling and administrative expenses, $46 million (2021: $52 million).
During 2022, $31 million (2021: $33 million) of interest was capitalised. With the exception of project specific borrowings, the rate used
to determine the amount of borrowing costs eligible for capitalisation was 3.5% (2021: 3%).
As at 31 December 2022, with the exception of leases, no property, plant or equipment was pledged as security for borrowings (2021:$Nil).

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

US$ million

Gross carrying amount:
1 January 2021
Disposal of subsidiaries
Additions
Disposals
Effect of foreign currency
exchange movements
Reclassification to held for sale
Other movements1
31 December 2021
Accumulated depreciation andimpairment:
1 January 2021
Disposal of subsidiaries
Disposals
Depreciation
Impairment
Effect of foreign currency
exchange movements
Reclassification to held for sale
Other movements1
31 December 2021
Net book value 31 December 2021
1

Freehold land
Notes and buildings

Plant andequipment

Right-of-use
assetsMineral andpetroleumrightsExploration
andevaluation

Deferredmining costs

Total

6,576
(100)
114
(73)

44,514
(352)
2,936
(668)

2,576
(12)
1,006
(301)

30,495
(132)
75
(50)

1,974
–
–
–

17,462
(101)
566
(171)

103,597(697)
4,697(1,263)

(18)

(250)

(17)

(211)

–

(47)

(543)

(86)
441
6,854

(760)
(840)
44,580

(207)
3
3,048

(783)
625
30,019(1,320)11
665(2,576)419
15,552(5,732)
659
100,718

2,626
(36)
(9)
341
16

25,438
(260)
(600)
2,553
902

1,004
(5)
(213)
639
3

14,838
(126)
(48)
1,354
495

1,884
–
–
–
–

10,697
(92)
(171)
1,293
36

56,487(519)(1,041)
6,180
1,452

(5)

(118)

(6)

(74)

–

(13)

(216)

(31)
38
2,940
3,914

(524)
(30)
27,361
17,219

(80)
1
1,343
1,705

(651)
(11)
15,777
14,242(1,317)10577
88(2,246)
57
9,561
5,991

(4,849)65
57,55943,159

26

16

26
7
16

Primarily consists of increases in rehabilitation costs of $634 million and reclassifications within the various property, plant and equipment headings.

The Group leases various assets including land and buildings and plant and equipment. As at 31 December 2022, the net book valueof recognised right-of use assets relating to land and buildings was $418 million (2021: $450 million) and plant and equipment$1,054 million (2021: $1,255 million). The depreciation charge for the period relating to those assets was $58 million (2021: $89 million)
and $515 million (2021: $550 million), respectively.
Disclosure of amounts recognised as lease liabilities in the statement of financial position and cash outflows for leases in the year are
included within note 21 and their maturity analysis within note 27.
Amounts recognised in the statement of income are detailed below:
US$ million

2022

2021

Depreciation on right-of-use assets
Interest expense on lease liabilities
Expense relating to short-term leases
Expense relating to low-value leases
Expense relating to variable lease payments not included in themeasurement of the lease liability
Income from subleasing right-of-use assets

(573)
(88)
(781)
(16)

(639)
(98)
(493)
(3)

(7)

(5)

153
(1,312)

304
(934)

Total

At 31 December 2022, the Group is committed to $229 million of short-term lease payments (2021: $209 million) and $Nil (2021: $56
million) related to capitalised leases not yet commenced.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

US$ million

Cost:
1 January 2022
Disposal of subsidiaries
Additions
Disposals
Effect of foreign currency exchange movements
Reclassification to held for sale
Other movements1
31 December 2022
Accumulated amortisation and impairment:
1 January 2022
Disposal of subsidiaries
Disposals
Amortisation expense2
Impairment
Effect of foreign currency exchange movements
Reclassification to held for sale
Other movements
31 December 2022
Net book value 31 December 2022

Notes

26

16

26
7
16

Goodwill

Port allocationrightsLicences,
trademarks
and software

Customer
relationships
and other

Total

13,293
(159)
–
–
–
–
–
13,134

1,203
–
1
(1)
(73)
–
(2)
1,128

561
(4)
6
(25)
3
(1)
14
554

669
(24)
7
(2)
2
(10)
111
753

15,726
(187)
14
(28)
(68)
(11)
123
15,569

8,293
(159)
–
–
–
–
–
–
8,134
5,000

308
–
–
97
–
(24)
–
–
381
747

341
(4)
(24)
34
2
–
–
(1)
348
206

549
(24)
(3)
28
–
2
(6)
–
546
207

9,491
(187)
(27)
159
2
(22)
(6)
(1)
9,409
6,160

Goodwill

Port allocationrightsLicences,
trademarks
and software

Customer
relationships
and other

Total

13,293–––––
13,293

1,312
–
–
(109)
–
–
1,203

585
4
(33)
(6)
(19)
30
561

693
7
(3)
(12)
(5)
(11)
669

15,883
11
(36)
(127)
(24)
19
15,726

8,293
–
–
–
–
–
8,293
5,000

247
–
89
(28)
–
–
308
895

342
(22)
37
(2)
(16)
2
341
220

534
(3)
29
(5)
(4)
(2)
549
120

9,416
(25)
155
(35)
(20)
–
9,491
6,235

1 Includes $109 million for Mutanda mining license renewal, which is being amortised over 15 years (see note 33).
2 Recognised in cost of goods sold.

US$ million

Cost:
1 January 2021
Additions
Disposals
Effect of foreign currency exchange movements
Reclassification to held for sale
Other movements
31 December 2021
Accumulated amortisation and impairment:
1 January 2021
Disposals
Amortisation expense1
Effect of foreign currency exchange movements
Reclassification to held for sale
Other movements
31 December 2021
Net book value 31 December 2021
1

Recognised in cost of goods sold.

Glencore Preliminary Results 2022

Notes

16

26
16

NOTES TO THE FINANCIAL STATEMENTS

The carrying amount of goodwill has been allocated to cash-generating units (CGUs), or groups of CGUs as follows:
US$ million

2022

2021

Metals and minerals marketing businessCoal marketing business
Total

3,326
1,674
5,000

3,326
1,674
5,000

Goodwill of $3,326 million and $1,674 million was recognised in connection with previous business combinations and was allocatedto the metals and minerals marketing and coal marketing CGUs respectively, based on the annual synergies expected to accrue tothe respective marketing departments as a result of increased volumes, blending opportunities and freight and logistics arbitrage
opportunities.

Port allocation rights represent contractual entitlements to export certain amounts of coal on an annual basis from Richards Bay
Coal Terminal in South Africa recognised as part of previous business combinations. The rights are amortised on a units ofproduction basis.

Intangibles related to internally developed technology and patents were recognised in previous business combinations and areamortised over the estimated economic life of the technology which ranges between 3 – 20 years.

Customer relationships mainly represent intangible assets related to long-standing customer relationships recognised in previous
business combinations. These intangible assets are being amortised on a straight-line basis over their estimated economic life
which ranges between 5 – 9 years.

Given the nature of each CGU’s activities, information on its fair value is usually difficult to obtain unless negotiations with potential
purchasers or similar transactions are taking place. Consequently:• The recoverable amount for each of the marketing CGUs is determined by reference to the FVLCD which utilises a price toearnings multiple approach based on the 2023 approved financial budget which includes factors such as marketing volumes
handled and operating, interest and income tax charges, generally based on past experience. The price to earnings multiple of 12
times (2021: 12 times) is derived from observable market data for broadly comparable businesses; and• Glencore believes that no reasonably possible changes in any of the above key assumptions would cause the recoverable amountto fall below the carrying value of the CGU over the next 12 months. The determination of FVLCD for each of the marketing CGUs
used Level 3 valuation techniques in both years.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

US$ million

1 January
Additions
Disposals
Share of income from associates and joint ventures
Share of other comprehensive loss from associates and joint ventures
Transfer of previously held equity accounted investment to subsidiary
Impairments
Dividends received
Reclassification to held for sale
Other movements
31 December
Of which:
Investments in associates
Investments in joint ventures

Notes

26
7
16

2022

2021

12,294
157
(232)
2,300
(100)
(598)
(113)
(1,691)(148)
911,87812,400
53
(2)
2,618
(58)
–
(333)
(2,375)(11)
212,294

4,806
7,072

5,567
6,727

As at 31 December 2022, the carrying value of our listed associates is $430 million (2021: $406 million), mainly comprising Century
Aluminum and PT CITA, which have carrying values of $232 million (2021: $165 million) and $181 million (2021: $177 million),
respectively. The fair value of our listed associates, using published price quotations (a Level 1 fair value measurement) is $652 million(2021: $967 million). As at 31 December 2021, Glencore’s investment in Century Aluminum was pledged under a loan facility, withproceeds received and recognised in current borrowings of $120 million (see note 21).

Transfer of previously held equity accounted investment to subsidiary
In January 2022, Glencore completed the acquisition of the remaining 66.67% interest in Cerrejón, a coal mine in Colombia, that it
did not own. Prior to the acquisition, Glencore owned a 33.33% interest in Cerrejón which was accounted for as an associate (seenote 26).

Disposals
On 12 July 2022, Glencore effected the sale of a royalty package by BaseCore Metals LP (“BaseCore”) to Sandstorm Gold Ltd.
(“Sandstorm”). Glencore received, in aggregate, $300 million in cash and Sandstorm shares for its 50% interest in BaseCore. The
disposal resulted in a gain on disposal of non-current assets of $131 million (see note 4).

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

2022 Details of material associates and joint ventures

Summarised financial information in respect of Glencore’s associates and joint ventures, reflecting 100% of the underlying associates’
and joint ventures’ relevant figures, is set out below.

US$ million

Non-current assets
Current assets
Non-current liabilities
Current liabilities
The above assets and liabilities include the following:
Cash and cash equivalents
Current financial liabilities1
Non-current financial liabilities1
Net assets 31 December 2022
Glencore's ownership interest
Acquisition fair value and other adjustments
Carrying value
1

Antamina

Totalmaterial
associates

Collahuasi

5,137
2,105
(2,129)
(681)

5,137
2,105
(2,129)
(681)

5,540
2,405
(2,602)
(436)

87
(50)
(1,089)
4,432
33.8%
1,694
3,192

87
(50)
(1,089)
4,432

446
(21)
(1,084)
4,907
44.0%
1,046
3,205

1,694
3,192

ViterraTotalmaterial
joint
venturesTotal
material
associates
and
joint
ventures

7,207
16,480(7,496)(10,958)

12,747
18,885(10,098)(11,394)

17,88420,990(12,227)(12,075)637(4,007)(6,759)
5,233
49.9%
1,256
3,867

1,083
(4,028)(7,843)
10,1401,170(4,078)(8,932)
14,572

2,302
7,072

3,996
10,264

Financial liabilities exclude trade, other payables and provisions.

Summarised profit and loss in respect of Glencore’s associates and joint ventures, reflecting 100% of the underlying associates’ andjoint ventures’ relevant figures for the year ended 31 December 2022 including group adjustments relating to alignment ofaccounting policies or fair value adjustments, is set out below.
Totalmaterial
associates
and
joint
ventures

Antamina

Totalmaterial
associates

Collahuasi

ViterraTotalmaterial
joint
ventures

Revenue
Income for the year
Other comprehensive loss
Total comprehensive income
Glencore's share of dividends paid

4,668
1,601
–
1,601
472

4,668
1,601
–
1,601
472

4,817
1,807
(13)
1,794
660

56,832
995
(155)
840
200

61,649
2,802
(168)
2,634
860

66,317
4,403
(168)
4,235
1,332

The above income for the year includes the following:
Depreciation and amortisation
Interest income1
Interest expense2
Income tax expense(1,039)
86
(5)
(952)

(1,039)
86
(5)
(952)

(658)
9
(120)
(832)

(936)
131
(397)
(463)

(1,594)140(517)(1,295)(2,633)226(522)(2,247)

US$ million

1 Includes foreign exchange gains and other income of $186 million.
2 Includes foreign exchange losses and other expenses of $62 million.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

2021 Details of material associates and joint ventures

Summarised financial information in respect of Glencore’s associates and joint ventures, reflecting 100% of the underlying associates’
and joint ventures’ relevant figures, is set out below.
Totalmaterial
associates
and
joint
ventures

Cerrejón

Antamina

Totalmaterial
associates

Collahuasi

ViterraTotalmaterial
joint
venturesNon-current assets
2,033
Current assets
1,030
Non-current liabilities(690)
Current liabilities(509)
The above assets and liabilities include the following:
Cash and cash equivalents
511
Current financial liabilities1(27)
Non-current financial liabilities1(14)
Net assets 31 December 2021
1,864
Glencore's ownership interest
33.3%
Acquisition fair value and other adjustments(54)
Carrying value
567

5,288
1,607
(1,875)
(973)

7,321
2,637
(2,565)(1,482)

5,398
1,913
(1,758)
(994)

6,118
13,399(5,031)(9,682)

11,51615,312(6,789)(10,676)

18,837
17,949(9,354)(12,158)

134
(45)
(847)
4,047
33.8%
1,756
3,124

645
(72)
(861)
5,911

354
(21)
(402)
4,559
44.0%
1,059
3,065

472
(4,516)(4,409)
4,804
49.9%
1,265
3,662

826
(4,537)(4,811)
9,363

1,471
(4,609)(5,672)
15,274

2,324
6,727

4,026
10,418

US$ million

1

1,702
3,691

Financial liabilities exclude trade, other payables and provisions.

Summarised profit and loss in respect of Glencore’s associates and joint ventures, reflecting 100% of the underlying associates’ andjoint ventures’ relevant figures for the year ended 31 December 2021, including group adjustments relating to alignment ofaccounting policies or fair value adjustments, is set out below.
Totalmaterial
associates
and
joint
ventures

Cerrejón

Antamina

Totalmaterial
associates

Collahuasi

ViterraTotalmaterial
joint
ventures

2,317
636
–
636
240

5,307
1,992
–
1,992
749

7,624
2,628
–
2,628
989

5,906
2,777
(13)
2,764
1,144

39,704
947
(94)
853
150

45,610
3,724
(107)
3,617
1,294

53,234
6,352
(107)
6,245
2,283

The above (loss)/income for the year includes the following:
Depreciation and amortisation(267)
Interest income1–
Interest expense2(18)
Income tax credit/(expense)
(435)

(919)
–
(38)
(1,241)(1,186)–(56)(1,676)

(653)
66
(13)
(1,470)

(776)
55
(229)
(282)

(1,429)121(242)(1,752)(2,615)121(298)(3,428)

US$ million

Revenue
Income for the year
Other comprehensive loss
Total comprehensive (loss)/income
Glencore's share of dividends paid

1 Includes foreign exchange gains and other income of $114 million.
2 Includes foreign exchange losses and other expenses of $58 million.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

Aggregate information of associates and joint ventures that are not individually material:
US$ million

2022

2021

The Group's share of income
The Group's share of other comprehensive loss
The Group's share of total comprehensive income
Aggregate carrying value of the Group's interests

467
(17)
450
1,614

38
(5)
33
1,876

The amount of corporate guarantees in favour of associates and joint ventures as at 31 December 2022 was $463 million (2021:$611 million). No amounts have been claimed or provided as at 31 December 2022. Glencore’s share of joint ventures’ capitalcommitments amounts to $464 million (2021: $213 million).

US$ million

Fair value through other comprehensive income1
EN+ GROUP PLC
YancoalOSJC Rosneft
Press Metal Aluminium
Shenzhen Energy Gas Investment Holding
Other
Fair value through profit and loss
Sandstorm Gold Ltd
Other
Total
1

2022

2021

–
–
–
129
104
186
419

789
160
485
–
–
186
1,620

35
2
37
456

–
–
–
1,620

Movements in fair value through other comprehensive income for the year comprise negative changes in fair value of $1,274 million relating to EN+ and Rosneft (see below) net of
positive changes in fair value of $150 million (2021: negative changes of $52 million) relating to other investments.

During the year, dividend income from equity investments designated as at fair value through other comprehensive income
amounted to $45 million (2021: $23 million).

Investments in EN+ and Rosneft

In February 2022, the Russian government commenced a war against the people of Ukraine, resulting in a humanitarian crisis andsignificant disruption to financial and commodity markets. A number of countries including, the United States of America, European
Union, Switzerland and United Kingdom imposed a series of sanctions against the Russian government, various companies, andcertain individuals. In response to these sanctions, Russia implemented a number of counter-sanctions including restrictions on thedivestment from Russian assets by foreign investors.
Glencore owns equity stakes in EN+ (10.6%) and Rosneft (0.57%), listed on the London Stock Exchange and Moscow Stock Exchange.
On 3 March 2022, EN+ was suspended from trading on the London Stock Exchange and Rosneft stopped trading on the Moscow
exchange. On 24 March, Rosneft resumed trading, however, Glencore is not able to sell its Rosneft shares on the Moscow Stock
Exchange and is unable to ascribe probabilities to possible outcomes of any potential exit process.
IFRS defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. Further, an entity should take into account the characteristics of the asset
or liability if market participants would take those into account when pricing the asset or liability, where such characteristics would
include restrictions on the sale or use of the asset. Under current market conditions, given the restrictions noted above, the quoted
share prices for both investments are not deemed to be reliable evidence of fair value and thus it was determined that it is no longer
appropriate to classify these investments as Level 1 financial instruments in accordance with IFRS, but rather as Level 3 financial
instruments. In valuing these investments as a Level 3 investment, Glencore concluded that there is no realistic way to exit thesestakes in the current environment and considered that the measure of fair value is subject to high measurement uncertainty. Bothequity interests were written down to $Nil on the basis that their fair value is not materially different to $Nil given the valuation amarket participant would ascribe to a hypothetical transfer reflecting their inability to access the market. The corresponding
negative mark-to-market adjustments was recognised in other comprehensive income.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

US$ million

Financial assets at amortised cost
Loans to associates
Other non-current receivables and loans
Deferred consideration
Rehabilitation trust fund1
Financial assets at fair value through profit and loss
Other non-current receivables and loans
Convertible loan
Contingent consideration
Non-financial assets
Pension surpluses
Advances repayable with product2
Land rights prepayment
Other tax and related non-current receivables3
Total

Notes

2022

2021

26

130
309
142
148
729

128
519
–
148
795

28
28
28

22
168
103
293

28
–
135
163

24

148
1,254
150
80
1,632
2,654

125
1,673
150
621
2,569
3,527

1 The balance has been assessed for impairment and is deemed recoverable.
2 Net of $538 million (2021: $1,074 million) provided by various banks, the repayment terms of which are contingent upon and connected to the future delivery of contractual production.
3 Includes VAT impairment charges of $632 million (see note 7).

Loans to associates

Loans to associates generally bear interest at applicable floating market rates plus a premium.

Other non-current receivables and loans

Other non-current receivables and loans comprise the following:
US$ million

2022

2021

Secured financing arrangements
Other
Total

306
3
309

511
8
519

Various financing facilities, generally marketing related and secured against certain assets and/or payable from the future sale ofproduction of the counterparty. The non-current receivables and loans are interest-bearing and on average are to be repaid over athree-year period.

Rehabilitation trust fundGlencore makes contributions to controlled funds established to meet the costs of its restoration and rehabilitation liabilities,
primarily in South Africa. These funds are not available for the general purposes of the Group, and there is no present obligation to
make any further contributions.

Loss allowances of financial assets at amortised cost

The Group determines the expected credit loss of loans to associates, other non-current receivables and loans (at amortised cost)and deferred consideration based on different scenarios of probability of default and expected loss applicable to each of the material
underlying balances. Expected credit losses for these assets are measured as either 12-month expected credit losses, taking into
account prior experience regarding probability of default adjusted for forward looking information, or as lifetime expected credit
losses (when there is significant increase in credit risk or the asset is credit-impaired). The movement in loss allowance for financial
assets classified at amortised cost is detailed below:

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

Loans to associates

2022
US$ million

12-Month ECL Lifetime ECL1

Total

15

191

206

365

431

796

1,002

–
–
–
–

62
–
14
–

62
–
14
–

14
–
–
(5)

240
(9)
91
–

254
(9)
91
(5)

316
(9)
105
(5)

–
–

–
76

–
76

–
9

14
336

14
345

14
421

15

115

130

356

95

451

581

Gross carrying value 31 December 20223
Allowance for credit loss
1 January 2022
Released during the period4
Charged during the period4
Effect of foreign currency exchange movements
Reclassifications from current accounts
receivable
31 December 2022
Net carrying value 31 December 2022
1
2
3
4

Other non-current receivables and loans
and deferred consideration
12-Month ECL Lifetime ECL2
Total

Total

Comprises stage 3 credit losses of $76 million.
Comprises stage 2 credit losses of $51 million and stage 3 credit losses of $285 million.
Increases in lifetime ECL gross carrying values during the year result primarily from reclassifications from 12 months ECL.
$37 million recognised as impairment (see note 7) and the balancing charge of $59 million recognised in cost of goods sold.

Loans to associates

2021
US$ million

Other non-current receivables and loans
and deferred consideration

12-Month ECL Lifetime ECL1

Total

Total

Total

31

159

190

529

244

773

963

–
–
–
–

62
–
–
–

62
–
–
–

37
(23)
15
(13)

303
(5)
–
(35)

340
(28)
15
(48)

402
(28)
15
(48)

–
–

–
62

–
62

(2)
14

(23)
240

(25)
254

(25)
316

31

97

128

515

4

519

647

Gross carrying value 31 December 2021
Allowance for credit loss
1 January 2021
Released during the period3
Charged during the period3
Utilised during the period
Reclassifications to current accounts
receivable
31 December 2021
Net carrying value 31 December 2021

12-Month ECL Lifetime ECL2

1 Comprises stage 3 credit losses of $62 million.
2 Comprises stage 3 credit losses of $240 million.
3 $22 million recognised as impairment (see note 7) and the balancing charge of $9 million recognised in cost of goods sold.

Other non-current receivables and loans

During 2022, no fair value movements were recognised (2021: positive $35 million)(see note 7).

Convertible loan
In May 2022, Glencore subscribed for $200 million of convertible debt in Li-Cycle Holdings Corp. (“Li-Cycle”), a leading lithium-ion
battery recycler in North America, listed on the New York Stock Exchange. The convertible loan is repayable by 2027 at an effective
interest rate of SOFR plus 5% per annum. If Glencore elects to convert during the conversion option period, Glencore would hold an
approximate 10% equity stake in Li-Cycle. The loan is classified as financial asset at fair value through profit and loss in accordancewith IFRS (see notes 28 and 29). During 2022, fair value movements of negative $40 million were recognised (see note 5).

Contingent consideration

In 2022, fair value movements of positive $117 million (2021: $39 million) were recognised (see note 5).

Advances repayable with product
US$ million

2022

2021

Counterparty
Mopani transaction debt
Société Nationale d'Electricité (SNEL) power advances
Chad State National Oil Company
Société Nationale des Pétroles du Congo
Other1
Total

579
338
199
86
52
1,254

881
304
293
129
66
1,673

1

Comprises no individually material items.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

Mopani

On 31 March 2021, Glencore completed the disposal of its 90% interest in Mopani to ZCCM Investments Holdings plc, the holder ofthe remaining 10% interest in Mopani, in exchange for $1 and the rights to offtake copper and other metals from Mopani until$1.5 billion of existing intercompany debt (the “transaction debt”) has been repaid to Glencore. The transaction debt attracts interest
at a floating benchmark rate plus 3%. The repayment of the transaction debt is in substance based on Glencore receiving physicalproduct deliveries from Mopani through its offtake rights and retaining defined percentages of Mopani’s annual gross revenues
until the transaction debt is fully repaid. On the date of completion, the fair value of the transaction debt was determined to be$838 million (see note 26). During 2022, the originally expected production rate at Mopani was not achieved, in part due to a lack offunding. The new shareholder has conducted operational and strategic reviews, resulting in Mopani seeking additional funding andto restructure and extend repayment of the transaction debt. As a result, an impairment of $422 million was recognised (see note 7).
As at 31 December 2022, $596 million (2021: $904 million) of debt is outstanding, of which $579 million (2021: $881 million) is due after
12 months and is presented above and $17 million (2021: $23 million) is due within 12 months and is included in Accounts receivable.

SNEL power advances

In early 2012, a joint agreement with Société Nationale d’Électricité (SNEL), the Democratic Republic of the Congo’s (DRC) national
electricity utility, was signed whereby Glencore’s operations would contribute $375 million to a major electricity infrastructure
refurbishment programme, including transmission and distribution systems. This facilitated a progressive increase in power
availability to 450 megawatts by the end of Q1 2020. Funding commenced in the second quarter of 2012 and completed in Q4 2021.
The loans are being repaid via discounts on electricity purchases.

Chad State National Oil Company
The net outstanding amount of advances to the Chad State National Oil Company (SHT) is $232 million (2021: $321 million). Theseamounts are to be settled through future oil deliveries over ten years. As at 31 December 2022, the advance is net of $393 million(2021: $604 million) provided by a syndicate of lenders, the repayment terms of which are contingent upon and connected to thereceipt of oil due from SHT under the prepayment. Of the net amount advanced, $199 million (2021: $293 million) is receivable after
12 months and is presented within Other non-current receivables and loans and $33 million (2021: $31 million) is due within 12
months and included within Accounts receivable.

Société Nationale des Pétroles du Congo (SNPC)The net outstanding amount of advances to SNPC is $131 million (2021: $156 million). These amounts are to be settled through future
oil deliveries over five years. As at 31 December 2022, the advance is net of $385 million (2021: $498 million) provided by the lenders,
the repayment terms of which are contingent upon and connected to the future receipt of oil contractually due from SNPC. Of the
net amount advanced, $86 million (2021: $129 million) is due after 12 months and is presented within Other long-term receivables
and loans and $45 million (2021: $27 million) is due within 12 months and included within Accounts receivable.

Land rights prepayment

In 2019, Kamoto Copper Company (“KCC”) entered into an agreement with La Générale des Carrières et des Mines (“Gécamines”),
Glencore’s 25% joint venture partner in KCC, to acquire from Gécamines a comprehensive land package covering areas adjacent to
KCC’s existing mining concessions for $250 million. The package includes multiple blocks for construction of a new long-term
tailings facility and the possible exploitation of additional resources that will enhance KCC’s ability to more efficiently operate its
mines, facilities and other key infrastructure requirements.
In addition to the above consideration, the agreement includes the following key additional undertakings:• obligations on KCC to remove tailings (estimated at circa 15m dmt), currently in a sub-section of these areas, to another suitablelocation;• contingent obligations to pay “Pas de Porte” payments to Gécamines if KCC declares a JORC compliant reserve or otherwise
elects to mine any resources in the Resource Areas; and• a new royalty to Gécamines of 2.5% of net sales from the acquired land areas if KCC elects to mine any resources in such areas.
In August 2020, KCC advanced $150 million to Gécamines as an agreed prepayment of the consideration due. If the closing
conditions as prescribed in the agreement are not fulfilled, Glencore has the right to accrue interest on the prepaid amount,terminate the agreement and, if funds are not returned, offset against future amounts owing to Gécamines. The balance of theconsideration is due 5 days after the respective closing conditions of each area to be transferred are satisfied. During 2022, activities
to progress the transfer of these land packages (e.g. removal of tailings and drilling activities to confirm resource availability)
continued.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

US$ million

2022

2021

Inventory at fair value less costs of disposal

19,157

16,073

Raw materials and consumables
Semi finished products
Finished goods
Inventory at the lower of cost or net realisable value
Total current inventory

5,970
5,527
2,806
14,303
33,460

5,077
4,901
2,383
12,361
28,434

Raw materials and consumables
Inventory at the lower of cost or net realisable value
Total non-current inventory

605
605
605

662
662
662

The amount of inventories and related ancillary costs recognised as an expense during the period was $211,666 million (2021:$177,704 million).
Fair value of inventories are predominantly a Level 2 fair value measurement (see note 29) using observable market prices obtained
from exchanges, traded reference indices or market survey services adjusted for relevant location and quality differentials. There areno significant unobservable inputs in the fair value measurement of such inventories.
Glencore has a number of dedicated financing facilities, which finance a portion of its inventories. In each case, the inventory has notbeen derecognised as the Group has not transferred control. The proceeds received are recognised as current borrowings (see note
21). As at 31 December 2022, the total amount of inventory pledged under such facilities was $3,455 million (2021: $17 million). The
proceeds received and recognised as current borrowings were $3,092 million (2021: $2 million) and $80 million (2021: $80 million) as
non-current borrowings.

Non-current inventories valued at lower of cost or net realisable value are not expected to be utilised or sold within the normal
operating cycle and are therefore classified as non-current inventory.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

US$ million

Notes

Financial assets at amortised cost
Trade receivables
Margin calls paid and other broker balances
Receivables from associates
Deferred consideration
Other receivables1

26

Financial assets at fair value through profit and loss
Trade receivables containing provisional pricing features
Finance lease receivable
Contingent consideration
Other receivables

28
28
28
28

Non-financial assets
Advances repayable with product2
Other tax and related receivables3
Total

2022

2021

7,202
7,515
441
333
528
16,019

4,943
5,914
413
–
402
11,672

5,426
–
128
73
5,627

5,267
2
175
79
5,523

1,416
1,503
2,919
24,565

876
1,422
2,298
19,493

1 Includes current portion of non-current loans receivable of $319 million (2021: $296 million).
2 Includes advances, net of $487 million (2021: $409 million) provided by banks, the repayment terms of which are contingent upon and connected to the future delivery of contractual
production over the next 12 months.
3 Comprises sales and other tax receivables of $1,351 million (2021: $1,253 million) and other receivables of $152 million (2021: $169 million).

The average credit period on sales of goods is 17 days (2021: 16 days). The carrying value of trade receivables approximates fair value.
The Group applies a simplified approach to measure the loss allowance for trade receivables classified at amortised cost, using the
lifetime expected loss provision. The expected credit loss on trade receivables is estimated using a provision matrix by reference topast default experience and credit rating, adjusted as appropriate for current observable data. Expected credit loss provisions arerecognised in cost of goods sold and during the period, $148 million (2021: $11 million) of such losses were recognised. Current year
provision is up over prior year due primarily to higher over-all gross receivable balances on-hand at period-end as a result of higher
commodity prices and a specific slow-moving exposure which is expected to be settled during 2023. The following table details therisk profile of trade receivables based on the Group’s provision matrix.
US$ million
As at 31 December 2022

Gross carrying amount
Weighted average expected credit loss rate
Lifetime expected credit loss
Total

Not past due

5,014
0.45%
(23)
4,991

US$ million
As at 31 December 2021

Gross carrying amount
Weighted average expected credit loss rate
Lifetime expected credit loss
Total

Glencore Preliminary Results 2022

Not past due

4,034
0.27%
(11)
4,023

Trade receivables – days past due<30
31 – 60
61 – 90

>90

Total

85
1.17%
(1)
84

1,673
7.34%
(143)
1,530

7,374

Trade receivables – days past due<30
31 – 60
61 – 90

>90

Total

337
2.33%
(8)
329

4,967

444
0.67%
(3)
441

287
0.55%
(2)
285

158
0.98%
(2)
156

157
0.82%
(1)
156

152
1.10%
(2)
150

(172)
7,202

(24)
4,943

NOTES TO THE FINANCIAL STATEMENTS

The Group determines the expected credit loss of receivables from associates, deferred consideration and other receivables (atamortised cost) based on different scenarios of probability of default and expected loss applicable to each of the material underlying
balances. Expected credit losses for these assets are measured as either 12-month expected credit losses, taking into account priorexperience regarding probability of default adjusted for forward looking information, or as lifetime expected credit losses (whenthere is significant increase in credit risk or the asset is credit-impaired). The movement in allowance for credit loss relating toreceivables from associates and other receivables is detailed below:
Receivables from associates

2022
US$ million

12-Month ECL Lifetime ECL1

Gross carrying value 31 December 2022

Total

432

136

568

896

108

1,004

1,572

–
–
–
–
–
–

116
(2)
21
–
(8)
–

116
(2)
21
–
(8)
–

23
(5)
34
(3)
–
–

106
–
16
(4)
(4)
(6)

129
(5)
50
(7)
(4)
(6)

245
(7)
71
(7)
(12)
(6)

–
–

–
127

–
127

(10)
39

(4)
104

(14)
143

(14)
270

432

9

441

857

4

861

1,302

Allowance for credit loss
1 January 2022
Released during the period3
Charged during the period3
Utilised during the period
Effect of foreign currency exchange movements
Reclassification to held for sale
Reclassifications to non-current receivables andloans
31 December 2022
Net carrying value 31 December 2022

Total

Other receivables and deferredconsideration
12-Month ECL Lifetime ECL2
Total

1 Comprises stage 2 credit losses of $2 million and stage 3 credit losses of $125 million.
2 Comprises stage 2 credit losses of $29 million and stage 3 credit losses of $75 million.
3 $15 million recognised as impairment (see note 7) and the balancing $49 million net charge recognised in cost of goods sold.

2021
US$ million

Gross carrying value 31 December 2021
Allowance for credit loss
1 January 2021
Released during the period3
Charged during the period3
Utilised during the period
Effect of foreign currency exchange
movements
Reclassifications from non-current receivables
and loans
31 December 2021
Net carrying value 31 December 2021

Receivables from associates
12-Month ECL Lifetime ECL1

Total

Other receivables and deferredconsideration
12-Month ECL Lifetime ECL2

Total

Total

391

138

529

387

144

531

1,060

–
–
–
–

122
–
3
–

122
–
3
–

51
(10)
15
(29)

81
–
15
(19)

132
(10)
30
(48)

254
(10)
33
(48)

–

(9)

(9)

–

–

–

(9)

–
–

–
116

–
116

(4)
23

29
106

25
129

25
245

391

22

413

364

38

402

815

1 Comprises stage 2 credit losses of $2 million and stage 3 credit losses of $114 million.
2 Comprises stage 2 credit losses of $33 million and stage 3 credit losses of $73 million.
3 $7 million recognised as a reversal of impairment (see note 7) and the balancing $30 million net charge recognised in cost of goods sold.

Glencore has a number of dedicated financing facilities, which finance a portion of its receivables. The receivables have not been
derecognised, as the Group retains the principal risks and rewards of ownership. The proceeds received are recognised as current
borrowings (see note 21). As at 31 December 2022, the total amount of trade receivables pledged was $278 million (2021: $Nil) andproceeds received and classified as current borrowings amounted to $200 million (2021: $Nil).

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

US$ million

2022

2021

Bank and cash on hand
Deposits and treasury bills
Total

1,445
478
1,923

2,403
838
3,241

Cash and cash equivalents comprise cash held at bank, cash in hand and short-term bank deposits with an original maturity of
three months or less. The carrying amount of these assets approximates their fair value.
As at 31 December 2022, $78 million (2021: $547 million) was restricted, including $Nil (2021: $477 million) held in on-shore accounts
in our DRC operations, available to effect payment to on-shore counterparts only.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

Net assets held for sale are measured at their carrying amount, being the lower of carrying amount and fair value less costs to sell. Asof 31 December 2022, the carrying amounts of assets and liabilities held for sale were lower than their fair value less costs to sell,hence no gains or losses were recognised in the statement of income for the period.
The carrying value of the assets and liabilities classified as held for sale are detailed below:
2022
US$ million

Non-current assets
Property, plant and equipment
Intangible assets
Investments in associates and joint ventures
Advances and loans
Deferred tax assets
Current assets
Inventories
Accounts receivable
Income tax receivable
Prepaid expenses
Cash and cash equivalents
Total assets held for saleNon-current liabilities
Borrowings
Deferred tax liabilities
Provisions
Deferred income
Post-retirement and other employee benefits
Current liabilities
Borrowings
Accounts payable
Provisions
Income tax payable
Total liabilities held for sale
Total net assets held for saleNon-controlling interest

Cobar

Volcan

Total

451
1
–
–
–
452

1,467
4
148
71
32
1,722

1,918
5
148
71
32
2,174

25
4
–
3
1
33
485

57
68
29
5
74
233
1,955

82
72
29
8
75
266
2,440

–
(25)
(20)
–
(1)
(46)

(777)
(151)
(322)
(6)
–
(1,256)

(777)
(176)
(342)
(6)
(1)
(1,302)

(1)
(42)
–
–
(43)
(89)
396
–

(22)
(315)
(31)
(28)
(396)
(1,652)
303
201

(23)
(357)
(31)
(28)
(439)
(1,741)
699
201

In March 2022, Glencore entered into an agreement with Metals Acquisition Corp (MAC) for the disposal of its 100% interest in Cobar,
a copper mine in New South Wales, Australia for $775 million in cash and an additional up to $100 million cash or equity stake in
MAC, plus $75 million dependent on a future equity raise with an equity back-stop provision for Glencore’s benefit, plus $75 million
contingent payment when copper averages exceed $4.25/lb for 18 continuous months over the life of mine and a $75 million
contingent payment when copper averages exceed US$4.50/lb for 24 continuous months over the life of mine. Completion of thesale is conditional on approval of MAC’s shareholders and receipt of certain regulatory approvals and is expected to occur in H1 2023.
In Q4 2022, Glencore commenced a process exploring the possible disposal of its 23.3% economic interest in Volcan.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

2021
US$ million

Non-current assets
Property, plant and equipment
Intangible assets
Investments
Advances and loans
Deferred tax assets
Current assets
Inventories
Accounts receivable
Income tax receivable
Prepaid expenses
Cash and cash equivalents
Total assets held for saleNon-current liabilities
Borrowings
Deferred income
Deferred tax liabilities
Provisions
Post-retirement and other employees benefits
Current liabilities
Borrowings
Accounts payable
Deferred income
Provisions
Income tax payable
Total liabilities held for sale
Total net assets held for saleNon-controlling interest

Ernest Henry

Bolivia

Access World

E&P Chad

Total as at
31.12.2021

311
–
–
–
30
341

161
2
–
–
10
173

171
2
11
10
4
198

240
–
–
–
–
240

883
4
11
10
44
952

16
26
–
2
1
45
386

36
82
–
–
21
139
312

–
93
1
10
45
149
347

22
14
–
–
–
36
276

74
215
1
12
67
369
1,321

–
(138)
–
(74)
(1)
(213)

(3)
–
(4)
(29)
(17)
(53)

(111)
–
(1)
(1)
(1)
(114)

–
–
(4)
(85)
–
(89)

(114)
(138)
(9)
(189)
(19)
(469)

–
(32)
(53)
(1)
–
(86)
(299)
87
–

(7)
(55)
–
(35)
(14)
(111)
(164)
148
–

(17)
(97)
–
(3)
(1)
(118)
(232)
115
(2)

–
(6)
–
–
–
(6)
(95)
181
–

(24)
(190)
(53)
(39)
(15)
(321)
(790)
531
(2)

In November 2021, Glencore agreed to dispose of its 100% interest in Ernest Henry Mining Pty Ltd, a copper-gold mine in
Queensland, Australia for AUD $1 billion (c.US$720 million), comprising AUD $800 million on closing and the balance (AUD $200
million) due 12 months post closing. The transaction closed in January 2022 (see note 26).

In October 2021, Glencore agreed to sell its Bolivian zinc assets (Sinchi Wayra and Illapa), to Santacruz Silver Mining Ltd, forapproximately $110 million and a 1.5% NSR royalty over the life of the mines. $20 million was due on completion with the balance(c.$90 million) due over the following 4 years. The transaction closed in March 2022 (see note 26).

At 31 December 2021, Glencore was in advanced negotiations with a prospective buyer to dispose of its 100% interest in the Access
World Group, a global storage and logistics group, for $180 million. The share purchase agreement was subsequently signed on
31 January 2022 and the transaction closed in December 2022 (see note 26).

In August 2021, Glencore agreed to dispose 100% of its Chad upstream oil operations to Perenco S.A.. The transaction closed in June
2022 (see note 26).

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

Numberof ordinary
shares(thousand)

Authorised:
31 December 2022 and 2021 Ordinary shares with a par value of $0.01 eachIssued and fully paid up:
1 January 2021 and 31 December 2021 – Ordinary shares
Own shares cancelled during the year
Distributions paid (see note 19)
31 December 2022 – Ordinary shares

Treasury Shares

Own shares:
1 January 2021
Own shares purchased during the year
Own shares disposed during the year
31 December 2021
1 January 2022
Own shares purchased during the year
Own shares transferred to satisfy employee
share awards
Own shares disposed during the year
Own shares cancelled during the year
31 December 2022

Share capital(US$ million)

Sharepremium(US$ million)

146
(5)
–
141

43,679(2,130)(4,832)
36,71750,000,000
14,586,200(500,000)–
14,086,200

Trust Shares

Total

Numberof shares(thousand)Own
shares(US$ million)

Numberof shares(thousand)Own
shares(US$ million)

Numberof shares(thousand)Own
shares(US$ million)

1,261,887
128,501–
1,390,388
1,390,388
425,309(4,801)(616)–(5,417)(5,417)(2,503)103,001
32,000(35,788)
99,21399,213
–

(503)
(130)
173
(460)
(460)
–

1,364,888
160,501(35,788)
1,489,601
1,489,601
425,309(5,304)(746)
173(5,877)(5,877)(2,503)(50,000)–(500,000)
1,265,697

225
–
2,135
(5,560)50,000(93,567)–
55,646

(271)
430
–
(301)

–
(93,567)(500,000)
1,321,343

(46)
430
2,135
(5,861)Own shares comprise shares acquired under the Company’s share buy-back programmes (“Treasury Shares”) and shares ofGlencore plc held by Group employee benefit trusts (“the Trusts”) to satisfy the potential future settlement of the Group’s employee
stock plans (“Trust Shares”).
The Trusts also coordinate the funding and manage the delivery of Trust Shares and free share awards under certain of Glencore’s
share plans. The Trust Shares have been acquired by either stock market purchases or share issues from the Company. The Trusts
may hold an aggregate of Trust Shares up to 5% of the issued share capital of the Company at any one time and are permitted to sellthem. The Trusts have waived the right to receive distributions from the Trust Shares that they hold. Costs relating to theadministration of the Trusts are expensed in the period in which they are incurred.
In July 2022, Glencore announced a $3 billion share buy-back programme to be completed by February 2023, effected inaccordance with the terms of the authority granted by shareholders at the 2022 Annual General Meeting. As at 31 December 2022,$1,920 million of shares have been purchased. No liability has been recognised in respect of this share buy-back programme as theterms of the arrangement do not result in a contractual obligation.
During the year, Glencore also purchased the remaining $33 million of shares under the $650 million share buy-back programmeannounced in August 2021 and $550 million shares under the share buy-back programme announced in February 2022.
In October 2022, Glencore cancelled 500 million of treasury shares, adopting a policy to reduce and maintain from time to timetreasury shares below 10% of total issued share capital.
As at 31 December 2022: 1,321,342,547 shares (2021: 1,489,601,292 shares), including 1,265,696,812 Treasury Shares (2021: 1,390,388,731
shares), equivalent to 9.38% (2021: 9.36%) of the issued share capital were held at a cost of $5,861 million (2021: $5,877 million) andmarket value of $8,809 million (2021: $7,559 million).

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

US$ million

1 January 2022
Exchange loss on translation of foreign operations
Items recycled to the statement of income on restructuring of
intragroup debt (see note 5)
Items recycled to the statement of income upon disposal ofsubsidiaries (see note 26)
Gain on cash flow hedges, net of tax
Loss on equity investments accounted for at fair value throughother comprehensive income, net of tax
Change in ownership interest in subsidiaries (see note 33)
Gain due to changes in credit risk on financial liabilities
accounted for at fair value through profit and loss
Reclassifications
31 December 2022
1 January 2021
Exchange loss on translation of foreign operations
Gain on cash flow hedges, net of tax
Loss on equity investments accounted for at fair value throughother comprehensive income, net of tax
Change in ownership interest in subsidiaries (see note 33)
Loss due to changes in credit risk on financial liabilities
accounted for at fair value through profit and loss
Reclassifications
31 December 2021

Foreigncurrencytranslation
reserve

Cash flow
hedge reserveNet
unrealised
gain/(loss)

Net ownershipchanges insubsidiaries

Total(2,898)
(290)

(124)
–

(300)
–

(2,609)–(5,931)
(290)

431

–

–

–

431

84

–

–

(34)

50

–

27

–

–

27

–

–

(1,122)–(1,122)

–

–

–

(3)

(3)

–

–

2

–

2

–
(2,673)(2,832)
(66)
–

–
(97)
(147)
–
23

3
(1,417)
(266)
–
–

–
(2,646)(2,603)––

3(6,833)(5,848)
(66)
23

–

–

(52)

–

(52)

–

–

–

(6)

(6)

–

–

(7)

–

(7)

–
(2,898)

–
(124)

25
(300)

–
(2,609)25(5,931)

The translation adjustment reserve is used to capture the cumulative impact of foreign currency translation adjustments arisingfrom the Group’s non-USD denominated functional currency subsidiaries.
The cash flow hedge reserve is used to accumulate the gains and losses from the effective portion of hedging instruments
contained within hedge relationships until the hedged item impacts profit or loss. Cost of hedging is recorded within the cash flow
hedge reserve due to its immaterial amount.
The net unrealised gain/loss reserve is used to accumulate the gains and losses associated with the remeasurement of the Group’s
investments carried at FVTOCI and changes in credit risk on financial liabilities measured at FVTPL.
The net ownership changes in subsidiaries reserve is used to capture equity movements arising from changes in the Group’s
ownership in its subsidiaries.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

2022

2021

Income attributable to equity holders of the Parent for basic earnings per share
Weighted average number of shares for the purposes of basic earnings per share (thousand)

17,32013,042,304

4,974
13,204,101

Effect of dilution:
Equity-settled share-based payments (thousand)
Weighted average number of shares for the purposes of diluted earnings per share (thousand)

98,454
13,140,758

132,503
13,336,604

1.33
1.32

0.38
0.37

US$ million

Basic earnings per share (US$)
Diluted earnings per share (US$)

Headline earnings is a Johannesburg Stock Exchange (JSE) defined performance measure. The calculation of basic and diluted
earnings per share, based on headline earnings as determined by the requirements of the Circular 1/2021 as issued by theSouth African Institute of Chartered Accountants (SAICA), is reconciled using the following data:
US$ million

Income attributable to equity holders of the Parent for basic earnings per share
Net (gain)/loss on acquisitions and disposals1
Net (gain)/loss on acquisitions and disposals - non-controlling interest
Net (gain)/loss on acquisitions and disposals - tax
Impairments2
Impairments – non-controlling interest
Impairments – tax
Headline and diluted earnings for the year
Headline earnings per share (US$)
Diluted headline earnings per share (US$)

2022

2021

17,320(1,287)
(4)
86
3,181
(404)
(585)
18,307

4,974
652
–
75
1,906
(689)
(34)
6,884

1.40
1.39

0.52
0.52

1 See note 4.
2 Comprises impairments of property, plant and equipment and intangible assets, investments, advances and loans, VAT receivable (see note 7) and Glencore’s share of impairments
booked directly by associates (see note 2).

US$ million

2022

2021

Paid during the year:
First tranche distribution - $0.13 per ordinary share (2021: $0.06)
Second tranche and additional distribution - $0.24 per ordinary share (2021: $0.10)
Total

1,707
3,125
4,832

794
1,321
2,115

The proposed distribution in respect of the year ended 31 December 2022 of $0.44 per ordinary share amounting to some $5.6 billion
is subject to approval by shareholders at the Annual General Meeting and has not been included as a liability in these financial
statements. Such declared distributions are expected to be paid equally ($0.22 each) in June 2023 and September 2023.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

Number ofawardsgranted(thousands)

Deferred awards
2018 Series
2019 Series2020 Series
2021 Series1
2022 Series
Performance share awards
2017 Series
2018 Series
2019 Series2020 Series
2021 Series1
2022 Series
Total
1

Fair value at
grant date
(US$ million)

Numberof awards
outstanding
2022(thousands)

Numberof awards
outstanding
2021(thousands)

Expenserecognised
2022(US$ million)

Expenserecognised
2021(US$ million)

12,891
10,79145,79821,327
6,403
97,210

65
37
85
94
38

3,535
667
–
13,016
5,267
22,4853,535
667
31,53820,565–56,305

3
–
–
(1)
30
32

–
–
(2)
90
–
88

19,75028,49929,70533,58326,80320,928159,268
256,478

95
104
90
104
129
135

344
2,293
9,066
19,55524,91819,79375,96998,454400
9,823
18,504
31,466
16,005–76,198132,503

–
2
9
26
69
12
118
150

3
12
23
55
8
–
101
189

During the current year, 762 thousand shares have been granted as part of the deferred awards 2021 series and 10,798 thousand shares have been granted as part of the performance
share awards 2021 series, resulting in an increase of the fair value at grant date amount by $3 million for deferred share awards and $53 million for performance share awards.

Between 2011-2021 deferred awards were made under the Company’s Deferred Bonus Plan and performance share awards weremade under the Company’s Performance Share Plan. In May 2021 the Company introduced a single Incentive Plan which replaced
both of these plans and under which both deferred awards and performance share awards continue to be made.

Under a deferred award the payment of a portion of a participant’s annual bonus is deferred for a period of one to seven years as anaward of either ordinary shares (a ‘‘Bonus Share Award’’) or cash. Awards vest over a specified period, subject to continued
employment and forfeiture for malus events. The Bonus Share Awards may be satisfied, at Glencore’s option, in shares by the issueof new ordinary shares, by the transfer of ordinary shares held in treasury or by the transfer of ordinary shares purchased in themarket or in cash, with a value equal to the market value of the award at settlement, including distributions paid between award
and settling. Glencore currently intends to settle all Bonus Share Awards in shares. The associated expense is recorded in thestatement of income/loss as part of the expense for performance bonuses. The fair value at grant date is determined as the monthly
volume-weighted average share price (VWAP) of Glencore plc prior to the respective award date.

Performance share awards vest in tranches over a specified period, subject to continued employment and forfeiture for malus
events. At grant date, each award is equivalent to one ordinary share of Glencore. Awards vest in one, two or three tranches on 31
January or 30 June of the years following the year of grant, as may be the case. The awards may be satisfied, at Glencore’s option, inshares by the issue of new ordinary shares, by the transfer of ordinary shares held in treasury or by the transfer of ordinary sharespurchased in the market or in cash, with a value equal to the market value of the award at vesting, including distributions paid
between award and vesting. Glencore currently intends to settle these awards in shares. The fair value at grant date is determined as
the monthly volume-weighted average share price (VWAP) of Glencore plc prior to the respective award date.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

1 January 2022
Exercised
31 December 2022
1 January 2021
LapsedExercised
31 December 2021

Total options
outstanding(thousands)

Weighted
average
exercise
price (GBP)

44,537(44,537)–
71,667(27,130)–
44,537

3.91
4.16
–
4.25
4.80
–
3.91

As at 31 December 2021, a total of 44,536,755 options were outstanding and exercisable, having an exercise price of GBP3.91 and aweighted average exercise price of GBP3.91. Since the share price leading up to the expiry date of 17 February 2022 was above theexercise price, all of these options were exercised. Glencore settled these awards by the transfer of ordinary shares held as Trust
Shares.

US$ million

Non-current borrowings
Capital market notes
Amount drawn under syndicated revolving credit facilities
Lease liabilities
Other bank loans
Total non-current borrowings
Current borrowings
Secured inventory/receivables/other facilities
U.S. commercial paper
Capital market notes
Lease liabilities
Other bank loans1
Total current borrowings
Total borrowings
1

Notes

11/13/14

2022

2021

17,229–934
688
18,851

22,376
2,543
1,093
799
26,811

3,292
333
2,977
445
2,879
9,926
28,777

122
1,764
2,884
525
2,535
7,830
34,641

Comprises various uncommitted bilateral bank credit facilities and other financings.

Liabilities arising from financing activities are those for which cash flows are classified in the Group's consolidated cash flow
statement as cash flows from financing activities. The table below details changes in the Group's liabilities arising from financing
activities, including both cash and non-cash changes.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

2022

US$ million

1 January 2022
Cash related movements2
Repayment of capital market notes
Repurchase of capital market notes
Repayment of revolving credit facilities
Proceeds from other non-current borrowings
Repayment of other non-current borrowings
Repayment of lease liabilities
Margin payments for financing related hedging activities
Repayment of U.S. commercial papers
Proceeds from current borrowings
Non-cash related movements
Borrowings acquired in business combinations3
Borrowings reclassified to held for sale4
Borrowings disposed of on disposal of subsidiaries
Fair value adjustment to fair value hedged borrowings
Fair value movement of hedging derivatives
Foreign exchange movements
Change in lease liabilities
Interest on convertible bonds
Other movements
31 December 2022

Borrowings
excludingleaseliabilities

Cross currency
and interest
Total rate swaps andborrowings
net margins1

Total liabilities
arising fromfinancing
activities

Lease
liabilities

33,023

1,618

34,641

23

34,664(2,850)(103)(2,563)
430
(73)
–
–
(1,407)
3,306(3,260)

–
–
–
–
–
(577)
–
–
–
(577)

(2,850)(103)(2,563)
430
(73)
(577)
–
(1,407)
3,306(3,837)

–
–
–
–
–
–
(1,824)––(1,824)(2,850)(103)(2,563)
430
(73)
(577)
(1,824)(1,407)
3,306(5,661)52(762)–(1,250)
–
(436)
–
21
10
(2,365)27,398

30
(38)
(2)
–
–
(41)
389
–
–
338
1,379

82
(800)
(2)
(1,250)
–
(477)
389
21
10
(2,027)
28,777

–
–
–
–
1,647
–
–
–
–
1,647
(154)

82
(800)
(2)
(1,250)
1,647
(477)
389
21
9
(381)
28,623

Cross currency
and interest
Total rate swaps andborrowings
net margins1

Total liabilities
arising fromfinancing
activities

2021

US$ million

1 January 2021
Cash related movements2
Proceeds from issuance of capital market notes
Repayment of capital market notes
Repurchase of capital market notes
Repayment of revolving credit facilities
Proceeds from other non-current borrowings
Repayment of other non-current borrowings
Repayment of lease liabilities
Margin payments for financing related hedging activities
Proceeds from U.S. commercial papers
Repayment of current borrowings
Non-cash related movements
Borrowings (disposed of)/acquired in business combinations3
Borrowings reclassified to held for sale4
Fair value adjustment to fair value hedged borrowings
Fair value movement of hedging derivatives
Foreign exchange movements
Change in lease liabilities
Interest on convertible bonds
Other movements
31 December 2021
1

Borrowings
excludingleaseliabilities

Lease
liabilities

35,958

1,521

37,47991

37,5704,877(2,807)(125)(2,244)
231
(493)
–
–
675
(2,016)(1,902)

–
–
–
–
–
–
(634)
–
–
–
(634)

4,877
(2,807)(125)(2,244)
231
(493)
(634)
–
675
(2,016)(2,536)

–
–
–
–
–
–
–
(970)
–
–
(970)

4,877
(2,807)(125)(2,244)
231
(493)
(634)
(970)
675
(2,016)(3,506)

(1)
–
(499)
–
(599)
–
21
45
(1,033)33,023

(7)
(138)
–
–
(45)
922
–
(1)
731
1,618

(8)
(138)
(499)
–
(644)
922
21
44
(302)
34,641

–
–
–
902
–
–
–
–
902
23

(8)
(138)
(499)
902
(644)
922
21
44
600
34,664The currency and interest rate swaps are reported on the balance sheet within the headings ‘Other financial assets’ and ‘Other financial liabilities’ (see note 27) and margin calls
paid/received within accounts receivable/payable (see notes 14 and 25).
2 See consolidated statement of cash flows.
3 See note 26.
4 See note 16.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

US$ million

Euro 1,000 million 1.875% coupon bonds
Euro 400 million 3.70% coupon bonds
Euro 600 million 0.625% coupon bonds
Euro 750 million 1.75% coupon bonds
Euro 500 million 3.75% coupon bonds
Euro 500 million 1.50% coupon bonds
Euro 950 million 1.125% coupon bonds
Euro 600 million 0.75% coupon bonds
Euro 500 million 1.25% coupon bonds
Eurobonds
GBP 500 million 3.125% coupon bonds
Sterling bonds
CHF 175 million 1.25% coupon bonds
CHF 250 million 0.35% coupon bonds
CHF 225 million 1.00% coupon bonds
CHF 150 million 0.51% coupon bonds
Swiss Franc bonds
US$ 1,500 million 4.125% coupon bonds
US$ 1,000 million 4.125% coupon bonds
US$ 1,000 million 4.625% coupon bonds
US$ 625 million non-dilutive convertible bonds
US$ 500 million 4.00% coupon bonds
US$ 1,000 million 1.625% coupon bonds
US$ 365 million 4.375% coupon bonds1
US$ 600 million 1.625% coupon bonds
US$ 1,000 million 4.00% coupon bonds
US$ 50 million 4.00% coupon bonds
US$ 500 million 3.875% coupon bonds
US$ 750 million 4.875% coupon bonds
US$ 1,000 million 2.50% coupon bonds
US$ 600 million 2.85% coupon bonds
US$ 750 million 2.65% coupon bonds
US$ 250 million 6.20% coupon bonds
US$ 500 million 6.90% coupon bonds
US$ 497 million 6.00% coupon bonds
US$ 468 million 5.55% coupon bonds
US$ 500 million 3.875% coupon bonds
US$ 500 million 3.375% coupon bonds
US$ bonds
Total non-current bonds
Euro 1,000 million 1.875% coupon bonds
Euro 400 million 3.70% coupon bonds
GBP 500 million 6.00% coupon bonds
JPY 10 billion 1.075% coupon bonds
US$ 600 million 5.375% coupon bonds
US$ 250 million LIBOR plus 1.65% coupon bonds
US$ 996 million 4.25% coupon bonds
US$ 500 million 3.00% coupon bonds
US$ 1,500 million 4.125% coupon bonds
Total current bonds
1

The book value of $361 million has been reclassified to liabilities held for sale (see note 16).

Glencore Preliminary Results 2022

Maturity

2022

2021

Sep 2023
Oct 2023
Sep 2024
Mar 2025
Apr 2026
Oct 2026
Mar 2028
Mar 2029
Mar 2033

–
–
644
749
499
470
1,014
510
367
4,253
541
541
184
270
244
142
840
–
972
960
574
470
995
–
503
926
50
460
697
993
535
621
269
580
535
473
496
486
11,595
17,229
1,070
422
–
–
–
–
–
–
1,485
2,977

1,136
467
682
862
598
566
1,079
653
526
6,569
677
677
194
274
248
160
876
1,538
970
1,029
552
510
994
469
587
1,043
50
522
811
992
598
745
269
582
536
473
496
488
14,254
22,376
–
–
677
87
410
250
999
461
–
2,884

Mar 2026
Oct 2024
Sep 2025
Mar 2027
Sep 2028
May 2023
Mar 2024
Apr 2024
Mar 2025
Apr 2025
Sep 2025
Feb 2026
Apr 2026
Mar 2027
Mar 2027
Oct 2027
Mar 2029
Sep 2030
Apr 2031
Sep 2031
Jun 2035
Nov 2037
Nov 2041
Oct 2042
Apr 2051
Sep 2051

Sep 2023
Oct 2023
Apr 2022
May 2022
Feb 2022
May 2022
Oct 2022
Oct 2022
May 2023

NOTES TO THE FINANCIAL STATEMENTS

There were no bond activities during the year.

• In February 2021, issued:–

5 year $475 million, 4.375% coupon bond (Volcan)• In March 2021, issued:–

8 year EUR600 million, 0.75% coupon bond–

12 year EUR500 million, 1.25% coupon bond

• In April 2021, issued:–

5 year $600 million, 1.625% coupon bond–

10 year $600 million, 2.85% coupon bond–

30 year $500 million, 3.875% coupon bond

• In September 2021, issued:–

7 year CHF150 million, 0.5% coupon bond–

10 year $750 million, 2.625% coupon bond–

30 year $500 million, 3.375% coupon bond

In March 2022 (effective May 2022), Glencore refinanced its short term revolving credit facilities. The borrowing rate of the short term
facilities now aligns with the LIBOR reform protocols, and stands at SOFR compounded in arrears across the relevant borrowing
period, plus a margin of 45bps. The borrowing rate of the medium term facility remains unchanged, at US$ LIBOR plus 27.5bps
subject to a ratings grid, but will be updated during a planned 2023 refinancing exercise, into a SOFR-based rate.
As at 31 December 2022, the facilities comprise:• a $6,535 million one year revolving credit facility with a one-year borrower’s term-out option (to May 2024);• a $450 million medium-term revolving credit facility (to May 2025); and• a $4,200 million medium-term revolving credit facility (to May 2026).
As in previous years, these committed unsecured facilities contain no financial covenants, no rating triggers, no material adversechange clauses and no external factor clauses.

US$ million

Syndicated committed metals
inventory/receivables facilities2
Syndicated uncommitted metals and oil
inventory/receivables facilities2
Other secured facilities2,3
Total
Current
Non-current

Maturity1

Interest

2022

2021

Nov 2024

5.7%

101

82

Jul 2023

SOFR + 65 bps

610–

Jan 2023

5.0%

2,661
3,372
3,292
80

120
202
122
80

1 Uncommitted facilities are re-drawn several times until actual expiry of the facility contract.
2 Comprises various facilities. The maturity and interest detail represent the weighted average of the various debt balances outstanding at year end.
3 Inventory related. Since year-end, in the ordinary course of business, these maturities have been rolled/extended. The maturity and interest detail represent the weighted average ofthe various debt balances outstanding at year end.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

US$ million

1 January 2022
Additions
Accretion in the year
Revenue recognised in the year
Reclassification to held for sale
Effect of foreign currency exchange difference
31 December 2022
Current
Non-current
1 January 2021
Additions
Accretion in the year
Revenue recognised in the year
Released in the year
Reclassification to held for sale
Effect of foreign currency exchange difference
31 December 2021
Current
Non-current

Unfavourable
contracts

Prepayments

Total

16

336
–
–
(66)
–
(5)
265
72
193

3,325
562
97
(1,633)
(6)
(3)
2,342
988
1,354

3,661
562
97
(1,699)
(6)
(8)
2,607
1,060
1,547

5
16

529
–
–
(70)
(122)
–
(1)
336
56
280

3,131
1,336
115
(1,066)
–
(191)
–
3,325
1,517
1,808

3,660
1,336
115
(1,136)
(122)
(191)
(1)
3,661
1,573
2,088

Notes

In several business combinations, Glencore recognised liabilities related to various assumed contractual agreements to deliver
tonnes of coal over various periods ending until 2032 at fixed prices lower than the prevailing market prices on the respective
acquisition dates.
These amounts are released to revenue as the underlying commodities are delivered to the buyers over the life of the contracts at
rates consistent with the extrapolated forward price curves at the time of the acquisitions.
In 2021, certain contractual terms were renegotiated and related unfavourable contract provisions in the amount of $122 million
were released (see note 5).

Prepayments comprise various short to long-term product supply agreements whereby an upfront prepayment is received in
exchange for the future delivery of a specific product, such as gold, silver or cobalt. The arrangements are accounted for as executory
contracts whereby the advance payment is recorded as deferred revenue. The revenue from the advance payment is recognised as
the specific product identified in the contract is delivered consistent with the implied forward price curve at the time of thetransaction and an accretion expense, representing the time value of the upfront deposit, is also recognised.
Prepayments mainly comprise:• Life of mine arrangements - long-term streaming agreements for the future delivery of gold and/or silver produced over the life ofmine from our Antamina and Antapaccay operations. In addition to the upfront payment received Glencore receives an ongoingamount equal to 20% of the spot silver and gold price. Once certain delivery thresholds have been met at Antapaccay, theongoing cash payment increases to 30% of the spot gold and silver prices. As at 31 December 2022, $1,025 million (2021: $1,068
million) of product delivery obligations remain, of which $42 million (2021: $35 million) are due within 12 months.
• Silver supply arrangement – Various silver prepayment arrangements for the future delivery of an average of 13 million ounces ofsilver per annum, over a remaining 3 year period. As at 31 December 2022, $507 million (2021: $784 million) of product delivery
obligations remain, of which $277 million (2021: $408 million) are due within 12 months.
• Palladium supply arrangements – Various palladium prepayment arrangements for the future delivery of an average of
31 thousand ounces of palladium per annum, over a remaining 3 year period. As at 31 December 2022, $85 million (2021: $141
million) of product delivery obligations remain, of which $41 million (2021: $58 million) are due within 12 months.
• Gold supply arrangements – Various gold supply arrangements for the future delivery of 269 thousand ounces (2021: 518 thousand
ounces) of gold over a 6-month period. As at 31 December 2022, $391 million (2021: $765 million) of product delivery obligations
remain, which are due within 12 months.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS• Cobalt supply arrangement – In March 2019, Glencore signed a six year cobalt prepayment arrangement in exchange for an
upfront advance payment of $100 million. Under the terms of the arrangement Glencore is required to deliver an average of
1,621 metric tons of cobalt per annum over a four year period starting 2021. As at 31 December 2022, $58 million (2021: $94 million)of product delivery obligations remain, of which $47 million (2021: $26 million) are due within 12 months.
• Iron ore supply arrangement – In November 2021, Glencore signed an 18 month iron ore prepayment arrangement in exchange
for an upfront advance payment of $200 million. Under the terms of the arrangement, Glencore is required to deliver an averageof 3,600,000 metric tons of iron ore per annum. As at 31 December 2022, $100 million (2021: $200 million) of product delivery
obligations remain of which, $100 million (2021: $117 million) are due within 12 months.

US$ million

1 January 2022
Utilised
Released
Accretion
Assumed in business combination
Disposal of subsidiaries
Additions
Reclassification to held for sale
Effect of foreign currency exchange
movements
31 December 2022
Current
Non-current
1 January 2021
Utilised
Released
Accretion
Disposal of subsidiaries
Additions
Reclassification to held for sale
Effect of foreign currency exchange
movements
31 December 2021
Current
Non-current

Notes

26
26
16

26
16

Rehabilitation
costs

Onerouscontracts

Legal
investigations

Other
provisions

Total

5,731
(238)
(30)
155
998
(158)
840
(290)

455
(143)
(71)
26
–
–
265
–

1,500
(883)
(133)
–
–
–
–
–

524
(152)
(30)
10
73
(9)
285
(83)

8,210
(1,416)
(264)
191
1,071
(167)
1,390
(373)

(45)

(2)

–

(7)

(54)

6,963
531
6,432

530
185
345

484
484
–

611
225
386

8,588
1,425
7,163

5,182
(190)
(14)
153
(67)
918
(191)

535
(122)
(103)
31
–
116
–

–
–
–
–
–
1,500
–

746
(276)
(31)
2
(10)
137
(37)

6,463
(588)
(148)
186
(77)
2,671
(228)

(60)

(2)

–

(7)

(69)

5,731
337
5,394

455
109
346

1,500
1,500
–

524
147
377

8,210
2,093
6,117

Rehabilitation provision represents the accrued costs required to provide adequate restoration and rehabilitation upon thecompletion of production activities. These amounts will be settled when rehabilitation is undertaken, generally at the end of a
project’s life, which ranges from two to in excess of 50 years with an average for all sites, weighted by closure provision, of some
19 years (2021: 23 years). Discount rates were determined for each relevant jurisdiction by reference to the average annual real-terms
return on a relevant government security with a tenor of 20 years.
As at 31 December 2022, the discount rate applied in calculating the restoration and rehabilitation provision is a pre-tax risk free rate
specific to the liability and the currency in which they are denominated as follows: US dollar 1.25% (2021: 1.5%), South African rand
3.75% (2021: 3.75%), Australian dollar 2.0% (2021: 2.0%), Canadian dollar 1.25% (2021: 1.5%), and Chilean peso 2.5% (2021: 2.5%).
The sensitivity of the rehabilitation costs provision to changes in the discount rate assumptions as at 31 December 2022, assumingthat all other assumptions are held constant, is set out below:
Discount rate
US$ million

Decrease/(increase) in overall rehabilitation provision(Decrease)/increase in property, plant and equipment
Net increase/(decrease) in statement of income
Effect in the following year
Decrease/(increase) in depreciation expense(Increase)/decrease in interest expense
Net increase/(decrease) in statement of income
Glencore Preliminary Results 2022

Increase 1%

Decrease 1%

822
(662)
160

(1,096)
878
(218)

35
(22)
13

(46)
36
(10)

NOTES TO THE FINANCIAL STATEMENTS

Onerous contracts represent liabilities related to contractual take or pay commitments for securing coal logistics capacity at fixedprices and quantities higher than the acquisition date forecasted usage and prevailing market price. The provision is released tocosts of goods sold as the underlying commitments are incurred.

The Board has appointed a committee, the Investigations Committee, to oversee the response to the investigations on behalf of theBoard.
On 24 May 2022 the Group announced that it had resolved the previously disclosed investigations by authorities in the UnitedStates, the United Kingdom and Brazil.
Under the terms of the US resolutions, Glencore agreed to pay penalties of $701 million to resolve bribery investigations and$486 million to resolve market manipulation investigations by the Department of Justice (“DOJ”) and the Commodity Futures
Trading Commission (“CFTC”). Of this amount, up to $166 million would be credited against other parallel matters, including in theUK, so that the net amount payable to the US authorities is expected to be $1,020 million. Glencore further agreed to pay $40 million
under a resolution signed with the Brazilian Federal Prosecutor’s Office (“MPF”) in connection with its bribery investigation into theGroup. On 3 November 2022, Glencore Energy UK Limited was sentenced to pay a financial penalty and costs of £281 million in the
Serious Fraud Office (“SFO”) investigation.
The Group has settled the amounts due to the CFTC, the DOJ in respect of the market manipulation matter and the SFO andexpects to settle the amounts due to the DOJ in respect of the bribery matter and the MPF during the first half of 2023.
Accordingly, the Group has retained a provision for the United States and Brazil resolutions which at 31 December 2022 amounts to$484 million.
The Group remains subject to the following ongoing investigations:• The Office of the Attorney General of Switzerland (“OAG”) is investigating Glencore International AG for failure to have theorganisational measures in place to prevent alleged corruption.
• The Dutch authorities are conducting a criminal investigation into Glencore International AG related to potential corruption
pertaining to the DRC. The scope of the investigation is similar to that of the OAG investigation. The Dutch authorities arecoordinating their investigation with the OAG and the Group expects any possible resolution to avoid duplicative penalties for thesame conduct.
The timing and outcome of the OAG and Dutch investigations remains uncertain – see note 31.

Other comprises provisions for possible demurrage, mine concession and construction related claims, a royalty indemnification
related to the disposal of the Ernest Henry operations (see note 26) and various other individually immaterial legal matters. Thisbalance comprises no individually material provisions.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

US$ million

1 January 2022
Utilised
Released
Accretion
Additions
Actuarial gain
Reclassification to held for sale
Effect of foreign currency exchange movements
31 December 2022
1 January 2021
Utilised
Released
Accretion
Additions
Actuarial gain
Reclassification to held for sale
Effect of foreign currency exchange movements
31 December 2021

Post-retirement
employeeNotes
benefits

Other
employeeentitlements

Total

782
(82)
(1)
19
97
(298)
–
(29)
488

157
(37)
(1)
–
79
–
(1)
(8)
189

939
(119)
(2)
19
176
(298)
(1)
(37)
677

980
(84)
(1)
23
151
(284)
–
(3)
782

181
(9)
(7)
–
14
–
(19)
(3)
157

1,161
(93)
(8)
23
165
(284)
(19)
(6)
939

16

16

The provision for post-retirement employee benefits includes pension plan liabilities of $178 million (2021: $352 million) and postretirement medical plan liabilities of $310 million (2021: $430 million).
The other employee entitlements provision represents the value of governed employee entitlements due to employees upon theirtermination of employment. The associated expenditure will occur in a pattern consistent with when employees choose to exercise
their entitlements.
Total personnel costs, which include salaries, wages, social security, other personnel costs and share-based payments, incurred forthe years ended 31 December 2022 and 2021, were $6,319 million and $6,012 million, respectively. Personnel costs related toconsolidated industrial subsidiaries of $4,284 million (2021: $4,188 million) are included in cost of goods sold. Other personnel costs,
including deferred bonus and performance share plans, are included in selling and administrative expenses.
The Company and certain subsidiaries sponsor various pension schemes in accordance with local regulations and practices.
Eligibility for participation in the various plans is either based on completion of a specified period of continuous service, or date ofhire. Among these schemes are defined contribution plans as well as defined benefit plans.

Glencore’s contributions under these plans amounted to $171 million in 2022 (2021: $173 million).

The Company participates in a number of post-retirement medical plans in Canada, USA and South Africa, which provide coveragefor prescription drugs, medical, dental, hospital and life insurance to eligible retirees. Almost all of the post-retirement medical plansin the Group are unfunded.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

The Company operates defined benefit plans in various countries, the main locations being Canada, Switzerland, UK and the U.S..
Approximately 63% of the present value of the pension obligations accrued relates to the defined benefit plans in Canada, which arepension plans that provide benefits to members in the form of a guaranteed level of pension payable for life. Contributions to the
Canadian plans are made to meet or exceed minimum funding requirements based on provincial statutory requirements andassociated federal taxation rules.
The majority of benefit payments are from trustee-administered funds; however, there are also a number of unfunded plans where
Glencore meets the benefit payments as they fall due. Plan assets held in trusts are governed by local regulations and practices ineach country. Responsibility for governance of the plans – overseeing all aspects of the plans including investment decisions andcontribution schedules – lies with Glencore. Glencore has set up committees to assist in the management of the plans and has also
appointed experienced, independent professional experts such as investment managers, actuaries, custodians, and trustees.
The movement in the defined benefit pension and post-retirement medical plans over the year is as follows:

US$ million

1 January 2022
Current service cost
Past service cost - plan amendments
Settlement of pension plan disposal
Interest expense/(income)
Total expense recognised in consolidated statement ofincomeLoss on plan assets, excluding amounts included
in interest expense - net
Gain from change in demographic assumptions
Gain from change in financial assumptions(Gain)/loss from actuarial experience
Actuarial (gains)/losses recognised in consolidated
statement of comprehensive income
Employer contributions
Benefits paid directly by the Company
Benefits paid from plan assets
Net cash (outflow)/inflow
Exchange differences
31 December 2022
Of which:
Pension surpluses
Pension deficits

Notes

12

Post-retirement
medical plans

Defined benefit pension plans
Present value
Net liabilityof defined
Fair value
for defined
benefitof planbenefitobligation
assetspension plans

430
8
1
–
17

2,760
52
3
(115)
67

(2,533)
–
–
121
(65)

227
52
3
6
2

26

7

56

63

–
(7)
(91)
(6)

–
(26)
(576)
25

383
–
–
–

383
(26)
(576)
25

(104)
–
(18)
–
(18)
(24)
310

(577)
–
(8)
(130)
(138)
(140)
1,912

383
(64)
8
130
74
138
(1,882)

(194)
(64)
–
–
(64)
(2)
30

–
310

(148)
178

The actual return on plan assets in respect of defined benefit pension plans amounted to a loss of $456 million (2021: gain of$107 million), comprising interest income and the re-measurement of plan assets, including exchange differences.
During the next financial year, the Group expects to make a contribution of $76 million in respect of the defined benefit pension andpost-retirement medical plans across all countries, including current service costs and contributions required by pension legislation.
Contributions over the next five years for the Canadian plans only, based on the most recently filed actuarial reports, approximate$115 million. Future funding requirements and contributions are reviewed and adjusted on an annual basis.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

US$ million

1 January 2021
Current service cost
Past service cost - plan amendments
Settlement of pension plan disposal
Interest expense/(income)
Total expense/(income) recognised in consolidated
statement of income
Gain on plan assets, excluding amounts included
in interest expense - net
Gain from change in demographic assumptions
Loss from change in financial assumptions
Loss from actuarial experience
Actuarial losses/(gains) recognised in consolidated
statement of comprehensive income
Employer contributions
Employee contributions
Benefits paid directly by the Company
Benefits paid from plan assets
Net cash (outflow)/inflow
Exchange differences
31 December 2021
Of which:
Pension surpluses
Pension deficits

Notes

12

Post-retirement
medical plans

Defined benefit pension plans
Present value
Net liabilityof defined
Fair value
for defined
benefitof planbenefitobligation
assetspension plans

476
7
(6)
–
18

3,138
62
–
(137)
64

(2,674)
–
–
138
(59)

464
62
–
1
5

19

(11)

79

68

–
–
(37)
(4)

–
(12)
(188)
3

(46)
–
–
–

(46)
(12)
(188)
3

(41)
–
–
(22)
–
(22)
(2)
430

(197)
–
1
(8)
(165)
(172)
2
2,760

(46)
(63)
(1)
8
166
110
(2)
(2,533)

(243)
(63)
–
–
1
(62)
–
227

–
430

(125)
352

The defined benefit obligation accrued in Canada represents the majority for the Company. The breakdown below provides detailsof the Canadian plans for both the statement of financial position and the weighted average duration of the defined benefit
obligation as at 31 December 2022 and 2021. The net liability of any of the Group’s defined benefit plans outside of Canada as at
31 December 2022 does not exceed $34 million (2021: $70 million).

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

2022
US$ million

Post-retirement medical plans
Present value of defined benefit obligationof which: amounts owing to active membersof which: amounts owing to pensioners
Defined benefit pension plans
Present value of defined benefit obligationof which: amounts owing to active membersof which: amounts owing to non-active membersof which: amounts owing to pensioners
Fair value of plan assets
Net defined benefit (asset)/liability at 31 December 2022
Of which:
Pension surpluses
Pension deficits
Weighted average duration of defined benefit obligation - years

Canada

Other

Total

264
74
190

46
8
38

310
82
228

1,203
261
14
928
(1,277)
(74)

709
364
91
254
(605)
104

1,912
625
105
1,182
(1,882)
30

(126)
52
10

(22)
126
12

(148)
178
11

Canada

Other

Total

379
123
256

51
11
40

430
134
296

1,753
434
25
1,294
(1,772)
(19)

1,007
484
167
356
(761)
246

2,760
918
192
1,650
(2,533)
227

(115)
96
13

(10)
256
15

(125)
352
13

2021
US$ million

Post-retirement medical plans
Present value of defined benefit obligationof which: amounts owing to active membersof which: amounts owing to pensioners
Defined benefit pension plans
Present value of defined benefit obligationof which: amounts owing to active membersof which: amounts owing to non-active membersof which: amounts owing to pensioners
Fair value of plan assets
Net defined benefit (asset)/liability at 31 December 2021
Of which:
Pension surpluses
Pension deficits
Weighted average duration of defined benefit obligation - years

Estimated future benefit payments of the Canadian plans, which reflect expected future services but exclude plan expenses, up
until 2032 are as follows:
US$ million

2023
2024
2025
2026
2027
2028-2032
Total

Glencore Preliminary Results 2022

Post-retirement Defined benefit
medical plans
pension plans

18
18
18
17
17
85
173

83
83
82
82
82
402
814

Total

101
101
100
99
99
487
987

NOTES TO THE FINANCIAL STATEMENTS

The plan assets consist of the following:

Active market

2022
Non-active
marketActive market

2021
Non-active
market

37
569
567
329
1,502

–
182
–
198
380

40
823
851
416
2,130

–
195
–
208
403

Cash and short-term investments
Fixed income
Equities
Other
Total

The fair value of plan assets includes none of Glencore’s own financial instruments and no property occupied by or other assets usedby Glencore. For many of the plans, representing a large portion of the global plan assets, asset-liability matching strategies are inplace, where the fixed-income assets are invested broadly in alignment with the duration of the plan liabilities, and the proportion
allocated to fixed-income assets is raised when the plan funding level increases. The asset mix for each plan reflects the nature,
expected changes in, and size of the liabilities and the assessment of long-term economic conditions, market risk, expected
investment returns as considered during a formal asset mix study, including sensitivity analysis and/or scenario analysis, conductedperiodically for the plans.
Through its defined benefit plans, Glencore is exposed to a number of risks, the most significant of which are detailed below:
The plan liabilities are calculated using a discount rate set with reference to corporate bond yields; if plan assets
underperform this yield, this will create a deficit. The funded plans hold a significant proportion of equities, which are expected tooutperform bonds in the long term while contributing volatility and risk in the short term. Glencore believes that due to the longterm nature of the plan liabilities, a level of continuing equity investment is an appropriate element of Glencore’s long-term strategy
to manage the plans efficiently.
: A decrease in bond yields will increase plan liabilities, although this will be partially offset by an increase in
the value of the plans’ bond holdings.
Some of the plans’ benefit obligations are linked to inflation, and higher inflation will lead to higher liabilities, although,in most cases, caps on the level of inflationary increases are in place to protect the plan against extreme inflation.
The majority of the plans’ obligations are to provide benefits for the life of the member, so increases in life
expectancy will result in an increase in the plans’ liability.
Some of the plans’ benefit obligations related to active members are linked to their salaries. Higher salary increases
will therefore tend to lead to higher plan liabilities.
The principal weighted-average actuarial assumptions used were as follows:
Post-retirement medical plans
2022
2021

Discount rate
Future salary increases
Future pension increases
Ultimate medical cost trend rate

6.2%
–
–
3.5%

4.1%
–
–
4.6%

Defined benefit pension plans
2022
2021

4.9%
2.7%
0.4%
–

2.7%
2.6%
0.5%
–

Mortality assumptions are based on the latest available standard mortality tables for the individual countries concerned. As at
31 December 2022, these tables imply expected future life expectancy, for employees aged 65, 16 to 24 years for males (2021: 16 to 23)
and 20 to 25 years for females (2021: 20 to 25). The assumptions for each country are reviewed regularly and are adjusted where
necessary to reflect changes in fund experience and actuarial recommendations.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

The sensitivity of the defined benefit obligation to changes in principal assumptions as at 31 December 2022 is set out below,
assuming that all other assumptions are held constant and the effect of interrelationships is excluded.

US$ million

Discount rate
Increase by 100 basis points
Decrease by 100 basis points
Rate of future salary increase
Increase by 100 basis points
Decrease by 100 basis points
Rate of future pension benefit increase
Increase by 100 basis points
Decrease by 100 basis points
Medical cost trend rate
Increase by 100 basis points
Decrease by 100 basis points
Life expectancy
Increase in longevity by one year

US$ million

Increase/(decrease) in pension obligation
Post-retirement Defined benefit
Total
medical plans
pension plans

(34)
38

(168)
194

(202)
232

–
–

23
(22)

23
(22)

–
–

24
(22)

24
(22)

36
(29)

–
–

36
(29)

8

41

49

Notes

2022

2021

11,044112903
644
12,703

10,397
729
1,124
889
13,13914,079102
14,18113,806–
13,806

676
1,839
327
2,842
29,726

459
1,460
449
2,368
29,313Financial liabilities at amortised cost
Trade payables
Margin calls received and other broker balances
Associated companies
Other payables and accrued liabilities
Financial liabilities at fair value through profit and loss
Trade payables containing provisional pricing features
Other payables
Non-financial liabilities
Advances settled in product
Other payables and accrued liabilities1
Other tax and related payables
Total
1

28
28

Primarily comprised of employee benefits accruals.

Trade payables are obligations to pay for goods and services. Trade payables typically have maturities up to 90 days depending on
the type of material and the geographic area in which the purchase transaction occurs and the agreed terms. The carrying value of
trade payables approximates fair value.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

In 2022, Glencore acquired the remaining 66.67% interest in Cerrejón that it did not already own, and various other businesses, noneof which are individually material. The acquisition accounting for Cerrejón has now been finalised, with no adjustments to thepreviously reported provisional fair values.
The net cash acquired/(used) in the acquisition of subsidiaries and the fair value of assets acquired and liabilities assumed on theacquisition date are detailed below:
US$ million

Non-current assets
Property, plant and equipment
Current assets
Inventories
Accounts receivable1
Cash and cash equivalents
Non-current liabilities
Non-current borrowings
Deferred tax liabilities
Provisions
Current liabilities
Borrowings
Accounts payable
Provisions
Income tax payable
Total fair value of net assets acquired
Cash and cash equivalents paid
Less: amounts previously recognised as investments
Gain on bargain purchase of subsidiaries
Cash and cash equivalents paid
Cash and cash equivalents acquired
Net cash acquired/(used) in acquisition of subsidiaries
1

Cerrejón

Other

Total

2,470
2,470

333
333

2,803
2,803

315
312
511
1,138

51
13
5
69

366
325
516
1,207

(13)
(278)
(1,033)(1,324)

–
(50)
(8)
(58)

(13)
(328)
(1,041)(1,382)

(17)
(232)
(30)
(309)
(588)
1,696
(100)
(567)
1,029
(100)
511
411

(52)
(70)
–
–
(122)
222
(95)
(31)
96
(95)
5
(90)

(69)
(302)
(30)
(309)
(710)
1,918
(195)
(598)
1,125
(195)
516
321

There is no material difference between the gross contractual amounts for accounts receivable and their fair value.

Cerrejón
On 11 January 2022, Glencore completed the acquisition of the remaining 66.67% interest in Cerrejón, a coal mine in Colombia, that it
did not own. The purchase price consideration of $588 million was based on an economic effective date of 31 December 2020. Aftertaking into account the dividends generated during 2021, together with certain other adjustments, the completion cash payment
made by Glencore amounted to $100 million. As Glencore holds 100% of the voting shares, providing it the ability to control the key
strategic, operating and capital decisions of the business, it is required to account for Cerrejón using the full consolidation method in
accordance with IFRS 10.
Prior to the acquisition, Glencore owned a 33.33% interest in Cerrejón which was accounted for as an associate. In accordance withIFRS 3 Business Combinations, the equity interest is required to be revalued, at the date of acquisition, to its fair value with any
resulting gain or loss recognised in the statement of income. On the date of acquisition, the fair value of 100% of the net assets
acquired was determined to be $1,696 million, a value broadly consistent with the carrying value of the initial 33.33% equity interest
and as a result, no gain or loss was recognised on the revaluation of the original equity interest.
The valuation was determined using a bottom-up approach to identify the fair value of the specific assets and liabilities within the
Cerrejón Group, with the mineral reserves being valued using a discounted cash-flow method that assumes life of mine saleablecoal production of 223 million tonnes over the period 2022-2032, at a long-term CIF price of $67/t, adjusted as appropriate for coalquality, applying a discount rate of 8.56%.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

As the assessed fair value of $1,696 million was in excess of the completion cash payment and the fair value of the previously held
investment, a bargain purchase gain on acquisition of $1,029 million was recognised in the consolidated statement of income.
Glencore assessed that all identifiable assets and liabilities had been included in the valuation prior to recognising the gain as noted
above. The gain effectively represents the discount that the selling joint venture partners were willing to accept in order to achieve
timely execution of their respective decarbonisation strategies. The immediate near-term valuation was also supported by the net$411 million of unencumbered cash assumed on completion, benefitting from the transaction effective date of 31 December 2020.
From the date of acquisition, the operation contributed $5,393 million of revenue and $2,909 million of attributable income(including the bargain purchase gain) for the period ended 31 December 2022.

Other

From the date of acquisition, the other operations contributed $223 million of revenue and $241 million of attributable income(including the bargain purchase gain) for the period ended 31 December 2022.

There were no material acquisitions.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

The carrying value of the assets and liabilities over which control was lost and consideration receivable from the 2022 disposals aredetailed below:
US$ million

Non-current assets
Property, plant and equipment
Intangible assets
Investments in associates
Advances and loans
Deferred tax assets
Current assets
Inventories
Accounts receivable
Prepaid expenses
Cash and cash equivalents
Non-controlling interest
Non-current liabilities
Non-current borrowings
Deferred income
Deferred tax liabilities
Non-current provisions
Post-retirement and other employee
benefits
Current liabilities
Borrowings
Accounts payable
Provisions
Income tax payable
Carrying value of net assets disposed
Cash and cash equivalents (received)/paid
Items recycled to the statement ofincomeReclassified to investment in associateRoyalty indemnification2
Streaming settlement
Future consideration
Net (gain)/loss on disposal
Cash and cash equivalents received/(paid)
Less: cash and cash equivalents disposed
Net cash received/(used) in disposal

Los
Quenuales

Other

Total

206
11
10
9
4
240

126
–
–
2
21
149

121
–
–
–
–
121

1,174
13
10
54
54
1,305

21
19
–
5
45
–

–
159
12
42
213
(2)

5
9
–
7
21
(2)

6
19
1
3
29
(24)

145
320
13
75
553
(28)

–
–
(3)
(86)

(110)
–
(1)
(3)

(1)
–
–
(97)

–
–
(3)
(59)

(119)
(138)
(11)
(345)

Ernest Henry1

Bolivia Zinc1

E&P Chad1 Access World1

311
–
–
–
16
327

163
2
–
43
13
221

247
–
–
–
–
247

16
24
–
1
41
–

97
90
–
17
204
–

–
(138)
–
(74)

(8)
–
(4)
(26)

(1)

(16)

–

(1)

–

–

(18)

(213)

(54)

(89)

(115)

(98)

(62)

(631)

–
(30)
(38)
–
(68)
87
(585)

(2)
(139)
(44)
(13)
(198)
173
–

–
(7)
–
–
(7)
196
(17)

(19)
(154)
(3)
(4)
(180)
156
(40)

(1)
(23)
(9)
–
(33)
37
10

–
(19)
(2)
–
(21)
43
(30)

(22)
(372)
(96)
(17)
(507)
692
(662)

–
–
–
–
(69)
104
–
(17)
(17)

–
–
–
–
(145)
34
17
(5)
12

22
–
–
–
(115)
23
40
(42)
(2)

1
–
–
132
–
180
(142)
(7)
(149)

27
(17)
–
–
(3)
20
30
(3)
27

50
(17)
125
132
(471)
(151)
530
(75)
455

–
–
125
–
(139)
(512)
585
(1)
584

1 As at 31 December 2021, total assets and liabilities were presented as current assets and liabilities “held for sale“ (see note 16).
2 See note 23.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

Ernest Henry

In January 2022, Glencore disposed of its 70% interest in Ernest Henry Mining Pty Ltd, a copper-gold mine in Queensland, Australia.
After closing adjustments, $585 million was received with $139 million receivable in January 2023. The contractual terms of thedeferred consideration give rise to cash flows that are solely payments of principal and interest, therefore the receivable isaccounted for as financial asset at amortised cost. A $125 million provision was recognised for the indemnification of future royalty
payments under an existing agreement.

Bolivia ZincIn March 2022, Glencore disposed of its 100% interest in the Bolivian zinc assets (Sinchi Wayra and Illapa), to Santacruz Silver Mining
Ltd. After closing adjustments, $90 million is receivable over a 4 year period and a 1.5% NSR royalty over the life of the mines. The fairvalue of the future consideration was determined to be $69 million using a discounted cash flow model of the projected amountand timing of receipts, discounted using an asset specific discount rate of 11%. The contractual terms of the deferred consideration
give rise to cash flows that are solely payments of principal and interest, therefore the receivable is accounted for as financial asset atamortised cost.

E&P Chad

In June 2022, Glencore disposed of its Chad upstream oil operations to Perenco S.A. for $197 million, of which $17 million was due on
closing and $180 million is due through a price and production participation arrangement payable annually. The fair value of the
future consideration was determined to be $145 million using a discounted cash flow model of the projected amount and timing ofreceipts, discounted using an asset specific discount rate of 13%. The contractual terms of the deferred consideration give rise to
cash flows that are solely payments of principal and interest, therefore the receivable is accounted for as financial asset at amortised
cost.

Los Quenuales

In December 2022, Glencore disposed of its 100% interest in Los Quenuales, a zinc-lead-silver mine in Peru, to Alpayana S.A for$10 million in cash. Conditional on completion of the transaction, Glencore earlier settled its silver streaming arrangement over one
of Los Quenuales’ mining properties with Wheaton Precious Metals for a payment of $132 million.

Access WorldIn December 2022, Glencore disposed of its 100% interest in the Access World Group, a global commodities storage and logistics
group, for $180 million. $40 million was received in December and, after closing adjustments, $115 million is receivable over 2023. The
contractual terms of the deferred consideration give rise to cash flows that are solely payments of principal and interest, therefore
the receivable is accounted for as financial asset at amortised cost.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

The carrying value of the assets and liabilities over which control was lost and consideration receivable from the 2021 disposals aredetailed below:
US$ million

Non-current assets
Property, plant and equipment
Advances and loans
Current assets
Inventories
Accounts receivable
Prepaid expenses
Cash and cash equivalents
Non-current liabilities
Non-current borrowings
Deferred tax liabilities
Non-current provisions
Post-retirement and other employee benefits
Current liabilities
Borrowings
Accounts payable
Provisions
Income tax payable
Carrying value of net assets disposed
Cash and cash equivalents received
Future consideration
Net loss/(gain) on disposal before non-controlling interest
Derecognition of non-controlling interest
Net loss/(gain) on disposal after non-controlling interest
Cash and cash equivalents received
Less: cash and cash equivalents disposed
Net cash received in disposal

Mopani

Chemoil
Terminals

Others

Total

748
5
753

158
–
158

20
–
20

926
5
931

168
99
3
–
270

–
3
–
10
13

–
14
–
10
24

168
116
3
20
307

–
–
(55)
(9)
(64)

(6)
(18)
–
–
(24)

–
(1)
(61)
–
(62)

(6)
(19)
(116)
(9)
(150)

–
(81)
(23)
(12)
(116)
843
–
(838)
5
1,017
1,022
–
–
–

(1)
(8)
–
–
(9)
138
(248)
–
(110)
–
(110)
248
(10)
238

(1)
–
(16)
–
(17)
(35)
(24)
–
(59)
–
(59)
24
(10)
14

(2)
(89)
(39)
(12)
(142)
946
(272)
(838)
(164)
1,017
853
272
(20)
252

Mopani

On 31 March 2021, Glencore completed the disposal of its 90% interest in Mopani to ZCCM Investments Holdings plc, the holder ofthe remaining 10% interest in Mopani, in exchange for $1 and the rights to offtake copper and other metals from Mopani until$1.5 billion of existing intercompany debt (the “transaction debt”) has been repaid to Glencore. The repayment of the transaction
debt is based on Glencore receiving physical commodities from Mopani through its offtake rights and applying fixed percentages ofannual gross revenues generated from the sale of such commodities against the transaction debt until it is fully repaid. As Glencore
is no longer able to unilaterally direct the key strategic, operating and capital decisions of Mopani, it was deemed to have disposedof its controlling interest at the fair value of the transaction debt on the date of completion, being $838 million. Fair value wasdetermined using a discounted cash flow model of the projected amount and timing of metal volumes received from Mopani
under the offtake rights and market forecasts of commodity prices, discounted using an asset specific discount rate of 11.4%.
The net loss on disposal reflects the derecognition to the statement of income of the previously recognised book value of the noncontrolling interest equity balance, which largely related to the non-controlling interests’ share of historical impairments and losses,
and resulting net liabilities in Mopani.

Chemoil Terminals
On 17 December 2021, Glencore completed the disposal of its 100% interest in Chemoil Terminals LLC, which owns the Long Beach
and Carson oil products storage terminals in California, for a consideration of $248 million.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

Financial risks arising in the normal course of business from Glencore’s operations comprise market risk (including commodity pricerisk, interest rate risk and currency risk), credit risk (including performance risk) and liquidity risk. It is Glencore’s policy and practice
to identify and, where appropriate and practical, actively manage such risks (for management of “margin” risk within Glencore’s
extensive and diversified industrial portfolio, refer net present value at risk below) to support its objectives in managing its capitaland future financial security and flexibility. Glencore’s overall risk management programme focuses on the unpredictability offinancial markets and seeks to protect its financial security and flexibility by using derivative financial instruments where possible tosubstantially hedge these financial risks. Glencore’s finance and risk professionals, working in coordination with the commodity
departments, monitor, manage and report regularly to senior management and the Board of Directors on the approach andeffectiveness in managing financial risks along with the financial exposures facing the Group.
Glencore’s objectives in managing its “capital attributable to equity holders” include preserving its overall financial health andstrength for the benefit of all stakeholders, maintaining an optimal capital structure in order to provide a high degree of financial
flexibility at an attractive cost of capital and safeguarding its ability to continue as a going concern, while generating sustainablelong-term profitability. Central to meeting these objectives is maintaining an investment grade credit rating status. Glencore’s
current credit ratings are Baa1 (positive) from Moody’s and BBB+ (positive) from S&P.

Glencore’s base cash distribution policy comprises two components: (1) a fixed $1 billion component and (2) a variable element
representing 25% of free cash flow generated by our industrial assets during the preceding year. Distributions are expected to beformally declared by the Board annually (with the preliminary full-year results). Distributions, when declared, will be settled equally in
May/June and September of the year they are declared in. In addition, reflecting the Group’s through the cycle Net debt objective ofc.$10 billion, and consideration of the cyclical nature of the industry and other relevant factors, the Board could declare additional
distributions to be included with the distribution confirmed with respect to the prior year, consider top-up distributions during theyear and/or initiate or continue share buy-back programmes. Notwithstanding that the cash distribution is declared and paid in U.S.
dollars, shareholders will be able to elect to receive their distribution payments in Pounds Sterling, Euros or Swiss Francs based on
the exchange rates in effect around the date of payment. Shareholders on the JSE will receive their distributions in South African
Rand.

Glencore is exposed to price movements for the inventory it holds and the products it produces which are not held to meet priced
forward contract obligations and forward priced purchase or sale contracts. Glencore manages a significant portion of this exposure
through futures and options transactions on worldwide commodity exchanges or in over the counter (OTC) markets, to the extent
available. Commodity price risk management activities are considered an integral part of Glencore’s physical commodity marketing
activities and the related assets and liabilities are included in other financial assets from and other financial liabilities to derivative
counterparties, including clearing brokers and exchanges. Whilst it is Glencore’s policy to substantially hedge its commodity pricerisks, there remains the possibility that the hedging instruments chosen may not always provide effective mitigation of theunderlying price risk. The hedging instruments available to the marketing businesses may differ in specific characteristics to the risk
exposure to be hedged, resulting in an ongoing and unavoidable basis risk exposure. Residual basis risk exposures represent a key
focus point for Glencore’s commodity department teams who actively engage in the management of such.

One of the tools used by Glencore to monitor and limit its primary market risk exposure, principally commodity price risk related toits physical marketing activities, is a value at risk (VaR) computation. VaR is a risk measurement technique which estimates athreshold for potential loss that could occur on risk positions as a result of movements in risk factors over a specified time horizon,
given a specific level of confidence and based on a specific price history. The VaR methodology is a statistically defined, probabilitybased approach that takes into account market volatilities, as well as risk diversification by recognising offsetting positions andcorrelations between commodities and markets. In this way, risks can be measured consistently across markets and commodities
and risk measures can be aggregated to derive a single risk value.
Glencore uses a VaR approach based on Monte Carlo simulations computed at a 95% confidence level and utilising a weighted data
history for a one-day time horizon. Glencore’s Board, as part of its annual review process in H2 2021, approved an increase in theGroup’s consolidated VaR limit (one day 95% confidence level) from $100 million to $150 million, with effect from 1 January 2022,
which represents approximately 0.3% of total equity.
Prior to the Russia/Ukraine conflict, Glencore operated within the $150 million limit. Around the time of the invasion, the Group’s VaR
spiked due to the unprecedented levels of volatility in commodity markets (primarily energy but also certain metals), rather thandue to any change in the Group’s marketing positions or trading strategies. Given the market backdrop, prior to any likely breach,the Chief Risk Officer proactively consulted with the Board and received a temporary waiver from the application of a Group VaRlimit. During the waiver period, the Chief Risk Officer reported regularly to the Board.
In mid-May, as some non-energy markets started to normalise, the temporary waiver was rescinded and replaced with a VaR limit of$200 million, to account for the statistically elevated energy market risk environment.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

Similarly, prior to any breach, a temporary waiver was approved in mid-August due to increasing LNG volatilities as the European
gas market was under significant pressure. In mid-September, following a comprehensive review, the Board determined it wasappropriate to revert to the prior VaR limit of $150 million, but to exclude LNG from the Group VaR limit, while maintaining aseparate multipronged LNG risk reporting and control structure, including the continued calculation and highlighting of VaR
outcomes.
Position sheets are regularly distributed and monitored and daily Monte Carlo simulations are applied to the various businessgroups’ net marketing positions to determine potential losses.
Market risk VaR (one-day 95% confidence level) ranges and year-end positions were as follows:
US$ million (all including LNG)

Year-end position 1
Average during the year
High during the year
Low during the year
1

2022

2021

88
158
451
66

72
54
126
27

The year-end VaR, excluding LNG, was $76 million, comfortably within the Group’s $150 million limit. Average Group VaR, excluding LNG since its exclusion in mid-September, was $70
million.

VaR does not purport to represent actual gains or losses in fair value in earnings to be incurred by Glencore, nor does Glencore claimthat these VaR results are indicative of future market movements or representative of any actual impact on its future results. VaRshould always be viewed in the context of its limitations; notably, the use of historical data as a proxy for estimating future events,
market illiquidity risks and tail risks. Glencore recognises these limitations, and thus complements and continuously refines its VaRanalysis by analysing forward looking stress scenarios, benchmarking against an alternative VaR computation based on historicalsimulations and back testing calculated VaR against the hypothetical portfolio returns arising in the next business day.
Glencore’s VaR computation currently covers its business in the key base metals (including aluminium, nickel, zinc, copper andlead), cobalt, coal, coal freight, iron ore and oil products and natural gas/LNG, and assesses the open priced positions which are
subject to price risk, including inventories of these commodities. Due to the lack of a liquid terminal market, Glencore does notinclude a VaR calculation for products such as alumina, molybdenum and some risk associated with metals’ concentrates as it does
not consider the nature of these markets to be suited to this type of analysis. Alternative measures are used to monitor exposuresrelated to these products.

Glencore’s future cash flows related to its forecast Industrial production activities are also exposed to commodity price movements.
Glencore manages this exposure through a combination of portfolio diversification, occasional shorter-term hedging via futures andoptions transactions, insurance products and continuous internal monitoring, reporting and quantification of the underlying
operations’ estimated cash flows and valuations.

Glencore is exposed to various risks associated with the effects of fluctuations in the prevailing levels of market interest rates on its
assets and liabilities and cash flows. Matching of assets and liabilities is utilised as the dominant method to hedge interest rate risks;
other methods include the use of interest rate swaps and similar derivative instruments with the same critical terms as theunderlying interest rate exposures. See details on swap instruments used below.
Floating rate debt which is predominantly used to fund fast turning working capital (interest is internally charged on the funding of
this working capital) is now primarily based on SOFR plus an appropriate premium. Accordingly, prevailing market interest rates arecontinuously factored into transactional pricing and terms.
Assuming the amount of floating rate liabilities at the reporting period end were outstanding for the whole year, interest rates were
100 basis points higher/lower and all other variables held constant, Glencore’s income for the year ended 31 December 2022 would
decrease/increase by $188 million (2021: $197 million).

Interest rate benchmark reform

The Group established a multidisciplinary working group to assess the impact of LIBOR reform and prepare and implement a LIBOR
transition plan. This transition plan included updating policies, systems and processes.
The Group is primarily exposed to the transition of USD LIBOR into an alternative reference rate. Exposures arise on derivatives andnon-derivative financial assets and liabilities.
To cater for the transition of interest rate hedging arrangements, the Group has adhered to the ISDA Fallback Protocol. All USD
LIBOR derivative contracts will transition to the Secured Overnight Funding Rate (SOFR) upon cessation date and in accordancewith the terms of the Protocol. Starting from 1 January 2022, all newly executed interest rate hedging arrangements directly
reference an alternative reference rate/SOFR.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

To cater for the transition of interest rates within other financial and non-financial assets and liabilities, the group has adopted a
combination of Term SOFR, daily SOFR compounded in arrears, and the cost of funds quoted by the bank (if any) involved in suchfinancing. The decision as to which one to adopt is made on a case-by-case basis and generally reflects the need to either have afixed rate known in advance of the interest period (Term SOFR/cost of funds), or not (SOFR compounded in arrears). It may be that a
particular agreement switches from one reference rate to another, with these decisions being made on a case-by-case basis.
As of 31 December 2022, only one financial debt facility had not transitioned to SOFR/cost of funds, being the medium term RCF.

The U.S. dollar is the predominant functional currency of the Group. Currency risk is the risk of loss from movements in exchange
rates related to transactions and balances in currencies other than the U.S. dollar. Such transactions include operating expenditure,
capital expenditure and to a lesser extent purchases and sales in currencies other than the functional currency. Purchases or sales ofcommodities concluded in currencies other than the functional currency, apart from certain limited domestic sales at industrial
operations which act as a hedge against local operating costs, are ordinarily economically hedged through forward exchange
contracts. Consequently, foreign exchange movements against the U.S. dollar on recognised transactions would have an immaterial
financial impact. Glencore enters into currency hedging transactions with leading financial institutions.
Glencore’s debt related payments (both principal and interest) are primarily denominated in or swapped using hedging
instruments into U.S. dollars. Glencore’s operating expenses, being a small portion of its revenue base, are incurred in a mix ofcurrencies of which the U.S. dollar, Swiss Franc, Pound Sterling, Canadian dollar, Australian dollar, Euro, Kazakhstan Tenge,
Colombian Peso and South African Rand are the predominant currencies.
Glencore has issued Euro, Swiss Franc, Sterling and Yen denominated bonds (see note 21). Cross currency swaps were concluded tohedge the currency risk on the principal and related interest payments of these bonds. These contracts were designated as fairvalue or cash flow hedges of the associated foreign currency risks. The critical terms of these swap contracts and theircorresponding hedged items are matched and the Group expects a highly effective hedging relationship with the swap contracts
and the value of the corresponding hedged items to change systematically in opposite direction in response to movements in theunderlying exchange rates. The corresponding fair value and notional amounts of these derivatives is as follows:

Notional amounts
US$ million

Cross currency swap agreements
Cash flow hedges - currency risk
Eurobonds
Sterling bonds
Swiss franc bonds
Fair value hedges - currency and interest
rate risk
Eurobonds
Yen bonds
Sterling bonds
Swiss franc bonds
Interest rate swap agreements
Fair value hedges - interest rate risk
US$ bonds
1

Refer to note 21 for details.

Glencore Preliminary Results 2022

Carrying amount
Assets(Note 29)

Average FX
rates

Carrying amount
Liabilities(Note 29)

Averagematurity1

2022

2021

2022

2021

2022

2021

2022

2021

2,907
–
504

2,907
798
504

1.14
–
1.06

1.14
1.60
1.06

–
–
20

3
–
12

203
–
–

42
129
–

2025
2022
2026

3,947
–
663
347
8,368

3,947
81
663
347
9,247

1.22
–
1.33
1.07

1.22
0.01
1.33
1.07

3
–
1
–
24

67
5
33
11
131

903
–
106
24
1,236

285
–
–
5
461

2027
2022
2026
2026

7,200
15,5686,450
15,697

–

–

2
26

272
403

507
1,743

12
473

2026

NOTES TO THE FINANCIAL STATEMENTS

The carrying amounts of the fair value hedged items are as follows:

US$ million

Foreign exchange and interest rate risk
Eurobonds
Yen bonds
Swiss franc bonds
Sterling bonds
US$ bonds

Carrying amount of thehedged item
(Note 21)
2022
2021

3,017
–
326
541
6,657
10,541

3,672
87
354
677
6,638
11,428

Of which,accumulated fair value
hedge adjustments and FX
2022
2021

(866)
–
(20)
(122)
(505)
(1,513)

(255)
5
38
22
226
36

Credit risk arises from the possibility that counterparties may not be able to settle obligations due to Glencore within their agreed
payment terms. Financial assets which potentially expose Glencore to credit risk consist principally of cash and cash equivalents,
receivables and advances, derivative instruments and non-current advances and loans. Glencore’s credit management processincludes the assessment, monitoring and reporting of counterparty exposure on a regular basis. Glencore’s cash and cash
equivalents are placed overnight with a diverse group of highly credit rated financial institutions. Margin calls paid are similarly heldwith credit rated financial institutions. Glencore determines these instruments to have low credit risk at the reporting date. Credit
risk with respect to receivables and advances is mitigated by the large number of customers comprising Glencore’s customer base,their diversity across various industries and geographical areas, as well as Glencore’s policy to mitigate these risks through letters ofcredit, netting, collateral and insurance arrangements where appropriate. Additionally, it is Glencore’s policy that transactions andactivities in trade related financial instruments be concluded under master netting agreements or long form confirmations toenable offsetting of balances due to/from a common counterparty in the event of default by the counterparty. Glencore actively andcontinuously monitors the credit quality of its counterparties through internal reviews and a credit scoring process, which includes,
where available, public credit ratings. Balances with counterparties not having a public investment grade or equivalent internalrating are typically enhanced to investment grade through the extensive use of credit enhancement products, such as letters ofcredit or insurance products. Glencore has a diverse customer base, with no customer representing more than 7.1% (2021: 4.7%) of its
trade receivables (taking into account credit enhancements) or accounting for more than 3.2% of its revenues over the year ended
31 December 2022 (2021: 3.6%) (see notes 3 and 14).
The maximum exposure to credit risk (including performance risk – see below), without considering netting agreements or without
taking account of any collateral held or other credit enhancements, is equal to the carrying amount of Glencore’s financial assets(see note 28) and physically-settled advances (see notes 12 and 14).
Management information used to monitor credit risk indicates that the prima facie risk profile % categories of financial assets which
are subject to review for impairment under IFRS 9, is as set out below. The total balance for those assets as at 31 December 2022 is$11,469 million (2021: $10,765 million)(see notes 12, 14 and 15).
in %AAA to AAA+ to ABBB+ to BBBBB+ to BBB+ to BCCC+ and below

2022

2021

8
55
17
6
8
6

8
59
11
3
8
11

Movements in credit losses for accounts receivable and advances and loans are shown in notes 12 and 14.

Performance risk

Performance risk (part of the broader credit risk subject matter, discussed above) is inherent in contracts, with agreements in the
future, to physically purchase or sell commodities with fixed price attributes, and arises from the possibility that counterparties may
not be willing or able to meet their future contractual physical sale or purchase obligations to/from Glencore. Glencore undertakes
the assessment, monitoring and reporting of performance risk within its overall credit management process. Glencore’s market
breadth, diversified supplier and customer base as well as the standard pricing mechanism in the vast majority of Glencore’scommodity portfolio which does not fix the primary commodity price beyond three months, ensure that performance risk isadequately mitigated. The commodity industry has trended towards shorter term fixed price contract periods, in part to mitigate
against such potential performance risk, but also due to the continuous development of transparent and liquid spot commodity
markets, with their associated derivative products and indexes.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

Liquidity risk is the risk that Glencore is unable to meet its payment obligations when due, or that it is unable, on an ongoing basis,
to borrow funds in the market on an unsecured or secured basis at an acceptable price to fund actual or proposed commitments.
Prudent liquidity risk management implies maintaining sufficient cash and cash equivalents and availability of adequate
committed funding facilities. Glencore has set itself an internal minimum liquidity target to maintain at all times, including via
available committed undrawn credit facilities, of $3 billion (2021: $3 billion), which has purposely been substantially exceeded inrecent years, accounting for the more volatile market backdrop. Glencore’s credit profile, diversified funding sources and committed
credit facilities, ensure that sufficient liquid funds are maintained to meet its liquidity requirements. As part of its liquidity
management, Glencore closely monitors and plans for its future capital expenditure, working capital needs and proposed
investments, as well as credit facility refinancing/extension requirements, well ahead of time (see notes 1, 12, 21, 22 and 25).
As at 31 December 2022, Glencore had available committed undrawn credit facilities and cash amounting to $13,000 million (2021:$10,296 million), refer to Other reconciliations section. The maturity profile of Glencore’s financial liabilities based on the contractual
terms is presented in the table below.
The liquidity risk related to physical forward purchase obligations represents the gross contractual cash outflows expected to be
paid upon transfer of control of the underlying physical commodity. Gross cash inflows expected from physical forward sales are notpresented in the below table, but would approximate the expected gross cash outflows related to forward purchase obligations plus
an appropriate margin. Prior year balances have been restated to conform with current year presentation.
The gross liquidity risk relating to cross currency swaps entered into for the purposes of hedging foreign currency and interest raterisks arising from the Group’s non-U.S. dollar denominated bonds is presented below. The amounts reflect the expected grosssettlement of the U.S. dollar pay leg of these swaps. The inflows from the related foreign currency receive leg of these swaps are notpresented in the below table, but would approximate the foreign currency equivalent of the US dollar pay leg. Counterparty
settlement date risk related to these swaps is limited, as the Group has entered into margining arrangements for both the outflow
and inflow legs of the swap.
2022
US$ million

Non-derivative financial liabilities
Borrowings excluding lease liabilities, fair value
hedge adjustments and other non-cash items
Expected future interest payments
Lease liabilities - undiscounted
Accounts payable
Derivative financial liabilities
Physical forward purchases
Cross currency swaps
Other financial liabilities1
Total

After 5 years

Due 3 - 5 years

Due 2 - 3 years

Due 1 - 2 years

Due 0 - 1 year

Total

8,203

4,330

3,262

3,350

9,821

28,966

2,876
637
–

722
196
–

456
167
–

553
328
–

720
526
26,884

5,327
1,854
26,884

13,0782,840
384
28,01825,7502,408
242
33,64826,884
1,289
296
32,35432,321
1,138
63
37,75358,9192,072
2,090
101,032

156,952
9,747
3,075
232,805

After 5 years

Due 3 - 5 years

Due 2 - 3 years

Due 1 - 2 years

Due 0 - 1 year

Total

10,310

6,365

3,014

6,106

7,496

33,291

3,219
730
–

861
257
–

547
209
–

716
345
–

830
596
26,945

6,173
2,137
26,945

7,920
3,088
108
25,375

16,2603,242
131
27,11615,023
1,034
21
19,84827,121
1,895
32
36,21554,595
1,109
3,743
95,314

120,919
10,368
4,035
203,8682021
US$ million

Non-derivative financial liabilities
Borrowings excluding lease liabilities, fair value
hedge adjustments and other non-cash items
Expected future interest payments
Lease liabilities - undiscounted
Accounts payable
Derivative financial liabilities
Physical forward purchases
Cross currency swaps
Other financial liabilities1
Total

1 Other financial liabilities exclude physical forwards and cross currency swaps as separately disclosed.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

The following tables present the carrying values and fair values of Glencore’s financial instruments. Fair value is the price that would
be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (most advantageous) market at themeasurement date under current market conditions. Where available, market values have been used to determine fair values.
When market values are not available, fair values have been calculated by discounting expected cash flows at prevailing market
interest and exchange rates. The estimated fair values have been determined using market information and appropriate valuation
methodologies, but are not necessarily indicative of the amounts that Glencore could realise in the normal course of business.
The financial assets and liabilities are presented by class in the tables below at their carrying values, which generally approximate
the fair values with the exception of $27,398 million (2021: $33,023 million) of borrowings, the fair value of which at 31 December 2022
was $26,675 million (2021: $34,169 million). $6,918 million (2021: $10,132 million) represents the listed portion of the borrowing portfolio,
based on quoted prices on active markets (a Level 1 fair value measurement), and $19,757 million (2021: $24,037 million) is based on
observable market prices (a Level 2 fair value measurement).
2022

Amortisedcost

FVTPL1FVTOCI2

Total

–
–
729
16,019–1,923
18,671

37
206
293
5,627
6,109
–
12,272

419
–
–
–
–
–
419

456
206
1,022
21,646
6,109
1,923
31,362

28,77714
12,703–41,494–2,041
14,181
4,882
21,104–––––

28,7772,055
26,884
4,882
62,598

Amortisedcost

FVTPL1FVTOCI2

Total

AssetsOther investments
Non-current other financial assets
Advances and loans
Accounts receivable
Other financial assets
Cash and cash equivalents
Total financial assets––
795
11,672–
3,241
15,708

–
458
163
5,523
4,636
–
10,780

1,620
–
–
–
–
–
1,620

1,620
458
958
17,195
4,636
3,241
28,108

Liabilities
Borrowings
Non-current other financial liabilities
Accounts payable
Other financial liabilities
Total financial liabilities

34,641
87
13,139–47,867–623
13,806
6,077
20,506–––––

34,641710
26,945
6,077
68,373

US$ million

AssetsOther investments
Non-current other financial assets
Advances and loans
Accounts receivable
Other financial assets
Cash and cash equivalents
Total financial assets
Liabilities
Borrowings
Non-current other financial liabilities
Accounts payable
Other financial liabilities
Total financial liabilities
2021
US$ million

1 FVTPL – Fair value through profit and loss.
2 FVTOCI – Fair value through other comprehensive income.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

In accordance with IAS 32 the Group reports financial assets and liabilities on a net basis in the consolidated statement of financial
position only if there is a legally enforceable right to set off the recognised amounts and there is intention to settle on a net basis, orto realise the asset and settle the liability simultaneously. The financial assets and liabilities subject to offsetting, enforceable masternetting and similar agreements as at 31 December 2022 and 2021 were as follows:

Amounts eligible for set off
under netting agreements

2022
US$ million

Derivative assets1
Derivative liabilities1

Related amounts not set off
under netting agreements

GrossamountAmounts
offsetNetamountFinancial
instruments

Financialcollateral

3,422(5,929)(2,141)
2,141

1,281
(3,788)

(608)
608

(26)
2,638

Amounts eligible for set off
under netting agreements

2021

647
(542)

5,034
(3,149)6,315(6,937)

Amounts
not subject
Net
to netting
amount agreements

Total aspresented
in theconsolidated
statementof financial
position

Related amounts not set off
under netting agreements

US$ million

GrossamountAmounts
offsetNetamountFinancial
instruments

Financialcollateral

Derivative assets1
Derivative liabilities1

19,327(22,166)(17,846)
17,846

1,481(4,320)

(437)
437

(315)
3,522

1

Amounts
not subject
Net
to netting
amount agreements

Total aspresented
in theconsolidated
statementof financial
position

729
(361)

3,613
(2,467)

5,094(6,787)

Presented within current and non-current other financial assets and other financial liabilities.

For the financial assets and liabilities subject to enforceable master netting or similar arrangements above, each agreement
between the Group and the counterparty allows for net settlement of the relevant financial assets and liabilities in the ordinary
course of business. Where practical reasons may prevent net settlement, financial assets and liabilities may be settled on a grossbasis, however, each party to the master netting or similar agreement will have the option to settle all such amounts on a net basis
in the event of default of the other party. Per the terms of each agreement, an event of default includes failure by a party to makepayment when due, failure by a party to perform any obligation required by the agreement (other than payment) if such failure is
not remedied within periods of 30 to 60 days after notice of such failure is given to the party or bankruptcy.

Fair values are primarily determined using quoted market prices or standard pricing models using observable market inputs whereavailable and are presented to reflect the expected gross future cash in/outflows. Glencore classifies the fair values of its financial
instruments into a three level hierarchy based on the degree of the source and observability of the inputs that are used to derive thefair value of the financial asset or liability as follows:
Level 1

Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that Glencore can assess at themeasurement date; orLevel 2

Inputs other than quoted inputs included in Level 1 that are observable for the assets or liabilities, either directly or
indirectly; orLevel 3

Unobservable inputs for the assets or liabilities, requiring Glencore to make market-based assumptions.

Level 1 classifications primarily include futures with a tenor of less than one year and options that are exchange traded, whereas
Level 2 classifications primarily include futures with a tenor greater than one year, over the counter options, swaps and physicalforward transactions which derive their fair value primarily from exchange quotes and readily observable broker quotes. Level 3
classifications primarily include physical forward transactions which derive their fair value predominantly from models that use
broker quotes and applicable market-based estimates surrounding location, quality and credit differentials and financial liabilities
linked to the fair value of certain mining operations. In circumstances where Glencore cannot verify fair value with observable
market inputs (Level 3 fair values), it is possible that a different valuation model could produce a materially different estimate of fairvalue.
It is Glencore’s policy that transactions and activities in trade related financial instruments be concluded under master netting
agreements or long form confirmations to enable balances due to/from a common counterparty to be offset in the event of default,
insolvency or bankruptcy by the counterparty.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

The following tables show the fair values of the derivative financial instruments including trade related financial and physicalforward purchase and sale commitments by type of contract and non-current other financial assets and liabilities as at 31 December
2022 and 2021. Other assets and liabilities which are measured at fair value on a recurring basis are marketing inventories, otherinvestments, cash and cash equivalents. There are no non-recurring fair value measurements.

2022
US$ million

Financial assets
Trade receivables
Contingent consideration
Other receivables
Other non-current receivables and loans
Convertible loan
Non-current contingent consideration
Other investments
Financial assets
Other financial assets
Commodity related contracts
Futures
Options
Swaps
Physical forwards
Financial contracts
Foreign currency and interest rate contracts
Current other financial assets
Non-current other financial assets
Cross currency swaps
Foreign currency and interest rate contracts
Purchased call options over Glencore shares1
Non-current other financial assets
Total

Level 1

Level 2

Level 3

Total

–
–
–
–
–
–
280
280

5,426
–
–
–
–
–
176
5,602

–
128
73
22
168
103
–
494

5,426
128
73
22
168
103
456
6,376

809
120
40
–

156
4
165
1,786

–
–
18
2,949

965
124
223
4,735

–
969

62
2,173

–
2,967

62
6,109

–
–
–
–
1,249

24
1
181
206
7,981

–
–
–
–
3,461

24
1
181
206
12,691

Level 1

Level 2

Level 3

Total

–
–
–
–
–
1,536
1,536

5,269
–
–
–
–
84
5,353

–
175
79
28
135
–
417

5,269
175
79
28
135
1,620
7,306

420
133
5
–

138
31
245
2,878

–
–
40
646

558
164
290
3,524

–
–
558

5
95
3,392

–
–
686

5
95
4,636

–
–
–
–
2,094

125
272
61
458
9,203

–
–
–
–
1,103

125
272
61
458
12,4002021
US$ million

Financial assets
Trade receivables2
Contingent consideration2
Other receivables2
Other non-current receivables and loans2
Non-current contingent consideration
Other investments
Financial assets
Other financial assets
Commodity related contracts
Futures3
Options
Swaps3
Physical forwards
Financial contracts
Cross currency swaps
Foreign currency and interest rate contracts
Current other financial assets
Non-current other financial assets
Cross currency swaps
Foreign currency and interest rate contracts
Purchased call options over Glencore shares1
Non-current other financial assets
Total

1 Call options over the Company’s shares in relation to conversion rights of the $500 million non-dilutive convertible bond, due in 2025.
2 Prior year Level 3 other receivables have increased by $79 million and Level 3 other non-current receivables and loans have increased by $28 million after being restated to conformwith current year presentation of financial assets.
3 Commodity related contracts have been restated to conform with current year presentation of financial assets and commodity related contracts classification. $251 million Level 1 and$9 million Level 2 swaps have been reclassified as $240 million Level 1 and $20 million Level 2 futures.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

2022
US$ million

Financial liabilities
Accounts payableNon-discretionary dividend obligation1
Financial liabilities
Other financial liabilities
Commodity related contracts
Futures
Options
Swaps
Physical forwards
Financial contracts
Cross currency swaps
Foreign currency and interest rate contracts
Current other financial liabilities
Non-current other financial liabilities
Cross currency swaps
Foreign currency and interest rate contracts
Non-discretionary dividend obligation1
Option over non-controlling interest in AleContingent consideration
Embedded call options over Glencore shares2
Non-current other financial liabilities
Total

Level 1

Level 2

Level 3

Total

–
–
–

14,079–14,079–102
102

14,079102
14,181

714
32
–
–

459
119
660
2,498

–
–
–
113

1,173
151
660
2,611

–
1
747

181
105
4,022

–
–
113

181
106
4,882

–
–
–
–
–
–
–
747

1,055
490
–
–
–
181
1,726
19,827

–
–
219
22
74
–
315
530

1,055
490
219
22
74
181
2,041
21,104

Level 1

Level 2

Level 3

Total

–
–

13,806
13,806––

13,806
13,806

2,126
52
859
–

365
92
161
1,872

–
–
–
235

2,491
144
1,020
2,107

–
–
3,037

227
88
2,805

–
–
235

227
88
6,077

–
–
–
–
–
–
–
3,037

331
12
–
–
–
61
404
17,015

–
–
148
22
49
–
219
454

331
12
148
22
49
61
623
20,5062021
US$ million

Financial liabilities
Accounts payable
Financial liabilities
Other financial liabilities
Commodity related contracts
Futures3
Options
Swaps3
Physical forwards
Financial contracts
Cross currency swaps
Foreign currency and interest rate contracts
Current other financial liabilities
Non-current other financial liabilities
Cross currency swaps
Foreign currency and interest rate contracts
Non-discretionary dividend obligation1
Option over non-controlling interest in AleContingent consideration
Embedded call options over Glencore shares2
Non-current other financial liabilities
Total
1

A ZAR denominated derivative liability payable to ARM Coal, a partner in one of the Group’s principal coal joint operations based in South Africa. The liability arises from ARM Coal’s
rights as an investor to a share of agreed free cash flows from certain coal operations in South Africa and is valued based on those cash flows using a risk-adjusted discount rate. The
derivative liability is settled over the life of those operations with a modelled mine life of 13 years as at 31 December 2022.
2 Embedded call option bifurcated from the 2025 convertible bond.
3 Prior year balances have been restated to conform with current year presentation of commodity related contracts classification. $140 million Level 1 and $14 million Level 2 swaps havebeen reclassified as $133 million Level 1 and $21 million Level 2 futures.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

The following table shows the net changes in fair value of Level 3 other financial assets and other financial liabilities:
US$ million

1 January 2022
Total gain recognised in revenue
Total gain/(loss) recognised in cost of goods
Acquisition
Fair value recognised in otherincome/(expense)
Realised
31 December 2022
1 January 2021
Total gain recognised in revenue
Total gain/(loss) recognised in cost of goods
Fair value recognised in otherincome/(expense)
Realised
31 December 2021
1

Contingent
consideration

Convertible
loanPhysicalforwards

Swaps

Other1

Total
Level 3

261
–
–
(20)

–
–
–
200

411
231
2,403
–

40
67
(70)
–

(63)
–
–
–

649
298
2,333
180

105
(189)
157

(32)
–
168

–
(209)
2,836

–
(19)
18

(173)
(12)
(248)

(100)
(429)
2,931

376
–
–

–
–
–

6
117
389

–
337
(297)

(70)
–
–

312
454
92

26
(141)
261

–
–
–

–
(101)
411

–
–
40

7
–
(63)

33
(242)
649

Certain prior year balances have been restated to conform with current year presentation of financial assets.

During the year, no amounts were transferred between Level 1 and Level 2 of the fair value hierarchy and no amounts weretransferred into or out of Level 3 of the fair value hierarchy for either other financial assets or other financial liabilities.

Some of the Group’s financial assets and financial liabilities are measured at fair value at the end of each reporting period.
Futures, options and swaps classified as Level 1 financial assets and liabilities are measured using quoted prices in an active market.
Accounts receivable and payables, and certain futures, options, swaps, physical forwards, cross currency swaps, foreign currency andinterest rate contracts classified as Level 2 financial assets and liabilities are measured using discounted cash flow models. Key
inputs include observable quoted prices sourced from exchanges or traded reference indices in active markets for identical assets or
liabilities. Prices are adjusted by a discount rate which captures the time value of money and counterparty credit considerations, as
required.
Call options over Glencore shares classified as Level 2 financial assets and liabilities are measured using an option pricing model. Key
inputs include the current price of Glencore shares, strike price, maturity date of the underlying convertible debt security, risk-freerate and volatility.
Given the extent to which the Group recognises financial instrument assets and liabilities at fair value, the preparation of the Group’s
consolidated financial statements requires management to consider on an on-going basis, the key valuation metrics andjudgements involved in the determination of the fair value of financial instruments. To the extent that valuation is based on models
or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgement.
Management reviewed the key valuation metrics, assumptions and methodologies involved in the determination of the Level 3 fairvalue of financial instruments and determined that the valuations were materially reasonable.
The following table provides information on the valuation techniques and inputs used to determine the fair value of Level 3 financial
assets and financial liabilities.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

US$ million

Swaps – Level 3
Valuation techniques and key inputs:
Significant and other unobservable inputs:

AssetsLiabilities

2022

2021

18
–

40
–

Discounted cash flow model– Long term commodity prices
The significant unobservable inputs represent the long-term commodity prices to which thevaluation remains sensitive to. A 10% increase/decrease in commodity price assumptions would
result in a $2 million (2021: $4 million) adjustment to the current carrying value.
Physical Forwards – Level 3
Assets2,949
646
Liabilities
(113)
(235)
Valuation techniques and key inputs:
Discounted cash flow model
Significant and other unobservable inputs:
Valuation of the Group’s commodity physical forward contracts categorised within this level isbased on observable market prices that are adjusted by unobservable differentials, as required,including:– Quality;– Geographic location;– Local supply & demand;– Customer requirements; and– Counterparty credit considerations.
These unobservable inputs generally represent 1%–30% of the overall value of the instruments.
The valuation prices are applied consistently to value physical forward sale and purchase
contracts, and changing a particular input to reasonably possible alternative assumptions does
not result in a material change in the underlying value of the portfolio.
As at 31 December 2022, physical forward Level 3 assets relating to LNG contracts amount to$2,552 million (2021: $322 million) and liabilities of $19 million (2021: $12 million). Valuation ofthese contracts is based on observable Oil and Global Gas prices that are adjusted byunobservable differentials which collectively represent, but are not limited to, transportation,
storage, liquification and regasification premiums.
The value of our Level 3 long term LNG physical supply contracts reflects the price dislocation
between Europe and other international markets and uncertainty of pricing inputs beyond theobservable range. There is limited observable LNG pricing data beyond 2025 and an estimation
uncertainty exists over global gas supply and demand and to extent to which the current
dislocation impacts long term LNG pricing.
For the longer dated portion of the curve, complex modelling techniques are also required
where there is limited observable market data. Extrapolation of observable pricing is appliedand correlated to third party long term forecast macro pricing assumptions for various Oil andGlobal Gas indices, on which the long term LNG prices are based. Given the resulting inherent
estimation uncertainty, reasonable valuation ranges are developed to reflect the expectedtransfer value of these arrangements to another market participant in accordance with IFRS 13.
The Group considers the risks associated with realising market value from unobservable longterm prices in selecting pricing from within those ranges.
The potential impact of a 10% favourable and unfavourable change in the unobservablevaluation inputs could result in a gain of $0.1 billion and loss of $0.1 billion respectively, both ofwhich would be reflected in the consolidated statement of income.
Contingent consideration and Other Receivables (Mototolo) – Level 3
Assets231
282
Liabilities––
Valuation techniques and key inputs:
Discounted cash flow model
Significant and other unobservable inputs:– Long-term forecast commodity prices; and– Discount rates using weighted average cost of capital methodology;
The significant unobservable inputs represent the long-term forecast commodity prices towhich the valuation remains sensitive to. A 10% increase/decrease in commodity priceassumptions would result in a $19 million (2021: $27 million) adjustment to the current carrying
value.
Contingent consideration (Orion) – Level 3
Assets–28
Liabilities––
Valuation techniques and key inputs:
Discounted cash flow model
Significant and other unobservable inputs:– Estimated production plan;– Long-term forecast commodity prices; and– Discount rates using weighted average cost of capital methodology.
The significant unobservable inputs represent the long-term forecast commodity prices towhich the valuation remains sensitive to. In 2021, a 10% increase in gold price would haveresulted in no adjustment to the carrying value of the asset, while a 10% decrease in gold pricewould have resulted in a $9 million negative adjustment.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

US$ million

Other receivables and non-current receivables and loans – Level 3
Valuation techniques and key inputs:

AssetsLiabilities

2022

2021

95
–

107
–

Discounted cash flow model– Discount rates specific to the operation; and– Underlying business plans and forecasts.
Significant and other unobservable inputs:
The valuation remains sensitive to repayment cashflows dependent upon the underlying
business plans and forecasts. A 1 year delay in the underlying cash flows would result in a $19
million (2021: $9 million) reduction to the current carrying value of the asset while bringing
forward repayments by 1 year would result in a $11 million (2021: $8 million) increase.
Convertible loan (Li-Cycle) – Level 3
Assets168–
Liabilities––
Valuation techniques and key inputs:
Discounted cash flow and option pricing model– Share price; and– Risk-free rate and volatility.
Significant and other unobservable inputs:
The valuation remains sensitive to the share price and a 10% increase/decrease in share priceassumptions would result in an $6 million adjustment to the current carrying value.
Non-discretionary dividend obligation (ARM Coal) – Level 3
Assets––Liabilities
(321)
(148)
Valuation techniques:
Discounted cash flow model
Significant and other unobservable inputs:– Long-term forecast commodity prices;– Discount rates using weighted average cost of capital methodology;– Production models;– Operating costs; and– Capital expenditures.
The resultant liability is essentially a discounted cash flow valuation of the underlying mining
operation. Increases/decreases in forecast commodity prices will result in an increase/decrease
to the value of the liability though this will be partially offset by associated increases/decreases
in the assumed production levels, operating costs and capital expenditures, which are
inherently linked to forecast commodity prices. The significant unobservable inputs represent
the long-term forecast commodity prices to which the valuation remains sensitive to. A 10%
increase/decrease in commodity price assumptions would result in an $108 million (2021: $94
million) adjustment to the current carrying value.
Option over non-controlling interest (AleSat) – Level 3
Assets––Liabilities
(22)
(22)
Valuation techniques and key inputs:
Discounted cash flow model
Significant unobservable inputs:
The resultant liability is the value of the remaining minority stake in the subsidiary, measured as
the higher value of the acquisition date valuation of the shares, and a discounted future
earnings based valuation. The valuation is additionally sensitive to movement in the spot
exchange rates between the Brazilian Real and US Dollar.
Contingent consideration – Level 3
Assets––Liabilities
(74)
(49)
Valuation techniques and key inputs:
Discounted cash flow models
Significant and other unobservable inputs:– Estimated production plans;– Forecast commodity prices; and– Discount rates using weighted average cost of capital methodology.
The resultant liabilities was mainly determined using forecasted production estimates andassumed actual coal prices higher than a royalty trigger price. Should production volumes
increase/decrease by 10% the value of the liability would increase/decrease by $7 million (2021:$6 million), and for any given quarter should commodity prices be lower than the royalty
trigger, no amounts would be due under the price contingent royalty arrangement.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

Capital expenditure for the acquisition of property, plant and equipment is generally funded through the cash flow generated by
the respective industrial entities. As at 31 December 2022, $1,295 million (2021: $1,111 million), of which 94% (2021: 86%) relates to
expenditure to be incurred over the next year, was contractually committed for the acquisition of property, plant and equipment.
Certain of Glencore’s exploration tenements and licences require it to spend a minimum amount per year on development
activities, a significant portion of which would have been incurred in the ordinary course of operations. As at 31 December 2022,$118 million (2021: $118 million) of such development expenditures are to be incurred, of which 20% (2021: 27%) are for commitments
to be settled over the next year.
As part of Glencore’s ordinary sourcing and procurement of physical commodities and other ordinary marketing obligations, theselling party may request that a financial institution act as either a) the paying party upon the delivery of product and qualifying
documents through the issuance of a letter of credit or b) the guarantor by way of issuing a bank guarantee accepting responsibility
for Glencore’s contractual obligations. Similarly, Glencore is required to post rehabilitation and pension guarantees in respect ofsome of these future, primarily industrial, long-term obligations. As at 31 December 2022, $7,965 million (2021: $8,965 million) of
procurement and $4,256 million (2021: $4,353 million) of rehabilitation and pension commitments have been issued on behalf ofGlencore, which will generally be settled simultaneously with the payment for such commodity and rehabilitation and pension
obligations.

As part of the regulatory approval process relating to the acquisition of a 75% shareholding in Astron Energy, Glencore and AstronEnergy entered into certain commitments (subject to variation for good cause) with the South Africa Competition Tribunal and theSouth African Economic Development Department. These commitments include investment expenditure of up to ZAR 6.5 billion($384 million) over the period to 2024 so as to debottleneck and improve the performance of the Cape Town oil refinery, contributeto the rebranding of certain retail sites and establish a development fund to support small and black-owned businesses in AstronEnergy’s value chain.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

There were no corporate guarantees in favour of third parties as at 31 December 2022 (2021: None), except those disclosed in note 11.
The Group is subject to various legal and regulatory proceedings as detailed below. These contingent liabilities are reviewed on aregular basis and where appropriate an estimate is made of the potential financial impact on the Group. As at 31 December 2022
and 2021, it was not feasible to make such an assessment.

Under IAS 37 Provisions, Contingent Liabilities and Contingent Assets, a provision is recognised when Glencore has a present
obligation (legal or constructive), as a result of a past event, and it is probable that an outflow of resources embodying economic
benefits, that can be reliably estimated, will be required to settle the liability. A contingent liability is a possible obligation that arises
from a past event and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future
events not wholly within the control of Glencore. If it is not clear whether there is a present obligation, a past event is deemed to giverise to a present obligation if, taking account of all available evidence, it is more likely than not that a present obligation exists at theend of the reporting period. When a present obligation arises but it is not probable that an outflow of resources embodying
economic benefits will be required to settle the obligation or the amount of the obligation cannot be measured with sufficientreliability, a contingent liability is disclosed.

As described in note 23, the Group remains subject to investigations by the OAG and Dutch authorities. At 31 December 2022, taking
account of all available evidence, the Investigations Committee concluded that, with respect to these investigations, it is notprobable that a present obligation existed at the end of the reporting period. In addition, the timing and amount, if any, of thepossible financial effects (such as fines, penalties or damages, which could be material) or other consequences, including externalcosts, from the OAG and Dutch investigations and any change in their scope are not currently possible to predict or estimate.
The Group notes that other authorities may commence investigations against the Group in connection with the resolved
investigations or the matters under investigation. In respect of these investigations, taking into account all available evidence, theInvestigations Committee does not consider it probable that a present obligation existed in relation to these potential investigationsas at the balance sheet date, and the amount of any financial effects, which could be material, is not currently possible to predict or
estimate.

Claims have been issued against the Group in the United Kingdom in connection with the various Government investigations,constituting claims on behalf of approximately 400 current and former shareholders. The claims are, inter alia, made under s90 of
the Financial Services and Markets Act 2000 (“FSMA”) relating to prospectus liability, while two currently include s90A FSMA claims
relating to misstatements in other information by the Company. The bases for the claims are that the prospectuses issued in 2011
and 2013 and other published information by the Company were untrue, misleading or contained omissions. The claims are at a very
early stage.
The Group may be the subject of further legal claims brought by other parties in connection with the Government investigations,
including collective, group or representative actions.
In respect of these claims, taking into account all available evidence, the Investigations Committee does not consider it probablethat a present obligation existed in relation to these claims or potential claims as at the balance sheet date, and the amount of any
financial effects, which could be material, is not currently possible to predict or estimate.

Other claims and unresolved disputes are pending against Glencore. However, based on the Group’s current assessment of thesematters any future individually material financial obligations are considered to be remote.

Glencore’s operations are subject to various environmental laws and regulations. Glencore is not aware of any material noncompliance with those laws and regulations. Glencore accrues for environmental contingencies when such contingencies areprobable and reasonably estimable. Such accruals are adjusted as new information develops or circumstances change. Recoveriesof environmental remediation costs from insurance companies and other parties are recorded as assets when the recoveries are
virtually certain. At this time, Glencore is unaware of any material environmental incidents at its locations. Any potential liability
arising from environmental incidents in the ordinary course of the Group’s business would not usually be expected to have amaterial adverse effect on its consolidated income, financial position or cash flows.

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

In the normal course of business, Glencore enters into various arm’s length transactions with related parties, including fixed pricecommitments to sell and to purchase commodities, forward sale and purchase contracts, agency agreements and management
service agreements. Outstanding balances at period end are unsecured and settlement occurs in cash (see notes 12, 14 and 25).
There have been no guarantees provided or received for any related party receivables or payables.
All transactions between Glencore and its subsidiaries are eliminated on consolidation along with any unrealised profits and losses
between its subsidiaries, associates and joint ventures. In 2022, sales and purchases with associates and joint ventures amounted to$3,941 million (2021: $3,877 million) and $8,091 million (2021: $8,021 million) respectively.

Non-controlling interest is comprised of the following:
US$ million

2022

2021

Kazzinc
Koniambo
Kamoto Copper Company (KCC)
VolcanOther1
Total

1,156(5,745)
88
(201)
511
(4,191)

1,368(5,180)
474
(106)
430
(3,014)

1

Other comprises various subsidiaries in which no individual balance attributable to non-controlling interests is material, including a balance of $98 million relating to Mutanda. See
below.

Three mining permits (“permis d’exploitation”) (PE662, PE643 and PE662) were successfully renewed by Mutanda Mining in 2022 foran additional period of 15 years. The renewal of the mining titles triggered the transfer of 5% of the equity of Mutanda Mining to the
DRC government in accordance with the DRC Mining Code, which resulted in a $109 million non-controlling interest and an
intangible asset related to the right to mine over a 15 year period being recognised (see note 10).

Glencore Preliminary Results 2022

NOTES TO THE FINANCIAL STATEMENTS

Summarised financial information in respect of Glencore’s subsidiaries that have material non-controlling interest as at
31 December 2022 and 2021, reflecting 100% of the underlying subsidiary’s relevant figures, is set out below.
US$ million

Kazzinc

Koniambo

KCC

Volcan31 December 2022
Non-current assets
Current assets
Total assets
Non-current liabilities
Current liabilities
Total liabilities
Net assets
Equity attributable to owners of the Company
Non-controlling interest
Non-controlling interest %

3,377
1,613
4,990
494
673
1,167
3,823
2,667
1,156
30.3%

507
519
1,026
15,019147
15,166(14,140)(8,395)(5,745)
51.0%

4,429
1,351
5,780
9,602
1,456
11,058(5,278)(5,366)
88
25.0%

1,723
241
1,964
1,256
405
1,661
303
504
(201)
76.7%

2022
Revenue
Expenses
Net loss for the year
Loss attributable to owners of the Company
Loss attributable to non-controlling interests
Total comprehensive loss for the year
Dividends paid to non-controlling interests
Net cash inflow/(outflow) from operating activities
Net cash outflow from investing activities
Net cash (outflow)/inflow from financing activities
Total net cash (outflow)/inflow

3,564(3,615)
(51)
(35)
(16)
(51)
(196)
549
(335)
(309)
(95)

713
(1,823)(1,110)(544)(566)(1,110)
–
(78)
(19)
112
15

2,545
(3,127)
(582)
(407)
(175)
(582)
(211)
898
(393)
(632)
(127)

1,000
(1,124)
(124)
(29)
(95)
(124)
–
234
(245)
(146)
(157)

US$ million

Kazzinc

Koniambo

KCC

Volcan31 December 2021
Non-current assets
Current assets
Total assets
Non-current liabilities
Current liabilities
Total liabilities
Net assets
Equity attributable to owners of the Company
Non-controlling interest
Non-controlling interest %

4,210
1,515
5,725
721
480
1,201
4,524
3,156
1,368
30.3%

434
461
895
13,822104
13,926(13,031)(7,851)(5,180)
51.0%

5,266
1,135
6,401
9,313
804
10,117(3,716)(4,190)
474
25.0%

1,796
400
2,196
980
789
1,769
427
533
(106)
76.7%

2021
Revenue
Expenses
Net profit/(loss) for the year
Profit/(loss) attributable to owners of the Company
Profit/(loss) attributable to non-controlling interests
Total comprehensive income/(loss) for the year
Dividends paid to non-controlling interests
Net cash inflow/(outflow) from operating activities
Net cash outflow from investing activities
Net cash (outflow)/inflow from financing activities
Total net cash inflow

3,502(2,940)
562
392
170
562
(150)
837
(318)
(394)
125

242
(2,364)(2,122)(1,040)(1,082)(2,122)
–
(165)
(13)
193
15

3,899
(2,820)
1,079
837
242
1,079
–
1,708
(301)
(1,294)
113

981
(941)
40
9
31
40
–
318
(174)
(28)
116

Glencore Preliminary Results 2022

Alternative performance measures are denoted by the symbol ◊When assessing and discussing the Group’s reported financial performance, financial position and cash flows, Glencore makes
reference to Alternative performance measures (APMs), which are not defined or specified under the requirements of IFRS, but arederived from the financial statements prepared in accordance with IFRS. The APMs are consistent with how business performanceis measured and reported within the internal management reporting to the Board and management and assist in providing
meaningful analysis of the Group’s results both internally and externally in discussions with the financial analyst and investmentcommunity.
The Group uses APMs to aid the comparability of information between reporting periods and segments and to aid theunderstanding of the activity taking place across the Group by adjusting for items that are of an infrequent nature 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).
Investments in the extractive industry are typically significant and the initial spend generally occurs over several years, “upfront”,
prior to the operations generating cash. As a result, the investments are sometimes made with partners and an assessment toapproximate the operating cash flow generation/pay-back of the investment (Adjusted EBITDA) is required. Against this backdrop,
the key APMs used by Glencore are Adjusted EBITDA, Net funding/Net debt and the disaggregation of the equivalent key APMs of
our relevant material associates and joint ventures (“Proportionate adjustment”) to enable a consistent evaluation of the financial
performance and returns attributable to the Group.
Adjusted EBITDA is a useful approximation of the operating cash flow generation by eliminating depreciation and amortisation
adjustments. Adjusted EBITDA is not a direct measure of our liquidity, which is shown by our cash flow statement and needs to beconsidered in the context of our financial commitments.
Proportionate adjustments are useful to enable a consistent evaluation of the financial performance and returns available to theGroup, irrespective of the differing accounting treatments required to account for our minority/joint ownership interests of our
relevant material investments.
Net funding is an aggregation of IFRS measures (Borrowings less cash and cash equivalents) and Net debt is Net funding less
Readily marketable inventories and provides a measure of our financial leverage and, through Net debt to Adjusted EBITDA
relationships, provides an indication of relative financial strength and flexibility.
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 isolation from, or as a
substitute for, analysis of the Group’s results of operations; and they may not be indicative of the Group’s historical operating results,
nor are they meant to be a projection or forecast of its future results.
Listed below are the definitions and reconciliations to the underlying IFRS measures of the various APMs used by the Group.

Proportionate adjustment

For internal reporting and analysis, management evaluates the performance of Antamina copper/zinc mine (34% owned) and
Collahuasi copper mine (44% owned) under the proportionate consolidation method reflecting Glencore’s proportionate share of
the revenues, expenses, assets and liabilities of these investments. In January 2022, Glencore completed the acquisition of theremaining 66.67% interest in Cerrejón (coal), that it did not previously own (see note 26), increasing Glencore’s ownership to 100%and providing it with the ability to exercise control and fully consolidate Cerrejón. Prior to the transaction, Glencore evaluated theperformance of its 33.33% interest in Cerrejón under the proportionate consolidation method, such that 2021 segment comparatives
reflect Glencore’s proportionate share of the revenues, expenses, assets and liabilities of this investment.
Although Glencore has a voting interest in Volcan of 63%, its total economic interest is only 23.3%. For internal reporting and analysis,
management evaluates the performance of Volcan under the equity method, reflecting the Group’s relatively low 23.3% economic
ownership in this fully ring-fenced listed entity, with its stand-alone, independent and separate capital structure. The impact is that
we reflect 23.3% of Volcan’s net income in the Group’s Adjusted EBIT/EBITDA and its consolidated results are excluded from all other
APM’s, including production data. In Q4 2022, Glencore commenced a process exploring the possible disposal of its 23.3% economic
interest in Volcan. As a result, the carrying amounts of Volcan assets and liabilities as at 31 December 2022 are classified as held forsale (see note 16).
The Viterra joint venture is a stand-alone group with a fully independent capital structure, governance and credit profile, supportinga global business, across many geographies, products and activities. Glencore’s management evaluates this investment’s financial
performance on a net return basis, as opposed to an Adjusted EBITDA basis and thus, the financial results of Viterra are presented
on a basis consistent with its underlying IFRS treatment (equity accounting).
See reconciliation of revenue and relevant material associates’ and joint ventures’ Adjusted EBIT to “Share of net income fromassociates and joint ventures” below.

Glencore Preliminary Results 2022

ALTERNATIVE PERFORMANCE MEASURES

Revenue

Revenue represents revenue by segment (see note 2 of the financial statements), as reported on the face of the statementof income plus the relevant Proportionate adjustments. See reconciliation table below.
US$ million

Revenue – Marketing activities
Revenue – Industrial activities
Intersegment eliminations
Revenue - segmental
Proportionate adjustment material associates and joint ventures – revenue
Proportionate adjustment Volcan – revenue
Revenue – reported measure

2022

2021

215,10278,332(34,755)
258,679(3,695)1,000
255,984

177,583
60,810(30,461)
207,932(5,162)
981
203,751

Share of income from relevant material associates and joint ventures
US$ million

2022

2021

Associates’ and joint ventures’ Adjusted EBITDA
Depreciation and amortisation
Associates’ and joint ventures’ Adjusted EBIT

2,687
(641)
2,046

4,001
(687)
3,314

Net finance costs
Income tax expense

(22)
(688)
(710)
1,336
964
2,300

4
(1,211)(1,207)
2,107
511
2,618

Share of income from relevant material associates and joint ventures
Share of income from other associates and joint ventures
Share of income from associates and joint ventures1
1

Comprises share in earnings of $528 million (2021: $492 million) from Marketing activities and share in earnings of $1,772 million (2021: $2,126 million) from Industrial activities.

Adjusted EBIT/EBITDA

Adjusted EBIT/EBITDA provide insight into our overall business performance (a combination of cost management, seizing market
opportunities and growth), and are the corresponding flow drivers towards our objective of achieving industry-leading returns.
Adjusted EBIT is the net result of revenue less cost of goods sold and selling and administrative expenses, plus share of income fromassociates and joint ventures, dividend income and the attributable share of Adjusted EBIT of relevant material associates and joint
ventures, which are accounted for internally by means of proportionate consolidation, excluding Significant items, see below.

Glencore Preliminary Results 2022

ALTERNATIVE PERFORMANCE MEASURES

Adjusted EBITDA consists of Adjusted EBIT plus depreciation and amortisation, including the related Proportionate adjustments.
See reconciliation table below.
US$ million

Reported measures
Revenue
Cost of goods soldSelling and administrative expenses
Share of income from associates and joint ventures
Dividend income
Adjustments to reported measures
Share of associates’ significant items
Movement in unrealised inter-segment profit elimination
Proportionate adjustment material associates and joint ventures – net
finance and income tax expense
Proportionate adjustment Volcan – net finance, income tax expenseand non-controlling interests
Adjusted EBIT
Depreciation and amortisation
Proportionate adjustment material associates and joint ventures – depreciation
Proportionate adjustment Volcan – depreciation
Adjusted EBITDA

2022

2021

255,984(228,723)(2,430)2,300
4527,176

203,751(191,370)(2,115)2,618
23
12,907

9(1,176)

11
549

710

1,207

(62)

(179)

26,657
6,987
641
(225)
34,06014,495
6,335
687
(194)
21,323Significant items
Significant items of income and expense which, due to their variable financial impact or the expected infrequency of the events
giving rise to them, are separated for internal reporting and analysis of Glencore’s results to aid in an understanding andcomparative basis of the underlying financial performance. Refer to reconciliation below.

Reconciliation of net significant items 2022
US$ million

Share of Associates' significant items1
Movement in unrealised inter-segment profit elimination1
Gain on acquisitions and disposals of non-current assets2
Other expense – net3
Tax significant items in their own right4
Impairments attributable to equity holders
Impairments5
Impairment Volcan5
Total significant items
1
2
3
4

Gross
significant Non-controllingcharges interests’ share

Significant
items tax

Equityholders’ share

(9)
1,176
1,287
(911)
–
1,543

–
–
4
–
–
4

–
(141)
(115)
(26)
(486)
(768)

(9)
1,035
1,176
(937)
(486)
779

(3,173)(164)(3,337)(1,794)

338
89
427
431

521
48
569
(199)

(2,314)(27)(2,341)(1,562)

See note 2 of the financial statements.
See note 4 of the financial statements.
See note 5 of the financial statements.
Relates to foreign exchange fluctuations ($187 million), tax losses not recognised ($98 million) and adjustments in respect of prior years ($201 million), see note 8 of the financial
statements.
5 See note 7 of the financial statements.

Glencore Preliminary Results 2022

ALTERNATIVE PERFORMANCE MEASURES

Reconciliation of net significant items 2021
US$ million

Share of Associates' significant items1
Movement in unrealised inter-segment profit elimination1
Loss on acquisitions and disposals of non-current assets2
Other expense – net3
Tax significant items in their own right4
Impairments attributable to equity holders
Impairments5
Total significant items
1

Grosssignificant Non-controllingcharges interests’ share

Significant
items tax

Equityholders’ share

(11)
(549)
(607)
(1,947)–(3,114)

–
–
–
(4)
–
(4)

–
77
(23)
(6)
56
104

(11)
(472)
(630)
(1,957)56(3,014)(1,838)(4,952)

668
664

33
137

(1,137)(4,151)

See note 2 of the financial statements.

2 See note 4 of the financial statements.
3 See note 5 of the financial statements.
4 Relates to foreign exchange fluctuations ($52 million) and tax losses not recognised ($15 million) less adjustments in respect of prior years ($11 million), see note 8 of the financial
statements.
5 See note 7 of the financial statements.

Net income attributable to equity holder pre-significant items

Net income attributable to equity holders pre-significant items is a measure of our ability to generate shareholder returns. The
calculation of tax items to be excluded from Net income, includes the tax effect of significant items and significant tax items
themselves. Refer to reconciliation below.
US$ million

Income for the year attributable to equity holders of the Parent
Significant items
Income attributable to equity holders of the Parent pre-significant items

2022

2021

17,3201,562
18,882

4,974
4,151
9,125

Net funding/Net debt and Net debt to Adjusted EBITDA

Net funding/debt demonstrates how our debt is being managed and is an important factor in ensuring we maintain investment
grade credit rating status and a competitive cost of capital. Net funding is defined as total current and non-current borrowings lesscash and cash equivalents and related Proportionate adjustments. Net debt is defined as Net funding less readily marketable
inventories and related Proportionate adjustments. Consistent with the general approach in relation to our internal reporting andevaluation of Volcan, its consolidated net debt has also been adjusted to reflect the Group’s relatively low 23.3% economic ownership(compared to its 63% voting interest) in this still fully ring-fenced listed entity, with its standalone, independent and separate capital
structure. Furthermore, the relationship of Net debt to Adjusted EBITDA provides an indication of financial flexibility. Seereconciliation table below.

Readily marketable inventories (RMI)
RMI, comprising the core inventories which underpin and facilitate Glencore’s marketing activities, represent inventories, that in
Glencore’s assessment, are readily convertible into cash in the short term due to their liquid nature, widely available markets and thefact that price risk is primarily covered either by a forward physical sale or hedge transaction. Glencore regularly assesses thecomposition of these inventories and their applicability, relevance and availability to the marketing activities. As at 31 December
2022, $27,425 million (2021: $24,795 million) of inventories were considered readily marketable. This comprises $19,157 million (2021:$16,073 million) of inventories carried at fair value less costs of disposal and $8,268 million (2021: $8,722 million) carried at the lower ofcost or net realisable value. Total readily marketable inventories includes $230 million (2021: $125 million) related to the relevantmaterial associates and joint ventures (see note 2) presented under the proportionate consolidation method, comprising inventory
carried at lower of cost or net realisable value. Given the highly liquid nature of these inventories, which represent a significant shareof current assets, the Group believes it is appropriate to consider them together with cash equivalents in analysing Group net debt
levels and computing certain debt coverage ratios and credit trends.

Glencore Preliminary Results 2022

ALTERNATIVE PERFORMANCE MEASURESNet funding/net debt at 31 December 2022

US$ million

ReportedmeasureProportionate
adjustment
material
associates andjoint ventures

Proportionate
adjustment
VolcanAdjustedmeasure18,851
9,926
28,777(1,923)
26,854(27,195)
(341)

845
26
871
(225)
646
(230)
416

–
–
–
–
–
–
–

19,696
9,952
29,648(2,148)27,500(27,425)75

Non-current borrowings
Current borrowings
Total borrowings
Less: cash and cash equivalents
Net funding1
Less: Readily marketable inventories
Net debt/(cash)1
Adjusted EBITDA
Net debt to Adjusted EBITDA

34,0600.00

Net funding/net debt at 31 December 2021

US$ million

ReportedmeasureProportionate
adjustment
material
associates andjoint ventures

Proportionate
adjustment
VolcanAdjustedmeasure26,811
7,830
34,641(3,241)
31,400(24,670)
6,730

467
29
496
(371)
125
(125)
–

(485)
(434)
(919)
231
(688)
–
(688)

26,793
7,425
34,218(3,381)30,837(24,795)
6,042

Non-current borrowings
Current borrowings
Total borrowings
Less: cash and cash equivalents
Net funding1
Less: Readily marketable inventories
Net debt1
Adjusted EBITDA
Net debt to Adjusted EBITDA
121,3230.28

Includes $595 million (2021: $857 million) of Marketing related lease liabilities.

Capital expenditure (“Capex”)

Capital expenditure is expenditure capitalised as property, plant and equipment. For internal reporting and analysis, Capex includes
related Proportionate adjustments. See reconciliation table below.
US$ million

2022

2021

Capital expenditure – Marketing activities
Capital expenditure – Industrial activities
Capital expenditure - segmental
Proportionate adjustment material associates and joint ventures – capital expenditure
Proportionate adjustment Volcan – capital expenditure
Capital expenditure – reported measure

299
4,807
5,106
(694)
233
4,645

801
4,423
5,224
(713)
197
4,708

Glencore Preliminary Results 2022

ALTERNATIVE PERFORMANCE MEASURESNet purchase and sale of property, plant and equipment

Net purchase and sale of property, plant and equipment is cash purchase of property, plant and equipment, net of proceeds fromsale of property, plant and equipment. For internal reporting and analysis, Net purchase and sale of property, plant and equipment
includes proportionate adjustments. See reconciliation table below.

2022 US$ million

Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Net purchase and sale of property, plant and equipment

2021 US$ million

Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Net purchase and sale of property, plant and equipment

ReportedmeasureProportionate
adjustment
material
associates andjoint ventures

Proportionate
adjustment
VolcanAdjustedmeasure(4,177)
63(4,114)

(674)
–
(674)

245
–
245

(4,606)63(4,543)

ReportedmeasureProportionate
adjustment
material
associates andjoint ventures

Proportionate
adjustment
VolcanAdjustedmeasure(3,618)342(3,276)

(695)
3
(692)

174
(8)
166

(4,139)337(3,802)

Funds from operations (FFO) and FFO to Net debt
FFO is a measure that reflects our ability to generate cash for investment, debt servicing and returns to shareholders. It comprises
cash provided by operating activities before working capital changes, less tax and net interest payments plus dividends received
and related Proportionate adjustments. Furthermore, the relationship of FFO to net debt is an indication of our financial flexibility
and strength. See reconciliation table below.
2022

2022 US$ million

Cash generated by operating activities before working capital changes,
interest and tax
Addback EBITDA of relevant material associates and joint ventures
Non-cash adjustments included within EBITDA
Adjusted cash generated by operating activities before working capitalchanges, interest and tax
Income taxes paid
Interest received
Interest paid
Dividends received from associates and joint ventures
Funds from operations (FFO)

2021 US$ million

Cash generated by operating activities before working capital changes,
interest and tax
Addback EBITDA of relevant material associates and joint ventures
Adjusted cash generated by operating activities before working capitalchanges, interest and tax
Income taxes paid
Interest received
Interest paid
Dividends received from associates and joint ventures
Funds from operations (FFO)
Net debt
FFO to net debt

Glencore Preliminary Results 2022

ReportedmeasureProportionate
adjustment
material
associates andjoint ventures

Proportionate
adjustment
VolcanAdjustedmeasure32,915
–
–

–
2,687
46

–
(285)
(11)

32,9152,402
35

32,915(4,881)234(1,340)1,691
28,6192,733(1,066)3(18)(1,132)
520

(296)
43
(5)
57
–
(201)

35,352(5,904)232(1,301)559
28,938

ReportedmeasureProportionate
adjustment
material
associates andjoint ventures

Proportionate
adjustment
VolcanAdjustedmeasure16,725
–

–
4,001

–
(382)

16,725
3,619

16,725(1,837)100(1,003)
2,375
16,360

4,001
(855)
–
(9)
(2,133)
1,004

(382)
16
(1)
60
–
(307)

20,344(2,676)
99
(952)
242
17,057
6,042
282.3%

1

US$ million

2022

2021

1,923
225
11,185–(333)
13,0003,241
140
11,222(2,543)(1,764)
10,296

ReportedmeasureProportionate
adjustment
material
associates andjoint ventures

Proportionate
adjustment
VolcanAdjustedmeasure

28,619(5,035)(8,234)
(200)
321
455
(476)
604
(4,177)63(1,824)(442)(2,503)238(4,832)
2,577

520
(111)
(61)
–
(167)
–
–
–
(674)
–
–
–
–
–
–
(493)

(201)
(3)
(39)
–
–
–
–
–
245
–
–
–
–
–
–
2

28,938(5,149)(8,334)
(200)
154
455
(476)
604
(4,606)63(1,824)(442)(2,503)238(4,832)
2,086

ReportedmeasureProportionate
adjustment
material
associates andjoint ventures

Proportionate
adjustment
VolcanAdjustedmeasure16,360(5,660)
535
252
(86)
194
(3,618)
342
(970)
10
(163)
(746)
(2,115)
4,335

1,004
(28)
(151)
–
–
–
(695)
3
–
–
–
–
–
133

(307)
(1)
16
–
–
–
174
(8)
–
–
–
–
–
(126)

17,057(5,689)
400
252
(86)
194
(4,139)
337
(970)
10
(163)
(746)
(2,115)
4,342

Cash and cash equivalents – reported
Proportionate adjustment – cash and cash equivalents
Headline committed syndicated revolving credit facilities
Amount drawn under syndicated revolving credit facilities
Amounts drawn under U.S. commercial paper programme
Total
1

Presented on an adjusted measure basis.

US$ million

Funds from operations (FFO)
Net movements in inventories
Net other working capital changes
Increase in long-term advances and loans
Net cash received in acquisitions of subsidiaries
Net cash received from disposal of subsidiaries
Purchase of investments
Proceeds from sale of investments
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Margin payments in respect of financing related hedging activities
Return of capital/distributions to non-controlling interests
Purchase of own shares
Disposal of own shares
Distributions paid to equity holders of the Parent
Cash movement in net funding

US$ million

Funds from operations (FFO)
Net movements in inventories
Net other working capital changes
Net cash received from disposal of subsidiaries
Purchase of investments
Proceeds from sale of investments
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Margin payments in respect of financing related hedging activities
Proceeds paid on acquisition of non-controlling interests in subsidiaries
Return of capital/distributions to non-controlling interests
Purchase of own shares
Distributions paid to equity holders of the Parent
Cash movement in net funding

Glencore Preliminary Results 2022

OTHER RECONCILIATIONSApplicable tax rate
The applicable tax rate represents the effective tax rate which is computed based on the income tax expense, pre-significant items
and related Proportionate adjustments, divided by the earnings before tax, pre-significant items and related Proportionate
adjustments. See reconciliation table below.

US$ million

Total

Adjusted EBIT, pre-significant items
Net finance costs
Adjustments for:Net finance costs from material associates and joint ventures
Proportional adjustment and net finance costs - Volcan
Share of income from other associates pre-significant items
Profit on a proportionate consolidation basis before tax and pre-significant items
Income tax expense, pre-significant items
Adjustments for:Tax expense from material associates and joint ventures
Tax expense from Volcan
Tax expense on a proportionate consolidation basis
Applicable tax rate

26,657(1,336)

US$ million

Tax expense on a proportionate consolidation basis
Adjustment in respect of material associates and joint ventures – tax
Adjustment in respect of Volcan – tax
Tax expense on the basis of the income statement
1

(22)
60
(973)
24,386(6,169)(688)
10(6,847)28.1%

Pre-significant
tax expense

Significant
items tax1

Total
tax expense

6,847
(688)
10
6,169

247
–
(48)
199

7,094
(688)
(38)
6,368

See table above.

US$ million

Total

Adjusted EBIT, pre-significant items
Net finance costs
Adjustments for:Net finance costs from material associates and joint ventures
Proportional adjustment and net finance costs - Volcan
Share of income from other associates pre-significant items
Profit on a proportionate consolidation basis before tax and pre-significant items
Income tax expense, pre-significant items
Adjustments for:Tax expense from material associates and joint ventures
Tax credit from Volcan
Tax expense on a proportionate consolidation basis
Applicable tax rate

14,495(1,140)

US$ million

Tax expense/(credit) on a proportionate consolidation basis
Adjustment in respect of material associates and joint ventures – tax
Adjustment in respect of Volcan – tax
Tax expense/(credit) on the basis of the income statement
1

See table above.

Glencore Preliminary Results 2022

4
55
(522)
12,892(3,163)(1,211)54(4,320)33.5%

Pre-significant
tax expense

Significant
items tax1

4,320
(1,211)
54
3,163

(137)
–
–
(137)

Total
tax expense

4,183(1,211)54
3,026

Copper
CobaltZinc
Lead
NickelGold
SilverFerrochrome
Coal
Oil (entitlement interest basis)

African Copper (Katanga, Mutanda, Mopani)
Katanga
Copper metal
Cobalt2
MutandaCopper metal
Cobalt2
MopaniCopper metal
Total Copper metal
Total Cobalt2

Change Change
2022 vs Q4 22 vs
2021
Q4 21
%
%

Q4
2021

Q1
2022

Q2
2022

Q3
2022

Q4
2022

2022

2021

300.2
7.9
262.0
48.9
31.2
216
7,725
397
27.0
1,129

257.8
9.7
241.5
46.8
30.7
189
6,515
387
28.5
1,500

252.4
11.0
239.2
48.3
27.1
145
6,064
399
26.9
1,632

260.3
12.4
218.9
41.8
23.8
170
5,299
324
26.5
1,690

287.6
10.7
238.9
54.7
25.9
157
5,872
378
28.1
1,309

1,058.1
43.8
938.5
191.6
107.5
661
23,750
1,488
110.0
6,131

1,195.7
31.3
1,117.8
222.3
102.3
809
31,519
1,468
103.3
5,274

Q4
2021

Q1
2022

Q2
2022

Q3
2022

Q4
2022

2022

2021

kt
kt
kt
kt
kt

61.0
5.0
6.3
1.8
–

50.3
4.9
5.3
3.9
–

45.8
6.4
8.6
3.8
–

56.7
7.6
8.2
3.8
–

67.3
6.6
11.2
3.2
–

220.1
25.5
33.3
14.7
–

264.4
23.8
6.3
3.9
6.5

(17)
7
429
277
(100)

10
32
78
78
n.m.

kt
kt

67.3
6.8

55.6
8.8

54.4
10.2

64.9
11.4

78.5
9.8

253.4
40.2

277.2
27.7

(9)
45

17
44

kt
kt
kt
kt
kt
koz
koz
kt
mt
kboe

(12)
40
(16)
(14)
5
(18)
(25)
1
6
16

(4)
35
(9)
12
(17)
(27)
(24)
(5)
4
16

Change Change
2022 vs Q4 22 vs
2021
Q4 21
%
%

Collahuasi3

Copper in concentrates
Silver in concentrates
Gold in concentrates

kt
koz
koz

66.0
990
12

65.7
939
11

62.1
864
8

60.4
738
9

62.9
809
10

251.1
3,350
38

277.2
4,219
45

(9)
(21)
(16)

(5)
(18)
(17)

Antamina4

Copper in concentrates
Zinc in concentrates
Silver in concentrates

kt
kt
koz

38.7
34.6
1,452

36.8
37.7
1,279

40.4
34.5
1,327

38.9
39.6
1,340

36.4
32.5
1,018

152.5
144.3
4,964

150.0
153.7
6,135

2
(6)
(19)

(6)
(6)
(30)

Other South America (Antapaccay, Lomas Bayas)
Antapaccay
Copper in concentrates
ktGold in concentrates
koz
Silver in concentrates
koz
Lomas Bayas Copper metal
kt

45.5
22
416
16.5

37.4
14
343
17.6

36.3
15
300
17.4

34.8
13
263
18.2

42.5
19
316
19.4

151.0
61
1,222
72.6

170.8
90
1,382
64.3

(12)
(32)
(12)
13

(7)
(14)
(24)
18

kt
kt

16.5
45.5

17.6
37.4

17.4
36.3

18.2
34.8

19.4
42.5

72.6
151.0

64.3
170.8

13
(12)

18
(7)

koz

22

14

15

13

19

61

90

(32)

(14)

koz

416

343

300

263

316

1,222

1,382

(12)

(24)

Total Copper metal
Total Copper in concentrates
Total Gold in concentrates
and in doré
Total Silver in concentrates
and in doré

Glencore Preliminary Results 2022

PRODUCTION BY QUARTER – Q4 2021 TO Q4 2022

Q1
2022

Q2
2022

Q3
2022

Q4
2022

2022

2021

kt
koz
koz

10.7
15
45

–
–
–

–
–
–

–
–
–

–
–
–

–
–
–

44.8
64
195

(100)
(100)
(100)

(100)
(100)
(100)

Copper in concentrates
Silver in concentrates

kt
koz

11.8
136

9.3
111

9.5
101

7.3
95

11.2
139

37.3
446

40.5
459

(8)
(3)

(5)
2

Total Copper metal
Total Copper in concentrates
Total Gold
Total Silver

kt
kt
koz
koz

10.7
11.8
15
181

–
9.3
–
111

–
9.5
–
101

–
7.3
–
95

–
11.2
–
139

–
37.3
–
446

44.8
40.5
64
654

(100)
(8)
(100)
(32)

(100)
(5)
(100)
(23)

kt
kt
kt
koz
koz

256.5
6.8
34.6
49
3,039

222.4
8.8
37.7
25
2,672

220.1
10.2
34.5
23
2,592

224.5
11.4
39.6
22
2,436

250.9
9.8
32.5
29
2,282

917.9
40.2
144.3
99
9,982

1,024.8
27.7
153.7
199
12,390

(10)
45
(6)
(50)
(19)

(2)
44
(6)
(41)
(25)

Australia (Ernest Henry, Cobar)
Ernest Henry
Copper metalGold
SilverCobar

Change Change
2022 vs Q4 22 vs
2021
Q4 21
%
%

Q4
2021

Total Copper department
CopperCobaltZinc
Gold
SilverGlencore Preliminary Results 2022

PRODUCTION BY QUARTER – Q4 2021 TO Q4 2022

Change Change
2022 vs Q4 22 vs
2021
Q4 21
%
%

Q4
2021

Q1
2022

Q2
2022

Q3
2022

Q4
2022

2022

2021

kt
kt
kt
kt
kt
koz
koz
koz

42.7
–
4.9
–
7.3
163
980
–

35.9
0.3
5.4
–
6.1
158
837
–

31.6
6.1
4.4
–
4.2
119
603
–

30.2
5.7
3.3
–
5.9
144
583
–

28.0
8.6
3.8
0.4
4.3
125
698
12

125.7
20.7
16.9
0.4
20.5
546
2,721
12

147.9
–
19.8
–
25.6
595
2,921
–

(15)
n.m.
(15)
n.m.
(20)
(8)
(7)
n.m.

(34)
n.m.
(22)
n.m.
(41)
(23)
(29)
n.m.

Kazzinc – total production including third party feedkt
Zinc metalkt
Lead metalkt
Copper metal
koz
Gold
koz
Silver

76.4
28.9
15.9
269
6,378

71.7
27.7
15.3
216
5,731

68.5
28.0
12.3
210
5,517

61.2
26.1
14.3
224
5,798

55.5
25.8
13.9
262
4,959

256.9
107.6
55.8
912
22,005

291.4
111.1
52.2
925
22,454

(12)
(3)
7
(1)
(2)

(27)
(11)
(13)
(3)
(22)

Australia (Mount Isa, McArthur River)
Mount Isa
Zinc in concentrates
Copper metal
Lead in concentrates
SilverSilver in concentrates

75.6
25.0
24.5
235
869

63.7
16.8
22.6
113
741

72.9
12.2
29.3
125
1,080

66.4
18.4
26.6
112
921

87.2
23.1
36.0
207
1,383

290.2
70.5
114.5
557
4,125

329.8
91.5
132.9
625
4,718

(12)
(23)
(14)
(11)
(13)

15
(8)
47
(12)
59

Mount Isa, Townsville – total production including third party feed
Copper metal
kt
51.9
Gold
koz
42
Silver
koz
700

46.7
34
427

37.0
36
457

51.6
35
423

56.2
43
578

191.5
148
1,885

226.8
161
1,829

(16)
(8)
3

8
2
(17)

McArthur River Zinc in concentrates
Lead in concentrates
Silver in concentratesKazzinc

Zinc metal
Zinc in concentrates
Lead metal
Lead in concentrates
Copper metal5Gold
SilverSilver in concentrates

Total Zinc in concentrates
Total Copper
Total Lead in concentrates
Total Silver
Total Silver in concentrates
North America (Matagami, Kidd)
Matagami
Zinc in concentrates
Copper in concentrates
Kidd
Zinc in concentrates
Copper in concentrates
Silver in concentrates
Total Zinc in concentrates
Total Copper in concentrates
Total Silver in concentrates

Glencore Preliminary Results 2022

kt
kt
kt
koz
koz

kt
kt
koz

72.0
15.7
602

71.6
15.5
539

67.8
12.5
330

63.9
10.3
227

70.5
13.1
371

273.8
51.4
1,467

279.6
55.2
1,803

(2)
(7)
(19)

(2)
(17)
(38)

kt
kt
kt
koz
koz

147.6
25.0
40.2
235
1,471

135.3
16.8
38.1
113
1,280

140.7
12.2
41.8
125
1,410

130.3
18.4
36.9
112
1,148

157.7
23.1
49.1
207
1,754

564.0
70.5
165.9
557
5,592

609.4
91.5
188.1
625
6,521

(7)
(23)
(12)
(11)
(14)

7
(8)
22
(12)
19

kt
kt
kt
kt
koz

10.0
1.7
10.7
3.1
307

8.9
1.5
9.0
4.8
220

8.4
1.7
13.6
8.3
529

–
–
8.2
7.1
305

–
–
8.4
4.9
292

17.3
3.2
39.2
25.1
1,346

47.4
7.1
48.7
23.2
1,383

(64)
(55)
(20)
8
(3)

(100)
(100)
(21)
58
(5)

kt
kt
koz

20.7
4.8
307

17.9
6.3
220

22.0
10.0
529

8.2
7.1
305

8.4
4.9
292

56.5
28.3
1,346

96.1
30.3
1,383

(41)
(7)
(3)

(59)
2
(5)

PRODUCTION BY QUARTER – Q4 2021 TO Q4 2022

Change Change
2022 vs Q4 22 vs
2021
Q4 21
%
%

Q4
2021

Q1
2022

Q2
2022

Q3
2022

Q4
2022

2022

2021

Other Zinc: South America (Argentina, Bolivia, Peru)6
Zinc in concentrates
kt
Lead in concentrates
kt
Copper in concentrates
kt
Silver in concentrates
koz

16.4
3.8
0.5
1,634

14.4
3.3
0.4
1,351

4.3
2.1
0.3
757

4.9
1.6
0.4
670

3.7
1.4
0.3
567

27.3
8.4
1.4
3,345

110.7
14.4
1.7
7,383

(75)
(42)
(18)
(55)

(77)
(63)
(40)
(65)

Total Zinc department
Zinc
Lead
CopperGold
Silver

227.4
48.9
37.6
163
4,627

203.8
46.8
29.6
158
3,801

204.7
48.3
26.7
119
3,424

179.3
41.8
31.8
144
2,818

206.4
54.7
32.6
125
3,530

794.2
191.6
120.7
546
13,573

964.1
222.3
149.1
595
18,833

(18)
(14)
(19)
(8)
(28)

(9)
12
(13)
(23)
(24)

Glencore Preliminary Results 2022

kt
kt
kt
koz
koz

PRODUCTION BY QUARTER – Q4 2021 TO Q4 2022

Change Change
2022 vs Q4 22 vs
2021
Q4 21
%
%

Q4
2021

Q1
2022

Q2
2022

Q3
2022

Q4
2022

2022

2021

Integrated Nickel Operations (Sudbury, Raglan, Nikkelverk)
Nickel metalkt
14.3
Nickel in concentrates
kt–
Copper metalkt
3.7
Copper in concentrateskt
2.4
Cobalt metal
kt
0.3
Gold
koz
4
Silverkoz
59
Platinumkoz
9Palladiumkoz
23
Rhodium
koz
1

15.9
–
4.0
1.8
0.2
6
42
7
25
1

11.8
0.1
3.2
2.4
0.1
3
48
10
25
1

8.8
–
2.2
1.8
0.2
4
45
7
17
1

9.7
0.1
2.5
1.6
0.1
3
60
8
16
1

46.2
0.2
11.9
7.6
0.6
16
195
32
83
4

55.0
0.2
13.5
8.3
1.1
15
296
33
83
4

(16)
–
(12)
(8)
(45)
7
(34)
(3)
–
–

(32)
n.m.
(32)
(33)
(67)
(25)
2
(11)
(30)
–

Murrin Murrin

Nickel metal
Nickel in concentrates
Copper metal
Copper in concentrates
Cobalt metalGold
SilverPlatinum
Palladium
Rhodium

kt
kt
kt
kt
kt
koz
koz
koz
koz
koz

21.8
0.1
5.2
2.5
1.0
8
121
20
58
1

22.6
0.1
5.1
2.2
0.9
9
126
17
62
1

19.8
–
5.0
3.3
0.7
7
127
22
63
1

15.9
0.1
3.7
2.4
0.6
7
111
14
47
1

23.6
–
4.7
2.7
0.9
6
130
16
49
2

81.9
0.2
18.5
10.6
3.1
29
494
69
221
5

91.2
0.3
20.1
10.3
4.0
29
511
73
220
4

(10)
(33)
(8)
3
(23)
–
(3)
(5)
–
25

8
(100)
(10)
8
(10)
(25)
7
(20)
(16)
100

Total Nickel metal
Total Cobalt metal

kt
kt

9.6
0.8

7.7
0.7

9.4
0.7

9.5
0.8

9.1
0.8

35.7
3.0

30.1
2.5

19
20

(5)
–

11.0
0.9

8.9
0.8

10.7
0.8

10.5
0.8

10.3
0.9

40.4
3.3

33.7
2.8

20
18

(6)
–

kt

7.3

7.1

5.8

5.5

7.0

25.4

17.0

49

(4)

kt
kt
kt
koz
koz
koz
koz
koz

31.2
6.1
1.1
4
59
9
23
1

30.7
5.8
0.9
6
42
7
25
1

27.1
5.6
0.8
3
48
10
25
1

23.8
4.0
1.0
4
45
7
17
1

25.9
4.1
0.9
3
60
8
16
1

107.5
19.5
3.6
16
195
32
83
4

102.3
21.8
3.6
15
296
33
83
4

5
(11)
–
7
(34)
(3)
–
–

(17)
(33)
(18)
(25)
2
(11)
(30)
–

Murrin Murrin – total production including third party feed
Total Nickel metal
kt
Total Cobalt metal
kt
Koniambo

Nickel in ferronickel

Total Nickel department
NickelCopperCobaltGold
SilverPlatinum
Palladium
Rhodium

Glencore Preliminary Results 2022

PRODUCTION BY QUARTER – Q4 2021 TO Q4 2022

Change Change
2022 vs Q4 22 vs
2021
Q4 21
%
%

Q4
2021

Q1
2022

Q2
2022

Q3
2022

Q4
2022

2022

2021

397
5.3

387
5.5

399
4.4

324
4.4

378
5.5

1,488
19.8

1,468
20.5

Q4
2021

Q1
2022

Q2
2022

Q3
2022

Q4
2022

2022

2021

114.3
123.4

108.8
111.4

123.2
126.8

94.2
104.8

130.7
131.9

456.9
474.9

490.6
454.0

(7)
5

14
7

Zinc (Portovesme, San Juan de Nieva, Nordenham, Northfleet)
Zinc metal
kt
195.5
Lead metal
kt
80.4

179.0
82.0

171.9
77.0

176.9
57.1

155.2
57.3

683.0
273.4

800.6
244.9

(15)
12

(21)
(29)

Ferrochrome7
Vanadium pentoxide

Copper (Altonorte, Pasar, Horne, CCR)
Copper metal
Copper anode

Glencore Preliminary Results 2022

kt
mlb

kt
kt

1
(3)

(5)
4

Change Change
2022 vs Q4 22 vs
2021
Q4 21
%
%

PRODUCTION BY QUARTER – Q4 2021 TO Q4 2022

Australian coking coal
Australian semi-soft coal
Australian thermal coal (export)
Australian thermal coal (domestic)
South African thermal coal (export)
South African thermal coal (domestic)
Cerrejón8
Total Coal department

mt
mt
mt
mt
mt
mt
mt
mt

Q4
2021

Q1
2022

Q2
2022

Q3
2022

Q4
2022

2022

2021

2.5
1.0
15.4
1.8
3.1
1.0
2.2
27.0

2.1
0.9
13.4
1.4
3.4
1.1
6.2
28.5

1.8
0.9
14.2
1.6
2.9
0.9
4.6
26.9

2.3
1.0
12.1
2.4
3.5
0.9
4.3
26.5

2.5
1.2
13.7
2.4
2.9
0.8
4.6
28.1

8.7
4.0
53.4
7.8
12.7
3.7
19.7
110.0

9.1
4.5
55.9
6.0
14.7
5.3
7.8
103.3

Q4
2021

Q1
2022

Q2
2022

Q3
2022

Q4
2022

2022

2021

Change Change
2022 vs Q4 22 vs
2021
Q4 21
%
%

(4)
(11)
(4)
30
(14)
(30)
153
6

–
20
(11)
33
(6)
(20)
109
4

Change Change
2022 vs Q4 22 vs
2021
Q4 21
%
%

Glencore entitlement interest basis
Equatorial Guinea
Cameroon
Total Oil department

kboe
kbbl
kboe

818
311
1,129

1,227
273
1,500

1,318
314
1,632

1,458
232
1,690

1,104
205
1,309

5,107
1,024
6,131

4,141
1,133
5,274

23
(10)
16

35
(34)
16

Gross basis
Equatorial Guinea
Cameroon
Total Oil department

kboe
kbbl
kboe

4,086
730
4,816

5,956
680
6,636

6,406
676
7,082

7,089
571
7,660

6,858
508
7,366

26,3092,435
28,744

20,1372,866
23,003

31
(15)
25

68
(30)
53

1
2
3
4
5
6
7
8

Controlled industrial assets and joint ventures only. Production is on a 100% basis except for joint ventures, where the Group’s attributable share of production is included.
Cobalt contained in concentrates and hydroxides.
The Group’s pro-rata share of Collahuasi production (44%).
The Group’s pro-rata share of Antamina production (33.75%).
Copper metal includes copper contained in copper concentrates and blister.
South American production excludes Volcan Compania Minera.
The Group’s attributable 79.5% share of the Glencore-Merafe Chrome Venture.
2021 numbers represented the Group’s pro-rata share of Cerrejón production (33.3%). Glencore acquired the remaining 66.7% of Cerrejón in January 2022, such that 2022 production ispresented on a 100% basis.

Glencore Preliminary Results 2022

ADER

CopperCobaltZinc
NickelFerrochrome
Coal1

Excludes Volcan.

Glencore Preliminary Results 2022

kt
kt
kt
kt
kt
mt

ActualFY
2020

ActualFY
2021

ActualFY
2022

Guidance
FY
2023

1,258
27.4
1,170
110
1,029
106

1,196
31.3
1,118
102
1,468
103

1,058
43.8
939
108
1,488
110

1,040 ± 30
38 ± 5950 ± 30 1
112 ± 5
1,310 ± 30
110 ± 5

This document contains statements that are, or may be deemed to be, “forward-looking statements” which are prospective innature. Such statements may include, but are not limited to, statements in respect of trends in commodity prices and currency
exchange rates; demand for commodities; reserves and resources and production forecasts; expectations, plans, strategies andobjectives of management; climate scenarios; sustainability performance (including environmental, social and governance) related
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Forward-looking statements are not based on historical facts, but rather on current predictions, expectations, beliefs, opinions, plans,
objectives, goals, intentions and projections about future events, results of operations, prospects, financial conditions anddiscussions of strategy, and reflect judgments, assumptions, estimates and other information available as at the date of thisdocument or the date of the corresponding planning or scenario analysis process.
By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause
actual results, performance or achievements to differ materially from any future event, results, performance, achievements or otheroutcomes expressed or implied by such forward-looking statements. Important factors that could impact these uncertainties
include, but are not limited to, those disclosed in the risk management section of our latest Annual Report and Half-Year Report(which can each be found on our website). These uncertainties may materially affect the timing and feasibility of particulardevelopments. Other factors include, without limitation, the ability to produce and transport products profitably; demand for our
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Neither Glencore nor any of its affiliates, associates, employees, directors, officers or advisers, provides any representation, warranty,
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Except as required by applicable regulations or by law, Glencore is not under any obligation, and Glencore and its affiliates expressly
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been no change in the business or affairs of Glencore since the date of this document or that the information contained herein iscorrect as at any time subsequent to its date.
No statement in this document is intended as a profit forecast or a profit estimate and past performance cannot be relied on as a
guide to future performance. This document does not constitute or form part of any offer or invitation to sell or issue, or any
solicitation of any offer to purchase or subscribe for any securities. Certain statistical and other information about Glencore includedin this document is sourced from publicly available third-party sources. As such it has not been independently verified and presents
the view of those third parties, but may not necessarily correspond to the views held by Glencore and Glencore expressly disclaims
any responsibility for, or liability in respect of, such information.
Due to the inherent uncertainty and limitations in measuring greenhouse gas and air emissions and operational energy
consumption under the calculation methodologies used in the preparation of such data, all greenhouse gas and air emissions andoperational energy consumption data or volume references (including ratios and/or percentages) in this document are estimates.
There may also be differences in the manner that third parties calculate or report such data compared to Glencore, which meansthat third-party data may not be comparable to Glencore’s data. For information on how we calculate our greenhouse gas and air
emissions and operational energy consumption data, see our latest Reporting criteria for selected KPIs, Climate Report andExtended ESG Data, which can be found on our website.
The companies in which Glencore plc directly and indirectly has an interest are separate and distinct legal entities. In this document,“Glencore”, “Glencore group” and “Group” are used for convenience only where references are made to Glencore plc and its
subsidiaries in general. These collective expressions are used for ease of reference only and do not imply any other relationshipbetween the companies. Likewise, the words “we”, “us” and “our” are also used to refer collectively to members of the Group or tothose who work for them. These expressions are also used where no useful purpose is served by identifying the particular company
or companies..

Glencore Preliminary Results 2022