Sylvain Brunet

Sylvain Brunet of BNP Paribas inquired about Glencore's long-term intentions for its stake in the merged Viterra-Bunge entity and whether its new lithium marketing deal signals a move towards acquiring lithium production assets.

Answer

CEO Gary Nagle stated that no decisions have been made regarding their future shareholding in the Viterra-Bunge entity. He also clarified that while the lithium marketing business is growing, Glencore has no intention of backward integrating into lithium mining assets, citing concerns about the commodity's abundance.

Sylvain Brunet asked if recent global supply vulnerabilities could accelerate the development of the El Pachon copper project. He also requested details on the capital expenditure in the recycling business and an explanation for the increase in coal CapEx.

Answer

CEO Gary Nagle responded that while preparatory work on El Pachon continues, they will not accelerate development, citing new market supply from competitors and a strategy to prioritize brownfield projects. He described recycling CapEx as modest and self-funding. CFO Steven Kalmin explained the higher coal CapEx was due to the Cerrejón consolidation, inflation on deferred stripping costs, and fleet replacements.

Sylvain Brunet from Exane BNP Paribas inquired about the impact of Chile's fiscal debate on the Collahuasi asset, whether developed market customers were reducing orders, and the reasons for the recent cobalt price correction.

Answer

CEO Gary Nagle stated they are closely monitoring Chile's reforms. He described a mixed macro environment with weakness in Europe and the US but green shoots in China. He characterized the cobalt price weakness as temporary, driven by Chinese lockdowns, and reiterated a long-term outlook of a structural deficit for the metal.

Sylvain Brunet asked about the sustainability of the Marketing division's strong H1 performance in metals, given market tightness, and sought clarity on the coal versus oil trends within the energy segment. He also inquired about portfolio optimization, potential asset monetization, and the anticipated synergies from the HVO coal transaction.

Answer

CEO Ivan Glasenberg confirmed that the strong metals marketing performance is expected to continue in H2 if commodity prices remain high, citing tighter markets and arbitrage opportunities. CFO Steven Kalmin added that the energy business should match its H1 performance. Regarding the portfolio, Glasenberg explained that asset sales are used to create growth vehicles with partners. He noted HVO synergies would come from utilizing existing infrastructure, with more details to be provided at the November investor day.

Sylvain Brunet asked about BHP's priorities in the Escondida negotiations, for a maintenance CapEx figure to keep oil and copper volumes flat, and about the scale of the Trinidad and Tobago drilling program.

Answer

CEO Andrew Mackenzie outlined that the priority at Escondida is a deal that rewards productivity and ensures a competitive cost structure. He explained that the company does not calculate a 'flat volume' maintenance CapEx, as all growth capital must compete for value. In Trinidad, two wells were drilled, leading to a significant gas discovery and confirmation of a working oil province, with future drilling plans under review.