Preliminary Results 2014

RNS Number : 3222G

Glencore PLC

03 March 2015

NEWS RELEASE

Baar, 3 March 2015

Preliminary Results 2014

Highlights

US$ million	2014 Reported	2013 Pro forma²	Change %	2013 Reported²
Key statement of income and cash flows highlights¹:
Adjusted EBITDA³	12,764	13,071	(2)	10,466
Adjusted EBIT³	6,706	7,434	(10)	5,970
Net income attributable to equity holders pre-significant items⁴	4,285	4,583	(7)	3,666
Earnings per share (pre-significant items) (Basic) (US$)	0.33	0.35	(6)	0.33
Net income/(loss) attributable to equity holders⁵	2,308	2,473	(7)	(8,046)
Funds from operations (FFO)⁶	10,169	10,375	(2)	8,030
Capital expenditure (excluding Las Bambas of $961 million and $1,734 million in 2014 and pro forma 2013 respectively)	8,566	11,316	(24)	8,680

US$ million	31.12.2014 Reported	31.12.2013 Pro forma²	Change %	31.12.2013 Reported²
Key financial position highlights:
Total assets	152,205	154,862	(2)	154,862
Current capital employed (CCE)⁷	21,277	24,292	(12)	24,292
Net debt⁶	30,532	35,798	(15)	35,798
Ratios:
FFO to Net debt⁶	33.3%	29.0%	15	22.4%
Net debt to Adjusted EBITDA	2.39x	2.74x	(13)	3.42x
Adjusted EBITDA to net interest	8.68x	9.12x	(5)	7.54x
Adjusted current ratio³	1.23x	1.18x	4	1.18x

1 Refer to basis of preparation on page 5.

2 2013 has been adjusted to reflect the updated fair value acquisition accounting for the acquisitions of Xstrata (see note 25).

3 Refer to note 2 of the financial statements for definition and reconciliation of Adjusted EBIT/EBITDA.

4 Refer to significant items table on page 7.

5 2013 reported, adjusted by $(466) million as a result of the finalisation of the fair value adjustments relating to the acquisition of Xstrata and the resulting increase to the associated impairment (does not impact EBIT and EBITDA), see note 4 of the financial statements. Refer to page 122 for pro forma results and page 7 for reported results.

6 Refer to page 9.

7 Refer to glossary for definition.

• Adjusted EBITDA of $12.8 billion in 2014 was modestly down on 2013 (2%), notwithstanding the weaker commodity price environment, reflecting:

- Marketing Adjusted EBITDA up 15% to $3.0 billion (Adjusted EBIT up 18% to $2.8 billion), including significant earnings growth within Agriculture, on the back of strong results from Viterra.

- Industrial Adjusted EBITDA lower by 7% to $9.8 billion, due to generally lower prices, largely offset by the positive impacts of production growth, real unit cost savings and weaker producer currencies.

• Production growth consisted of:

- Copper up 4% to 1.5 million tonnes, principally due to the ramp-up of Mutanda, up 31% to 197,000 tonnes, with the operation running at close to capacity throughout the year.

- Higher zinc from Mount Isa, McArthur River and Perkoa as their expansion projects ramp-up, keeping overall zinc in line with 2013 at 1.4 million tonnes, despite lost production from the planned closures of the Perseverance and Brunswick mines in 2013.

- Coal up 6% to 146.3 million tonnes, relating to productivity improvements and delivery of various advanced stage Australian thermal coal projects. A 3 week shutdown at our Australian coal operations was carried out over December 2014 and January 2015 in response to the subdued market environment.

- Glencore oil entitlement was 7.4 million barrels, 47% higher than 2013. The increase relates to full year production from the Alen and Badila fields and increased ownership of the Chad assets following the Caracal acquisition. Mangara started production at the end of December 2014 and is expected to ramp-up during 2015.

• FFO was broadly in line with 2013 at $10.2 billion, reflecting the resilient operating performance noted above.

• Net debt decreased by $5.3 billion to $30.5 billion, reflecting robust operating cashflow, proceeds from the sale of Las Bambas, a 25% reduction in net capital expenditure and active working capital management.

• Overall balance sheet remains strong and flexible with $9.4 billion of committed available liquidity at year-end.

• Progressive capital management:

- Our announced $1 billion share buyback programme returned to shareholders some $760 million by 31 December 2014; $930 million as of today.

- Board has recommended a final cash distribution of $12 cents per share ($18 cents for the full year), 9% higher than 2013, reflecting our continued confidence in the strength and prospects of the Group.

• Ongoing portfolio management reflects:

- Completion of the sale of Las Bambas noted above.

- Consolidation of our interests in Chad through the acquisition of Caracal.

- Proposed in specie distribution of our non-core 23.9% stake in Lonmin.

- Responding to the volatile market backdrop, we comprehensively reviewed the appropriate level of capex for 2015. Originally guided to $7.9 billion, we now expect 2015 total industrial capex to be in the $6.5-$6.8 billion range, with reduced spend across the broad portfolio.

Glencore's Chief Executive Officer, Ivan Glasenberg, commented:

"Our ultimate goal remains to grow our free cash flow and return excess capital in the most sustainable and efficient manner. As the most diversified raw material producer and marketer, Glencore is well positioned to react to and benefit from changes in commodity fundamentals. Glencore will continue to focus on maximising the value of the potential within our businesses. We look forward to the future with confidence."

In addition, Glencore has today published on its website (www.glencore.com) a presentation which contains a summary of the 2014 preliminary results.

Investors	Media
Paul Smith t: +41 (0)41 709 24 87 m: +41 (0)79 947 13 48 e: paul.smith@glencore.com	Charles Watenphul t: +41 (0)41 709 24 62 m: +41 (0)79 904 33 20 e: charles.watenphul@glencore.com

Investors	Investors
Martin Fewings t: +41 (0)41 709 28 80 m: +41 (0)79 737 56 42 e: martin.fewings@glencore.com	Elisa Morniroli t: +41 (0)41 709 28 18 m: +41 (0)79 833 05 08 e: elisa.morniroli@glencore.com

www.glencore.com

CEO Review

Background

2014 was a year of challenges and opportunities for Glencore. The gradual process of normalisation following the financial crisis has continued, but at a slower pace than many expected. In fact, some of the most important legacies of the crisis continue to drag on, including those relating to Europe. From a geopolitical perspective we have seen heightened tension in the Middle East and the resurgence of conflict in Ukraine.

Financial performance

Against this background we completed the integration of Xstrata during 2014 and achieved the targeted pre-tax margin and cost synergies of $2.4 billion. Further cash flow improvements are expected over the next two years as the balance of our legacy expansionary capital programs are realised.

In marketing, the integration of Xstrata's coal, copper and zinc production, combined with Viterra's infrastructure, helped deliver Adjusted EBIT of $2.8 billion, up 18% on 2013. This performance, despite weaker commodity prices for many of our key commodities, was particularly pleasing and once again demonstrates the resilience of our business model.

The performance of our industrial activities inevitably reflected the weaker price environment, particularly in energy products, where price falls were the greatest. Industrial Adjusted EBITDA was down 7% to $9.8 billion. However, despite the weaker market environment, overall Group Adjusted EBITDA only declined by a modest 2% to $12.8 billion.

We also continued to selectively recycle capital. Notable deals included the sale of the Las Bambas copper project in Peru for $6.5 billion (net of tax) and the consolidation of the Caracal oil assets in Chad. Despite the generally weaker commodity price backdrop, we are pleased to announce a final cash distribution for 2014 of $12 cents per share. We were able to grow our base cash distribution in 2014. Additionally we have also recently announced an in-specie distribution of our non-core stake in Lonmin and to date we have completed 93% of the buy-back of $1 billion of our equity, delivering c. 1.2% EPS accretion. Glencore will have returned $9.3 billion to its shareholders since the IPO in 2011 (inclusive of $639 million of repurchased convertible bonds).

Corporate Governance

We have strengthened our Board of Directors with the appointment of Patrice Merrin and the elevation of Tony Hayward to the role of permanent Chairman. Peter Grauer has assumed the role of Senior Independent Director.

Sustainability

It is with great sadness that we report 16 fatalities at our operations in 2014. This regrettably high level partly reflects the nature, location and history of some of the operations which Glencore has acquired. 13 of the 16 fatalities occurred at a small number of assets employing 60,000 people, located in challenging geographies where a culture of safety did not exist prior to our involvement. The remaining 3 incidents occurred at our more developed operations, employing 140,000 people, representing a world class safety performance; our ongoing challenge and commitment is to embed this performance into the aforementioned 'focus assets'. We are overall encouraged that the number of fatalities is lower than in previous years, and remain determined to eliminate fatalities completely.

During 2013 we initiated the SafeWork programme to enhance safety in the workplace. SafeWork has now been rolled out worldwide and 118,000 employees were trained during 2014. The long-term injury frequency rate declined from 1.93 to 1.58. These improvements reflect the focused implementation of safety best practice procedures at our operations, championed and led by our Board and senior management team. In May 2014 we joined the International Council on Mining and Metals (ICMM): recognition that we have been implementing best practices across the Group.

Looking forwards

We remain committed to a strong BBB/Baa balance sheet and our clearly established disciplined approach to allocating capital. We will focus only on high-returning opportunistic M&A and brownfield growth opportunities. Our ultimate goal remains to grow our free cash flow and return excess capital in the most sustainable and efficient manner.

As the most diversified raw material producer and marketer, Glencore is well positioned to react to and benefit from changes in commodity fundamentals. Glencore will continue to focus on maximising the value of the potential within our businesses.

In response to the challenging market environment we have decided to curtail coal production at Optimum in South Africa and a number of our coal operations in Australia to better align volumes and qualities with current market demand.

Further to these coal production changes and associated capex reductions/deferrals, following a recent review of the Group's overall asset portfolio in response to weaker prices (and aided by lower input costs), we are now guiding 2015 industrial capex to the $6.5-6.8 billion range, compared to our earlier Investor Day guidance of $7.9 billion.

While there remains the potential for future economic setbacks and no shortage of bearishness towards commodities in financial markets, physical demand for our raw materials remains healthy. We anticipate tightening supply conditions to materialise in our key commodities in response to lower prices, production / investment cutbacks and falling grades.

We would like to thank our employees, debt capital providers and shareholders for their support during 2014 and look forward to the future with confidence.

Ivan Glasenberg

Chief Executive Officer

Financial Review

Basis of presentation

The reported financial information has been prepared on the basis as outlined in note 1 of the financial statements with the exception of the accounting treatment applied to certain associates and joint ventures for which Glencore's attributable share of revenues and expenses are presented (see note 2).

The unaudited and unreviewed pro forma financial information for 2013 has been prepared in a manner consistent with the accounting policies applicable for periods ending on or after 1 January 2013 as outlined in note 1 of the financial statements with the exception of the accounting treatment applied to certain associates and joint ventures for which Glencore's attributable share of revenues and expenses are presented (see note 2) and reflects the final fair value adjustments arising from the acquisition of Xstrata on 2 May 2013 as if the acquisition and full consolidation of such had taken place as of 1 January 2013. These adjustments primarily relate to depreciation, amortisation and the release of onerous and unfavourable contract provisions. The pro forma financial information has been prepared for illustrative purposes only and, because of its nature, addresses a hypothetical situation and therefore does not reflect the Group's actual financial position or results.

A reconciliation of the pro forma results to the reported results for the year ended 31 December 2013 is included in the glossary.

The reported and pro forma financial information is presented in the Financial Review section before significant items unless otherwise stated to provide an enhanced understanding and comparative basis of the underlying financial performance. Significant items (refer to page 8) are items of income and expense which, due to their financial impact and nature or the expected infrequency of the events giving rise to them, are separated for internal reporting and analysis of Glencore's results.

Financial results

Compared to the 2013 pro forma results, 2014 Adjusted EBITDA decreased by 2% to $12,764 million and Adjusted EBIT was down 10% to $6,706 million, as the impact of generally lower commodity prices on our industrial assets, offset the benefits of a net production increase, currency related cost benefits and an 18% increase in marketing Adjusted EBIT to $2,790 million.

These results continue to reinforce the strength and resilience of Glencore's business model and the diversification benefits associated with combining and integrating, across a broad spectrum of commodities, a portfolio of industrial assets with large scale physical sourcing, marketing and logistics capabilities.

Adjusted EBITDA/EBIT

Adjusted EBITDA by business segment is as follows:

US$ million	Marketing activities Reported	Industrial activities Reported	2014 Adjusted EBITDA Reported	Marketing activities Pro forma	Industrial activities Pro forma	2013 Adjusted EBITDA Pro forma	%	2013 Adjusted EBITDA Reported
Metals and minerals	1,545	7,077	8,622	1,643	7,203	8,846	(3)	6,939
Energy products	565	2,841	3,406	666	3,378	4,044	(16)	3,196
Agricultural products	996	213	1,209	383	61	444	172	444
Corporate and other	(105)	(368)	(473)	(93)	(170)	(263)	n.m.	(113)
Total	3,001	9,763	12,764	2,599	10,472	13,071	(2)	10,466

Adjusted EBIT by business segment is as follows:

US$ million	Marketing activities Reported	Industrial activities Reported	2014 Adjusted EBIT Reported	Marketing activities Pro forma	Industrial activities Pro forma	2013 Adjusted EBIT Pro forma	%	2013 Adjusted EBIT Reported
Metals and minerals	1,515	3,674	5,189	1,622	4,036	5,658	(8)	4,364
Energy products	524	486	1,010	629	1,244	1,873	(46)	1,536
Agricultural products	856	136	992	198	(6)	192	417	192
Corporate and other	(105)	(380)	(485)	(93)	(196)	(289)	n.m.	(122)
Total	2,790	3,916	6,706	2,356	5,078	7,434	(10)	5,970

Marketing Adjusted EBITDA in 2014 increased by 15% to $3,001 million, while Marketing Adjusted EBIT was up 18% to $2,790 million, representing 42% of total Adjusted EBIT, up from 32% in the comparable period. Metals and minerals Adjusted marketing EBIT, while still delivering a solid overall contribution, was down 7% over 2013, with iron ore having faced particularly challenging marketing conditions during the year. Energy products Adjusted marketing EBIT was down 17% compared to 2013, reflecting the oversupplied coal and 'flat' oil markets that prevailed during the first half of 2014, however market conditions, notably in oil, were more supportive towards the end of the year, on account of increased volatility and curve structure. The Agricultural products Adjusted marketing EBIT was up $658 million compared to 2013, on the back of strong results from Viterra and also improved results from the traditional marketing business and industrial activities, albeit from a low 2013 base.

Industrial Adjusted EBITDA decreased by 7% to $9,763 million, owing to weaker average year over year commodity prices including coal, gold, silver, oil and copper down 8-20%, 10%, 21%, 9% and 6% respectively. Average nickel and zinc prices were the main exceptions, increasing by 13% each during the year. The net lower prices were partially mitigated by weaker producer currencies (notably the Tenge, Rand, and Canadian and Australian dollars, down relative to the US dollar, by 18%, 12%, 7% and 7% respectively), increased production, notably Mutanda, as it delivered on its 200,000 tonnes per annum target and a stronger Agricultural industrial performance.

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	2014 Reported	2013 Pro forma	2013 Reported
Adjusted EBIT¹	6,706	7,434	5,970
Net finance and income tax expense in certain associates and joint ventures¹	(329)	(436)	(335)
Net finance costs	(1,439)	(1,434)	(1,365)
Income tax expense	(499)	(712)	(426)
Non-controlling interests	(154)	(269)	(178)
Income attributable to equity holders pre-significant items	4,285	4,583	3,666
Earnings per share (Basic) pre-significant items (US$)	0.33	0.35	0.33

Significant items impacting Adjusted EBITDA and Adjusted EBIT
Share of Associates' exceptional items²	(74)	-	(51)
Mark to market loss on certain aluminium positions³	-	(95)	(95)
Unrealised intergroup profit elimination and other³	(221)	(261)	(261)
	(295)	(356)	(407)

Other expense - net⁴	(1,073)	(1,988)	(11,488)⁵
Write off of capitalised borrowing costs⁶	(32)	(23)	(23)
Gain/(Loss) on disposal of investments	715	-	(40)
Income tax (expense)/credit⁷	(1,310)	183	172
Non-controlling interests share of other income⁸	18	74	74
Total significant items	(1,977)	(2,110)	(11,712)³
Income/(Loss) attributable to equity holders	2,308	2,473	(8,046)³
Earnings per share (Basic) (US$)	0.18	0.19	(0.73)³

1 Refer to note 2 of the financial statements.

2 Recognised within share of income from associates and joint ventures, see note 2 of the financial statements.

3 Recognised within cost of goods sold, see note 2 of the financial statements.

4 Recognised within other expense - net, see notes 2 and 4 of the financial statements.

5 Adjusted for the final fair value adjustments in relation to the acquisition of Xstrata, see note 25 of the financial statements.

6 Recognised within interest expense.

7 Recognised within income tax expense.

8 Recognised within non-controlling interests.

Significant items

Significant items are items of income and expense which, due to their financial impact and nature or the expected infrequency of the events giving rise to them, are separated for internal reporting and analysis of Glencore's results to provide a better understanding and comparative basis of the underlying financial performance.

In 2014, Glencore recognised $1,977 million of net other significant expenses, including $1,310 million of income tax expense. Due to the challenging platinum market conditions and following the decisions to slow down development at our Mauritanian and Congo iron ore projects and limit further oil exploration activities at the Matanda oil block in Cameroon, impairment charges of $146 million, $489 million and $212 million were recognized respectively. In addition, $95 million of 'premium' cost was recognised on the repurchase of bonds, offset by a gain of $715 million (before related tax charges of $531 million) on the disposal of Las Bambas. Apart from the Las Bambas tax on disposal, a net $779 million of significant tax expense has been recorded, primarily due to the currency translation effect of deferred tax balances, owing to the stronger US dollar, particularly against the Australian dollar. Furthermore, a positive UC Rusal mark to market movement of $501 million has been recognised directly in other comprehensive income, whereas the prior year negative movement was required to be recognised as an impairment through the statement of income as noted below.

In 2013, Glencore recognised $11,712 million of net other significant expenses, mainly comprising a $1,160 million accounting loss related to the revaluation of Glencore's 34% interest in Xstrata immediately prior to the acquisition, a $8,124 million goodwill impairment recognised upon the acquisition of Xstrata and directly attributable transaction costs of $294 million. On acquisition, the underlying assets and liabilities acquired were fair valued, with an amount of goodwill allocated to the business. The residual goodwill amount of $8,124 million relating to the mining business could not be supported and was impaired as explained in note 5. The size of the impairment was influenced by the deemed acquisition consideration, calculated by reference to Glencore's share price on the date of acquisition. Furthermore, due to the persistent challenging nickel and aluminium market environments and revisions to some mine plans, impairment charges were recognised at Murrin Murrin ($454 million), Cobar ($137 million) and UC Rusal ($446 million). Additional significant items included $300 million of valuation adjustments made to various long-term loans and advances, $308 million of mark to market adjustments on other investments and $261 million of unrealised profit eliminations.

See notes 4 and 5 to the consolidated financial statements for further explanations.

Net finance costs

Net finance costs were $1,471 million in 2014 ($1,439 million on a pre-exceptional basis, excluding capitalised borrowing costs written off upon refinance of the revolving credit facilities), compared to $1,388 million ($1,365 million on a pre-exceptional basis) incurred during the comparable reporting period. Interest income in 2014 was $253 million, a 36% reduction compared to 2013, following the repayment in December 2013 of a substantial portion of certain loans extended to the Russneft Group. On a pre-exceptional basis, interest expense in 2014 was $1,692 million, a 4% reduction from $1,758 million in 2013, reflecting the ongoing lowering of borrowing costs (low base rates and spread), notwithstanding the Xstrata acquisition closing only in May 2013. Compared to pro forma interest of $1,871 million, the reduction is even more pronounced at 10%.

Income taxes

An income tax expense of $1,809 million was recognised during 2014 compared to an income tax expense of $254 million in 2013. Based on our capital and business structure, income tax expense, pre-significant items should approximate Adjusted EBIT for marketing and industrial assets less an allocated interest expense multiplied by an estimated tax rate of 10% and 25% respectively. This has been reflected in the table above. Refer to the glossary for a reconciliation of this calculation. The 2014 statutory expense includes $531 million of taxes in respect of the sale of Las Bambas and a net additional $779 million of income tax expense, primarily due to the currency translation effect on deferred tax balances, owing to the stronger US dollar, particularly against the Australian dollar as noted above.

Assets, leverage and working capital

Total assets were $152,205 million as at 31 December 2014 compared to $154,862 million as at 31 December 2013, a period over which, current assets decreased from $59,292 million to $53,219 million. The adjusted current ratio at 31 December 2014 was 1.23, a 4% improvement compared with 31 December 2013. Non-current assets increased from $95,570 million to $98,986 million, primarily due to the various on-going capital development programs at African copper and Koniambo and the acquisition of Caracal.

Consistent with 31 December 2013, 99% ($19,226 million) of total marketing inventories were contractually sold or hedged (readily marketable inventories) as at 31 December 2014. These inventories are considered to be readily convertible into cash due to their liquid nature, widely available markets, and the fact that the associated price risk is covered either by a physical sale transaction or a hedge transaction. Given the highly liquid nature of these inventories, which represent a significant share of 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.

Cash flow and net debt

Net debt

US$ million	31.12.2014	31.12.2013 Restated¹
Gross debt	52,693	55,173
Associates and joint ventures net funding²	(80)	(72)
Cash and cash equivalents and marketable securities	(2,855)	(2,885)
Net funding	49,758	52,216
Readily marketable inventories	(19,226)	(16,418)
Net debt	30,532	35,798

Cash and non-cash movements in net debt

US$ million	31.12.2014 Reported	31.12.2013 Pro forma	31.12.2013 Reported
Cash generated by operating activities before working capital changes	10,978	11,058	8,676
Associates and joint ventures Adjusted EBITDA³	1,552	1,923	1,487
Net interest paid²	(1,211)	(1,646)	(1,488)
Tax paid²	(1,257)	(994)	(679)
Dividends received from associates²	107	34	34
Funds from operations	10,169	10,375	8,030

Working capital changes, excluding readily marketable inventory movements and other²	2,268	(1,807)	(761)
Payments of non-current advances and loans²	(518)	285	285
Acquisition and disposal of subsidiaries	4,690	479	2,125
Purchase and sale of investments	(310)	(144)	(144)
Purchase and sale of property, plant and equipment (excl. Las Bambas)²	(8,360)	(11,131)	(8,680)
Purchase and sale of property, plant and equipment - Las Bambas	(961)	(1,734)	(1,169)
Margin payments in respect of financing related hedging activities	10	167	167
Acquisition and disposal of additional interests in subsidiaries	(101)	(489)	(489)
Dividends paid and purchase of own shares	(3,256)	(2,236)	(2,236)
Cash movement in net debt	3,631	(6,235)	(2,872)
Net debt assumed in business combination	-	-	(17,395)¹
Foreign currency revaluation of borrowings and other non-cash items	1,635	(115)	(115)
Non-cash movement in net debt	1,635	(115)	(17,510)
Total movement in net debt	5,266	(6,350)	(20,382)¹
Net debt, beginning of period	(35,798)	(29,448)	(15,416)
Net debt, end of period	(30,532)	(35,798)	(35,798)¹

1 Adjusted for the final fair value adjustments in relation to the acquisition of Xstrata, see note 25 of the financial statements.

2 Adjusted to include the impacts of proportionate consolidation of certain associates and joint ventures as outlined in the glossary.

3 See note 2 of the financial statements.

The reconciliation in the table above is the method by which management reviews movements in net debt and comprises key movements in cash and any significant non-cash movements on net debt items.

Net debt

Net debt as at 31 December 2014 decreased to $30,532 million from $35,798 million as at 31 December 2013, aided by the receipt of the sales proceeds from the disposal of Las Bambas in July 2014, a 25% reduction in net capital expenditure (excluding Las Bambas) and a $2,268 million release of working capital, excluding readily marketable inventories. Readily marketable inventories increased by $2,808 million to $19,226 million at 31 December 2014. The substantial majority of this increase ($2.4 billion) occurred over the second half of 2014 as we were able to seize attractive marketing opportunities, the benefits of which are generally expected to materialize in 2015 and when we also then expect the majority of this temporary working capital investment to reverse.

Capital expenditure

Net capital expenditure, excluding Las Bambas, decreased from $8,680 million in 2013 to $8,360 million in 2014, due primarily to some of our key expansion projects being commissioned during 2014, notably certain projects at Australian thermal coal, Australian zinc and African copper. Compared to 2013 pro forma net capital expenditure of $11,131 million (excluding Las Bambas), 2014 was 25% or $2,771 million lower.

Subsidiary acquisitions and disposals

Net inflow on acquisitions / disposals was $4,690 million due primarily to the sale of Las Bambas ($6.5 billion, net of tax), offset by the purchase of Caracal ($1.5 billion) and Zhairem ($291 million) compared to $2,125 million (or $544 million, excluding cash acquired in the Xstrata transaction of $1,581 million) in 2013.

Liquidity and funding activities

In 2014, the following significant financing activities took place:

• In April, issued in two tranches EUR 1.1 billion of interest bearing notes as follows:

- 7 year EUR 600 million, 2.750% fixed coupon bonds; and

- 12 year EUR 500 million, 3.750% fixed coupon bonds.

• In April, issued in two tranches $2 billion of interest bearing notes as follows:

- 5 year $1,000 million, 3.125% fixed coupon bonds; and

- 10 year $1,000 million, 4.625% fixed coupon bonds.

• In May, issued 4 year $200 million, Libor plus 1.20% coupon notes.

• In September, issued 5 year AUD 500 million, 4.50% fixed coupon bonds and 8 year EUR 700 million, 1.625% fixed coupon bonds.

• In December, issued 6 year CHF 500 million, 1.25% fixed coupon bonds.

As at 31 December 2014, Glencore had available committed undrawn credit facilities and cash amounting to $9.4 billion. As an internal financial policy, Glencore has a $3 billion minimum threshold requirement.

Credit ratings

In light of the Group's extensive funding activities, maintaining strong Baa/BBB investment grade ratings is a financial priority/target. The Group's credit ratings are Baa2 (stable) from Moody's and BBB (stable) from S&P.

Value at risk

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 account market volatilities, as well as risk diversification by recognising offsetting positions and correlations between commodities and markets. In this way, risks can be measured consistently across all markets and commodities and risk measures can be aggregated to derive a single risk value. Glencore has set a consolidated VaR limit (1 day 95%) of $100 million representing some 0.2% of equity, which was not exceeded during the year.

Glencore uses a VaR approach based on Monte Carlo simulations and is either a one day or one week time horizon computed at a 95% confidence level with a weighted data history.

Average market risk VaR (1 day 95%) during 2014 was $36 million, representing less than 0.1% of equity. Average equivalent VaR during 2013 was $32 million.

Distributions

The directors have recommended a 2014 financial year final cash distribution of $12 cents per share amounting to $1,558 million excluding any distribution on own shares. This distribution excludes the proposed distribution in specie of the Group's 23.9% stake in Lonmin, which is also subject to approval by shareholders at the Annual General Meeting.

Final distribution	2015
Applicable exchange rate reference date (Johannesburg Stock Exchange (JSE))	9 April
Last time to trade on JSE to be recorded in the register for distribution	17 April
Last day to effect removal of shares cum div between Jersey and JSE registers	17 April
Ex-dividend date (JSE)	20 April
Ex-dividend date (Jersey)	23 April
Ex-dividend date (HK)	22 April
Last time for lodging transfers in Hong Kong	23 April
Record date in JSE	Close of business (SA) 24 April
Record date in Hong Kong	Opening of business (HK) 24 April
Record date in Jersey	Close of business (UK) 24 April
Deadline for return of currency elections form (Jersey shareholders)	27 April
Removal of shares between the Jersey and JSE registers permissible from	28 April
Annual General Meeting (shareholder to vote to approve final distribution)	7 May
Applicable exchange rate reference date (Jersey and Hong Kong)	30 April
Payment date	21 May

The directors have proposed that this final distribution be paid out of capital contribution reserves. As such, this distribution would be exempt from Swiss withholding tax. As at 31 December 2014, Glencore plc had CHF 38 billion of such capital contribution reserves in its statutory accounts.

The final distribution is declared and 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 as stated above. Shareholders on the Hong Kong branch register will receive their distribution in Hong Kong dollars, while 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.

Notional allocation of debt and interest expense

Glencore's debt funding is primarily arranged centrally, with the proceeds then applied to marketing and industrial activities as required. Glencore does not allocate borrowings or interest to its three operating segments. However, to assist investors in the assessment of overall performance and underlying value contributors of its integrated business model, Glencore notionally allocates its borrowings and interest expense between its marketing and industrial activities as follows (also see the glossary):

• At a particular point in time, Glencore estimates the borrowings attributable to funding key working capital items within the marketing activities, including inventories, net cash margining and other accounts receivable / payable, through the application of an appropriate loan to value ratio for each item. The balance of Group borrowings is allocated to industrial activities.

• Once the average amount of borrowings notionally allocated to marketing activities for the relevant period has been estimated, the corresponding interest expense on those borrowings is estimated by applying the Group's average variable rate cost of funds during the relevant period to the average borrowing amount. The balance of Group interest expense and all interest income is allocated to industrial activities. The allocation is a company estimate only and is unaudited. The table below summarises the notional allocation of borrowings and interest and corresponding implied earnings before tax of the marketing and industrial activities for the year ended 31 December 2014.

US$ million	Marketing activities	Industrial activities	Total
Adjusted EBIT, pre-significant items	2,790	3,916	6,706
Interest expense allocation	(227)	(1,465)	(1,692)
Interest income allocation	-	253	253
Allocated profit before tax	2,563	2,704	5,267
Allocated net funding - 31 December 2014	14,265	35,493	49,758
Allocated net funding - quarterly average	14,624	36,705	51,329

Based on the implied equity funding for the marketing activities' working capital requirements, as well as the relatively modest level of non-current assets employed in the marketing activities (assumed to be heavily equity funded), the return on notional equity for the marketing activities continued to be very healthy in 2014. The industrial activities' return on notional equity is being held back by many advanced stage copper, nickel and zinc development / expansion projects, where significant investments have been made to date. These projects did not contribute to earnings in the year at anywhere near their full production potential, and as a result, the full effect of the earnings is yet to be reflected in allocated profits.

Metals and Minerals

The 2013 information in this section has been presented on the pro forma basis described in the Financial Review section

Highlights

Metals and minerals total Adjusted EBITDA was $8,622 million, down 3% from $8,846 million in 2013. The modest reduction reflects somewhat more challenging marketing conditions, particularly in iron ore, and the impact of lower copper and precious metal prices on the industrial activities. These factors were mitigated by higher copper production volumes and currency related costs benefits as the US dollar strengthened against our key producer country currencies. Adjusted EBIT was $5,189 million, 8% lower than 2013 due to higher depreciation, reflective of higher production.

Further production growth is expected from key advanced stage and recently commissioned projects, mainly in copper, zinc and nickel. The business is strongly positioned within its operating markets, with the asset and marketing base fully primed to take advantage of growth in both emerging markets and the developed world.

US$ million	Marketing activities	Industrial activities	2014	Marketing activities	Industrial activities	2013
Revenue	35,025	31,025	66,050	35,986	31,195	67,181
Adjusted EBITDA	1,545	7,077	8,622	1,643	7,203	8,846
Adjusted EBIT	1,515	3,674	5,189	1,622	4,036	5,658
Allocated average CE^1,2	11,885	57,698	69,583	9,097	58,589	67,686
Adjusted EBIT return on average CE	13%	6%	7%	18%	7%	8%

1 The simple average of segment current and non-current capital employed (see note 2 of the financial statements), adjusted for production related inventories, is applied as a proxy for marketing and industrial activities respectively.

2 Capital employed has been adjusted to move logistics and storage related property, plant and equipment from industrial activities into marketing activities.

Market Conditions

Selected average commodity prices

	2014	2013	Change%
S&P GSCI Industrial Metals Index	349	354	(1)
LME (cash) copper price ($/t)	6,866	7,328	(6)
LME (cash) zinc price ($/t)	2,164	1,909	13
LME (cash) lead price ($/t)	2,096	2,139	(2)
LME (cash) nickel price ($/t)	16,892	15,012	13
Gold price ($/oz)	1,266	1,411	(10)
Silver price ($/oz)	19	24	(21)
Metal Bulletin cobalt price 99.3% ($/lb)	14	13	8
LME (cash) aluminium price ($/t)	1,869	1,846	1
Metal Bulletin alumina price ($/t)	331	327	1
Metal Bulletin ferrochrome 6-8% C basis 60% Cr, max 1.5% Si (¢/lb)	105	99	6
Platinum price ($/oz)	1,385	1,486	(7)
Iron ore (Platts 62% CFR North China) price ($/DMT)	97	135	(28)

Currency table

	Average 2014	Spot 31 Dec 2014	Average 2013	Spot 31 Dec 2013	Change in average %
AUD : USD	0.90	0.82	0.97	0.89	(7)
USD : CAD	1.10	1.16	1.03	1.06	7
USD : COP	2,002	2,377	1,869	1,930	7
EUR : USD	1.33	1.21	1.33	1.37	-
GBP : USD	1.65	1.56	1.56	1.66	6
USD : CHF	0.92	0.99	0.93	0.89	(1)
USD : KZT	179	182	152	154	18
USD : ZAR	10.85	11.57	9.65	10.49	12

Marketing

Highlights

Adjusted EBIT was $1,515 million, down 7% from $1,622 million. Notwithstanding the generally weaker industrial metals' sentiment and backdrop, overall marketing performance was relatively consistent year-on-year, with iron ore, however having faced particularly challenging marketing conditions.

Financial information

US$ million	2014	2013	Change %
Revenue	35,025	35,986	(3)
Adjusted EBITDA	1,545	1,643	(6)
Adjusted EBIT	1,515	1,622	(7)

Selected marketing volumes sold

	Units	2014	2013	Change%
Copper metal and concentrates¹	mt	2.8	2.8	-
Zinc metal and concentrates¹	mt	3.4	3.2	6
Lead metal and concentrates¹	mt	0.8	0.7	14
Gold	koz	1,468	1,326	11
Silver	moz	66.2	52.8	25
Nickel	kt	203	226	(10)
Ferroalloys (incl. agency)	mt	4.2	3.8	11
Alumina/aluminium	mt	11.7	11.7	-
Iron ore	mt	66.0	33.2	99

1 Estimated metal unit contained.

Copper

Despite another year of copper mine underperformance and the strongest global demand growth since 2010, average copper prices fell 6% in 2014. Demand growth was evident in all key consuming regions and China again accounted for the majority of global growth. As in 2013, cathode demand benefited from tight scrap supply. Reflecting these drivers, exchange inventories declined steadily throughout the year to reach 313,000 tonnes by year end, down almost 195,000 tonnes during the year.

On the supply side, mined copper growth slowed significantly from the near double digit pace recorded in 2013. A range of technical, regulatory and weather related issues saw mine supply underperform initial estimates by more than 1.2 million tonnes.

With current prices now trading within the cost curve, mine closures have already been announced and reduced capital spending will start to impact future supply growth.

Zinc/Lead

The zinc metal market was in deficit in 2014, driven by improving demand, including continuing inflows of material into China. LME/SHFE inventories dropped by approximately 400,000 tonnes (or 33%) during the year and physical premia in Asia and Europe were significantly higher than 2013. Fundamentals were particularly strong in the first 6 months of the year, however more material became available in H2 2014, in part due to liquidity concerns in China.

The lead metal market was in balance in 2014, with limited warehouse movements and marginal changes in premia.

The zinc concentrates TC benchmark for 2014 was up by $29 per dmt compared to the 2013 benchmark. The average spot market TC went up by a similar amount, although Chinese zinc concentrates imports increased by 10.2%.

We expect the pressures which led to the supply deficit to intensify over the coming months. No significant new sources of production are scheduled to come on line in the immediate future and a number of production closures, already signalled to the market, will crystallise in 2015.

Nickel

2014 was an eventful year for nickel. It commenced with the introduction of a ban on unprocessed ore exports from Indonesia, effectively removing >20% of global mined supply from the market. In anticipation of significantly reduced finished nickel output, coupled with strong demand growth, particularly in China and North America, the nickel LME cash settlement price rallied to $21,200 per tonne in May, up 52% from the start of the year. This positive sentiment, however, was impacted by persistent and material unit deliveries into LME warehouses, combined with weakening macroeconomic data for Europe and China.

While global nickel demand improved in 2014, increased ore exports from the Philippines, blended with stockpiled Indonesian ore, kept Chinese nickel pig iron production at elevated levels, maintaining an oversupply of nickel in the global market. LME inventory increased from 261,000 tonnes at the start of the year to a record high of 415,000 tonnes at year-end, with the cash settlement price averaging $16,892 per tonne, 13% higher than 2013.

While nickel is not immune to the weakness currently seen across the commodity spectrum, market trends support a continued transition from structural oversupply to material deficits in the medium term. In particular, Philippine ore shipments are insufficient, in terms of quality and quantity, to offset the full impact of the Indonesian ban.

Ferroalloys

Global ferrochrome prices were relatively flat over 2014. The slight increase in global consumption of ferrochrome was more than offset by surplus production, particularly from China, Kazakhstan and South Africa. The regional pricing gap that developed in H1 2014 narrowed towards the end of the year as European consumers sought parity with lower Chinese prices.

Vanadium prices were firm in H1 2014 as new production expected out of Australia and Brazil did not materialise. This was met in H2 2014 with increased Chinese exports pressurising prices later in the year.

Alumina/Aluminium

Average LME aluminium prices during 2014 were in line with 2013, although average premium levels increased significantly (from an average range of $195-$215 to $340-$365 per tonne). The increase to the net all-in price received by producers meant that a large portion of the market was now able to meet its cost of production in 2014. Indications for aluminium premiums for duty unpaid, in-warehouse material at the beginning of 2014 were within the $250-$275 per tonne range and the 2014 year end level was around $400 to $430 per tonne.

The FOB Australia alumina price opened 2014 at $335 per tonne and closed 2014 at $355, with a price range of $305 to $360 per tonne witnessed during the year.

Iron Ore

The iron ore market went into oversupply during the year, driven by a combination of supply increases from large miners and a somewhat lower than expected Chinese steel demand growth. The price reduction intensified as the year progressed to finish the year around $70 per tonne. Premiums also contracted as the market moved into oversupply. While we expect demand growth to be steady in 2015, further increases in supply are expected to keep the market subdued in 2015.

Industrial activities

Highlights

Total industrial Adjusted EBITDA and EBIT in 2014 were $7,077 million and $3,674 million, down 2% and 9% respectively over 2013 as a result of lower commodity prices, particularly copper and precious metals, partially offset by higher copper production (up 4%, mainly from African copper), higher zinc and nickel prices and the generally stronger US dollar. The price driven reduction in profitability resulted in a small decline in metal and mineral's mining margin from 32% to 30%.

Financial information

US$ million	2014	2013	Change %
Revenue

Copper assets
African copper (Katanga, Mutanda, Mopani)	3,954	3,211	23
Collahuasi¹	1,311	1,314	-
Antamina¹	845	1,154	(27)
Other South America (Alumbrera, Lomas Bayas, Antapaccay, Punitaqui)	2,732	2,611	5
Australia (Mount Isa, Ernest Henry, Townsville, Cobar)	2,388	2,494	(4)
Custom metallurgical (Altonorte, Pasar, Horne, CCR)	6,756	8,445	(20)
Intergroup revenue elimination	(220)	(606)	n.m.
Copper	17,766	18,623	(5)

Zinc assets
Kazzinc	2,517	2,587	(3)
Australia (Mount Isa, McArthur River)	1,293	1,070	21
European custom metallurgical (Portovesme, San Juan de Nieva, Nordenham, Northfleet)	2,201	2,428	(9)
North America (Matagami, Kidd, Brunswick, CEZ Refinery)	1,148	1,548	(26)
Other Zinc (AR Zinc, Los Quenuales, Sinchi Wayra, Rosh Pinah, Perkoa)	744	708	(5)
Intergroup revenue elimination	(192)	(674)	n.m.
Zinc	7,711	7,667	1

Nickel assets
Integrated Nickel Operations (Sudbury, Raglan, Nikkelverk)	2,450	1,634	50
Australia (Murrin Murrin)	834	693	20
Falcondo	-	150	(100)
Nickel	3,284	2,477	33

Ferroalloys	1,789	1,910	(6)
Aluminium/Alumina	475	518	(8)
Metals and minerals revenue - segmental measure	31,025	31,195	(1)
Impact of presenting joint ventures on an equity accounting basis	(2,156)	(2,468)	n.m.
Metals and minerals revenue - reported measure	28,869	28,727	-

1 Represents the Group's share of these JVs.

	Adjusted EBITDA			Adjusted EBIT
US$ million	2014	2013	Change %	2014	2013	Change %

Copper assets
African copper	1,001	942	6	475	548	(13)
Collahuasi¹	692	756	(8)	452	544	(17)
Antamina¹	600	868	(31)	410	692	(41)
Other South America	1,222	1,220	-	821	819	-
Australia	563	700	(20)	294	430	(32)
Custom metallurgical	228	175	30	177	115	54
Copper	4,306	4,661	(8)	2,629	3,148	(16)
Adjusted EBITDA mining margin²	36%	42%

Zinc assets
Kazzinc	591	703	(16)	241	286	(16)
Australia	305	341	(11)	(7)	159	(104)
European custom metallurgical	179	159	13	89	81	10
North America	225	332	(32)	91	194	(53)
Other Zinc	97	38	155	(51)	(119)	n.m.
Zinc	1,397	1,573	(11)	363	601	(40)
Adjusted EBITDA mining margin²	21%	24%

Nickel assets
Integrated Nickel Operations	908	667	36	424	213	99
Australia	130	(39)	n.m.	83	(113)	n.m.
Falcondo	(7)	(27)	n.m.	(7)	(27)	n.m.
Nickel	1,031	601	72	500	73	585
Adjusted EBITDA margin	31%	24%

Ferroalloys	307	346	(11)	162	207	(22)
Aluminium/Alumina	35	24	46	20	10	100
Iron ore	1	(2)	n.m.	-	(3)	n.m.
Metals and minerals Adjusted EBITDA/ EBIT - segmental measure	7,077	7,203	(2)	3,674	4,036	(9)
Adjusted EBITDA mining margin ²	30%	32%
Impact of presenting joint ventures on an equity accounting basis	(678)	(760)	n.m.	(248)	(372)	n.m.
Metals and minerals Adjusted EBITDA/ EBIT - reported measure	6,399	6,443	(1)	3,426	3,664	(6)

1 Represents the Group's share of these JVs.

2 Adjusted EBITDA mining margin is Adjusted EBITDA (excluding custom metallurgical assets) divided by Revenue (excluding custom metallurgical assets and intergroup revenue elimination) i.e. the weighted average EBITDA margin of the mining assets. Custom metallurgical assets include the Copper custom metallurgical assets and Zinc European custom metallurgical assets and the Aluminium/Alumina group, as noted in the table above.

	2014			2013
US$ million	Sustaining	Expansion	Total	Sustaining	Expansion	Total
Capex

Copper assets
African copper	602	788	1,390	522	1,103	1,625
Collahuasi¹	175	6	181	235	59	294
Antamina¹	169	18	187	241	47	288
Las Bambas	-	961	961	-	1,734	1,734
Other South America	475	64	539	452	113	565
Australia	283	71	354	341	275	616
Custom metallurgical	144	166	310	131	65	196
Copper	1,848	2,074	3,922	1,922	3,396	5,318

Zinc assets
Kazzinc	195	57	252	173	75	248
Australia	455	199	654	546	637	1,183
European custom metallurgical	53	15	68	93	36	129
North America	76	19	95	61	118	179
Other Zinc	166	-	166	181	95	276
Zinc	945	290	1,235	1,054	961	2,015

Nickel assets
Integrated Nickel Operations	172	158	330	154	257	411
Australia	14	-	14	43	5	48
Falcondo	-	5	5	3	3	6
Koniambo	-	823	823	-	1,033	1,033
Other nickel projects	-	5	5	-	5	5
Nickel	186	991	1,177	200	1,303	1,503

Ferroalloys	144	95	239	112	209	321
Aluminium/Alumina	23	7	30	28	-	28
Iron ore	-	72	72	-	89	89
Capex - segmental measure	3,146	3,529	6,675	3,316	5,958	9,274
Impact of presenting joint ventures on an equity accounting basis	(344)	(24)	(368)	(476)	(106)	(582)
Capex - reported measure	2,802	3,505	6,307	2,840	5,852	8,692

1 Represents the Group's share of these JVs.

Production data

Production from own sources - Total¹

		2014	2013	Change %
Total Copper	kt	1,546.0	1,492.8	4
Total Zinc	kt	1,386.5	1,398.5	(1)
Total Lead	kt	307.5	315.0	(2)
Total Nickel	kt	100.9	98.4	3
Total Gold	koz	955	1,017	(6)
Total Silver	koz	34,908	39,041	(11)
Total Cobalt	kt	20.7	19.4	7
Total Ferrochrome	kt	1,295	1,238	5
Total Platinum²	koz	91	90	1
Total Palladium²	koz	50	50	-
Total Rhodium²	koz	15	15	-
Total Vanadium Pentoxide	mlb	20.8	21.6	(4)

Production from own sources - Copper assets¹

			2014	2013	Change %
African Copper (Katanga, Mutanda, Mopani)
	Total Copper metal³	kt	465.0	398.6	17
	Total Cobalt⁴	kt	17.2	16.0	8

Collahuasi⁵
	Copper metal	kt	11.0	12.5	(12)
	Copper in concentrates	kt	196.0	183.1	7
	Silver in concentrates	koz	2,476	2,217	12

Antamina⁶
	Copper in concentrates	kt	116.4	149.5	(22)
	Zinc in concentrates	kt	71.2	87.9	(19)
	Silver in concentrates	koz	4,049	5,216	(22)

Other South America (Alumbrera, Lomas Bayas, Antapaccay, Punitaqui)
	Total Copper metal	kt	66.6	86.4	(23)
	Total Copper in concentrates	kt	281.1	260.4	8
	Total Gold in concentrates and in doré	koz	386	392	(2)
	Total Silver in concentrates and in doré	koz	1,901	2,192	(13)

Australia (Mount Isa, Ernest Henry, Townsville, Cobar)
	Total Copper metal	kt	209.5	197.3	6
	Total Copper in concentrates	kt	49.6	48.4	2
	Total Gold	koz	62	45	38
	Total Silver	koz	1,386	1,334	4

Total Copper department
	Total Copper	kt	1,395.2	1,336.2	4
	Total Cobalt	kt	17.2	16.0	8
	Total Zinc	kt	71.2	87.9	(19)
	Total Gold	koz	448	437	3
	Total Silver	koz	9,812	10,959	(10)

Production from own sources - Zinc assets¹

			2014	2013	Change %
Kazzinc
	Zinc metal	kt	199.3	216.2	(8)
	Lead metal	kt	25.7	29.8	(14)
	Copper metal	kt	46.8	50.9	(8)
	Gold	koz	506	579	(13)
	Silver	koz	4,273	5,251	(19)

Australia (Mount Isa, McArthur River)
	Total Zinc in concentrates	kt	661.6	608.4	9
	Total Lead in concentrates	kt	216.4	213.6	1
	Total Silver in concentrates	koz	8,319	8,450	(2)

North America (Matagami, Kidd, Brunswick)
	Total Zinc in concentrates	kt	135.8	194.3	(30)
	Total Lead in concentrates	kt	-	13.5	(100)
	Total Copper in concentrates	kt	47.3	49.0	(3)
	Total Silver in concentrates	koz	2,066	4,549	(55)

Other Zinc (AR Zinc, Los Quenuales, Sinchi Wayra, Rosh Pinah, Perkoa)
	Zinc metal	kt	23.2	29.7	(22)
	Zinc in concentrates	kt	295.4	262.0	13
	Lead metal	kt	11.7	11.0	6
	Lead in concentrates	kt	53.7	47.1	14
	Copper in concentrates	kt	2.7	2.1	29
	Silver metal	koz	613	670	(9)
	Silver in concentrates	koz	9,825	9,162	7

Total Zinc department
	Total Zinc	kt	1,315.3	1,310.6	-
	Total Lead	kt	307.5	315.0	(2)
	Total Copper	kt	96.8	102.0	(5)
	Total Gold	koz	506	579	(13)
	Total Silver	koz	25,096	28,082	(11)

Production from own sources - Nickel assets¹

			2014	2013	Change %
Integrated Nickel Operations (Sudbury, Raglan, Nikkelverk)
	Total Nickel metal	kt	51.3	47.1	9
	Total Nickel in concentrates	kt	0.6	0.5	20
	Total Copper metal	kt	15.7	16.7	(6)
	Total Copper in concentrates	kt	38.3	37.6	2
	Total Cobalt metal	kt	0.8	0.7	14

Australia (Murrin Murrin, XNA)
	Total Nickel metal	kt	36.4	35.9	1
	Total Nickel in concentrates	kt	-	4.1	(100)
	Total Copper in concentrates	kt	-	0.3	(100)
	Total Cobalt metal	kt	2.7	2.6	4
	Total Cobalt in concentrates	kt	-	0.1	(100)

Falcondo	Nickel in ferronickel	kt	-	9.4	(100)

Koniambo	Nickel in ferronickel	kt	12.6	1.4	800

Total Nickel department
	Total Nickel	kt	100.9	98.4	3
	Total Copper	kt	54.0	54.6	(1)
	Total Cobalt	kt	3.5	3.4	3

Production from own sources - Ferroalloys assets¹

			2014	2013	Change %
Ferrochrome⁷		kt	1,295	1,238	5

PGM⁸	Platinum	koz	91	90	1
	Palladium	koz	50	50	-
	Rhodium	koz	15	15	-
	Gold	koz	1	1	-
	4E	koz	157	156	1

Vanadium Pentoxide		mlb	20.8	21.6	(4)

Total production - Custom metallurgical assets¹

			2014	2013	Change %
Copper (Altonorte, Pasar, Horne, CCR)
	Copper metal	kt	433.8	468.3	(7)
	Copper anode	kt	493.7	514.5	(4)

Zinc (Portovesme, San Juan de Nieva, Nordenham, Northfleet)
	Zinc metal	kt	781.8	745.0	5
	Lead metal	kt	177.4	174.1	2
	Silver	koz	9,482	7,870	20

Ferroalloys
	Ferromanganese	kt	116	99	17
	Silicon Manganese	kt	108	92	17

Aluminium (Sherwin Alumina)
	Alumina	kt	1,382	1,606	(14)

1 Controlled industrial assets and joint ventures only. Production is on a 100% basis, except as stated.

2 Relating to the PGM business within Ferroalloys only.

3 Copper metal includes copper contained in copper concentrates and blister.

4 Cobalt contained in concentrates and hydroxides.

5 The Group's pro-rata share of Collahuasi production (44%).

6 The Group's pro-rata share of Antamina production (33.75%).

7 The Group's attributable 79.5% share of the Glencore-Merafe Chrome Venture.

8 Consolidated 100% of Eland and 50% of Mototolo.

Operating highlights

Copper assets

Total own sourced copper production was 1,546,000 tonnes, 4% (53,200 tonnes) higher than 2013, mainly relating to the ramp-up within African copper. Collahuasi, Antapaccay and Australian Copper also increased production during the year, however this growth was offset by lower grades at Antamina and operational constraints at Alumbrera and Lomas Bayas.

African copper

Copper production from own sources was 465,000 tonnes, up 17% (66,400 tonnes) on 2013. The increase includes a 46,500 tonnes (31%) increase at Mutanda to 197,100 tonnes with the operation running at near capacity throughout the year and a 16% increase (21,800 tonnes) at Katanga, reflecting the ongoing expansion programme. The ramp-up at Katanga is expected to continue as Phase V reaches completion. In 2014 Katanga continued to be impacted by power availability / reliability, which is now expected to improve through a number of initiatives, including additional back-up power generator capacity to cover the period for critical operational items until completion of the Inga dam project (first turbine expected in Q4 2015 and the second turbine in Q2 2017).

Cobalt production was 17,200 tonnes, 8% higher than 2013, mainly relating to the expansion at Mutanda.

Collahuasi

The group's share of Collahuasi's copper production was 207,000 tonnes, up 6% (11,400 tonnes) on 2013, due to higher ore tonnes milled (SAG mill 3 repowered in mid-2013) and marginally higher grades.

Antamina

The group's share of Antamina's copper production was 116,400 tonnes, down 22% (33,100 tonnes) on 2013, as a result of planned lower grades and recoveries due to processing of long-term stock piles and transitional ore, in part offset by higher quantities of ore milled, due to improved plant availability.

Zinc production was 71,200 tonnes, down 19% (16,700 tonnes) over the comparable period, relating to the mining of lower grade zinc areas.

Other South America

Copper production from Other South America was 347,700 tonnes, marginally higher than 2013. This comprises a 20% (28,100 tonnes) increase in copper in concentrate production at Antapaccay due to higher milling rates and improved recoveries, offset by Tintaya SX/EW cathode production which ceased in 2013 (12,200 tonnes), a 10% (7,600 tonnes) decrease in cathode production at Lomas Bayas due to processing constraints at the plant, and a 6% (7,000 tonnes) decrease in copper in concentrate production at Alumbrera, resulting from a geotechnical event that temporarily restricted pit access, during which time long-term stockpiles with lower grades were processed.

Gold production was 386,000 oz, down 2% on 2013, primarily resulting from expected lower head grades at Antapaccay.

Australia

Australian copper production was 259,100 tonnes, 5% (13,400 tonnes) higher than 2013. The increase reflects higher own sourced cathode output from the Townsville refinery due to increased production of own sourced concentrates, primarily from the Ernest Henry mine.

Gold production was 62,000 oz, 38% (17,000 oz) higher than 2013, relating to higher grades, including the treatment of more Ernest Henry material (higher gold content) than in 2013.

Custom metallurgical assets

Custom copper cathode production was 433,800 tonnes, 7% lower than 2013. The reduction mainly relates to lower production at Pasar (Philippines) due to the damage caused by typhoon Haiyan, which resulted in the plant being closed for most of Q1 2014.

Custom copper anode production was 493,700 tonnes, 4% lower than 2013. The reduction relates to a scheduled maintenance shutdown at Altonorte brought forward from 2015.

Zinc assets

Total own sourced zinc production was 1,386,500 tonnes, broadly in-line with 2013. This reflects higher production from Mount Isa, McArthur River and Perkoa as their respective expansion projects ramp-up, offset by lost production from the closures of Perseverance and Brunswick in June 2013 (partly replaced by production from the smaller Bracemac-McLeod mine), lower head grades at Antamina and the prioritisation of third party material processing at Kazzinc.

Total own sourced lead production was 307,500 tonnes, 2% (7,500 tonnes) down on 2013. The reduction reflects closure of the Brunswick mine (13,500 tonnes), offset by higher production at AR Zinc due to higher milling capacity and grades.

Kazzinc

Zinc production from own sources was 199,300 tonnes, 8% (16,900 tonnes) lower than 2013. The reduction relates to a decision to opportunistically process more third party sulphide material, in preference to own source oxide material. Total zinc production (including third party) was 304,500 tonnes, 1% (4,100 tonnes) higher than 2013.

Gold production from own sources was 506,000 oz, 13% (73,000 oz) lower than 2013, primarily due to temporary lower recoveries at Vasilkovsky. Total gold production (including third party material) was 675,000 oz, 5% lower than 2013.

Lead production from own sources was 25,700 tonnes, 4,100 tonnes lower than 2013, although total lead production was 126,500 tonnes, 40% higher than 2013, reflecting the increased output of the new Isa lead smelter.

Copper production from own sources was 46,800 tonnes, 8% (4,100 tonnes) lower than 2013, due to some maintenance downtime at the anode furnace. Total copper production was similarly impacted, down 4,200 tonnes at 58,200 tonnes.

Australia

Australia zinc production was 661,600 tonnes, 9% (53,200 tonnes) higher than 2013. The growth reflects successful expansion of the Lady Loretta mine (Mount Isa) and commissioning of the Phase 3 expansion at McArthur River, which is expected to increase ore production to 5 million tonnes per annum (from 2.5 million tonnes).

Australia lead production was 216,400 tonnes, slightly (1%) higher than 2013 levels.

North America

North America zinc production was 135,800 tonnes, down 30% (58,500 tonnes) compared to 2013. This reflects lost production from the closures (end of mine lives) of Perseverance and Brunswick in June 2013 (93,600 tonnes), offset by the ramp-up of the Bracemac-Mcleod mine, which produced 74,800 tonnes of zinc in 2014 (32,900 in 2013).

North America produced no lead in 2014 (2013 related fully to the closed Brunswick mine).

Other Zinc

The Other Zinc asset group produced 318,600 tonnes of own sourced zinc, a 9% (26,900 tonnes) increase over 2013, mainly due to the ramp-up of Perkoa (started in April 2013) to 65,000 tonnes of own sourced zinc, from 32,200 tonnes..

Own sourced lead production was 65,400 tonnes, a 13% (7,300 tonnes) increase over 2013, mainly relating to higher milling capacity and head grades at AR Zinc.

European custom metallurgical assets

Custom zinc production was 781,800 tonnes, up 5%. The increase mainly relates to Portovesme, which benefited from the commissioning of the SX plant during 2013.

Custom lead production was 177,400 tonnes, up 2%, relating to a full year contribution from Portovesme's lead plant following the restart in 2013, offset by some lost production at Northfleet due to the Mount Isa lead smelter fire which temporarily reduced lead bullion shipments.

Nickel assets

Total own sourced production was 100,900 tonnes, 3% up on 2013, comprising the ramp-up at Koniambo (12,600 tonnes) and strong production at INO (up 9%) due to higher grades at the Raglan mine, offset by the impact of the Falcondo, Cosmos and Sinclair mines placed into care and maintenance during 2013 (13,500 tonnes).

Integrated Nickel Operations ("INO")

INO own sourced nickel production was 51,900 tonnes, a 9% increase on 2013. The increase mainly relates to higher production from the Raglan mine due to higher grades. Total nickel production, including third party material, was 91,200 tonnes, in line with 2013, which reflects a consistent production performance at the Nikkelverk refinery.

Australia

Australia produced 36,400 tonnes of own sourced nickel, down 9% (3,600 tonnes), reflecting the lost production from the Cosmos and Sinclair mines put on care and maintenance in 2013 (the Sinclair mine has subsequently been sold). Total nickel production (including third party material) at Murrin Murrin was 44,100 tonnes, up 7% over 2013, reflecting consistent plant availability during the year.

Koniambo

Koniambo produced 12,600 tonnes of nickel in ferronickel as its commissioning and ramp-up phase continues. Production was suspended at the end of December 2014 after detection of a metal leak in Line 1 of the metallurgical plant. Line 2 received regulatory approval to restart on 18 January 2015 and investigation and repair work has commenced on Line 1.

Ferroalloys assets

Ferrochrome

Attributable ferrochrome production was 1.3 million tonnes, a 5% increase over 2013, mainly reflecting the ramp-up of Lion phase 2.

The Lion phase 2 project is progressing to plan and is expected to reach full capacity by the middle of 2015.

Platinum Group Metals

PGM production was 157,000 ounces, comparable with 2013.

Vanadium

Vanadium pentoxide production was 20.8 million lbs, down 4% on 2013. The decline relates to a planned longer annual maintenance shutdown (three weeks compared to the usual two weeks).

Manganese

Total manganese production (ferromanganese and silicon manganese) was 224,000 tonnes, 17% higher than 2013. The higher production was driven by efficiency improvements in Norway (silicon manganese) and demand led production increases in France (ferromanganese).

Aluminium assets

Sherwin Alumina

Sherwin produced 1.4 million tonnes of alumina, 14% down on 2013. The reduction was due to a conscious decision to temporarily curtail one of the five digestion units throughout H2 2014 reflective of weak market conditions for Atlantic alumina, coupled with various power supply issues during the year caused by outages at the third party energy supplier.

Energy Products

The 2013 information in this section has been presented on the pro forma basis described in the Financial Review section

Highlights

Energy products total Adjusted EBITDA was $3,406 million, down 16% from $4,044 million in 2013. The reduction is mainly driven by the impact of the lower realised prices on coal's industrial activities and the sharp decline in oil prices in Q4 2014, partially mitigated by higher production, real unit cost savings and currency related costs benefits as the US dollar strengthened against our key producer country currencies. Adjusted EBIT was $1,010 million, down 46% from 2013, the higher reduction, compared to EBITDA, reflecting the increase in the depreciation charge (non-cash) across both coal and oil industrial activities as production increased.

US$ million	Marketing activities	Industrial activities	2014	Marketing activities	Industrial activities	2013
Revenue	120,863	11,117	131,980	129,979	12,269	142,248
Adjusted EBITDA	565	2,841	3,406	666	3,378	4,044
Adjusted EBIT	524	486	1,010	629	1,244	1,873
Allocated average CE^1,2	(533)	36,086	35,553	2,832	35,857	38,688
Adjusted EBIT return on average CE	n.m.	1%	3%	22%	3%	5%

2 For the purposes of this calculation, capital employed has been adjusted to exclude various long-term loans (primarily Russneft and Rosneft - see note 11 of the financial statements), which generate interest income and do not contribute to Adjusted EBIT. Capital employed has been adjusted to move logistics and storage related property, plant and equipment from industrial activities into marketing activities.

Market conditions

Selected average commodity prices

	2014	2013	Change %
S&P GSCI Energy Index	311	332	(6)
Coal API4 ($/t)	72	81	(11)
Coal McCloskey Newcastle (6,000 kcal NAR) ($/t)	70	84	(17)
Australian coking coal average realised export price ($/t)	117	146	(20)
Australian semi-soft coal average realised export price ($/t)	93	111	(16)
Australian thermal coal average realised export price ($/t)	72	83	(13)
Australian thermal coal average realised domestic price ($/t)	32	40	(20)
South African thermal coal average realised export price ($/t)	68	76	(11)
South African thermal coal average realised domestic price ($/t)	23	26	(12)
Prodeco (Colombia) thermal coal average realised export price ($/t)	75	83	(10)
Cerrejón (Colombia) thermal coal average realised export price ($/t)	67	73	(8)
Oil price - Brent ($/bbl)	99	109	(9)

Marketing

Highlights

Adjusted EBIT was $524 million, down 17% from $629 million in 2013. The reduction reflects the oversupplied coal and 'flat' oil markets that prevailed during H1 2014, however market conditions, notably in oil, were more supportive towards the end of the year, on account of increased volatility and curve structure.

Financial information

US$ million	2014	2013	Change %
Revenue	120,863	129,979	(7)
Adjusted EBITDA	565	666	(15)
Adjusted EBIT	524	629	(17)

Selected marketing volumes sold

		2014	2013	Change %
Thermal coal¹	mt	95.9	84.4	14
Metallurgical coal¹	mt	3.3	4.7	(30)
Coke¹	mt	0.7	0.6	17
Crude oil	mbbl	448	386	16
Oil products	mbbl	645	728	(11)

1 Includes agency volumes.

Coal

Demand levels in 2014 remained strong in key importing countries, particularly Turkey, India and Korea, and we expect that to remain so during 2015 and beyond. The market continues to be highly segmented in terms of quality, with greater demand for bituminous over sub-bituminous coal. Given our supply base, we are well positioned to benefit from the resulting market arbitrages that will invariably occur. In terms of seaborne fundamentals, demand for coal in Europe has been impacted by the low gas price which has resulted in more competition, partially offset by a significant reduction in US coal exports. China import demand has also contracted somewhat, which we believe results from a current preference for higher priced domestic coal, while some regulatory uncertainty persists.

On the supply side, some increases from Indonesia (despite a significant proportion of this production currently being loss-making) and higher supply from Russia (greatly assisted by the weaker Rouble) have continued to put pressure on prices. Supply, however, from Colombia, South Africa and Australia remained relatively flat during 2014.

Oil

2014 was a tale of two halves, where in the first half oil was stuck in a narrow price band, rarely outside the $105-$110 per barrel range for Brent, and as a result, the period continued to see historical lows in volatility, despite pockets of geo-political uncertainty. However, by mid-year, with production up from OPEC and non-OPEC sources and demand growth undershooting expectations, prices started to ease. The Brent benchmark reacted first via a weaker premium to WTI and a shift into contango structure earlier than its US equivalent. Refining margins remained decent in historical terms in the USA, whilst the environment was more challenging in Europe.

OPEC's decision not to cut production at its November meeting was transformative, with the impact to be felt by the market for some time. With non-OPEC production set to increase again in 2015 and expectations for demand growth moderated, prices fell sharply. The attempt to resolve a problem of structural oversupply by challenging long term production economics through much lower flat price expectations, enhancing regional refining margins and by generating a significant build in crude oil storage and its associated deep contango, is in process. The fracturing of the previous price complacency also triggered a surge in volatility with near dated crude oil volatility spiking up over 40%.

The ample supply of crude and products in the market was also supportive of wet freight with good demand for tanker vessels noted in most classes.

Industrial activities

Highlights

Total industrial Adjusted EBITDA was $2,841 million, down 16% from $3,378 million, while Adjusted EBIT was $486 million, down 61% from $1,244 million. The reduction in Adjusted EBITDA relates to lower prices impacting both the coal and oil results (average realised coal prices and Brent oil down 8-20% and 9% respectively), while the greater reduction in Adjusted EBIT reflects a higher depreciation charge, consistent with the higher production levels. The reductions were mitigated somewhat by the higher production, real unit cost savings and the stronger US dollar, whereby the Australian dollar and South African rand depreciated by 7% and 12% respectively during 2014. The price driven reduction in profitability resulted in a small decline in energy's industrial EBITDA margin from 30% to 28%.

Financial information

US$ million	2014	2013	Change %
Net revenue
Coal operating revenue
Coking Australia	749	1,087	(31)
Thermal Australia	4,408	4,773	(8)
Thermal South Africa	2,065	2,253	(8)
Prodeco	1,395	1,505	(7)
Cerrejón¹	754	816	(8)
Coal operating revenue	9,371	10,434	(10)
Coal other revenue
Coking Australia	369	439	(16)
Thermal Australia	674	623	8
Thermal South Africa	19	99	(81)
Prodeco	4	2	100
Coal other revenue (buy-in coal)	1,066	1,163	(8)
Coal total revenue
Coking Australia	1,118	1,526	(27)
Thermal Australia	5,082	5,396	(6)
Thermal South Africa	2,084	2,352	(11)
Prodeco	1,399	1,507	(7)
Cerrejón¹	754	816	(8)
Coal total revenue	10,437	11,597	(10)
Oil	680	672	1
Energy products revenue - segmental measure	11,117	12,269	(9)
Impact of presenting joint ventures on an equity accounting basis	(754)	(816)	n.m.
Energy products revenue - reported measure	10,363	11,453	(10)

1 Represents the Group's share of this JV.

	Adjusted EBITDA			Adjusted EBIT
US$ million	2014	2013	Change %	2014	2013	Change %

Coking Australia	171	336	(49)	38	181	(79)
Thermal Australia	1,224	1,268	(3)	88	229	(62)
Thermal South Africa	450	693	(35)	52	254	(80)
Prodeco	311	343	(9)	137	175	(22)
Cerrejón¹	260	299	(13)	80	109	(27)
Total coal	2,416	2,939	(18)	395	948	(58)
Adjusted EBITDA margin²	26%	28%

Oil	425	439	(3)	91	296	(69)
Adjusted EBITDA margin	63%	65%
Energy products Adjusted EBITDA/ EBIT - segmental measure	2,841	3,378	(16)	486	1,244	(61)
Adjusted EBITDA margin²	28%	30%
Impact of presenting joint ventures on an equity accounting basis	(261)	(253)	n.m.	(81)	(64)	n.m.
Energy products Adjusted EBITDA/ EBIT - reported measure	2,580	3,125	(17)	405	1,180	(66)

1 Represents the Group's share of this JV.

2 Coal EBITDA margin is calculated on the basis of Coal operating revenue, as set out in the preceding table.

		2014			2013
US$ million	Sustaining	Expansion	Total	Sustaining	Expansion	Total
Capex
Australia (thermal and coking)	432	368	800	355	1,013	1,368
Thermal South Africa	199	312	511	182	499	681
Prodeco	19	17	36	48	41	89
Cerrejón¹	35	64	99	109	106	215
Total Coal	685	761	1,446	694	1,659	2,353
Oil	-	788	788	-	1,045	1,045
Capex -segmental measure	685	1,549	2,234	694	2,704	3,398
Impact of presenting joint ventures on an equity accounting basis	(35)	(64)	(99)	(109)	(106)	(215)
Capex - reported measure	650	1,485	2,135	585	2,598	3,183

1 Represents the Group's share of this JV.

Production data

Coal assets¹

		2014	2013	Change %
Australian coking coal	mt	6.0	7.3	(18)
Australian semi-soft coal	mt	3.5	4.5	(22)
Australian thermal coal (export)	mt	54.6	48.1	14
Australian thermal coal (domestic)	mt	5.4	5.1	6
South African thermal coal (export)	mt	23.4	20.6	14
South African thermal coal (domestic)	mt	22.7	22.9	(1)
Prodeco	mt	19.5	18.6	5
Cerrejón²	mt	11.2	11.0	2
Total Coal department	mt	146.3	138.1	6

1 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.

2 The Group's pro-rata share of Cerrejón production (33.3%).

Oil assets

		2014	2013	Change %
Glencore entitlement interest basis
Equatorial Guinea	kbbl	5,072	4,799	6
Chad	kbbl	2,279	186	1,125
Total Oil department	kbbl	7,351	4,985	47

Gross basis
Equatorial Guinea	kbbl	24,232	21,917	11
Chad	kbbl	4,284	619	592
Total Oil department	kbbl	28,516	22,536	27

Operating highlights

Coal

Total coal production was 146.3 million tonnes, 6% (8.2 million tonnes) higher than 2013. The increase mainly relates to productivity improvements and the delivery of various advanced stage Australian thermal coal projects.

A three week shutdown at the Australian coal operations was carried out over December 2014 and January 2015, in response to the current oversupply situation.

Australian coking

Australian coking coal production was 6.0 million tonnes, 18% (1.3 million tonnes) lower than 2013, mainly relating to cost reduction initiatives that resulted in mine plan / roster changes at Newlands, Oaky Creek and Collinsville.

Australian thermal and semi-soft

Australian thermal and semi-soft production was 63.5 million tonnes, 10% (5.8 million tonnes) higher than 2013. The increase reflects productivity improvements, completion of the Ravensworth North and Rolleston projects and the commencement of longwall operations at Ulan West.

South African thermal

South African thermal coal production was 46.1 million tonnes, 6% (2.6 million tonnes) higher than 2013. The increase reflects inclusion of the Hlagisa open cut mine for a full year in 2014, the benefits of productivity improvements at the Tweefontein underground operations and the opening of the Wonderfontein open cut mine. These increases were tempered by the closure of certain higher cost mines.

Prodeco

Prodeco production was 19.5 million tonnes, 5% (0.9 million tonnes) higher than 2013, reflecting better equipment availability at Calenturitas and lower rainfall in 2014.

Cerrejón

Cerrejón attributable production was 11.2 million tonnes, 2% (0.2 million tonnes) higher than 2013. The increase mainly relates to the impact of the 32 day strike that occurred in Q1 2013, offset by some minor mining restrictions in 2014.

Oil

Glencore's share of oil production was 7.4 million barrels, 47% higher than 2013. The increase relates to the first full year of production from Alen (Equatorial Guinea) and Badila (Chad), as well as the increased ownership of the Chad assets post completion of the Caracal acquisition in July 2014. The Mangara field (Chad) started production at the end of December 2014 and is expected to ramp-up during 2015.

Agricultural Products

Highlights

Agricultural products total Adjusted EBITDA and EBIT in 2014 were $1,209 million and $992 million, up $765 million and $800 million respectively over 2013. The increase reflects the continuation of the strong performance across both marketing and industrial activities seen at the half year. The earnings growth was assisted by strong results from Viterra, including the benefit of large crops in Canada and South Australia and a full year of post integration cost synergies, while the traditional marketing business and the industrial activities also delivered improved results.

US$ million	Marketing activities	Industrial activities	2014	Marketing activities	Industrial activities	2013
Revenue	22,523	3,298	25,821	26,854	3,185	30,039
Adjusted EBITDA	996	213	1,209	383	61	444
Adjusted EBIT	856	136	992	198	(6)	192
Allocated average CE^1,2	5,814	2,610	8,424	7,446	2,566	10,012
Adjusted EBIT return on average CE	15%	5%	12%	3%	0%	2%

2 For the purposes of this calculation, capital employed has been adjusted to move logistics and storage related property, plant and equipment (including Viterra) from industrial activities into marketing activities.

Market conditions

Selected average commodity prices

	2014	2013	Change %
S&P GSCI Agriculture Index	350	402	(13)
CBOT wheat price (US¢/bu)	588	684	(14)
CBOT corn no.2 price (US¢/bu)	415	578	(28)
CBOT soya beans (US¢/bu)	1,244	1,407	(12)
ICE cotton price (US¢/lb)	76	83	(8)
NYMEX sugar # 11 price (US¢/lb)	16	17	(6)

Marketing

Highlights

Record 2014 US corn, US bean and EU wheat production, better than average FSU crops and the good late year progress of the 2015 South American crops pressured prices throughout the year.

Viterra, now fully integrated with significant cost savings achieved, performed well. The record Canadian 2013 crop, a better than average South Australian 2013 crop and a South Australian 2014 crop that, despite the dry weather, recovered strongly late on, were all beneficial. We were able to overcome the challenges provided by an early season shortage of railroad capacity in Canada, while port facilities in both Russia and Ukraine benefited from strong early crop year export volumes. Our global marketing network was able to enhance the performance of the handling business and global marketing itself produced satisfactory results. Oilseed marketing in particular, well integrated with our crushing assets in Europe and South America, contributed strongly.

Barring significant crop issues, global markets are likely to remain relatively low priced and subdued. Crop progress to date, in both Brazil and Argentina, is excellent and may be at record levels, which is potentially constructive for the oilseed crushing business. Conversely, weak diesel prices will adversely impact biodiesel margins.

Financial information

US$ million	2014	2013	Change %
Revenue	22,523	26,854	(16)
Adjusted EBITDA	996	383	160
Adjusted EBIT	856	198	332

Selected marketing volumes sold

Million tonnes	2014	2013	Change %
Grain	38.3	44.2	(13)
Oil/Oilseeds	22.0	23.5	(6)
Cotton	0.4	0.5	(20)
Sugar	0.9	0.5	80

Operating highlights

Adjusted EBITDA was $213 million, a 249% increase on 2013, mainly due to the higher crush volumes at Timbues, Argentina, a plant that was fully operational for the whole year, combined with the impact of our increased ownership in this asset to 50% from 33%. Timbues also drove the increase in processing volumes.

Financial information

US$ million	2014	2013	Change %
Revenue	3,298	3,185	4
Adjusted EBITDA	213	61	249
Adjusted EBIT	136	(6)	n.m.
Adjusted EBITDA margin	6%	2%
Sustaining capex	29	49	(41)
Expansionary capex	58	97	(40)
Total capex	87	146	(40)

Processing / production data

		2014	2013	Change %
Farming	kt	762	883	(14)
Crushing	kt	5,664	3,642	56
Long term toll agreement	kt	206	541	(62)
Biodiesel	kt	757	624	21
Rice milling	kt	230	273	(16)
Wheat milling	kt	1,013	1,121	(10)
Sugarcane processing	kt	2,231	2,251	(1)
Total agricultural products	kt	10,863	9,335	16

Consolidated Statement of Income/(Loss)

For the year ended 31 December 2014

US$ million	Notes	2014	2013 Restated¹
Revenue		221,073	232,694
Cost of goods sold		(214,344)	(227,145)
Selling and administrative expenses		(1,304)	(1,206)
Share of income from associates and joint ventures	10	638	846
Gain/(Loss) on sale of investments	3	715	(40)
Other expense - net	4	(1,073)	(11,488)
Dividend income		19	39
Interest income		253	393
Interest expense		(1,724)	(1,781)
Income/(Loss) before income taxes		4,253	(7,688)
Income tax expense	6	(1,809)	(254)
Income/(Loss) for the year		2,444	(7,942)

Attributable to:
Non-controlling interests		136	104
Equity holders		2,308	(8,046)

Earnings/(Loss) per share:
Basic (US$)	17	0.18	(0.73)
Diluted (US$)	17	0.18	(0.73)

1 Certain amounts shown here reflect the revised previously reported fair values associated with the Xstrata acquisition made in 2013 (see note 25), and therefore do not correspond to the consolidated statement of income/(loss) for the year ended 31 December 2013.

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

Consolidated Statement of Comprehensive Income/(Loss)

For the year ended 31 December 2014

US$ million	Notes	2014	2013 Restated¹
Income/(Loss) for the year		2,444	(7,942)

Other comprehensive income/(loss)
Items not to be reclassified to the statement of income in subsequent periods:
Defined benefit plan actuarial (losses)/gains, net of tax of $58 million (2013: $137 million)	23	(196)	326
Net items not to be reclassified to the statement of income in subsequent periods:		(196)	326
Items that are or may be reclassified to the statement of income in subsequent periods:
Exchange loss on translation of foreign operations		(852)	(1,168)
Gains/(losses) on cash flow hedges, net of tax of $3 million (2013: $48 million)		415	(287)
Share of comprehensive (loss)/income from associates and joint ventures	10	(23)	26
Gain on available for sale financial instruments		501	-
Cash flow hedges transferred to the statement of income, net of tax of $nil (2013: $nil)		(1)	1
Net items that are or may be reclassified to the statement of income in subsequent periods:		40	(1,428)
Other comprehensive loss		(156)	(1,102)
Total comprehensive income/(loss)		2,288	(9,044)

Attributable to:
Non-controlling interests		130	62
Equity holders		2,158	(9,106)

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

Consolidated Statement of Financial Position

As at 31 December 2014

US$ million	Notes	2014	2013 Restated¹
Assets
Non-current assets
Property, plant and equipment	7	70,110	67,233
Intangible assets	8	8,866	9,158
Investments in associates and joint ventures	10	12,274	12,156
Other investments	10	1,472	923
Advances and loans	11	4,597	3,995
Deferred tax assets	6	1,667	2,105
		98,986	95,570
Current assets
Inventories	12	24,436	22,753
Accounts receivable	13	21,456	24,536
Other financial assets	28	4,036	2,904
Prepaid expenses and other assets		436	578
Marketable securities		31	36
Cash and cash equivalents	14	2,824	2,849
		53,219	53,656
Asset held for sale	15	-	5,636
		53,219	59,292
Total assets		152,205	154,862

Equity and liabilities
Capital and reserves - attributable to equity holders
Share capital	16	133	133
Reserves and retained earnings		48,409	49,180
		48,542	49,313
Non-controlling interests	33	2,938	3,368
Total equity		51,480	52,681

Non-current liabilities
Borrowings	20	40,688	38,712
Deferred income	21	1,120	1,337
Deferred tax liabilities	6	6,435	6,698
Other financial liabilities	28	980	1,044
Provisions	22	7,555	8,064
		56,778	55,855
Current liabilities
Borrowings	20	12,005	16,461
Accounts payable	24	26,881	26,041
Deferred income	21	153	145
Provisions	22	576	323
Other financial liabilities	28	3,956	2,366
Income tax payable		376	489
		43,947	45,825
Liabilities held for sale	15	-	501
		43,947	46,326
Total equity and liabilities		152,205	154,862

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

Consolidated Statement of Cash Flows

For the year ended 31 December 2014

US$ million	Notes	2014	2013 Restated¹
Operating activities
Income/(Loss) before income taxes		4,253	(7,688)
Adjustments for:
Depreciation and amortisation		5,448	4,049
Share of income from associates and joint ventures		(638)	(846)
Decrease in other long term liabilities		(173)	(72)
(Gain)/Loss on sale of investments	3	(715)	40
Impairments	5	1,101	9,730
Other non-cash items - net²		231	2,075
Interest expense - net		1,471	1,388
Cash generated by operating activities before working capital changes		10,978	8,676
Working capital changes
Decrease in accounts receivable³		1,727	4,188
(Increase)/decrease in inventories		(1,978)	3,972
Decrease in accounts payable⁴		(452)	(5,561)
Total working capital changes		(703)	2,599
Income taxes paid		(928)	(593)
Interest received		49	91
Interest paid		(1,260)	(1,589)
Net cash generated by operating activities		8,136	9,184
Investing activities
(Increase)/decrease in long term advances and loans		(686)	274
Net cash (used)/received in acquisition of subsidiaries	25	(1,792)	1,209
Net cash received from disposal of subsidiaries	25	6,482	744
Purchase of investments	10	(374)	(198)
Proceeds from sale of investments		64	54
Purchase of property, plant and equipment		(7,854)	(8,390)
Capital expenditures related to assets held for sale		(961)	(1,169)
Payments for exploration and evaluation	7	(245)	(28)
Proceeds from sale of property, plant and equipment		206	258
Dividends received from associates and joint ventures	10	1,129	551
Net cash used by investing activities		(4,031)	(6,695)

2 Includes certain non-cash items as disclosed in note 4.

3 Includes movements in other financial assets, prepaid expenses and other assets.

4 Includes movements in other financial liabilities, provisions and deferred income.

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

Consolidated Statement of Cash Flows

For the year ended 31 December 2014

US$ million		Notes	2014	2013 Restated¹
Financing activities ²
Proceeds from issuance of capital market notes		20	5,535	5,722
Repayment of capital market notes			(1,751)	-
Repayment of convertible bonds		20	(2,365)	-
Proceeds from/(repayment of) other non-current borrowings			1,804	(4,225)
Margin receipts in respect of financing related hedging activities			10	167
Repayment of current borrowings			(3,782)	(939)
Acquisition of additional interest in subsidiaries			(101)	(489)
Return of capital/distributions to non-controlling interests			(245)	(184)
Repurchase of own shares			(786)	-
Proceeds from own shares			19	10
Payment of profit participation certificates			(224)	(422)
Distributions paid to equity holders of the parent		18	(2,244)	(2,062)
Net cash used by financing activities			(4,130)	(2,422)
	(Decrease)/Increase in cash and cash equivalents		(25)	67
	Cash and cash equivalents, beginning of year		2,849	2,782
	Cash and cash equivalents, end of year		2,824	2,849

2 Presented net of directly attributable issuance costs where applicable.

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

Consolidated Statement of Changes of Equity

For the year ended 31 December 2014

US$ million	(Deficit)/ retained earnings	Share premium	Other reserves (Note 16)	Own shares	Total reserves and (deficit)/ retained earnings	Share capital	Total equity attributable to equity holders	Non-controlling interests (Note 33)	Total equity
1 January 2013	5,248	26,688	(868)	-	31,068	71	31,139	3,034	34,173
Loss for the year - restated¹	(8,046)	-	-	-	(8,046)	-	(8,046)	104	(7,942)
Other comprehensive income	352	-	(1,412)	-	(1,060)	-	(1,060)	(42)	(1,102)
Total comprehensive income	(7,694)	-	(1,412)	-	(9,106)	-	(9,106)	62	(9,044)
Issue of share capital	383	30,073	-	(1,041)	29,415	62	29,477	-	29,477
Issue of share capital related to employee incentive programs	(78)	78	-	-	-	-	-	-	-
Own share purchases	-	-	-	(13)	(13)	-	(13)	-	(13)
Own share disposal	(284)	-	-	287	3	-	3	-	3
Equity settled share-based payments²	13	-	-	-	13	-	13	-	13
Change in ownership interest in subsidiaries	-	-	(138)	-	(138)	-	(138)	(653)	(791)
Acquisition of subsidiaries³	-	-	-	-	-	-	-	1,109	1,109
Distributions paid (note 18)	-	(2,062)	-	-	(2,062)	-	(2,062)	(184)	(2,246)
31 December 2013 (Restated¹)	(2,412)	54,777	(2,418)	(767)	49,180	133	49,313	3,368	52,681

1 January 2014	(2,412)	54,777	(2,418)	(767)	49,180	133	49,313	3,368	52,681
Income for the year	2,308	-	-	-	2,308	-	2,308	136	2,444
Other comprehensive income	(219)	-	69	-	(150)	-	(150)	(6)	(156)
Total comprehensive income	2,089	-	69	-	2,158	-	2,158	130	2,288
Own share purchases	-	-	-	(795)	(795)	-	(795)	-	(795)
Own share disposal	(38)	-	-	69	31	-	31	-	31
Equity-settled share-based expenses²	50	-	-	-	50	-	50	-	50
Equity portion of convertible bonds	89	-	(89)	-	-	-	-	-	-
Change in ownership interest in subsidiaries	-	-	29	-	29	-	29	(300)	(271)
Disposal of business	-	-	-	-	-	-	-	(15)	(15)
Distributions paid (note 18)	-	(2,244)	-	-	(2,244)	-	(2,244)	(245)	(2,489)
At 31 December 2014	(222)	52,533	(2,409)	(1,493)	48,409	133	48,542	2,938	51,480

2 See note 19.

3 See note 25.

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

Notes to Financial Statements

1. ACCOUNTING POLICIES

Corporate information

Glencore plc (formerly Glencore Xstrata plc), (the "Company", "Parent", the "Group" or "Glencore"), is a leading integrated producer and marketer of natural resources, with worldwide activities in the production, refinement, processing, storage, transport and marketing of metals and minerals, energy products and agricultural products. Glencore operates on a global scale, marketing and distributing physical commodities sourced from third party producers and own production to industrial consumers, such as those in the automotive, steel, power generation, oil and food processing industries. Glencore also provides financing, logistics and other services to producers and consumers of commodities. In this regard, Glencore seeks to capture value throughout the commodity supply chain. Glencore's long 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 plc is a publicly traded limited company incorporated in Jersey and domiciled in Switzerland. Its ordinary shares are traded on the London, Hong Kong and Johannesburg stock exchanges.

This preliminary announcement was authorised for issue in accordance with a Directors' resolution on 3 March 2015.

The unaudited financial information for the year ended 31 December 2014 and audited and restated financial information for the year ended 31 December 2013 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 2014 has been extracted from the financial statements of Glencore which will be delivered to the Registrar in due course. The audit report for 31 December 2014 is yet to be signed by the auditors.

Statement of compliance

The accounting policies adopted in this preliminary announcement are based on the Company's financial statements which are prepared in accordance with:

• International Financial Reporting Standards ("IFRS") and interpretations as adopted by the European Union ("EU") effective as of 31 December 2014; and

• IFRS and interpretations as issued by the International Accounting Standards Board ("IASB") effective as of 31 December 2014.

Critical accounting judgements and key sources of estimation

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 the financial 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:

Key judgements

In the process of applying Glencore's accounting policies, management has made the following judgements based on the relevant facts 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.

Allocation of acquisition goodwill to cash generating units ("CGUs") (Notes 8, 9 and 25)

The allocation of goodwill created as a result of a business combination is a significant judgement which is, in part, impacted by the identification of synergies expected to be realised as a result of a business combination and allocating those synergies to the cash generating units which are expected to benefit from the synergies. The allocation of goodwill impacts the carrying value of CGUs and the associated assessment of impairment in connection with those CGUs. The most significant judgements in respect of goodwill allocation relate to the acquisition of Xstrata, which was completed in 2013. No goodwill was recognised in conjunction with any of the business combinations occurring in 2014.

Determination of control of subsidiaries and joint arrangements

Judgement is required to determine when Glencore has control of subsidiaries or joint control of joint arrangements. This requires an assessment of the relevant activities (those relating to the operating and capital decisions of the arrangement, 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.

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.

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 proportionate consolidation method.

Exploration and evaluation expenditure (Notes 7 and 30)

The application of Glencore's accounting policy for exploration and evaluation expenditure requires judgement to determine whether future economic benefits are likely, from either future exploitation or sale, or whether activities have not reached a stage that permits a reasonable assessment of the existence of reserves/resource.

Credit and performance risk (Note 26)

The Group's global marketing operations expose it to credit and performance (the risk that counterparties fail to sell or purchase physical commodities on agreed terms) risks; these arise particularly in markets demonstrating significant price volatility with limited liquidity and terminal markets and when global and / or regional macroeconomic conditions are weak.

Continuously, but particularly during such times, judgement is required to determine whether receivables, loans and advances are recoverable and if contracted product deliveries will be received. Judgements about recoverability and contractual performance may materially impact both non-current and current assets as recognised in the statement of financial position.

Recognition of deferred tax assets (Note 6)

Deferred tax assets are recognised only to the extent it is considered probable that those assets will be recoverable. This involves an assessment 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 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 the amounts recognised in the consolidated statement of income in the period in which the change occurs. The recoverability of deferred tax assets including the estimates and assumptions contained therein are reviewed regularly by management.

Key estimates and assumptions

In the process of applying Glencore's accounting policies, management has made key estimates and assumptions concerning the future and other key sources of estimation uncertainty. The key assumptions and estimates at the reporting date that have a significant impact on the financial position and the results of operations, are described below. Actual results may differ from these estimates under different assumptions and conditions and may materially affect financial results or the financial position reported in future periods.

Valuation of derivative instruments (Note 28)

Derivative instruments are carried at fair value and Glencore evaluates the quality and reliability of the assumptions and data used to measure fair value in the three hierarchy levels, Level 1, 2 and 3, as prescribed by IFRS 13 Fair Value Measurement. Fair values are determined in the following ways: externally verified via comparison to quoted market prices in active markets (Level 1); by using models with externally verifiable inputs (Level 2); or by using alternative procedures such as comparison to comparable instruments and/or using models with unobservable market inputs requiring Glencore to make market based assumptions (Level 3). Level 3 inputs therefore include the highest level of estimation uncertainty.

Depreciation and amortisation of mineral and petroleum rights, deferred mining costs and plant and equipment (Note 7)

Mineral and petroleum rights, deferred mining costs and certain plant and equipment are depreciated/amortised using the Units of Production basis ("UOP"). The calculation of the UOP rate of depreciation / amortisation, and therefore the annual charge to operations, can fluctuate from initial estimates. This could generally result when there are significant changes in any of the factors or assumptions used in estimating mineral or petroleum reserves and resources, notably changes in the geology of the reserves and resources and assumptions used in determining the economic feasibility of the reserves. Such changes in reserves and resources could similarly impact the useful lives of assets depreciated on a straight-line basis, where those lives are limited to the life of the project, which in turn is limited to the life of the underlying reserves and resources. Estimates of proven and probable reserves and resources are prepared by experts in extraction, geology and reserve determination. Assessments of UOP rates against the estimated reserve and resource base and the operating and development plan are performed regularly.

Impairments (Notes 5, 7, 8, 9 and 10)

Investments in associates and joint ventures, other investments, 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 may not be fully recoverable or at least annually for goodwill and other indefinite life intangible assets. If an asset's recoverable amount is less than the asset's carrying amount, an impairment loss is recognised in the consolidated statement of income. Future cash flow estimates which are used to calculate the asset's fair value are discounted using asset specific discount rates and are based on expectations about future operations, primarily comprising estimates about production and sales volumes, commodity prices, reserves and resources, operating, rehabilitation and restoration costs and capital expenditures. Changes in such estimates could impact recoverable values of these assets. Estimates are reviewed regularly by management.

Provisions (Note 22)

The amount recognised as a provision, including tax, legal, contractual and other exposures or obligations, is the best estimate of the consideration required to settle the related liability, including any related interest charges, taking into account the risks and uncertainties surrounding the obligation. The Group assesses its liabilities and contingencies based upon the best information available, relevant tax laws and other appropriate requirements. These provisions may require settlement in future periods and as such may be materially impacted by the time value of money. The determination of the appropriate risk adjusted discount rate to reflect time value of money is a source of estimation uncertainty which could impact the carrying value of these provisions at the balance sheet date.

Restoration, rehabilitation and decommissioning costs (Note 22)

A provision for future restoration, rehabilitation and decommissioning costs requires estimates and assumptions to be made around the relevant regulatory framework, the magnitude of the possible disturbance, the timing, extent and costs of the required closure and rehabilitation activities and of the risk adjusted discount rates used to determine the present value of the future cash outflows. To the extent that the actual future costs differ from these estimates, adjustments will be recorded and the consolidated statement of income could be impacted. The provisions including the estimates and assumptions contained therein are reviewed regularly by management.

Fair value measurements (Notes 9, 12, 25, 26, 27 and 28)

In addition to recognising derivative instruments at fair value, as discussed above, an assessment of the fair value of assets and liabilities is also required in accounting for other transactions, most notably, business combinations and marketing inventories and disclosures related to fair values of financial assets and liabilities. In such instances, fair value measurements are estimated based on the amounts for which the assets and liabilities could be exchanged at the relevant transaction date or reporting period end, and are therefore not necessarily reflective of the likely cash flow upon actual settlements. Where fair value measurements cannot be derived from publicly available information, they are estimated using models and other valuation methods. To the extent possible, the assumptions and inputs used take into account externally verifiable inputs. However, such information is by nature subject to uncertainty, particularly where comparable market-based transactions rarely exist.

Adoption of new and revised Standards

In the current year, Glencore has applied a number of new and revised IFRS standards and interpretations which were adopted as of 1 January 2014:

Amendments to IFRS 10, IFRS 12 and IAS 27 - Investment Entities

These amendments provide an exception to the consolidation requirement for entities that meet the definition of an investment entity under IFRS 10 Consolidated Financial Statements. The exception to consolidation requires investment entities to account for subsidiaries at fair value through profit or loss.

Amendments to IFRS 11 - Acquisitions of Interests in Joint Operations

The amendments, effective for year ends beginning on or after 1 January 2016, but with early adoption permitted, were early adopted in conjunction with the acquisition of Caracal Energy Inc. These amendments address how a joint operator should account for the acquisition of an additional interest in a joint operation in which the activity of the joint operation constitutes a business. IFRS 11 Joint Arrangements, as amended now requires that such transactions shall be accounted for using the principles related to business combinations according to IFRS 3 Business Combinations and other standards and that any previously held interests in the existing joint operation is not to be remeasured to fair value.

Amendments to IAS 32 - Offsetting Financial Assets and Financial Liabilities

The amendments to IAS 32 Financial Instruments: Presentation clarify the requirements relating to the offset of financial assets and liabilities. Specifically, the amendments clarify the meaning of "currently has a legally enforceable right to set-off" and "simultaneous realisation and settlement".

Amendments to IAS 36 - Recoverable Amount Disclosure for Non-Financial Assets

The amendments to IAS 36 Impairments of Assets: Presentation clarify the disclosure required in relation to the recoverable amount of impaired assets if that amount is based on fair value less costs of disposal.

Amendments to IAS 39 - Novation of Derivatives and Continuation of Hedge Accounting

The amendments to IAS 39 Financial Instruments: Recognition and Measurement clarify the criteria required to be met such that there would be no need to discontinue hedge accounting if a hedging derivative was novated.

IFRIC 21 - Levies

The interpretation clarifies that an entity recognises a liability for a levy no earlier than when the activity that triggers payment, as identified by the relevant legislation, occurs. It also clarifies that a levy liability is accrued progressively only if the activity that triggers payment occurs over a period of time, in accordance with the relevant legislation. For a levy that is triggered upon reaching a minimum threshold, no liability is recognised before the specified minimum threshold is reached. The interpretation requires these same principles to be applied in interim financial statements. IFRIC 21 is effective for annual periods beginning on or after 1 January 2014 and is applied retrospectively. It is applicable to all levies imposed by governments under legislation, other than outflows that are within the scope of other standards (e.g. IAS 12 Income Taxes) and fines or other penalties for breaches of legislation.

The adoption of these new amendments and interpretations has had no material impact on the Group.

New and revised Standards not yet effective

At the date of authorisation of these consolidated financial statements, the following new and revised IFRS standards, which are applicable to Glencore, were issued but are not yet effective:

Amendments to IAS 16 and IAS 38 - Clarification of Acceptable Methods of Depreciation and Amortisation - effective for year ends beginning on or after 1 January 2016

The amendments to IAS 16 Property, Plant and Equipment prohibits entities from using a revenue-based depreciation method for items of property, plant and equipment and the amendments to IAS 38 Intangible Assets introduce a rebuttable presumption that revenue is not an appropriate basis for amortisation of intangible assets.

IFRS 15 - Revenue from Contracts with Customers - effective for year ends beginning on or after 1 January 2017

IFRS 15 applies to revenue from contracts with customers and replaces all of the revenue standards and interpretations in IFRS. The standard outlines the principles an entity must apply to measure and recognise revenue and the related cash flows.

IFRS 9 - Financial Instruments - effective for year ends beginning on or after 1 January 2018

IFRS 9 modifies the classification and measurement of certain classes of financial assets and liabilities. The most significant change is to rationalise from four to two primary categories of financial assets.

The Directors are currently evaluating the impact these new and revised standards may have on the financial statements of Glencore.

Basis of preparation

The financial statements are prepared under the historical cost convention except for the revaluation of certain financial assets, liabilities and marketing inventories 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 generally based on the fair value of the consideration given in exchange for goods and services. The principal accounting policies adopted are set out below.

The Directors have assessed that the financial statements be prepared on a going concern basis after their consideration of the Group's budgeted cash flows and related assumptions, including appropriate stress testing thereof, key risks and uncertainties, undrawn debt facilities, debt maturity review and in accordance with the Going Concern and Liquidity Guidance for Directors of UK Companies 2009 published by the Financial Reporting Council. Further information on Glencore's objectives, policies and processes for managing its capital and financial risks are detailed in note 26.

All amounts are expressed in millions of United States Dollars, unless otherwise stated, consistent with the predominant functional currency of Glencore's operations.

Principles of consolidation

The consolidated financial statements incorporate the financial statements of the Company and entities (including structured 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 the ability 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.

When Glencore has less than a majority of the voting rights of an investee or similar rights of an investee, it considers all relevant facts 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 the subsidiary 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 date Glencore 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 non-controlling interests. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling 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 paid or 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 category of equity as specified/permitted by applicable IFRSs). The fair value of any investment retained in the former subsidiary at the date when control is lost is regarded as the fair value on initial recognition for subsequent accounting under IAS 39, when applicable, or the cost on initial recognition of an investment in an associate or a joint venture.

Investments in associates and joint ventures

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 the investee 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 have joint 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 the amount 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.

Joint operations

A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement.

When Glencore undertakes its activities under joint operations, Glencore applies the proportionate consolidation method and recognises:

• 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.

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 interest in that joint operation.

Business combinations and goodwill

Acquisitions of subsidiaries and businesses are accounted for using the acquisition method of accounting. The cost of the acquisition 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 of acquisition. 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 to fair 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.

Where the fair value of consideration transferred for a business combination exceeds the fair values attributable to Glencore's share of the identifiable net assets, the difference is treated as purchased goodwill.

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 the other assets of the unit pro rata based on the carrying amount of each asset in the unit. Any impairment loss for goodwill is recognised directly in profit or loss. An impairment loss recognised for goodwill is not able to be reversed in subsequent 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 are adjusted for additional information obtained during the 'measurement period' (which cannot exceed one year from the acquisition date) 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 share of the recognised amounts of the acquiree's identifiable net assets. The choice of measurement basis is made on a transaction-by-transaction basis. Other types of non-controlling interests are measured at fair value or, when applicable, on the basis specified in another IFRS.

Similar procedures are applied in accounting for the purchases of interests in Associates and joint operations. Any goodwill arising from 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 included in the consolidated statement of income in the period of the purchase.

Non-current assets held for sale and disposal groups

Non-current assets and assets and liabilities 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 held for sale are measured at the lower of their carrying amount or fair value less costs of disposal.

Revenue recognition

Revenue is recognised when Glencore has transferred to the buyer all significant risks and rewards of ownership of the assets sold. Revenue excludes any applicable sales taxes and is recognised at the fair value of the consideration received or receivable to the extent that it is probable that economic benefits will flow to Glencore and the revenues and costs can be reliably measured. In most instances sales revenue 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.

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. 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 a commodity 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.

Royalty, interest and dividend income is recognised when the right to receive payment has been established, it is probable that the economic benefits will flow to Glencore and the amount of income can be measured reliably. Royalty revenue is recognised on an accrual 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.

Foreign currency translation

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

Foreign currency transactions

Transactions in foreign currencies are converted into the functional currency of each entity using the exchange rate prevailing at the transaction date. Monetary assets and liabilities outstanding at year end are converted at year end rates. The resulting exchange differences are recorded in the consolidated statement of income.

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.

Goodwill and fair value adjustments arising from the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and are translated at the closing rate. Translation adjustments are included as a separate component of shareholders' equity and have no consolidated statement of income impact to the extent that no disposal of the foreign operation has occurred.

Borrowing costs

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.

Retirement benefits

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 insurance companies equal the contributions that are required under the plans and accounted for as an expense.

Glencore uses the Projected Unit Credit Actuarial method to determine the present value of its defined benefit obligations and the related current service cost and, where applicable, past service cost. Net interest is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability or asset.

The cost of providing pensions is charged to the consolidated statement of income so as to recognise current and past service costs, interest cost on defined benefit obligations, and the effect of any curtailments or settlements, net of expected returns on plan assets. Actuarial gains and losses are recognised directly in other comprehensive income and will not be reclassified to the consolidated statement of income. The retirement benefit obligation/asset recognised in the consolidated statement of financial position represents the actual deficit or surplus in Glencore'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.

Share-based payments

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 the effect 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.

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 that are 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 statement of income.

Income taxes

Income taxes consist of current and deferred income taxes. Current taxes represent income taxes expected to be payable based on enacted 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 of assets 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 is probable. Deferred tax assets are reviewed at reporting period end and amended to the extent that it is no longer probable that the related benefit will be realised. To the extent that a deferred tax asset not previously recognised but which subsequently fulfils the criteria for recognition, 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 those arising 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 the temporary 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 in equity) 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 a percentage 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.

Property, plant and equipment

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 and the 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 UOP and/or straight-line basis as follows:

Buildings	10-45 years
Freehold land	not depreciated
Plant and equipment	3-30 years/UOP
Mineral and petroleum rights	UOP
Deferred mining costs	UOP

Assets under finance leases, where substantially all the risks and rewards of ownership transfer to the Group as lessee, are capitalised and amortised over their expected useful lives on the same basis as owned assets or, where shorter, the term of the relevant lease. All other leases are classified as operating leases, the expenditures for which are charged against income over the accounting periods covered by the lease term.

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.

Exploration and evaluation expenditure

Exploration and evaluation expenditure relates to costs incurred in the exploration and evaluation of potential mineral and petroleum resources and includes costs such as exploration and production licenses, 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 of income as incurred except when the expenditure is expected to be recouped from future exploitation or sale of the area of interest and 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 which case the expenditure is capitalised. Purchased exploration and evaluation assets are recognised at their fair value at acquisition. As the intangible component (i.e. licenses) represents an insignificant and indistinguishable portion of the overall expected tangible amount to be incurred and recouped from future exploitation, these costs along with other capitalised exploration and evaluation expenditure is recorded as a component of property, plant and equipment.

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, an assessment is performed for each area of interest or at the CGU level. To the extent that capitalised expenditure is not expected to be 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 income statement. 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.

Development expenditure

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 and equipment 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 netted against development expenditure. Upon completion 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 of 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 those costs relate.

Deferred stripping costs

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

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.

Biological assets

Biological assets are carried at their fair value less estimated selling costs. Any changes in fair value less estimated selling costs are included in the consolidated statement of income in the period in which they arise.

Restoration, rehabilitation and decommissioning

Restoration, rehabilitation and decommissioning costs arising from the installation of plant and other site preparation work, discounted using a risk adjusted discount rate 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 of income 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 at their 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 by recognising an adjustment to the rehabilitation liability and a corresponding adjustment to the asset to which it relates, provided the reduction in the provision is not greater than the depreciated capitalised cost of the related asset, in which case the capitalised 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

Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination 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 of income and other comprehensive income 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 depreciated, Glencore has no identifiable intangible assets with an indefinite life.

The major categories of intangibles are amortised on a straight-line basis as follows:

Port allocation rights	30-40 years
Licences, trademarks and software	3-20 years
Royalty arrangements	30-40 years
Acquired offtake arrangements	5-10 years

Other investments

Equity investments, other than investments in Associates, are recorded at fair value unless such fair value is not reliably determinable in which case they are carried at cost. Changes in fair value are recorded in the consolidated statement of income unless they are classified as available for sale, in which case fair value movements are recognised in other comprehensive income and are subsequently recognised in the consolidated statement of income when realised by sale or redemption, or when a reduction in fair value is judged to be a significant or prolonged decline.

Impairment

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. 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 test involves determining whether the carrying amounts are in excess of their recoverable amounts. An asset's recoverable amount is determined as the higher of its fair value less costs of disposal and its value in use. Such reviews are undertaken on an asset-by-asset basis, except where assets do not generate cash flows independent of other assets, in which case 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 of income to reflect the asset at the lower amount.

An impairment loss is reversed in the consolidated statement of income if there is a change in the estimates used to determine the recoverable amount since the prior impairment loss was recognised. The carrying amount is increased to the recoverable amount but not beyond the carrying amount net of depreciation or amortisation which would have arisen if the prior impairment loss had not been recognised. Goodwill impairments and impairments of available for sale equity investments cannot be subsequently reversed.

Provisions

Provisions are recognised when Glencore has a present obligation (legal or constructive), as a result of past events, and it is probable that 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 the balance sheet date, taking into account the risks and uncertainties surrounding the obligation. 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).

Onerous contracts

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

Unfavourable contracts

An unfavourable contract is considered to exist when Glencore, in a business combination, acquires a contract under which the terms of the contract require Glencore to sell products or purchase 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 income over the term of the contract.

Inventories

The vast majority of marketing inventories are valued at fair value less costs of disposal with the remainder valued at the lower of cost or net realisable value. Unrealised gains and losses from changes in fair value are reported in cost of goods sold.

Production inventories are valued at the lower of cost or net realisable value. Cost is determined using the first-in-first-out ("FIFO") or the weighted average method and comprises material costs, labour costs and allocated production related overhead costs. Financing and storage costs related to inventory are expensed as incurred.

Cash and cash equivalents

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.

Financial instruments

Financial assets are classified as either financial assets at fair value through profit or loss, loans and receivables, held-to-maturity investments or available for sale financial assets depending upon the purpose for which the financial assets were acquired. Financial assets are initially recognised at fair value on the trade date, including, in the case of instruments not recorded at fair value through profit or loss, directly attributable transaction costs. Subsequently, financial assets are carried at fair value (other investments, derivatives and marketable securities) or amortised cost less impairment (accounts receivable and advances and loans). Financial liabilities other than derivatives are initially recognised at fair value of consideration received net of transaction costs as appropriate and subsequently carried at amortised cost.

Convertible bonds

At the date of issue, the fair value of the liability component is determined by discounting the contractual future cash flows using a market rate for a similar non-convertible instrument. The liability component is recorded as a liability on an amortised cost basis using the effective interest method. The equity component is recognised as the difference between the fair value of the proceeds as a whole and the fair value of the liability component and it is not subsequently remeasured. On conversion, the liability is reclassified to equity and no gain or loss is recognised in the consolidated statement of income and upon expiry of the conversion rights, any remaining equity portion will be transferred to retained earnings.

Own shares

The cost of purchases of own shares are 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.

Derivatives and hedging activities

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 are subsequently 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 and contractual prices for the underlying instrument, time to expiry, yield curves, volatility of the underlying instrument and counterparty 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, are recognised 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.

A change in the fair value of derivatives designated as a Fair Value Hedge is reflected together with the change in the fair value of the 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 as a cash flow hedge-reserve in shareholders' equity. The deferred amount is then released to the consolidated statement of income in the same periods during which the hedged transaction affects the consolidated 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 of income when the committed or forecast transaction is ultimately recognised in the consolidated statement of income. However, if a forecast or committed transaction is no longer expected to occur, the cumulative gain or loss that was recognised in equity is immediately transferred to the consolidated statement of income.

A derivative may be embedded in a "host contract". Such combinations are known as hybrid instruments and at the date of issuance, the embedded derivative is separated from the host contract and accounted for as a stand-alone derivative if the criteria for separation are met. The host contract is accounted for in accordance with its relevant accounting policy.

2. SEGMENT INFORMATION

Glencore is organised and operates on a worldwide basis in three core business segments - metals and minerals, energy products and agricultural products, with each business segment responsible for the marketing, sourcing, hedging, logistics and industrial investment activities of their respective products and reflecting the structure used by Glencore's management to assess the performance of Glencore.

The business segments' contributions to the Group are primarily derived from the net margin or premium earned from physical marketing activities (net sale and purchase of physical commodities), provision of marketing and related value-add services and the margin earned from industrial asset activities (net resulting from the sale of physical commodities over the cost of production and/or cost of sales) and comprise the following underlying key commodities:

• Metals and minerals: Zinc, copper, lead, alumina, aluminium, ferro alloys, nickel, cobalt and iron ore, including smelting, refining, mining, processing and storage related operations of the relevant commodities;

• Energy products: Crude oil, oil products, steam coal and metallurgical coal, including investments in coal mining and oil production operations, ports, vessels and storage facilities; and

• Agriculture products: Wheat, corn, canola, barley, rice, oil seeds, meals, edible oils, biofuels, cotton and sugar supported by investments in farming, storage, handling, processing and port facilities.

Corporate and other: consolidated statement of income amounts represent Glencore's share of income related to Xstrata (prior to the date of acquisition in May 2013) and other unallocated Group related expenses (including variable pool bonus charges). Statement of financial position amounts represent Group related balances.

The financial performance of the segments is principally evaluated with reference to Adjusted EBIT/EBITDA which is the net result of revenue less cost of goods sold and selling and administrative expenses plus share of income from other associates and joint ventures, dividend income and the attributable share of underlying Adjusted EBIT/EBITDA of certain associates and joint ventures which are accounted for internally by means of proportionate consolidation.

The accounting policies of the operating segments are the same as those described in note 1 with the exception of certain associates and joint ventures. Under IFRS 11, Glencore's investments in the Antamina copper/zinc mine (34% owned) and the Cerrejón coal mine (33% owned) are considered to be associates as they are 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 these investments under the proportionate consolidation method reflecting Glencore's proportionate share of the revenues, expenses, assets and liabilities of the investments. The balances as presented for internal reporting purposes are reconciled to Glencore's statutory disclosures as outlined in the following tables.

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.

2014 US$ million	Metals and minerals	Energy products	Agricultural products	Corporate and other	Total
Revenue	66,050	131,980	25,821	132	223,983

Marketing activities
Adjusted EBIT	1,515	524	856	(105)	2,790
Depreciation and amortisation	30	41	140	-	211
Adjusted EBITDA	1,545	565	996	(105)	3,001

Industrial activities
Adjusted EBIT	3,674	486	136	(380)	3,916
Depreciation and amortisation¹	3,403	2,355	77	12	5,847
Adjusted EBITDA	7,077	2,841	213	(368)	9,763

Total adjusted EBITDA	8,622	3,406	1,209	(473)	12,764
Depreciation and amortisation	(3,433)	(2,396)	(217)	(12)	(6,058)
Total adjusted EBIT	5,189	1,010	992	(485)	6,706

Significant items²
Other expense - net³					(1,073)
Share of associates' exceptional items⁴					(74)
Unrealised intergroup profit elimination adjustments and other⁵					(221)
Interest expense - net⁶					(1,457)
Gain on sale of investments⁷					715
Income tax expense⁸					(2,152)
Income for the year					2,444

1 Includes an adjustment of $610 million (2013: $447 million) to depreciation and amortisation expenses related to presenting certain associates and joint ventures on a proportionate consolidation basis. Metals and minerals segment: $430 million (2013: $271 million) and Energy products segment $180 million (2013: $176 million), see table below, page 58.

2 Significant items of income and expense which, due to their financial impacts, nature or the expected infrequency of the events giving rise to them, have been separated for internal reporting and analysis of Glencore's results.

3 See note 4.

4 Share of associates' exceptional items comprise Glencore's share of exceptional charges booked directly by various associates, predominantly Lonmin, relating mainly to various costs incurred in connection with the prolonged platinum strikes in South Africa.

5 Comprises the required adjustment to eliminate unrealised profit or losses arising on intergroup transactions of $187 million (2013: $261 million). For Glencore, such adjustments arise on the sale of product, in the ordinary course of business, from its Industrial operations to its Marketing arm and management assesses segment performance prior to any such adjustments, as if the sales were to third parties. The balance comprises an adjustment of $34 million (2013: $Nil) arising from losses incurred as a result of typhoon Haiyan in the Philippines.

6 Includes an adjustment of $14 million (2013: $6 million) to interest income related to presenting certain associates and joint ventures on a proportionate consolidation basis. Metals and minerals segment: interest income of $18 million and Energy products segment interest expense of $4 million, see table below, page 58.

7 See note 3.

8 Includes an adjustment of $343 million (2013: $329 million) to income tax expenses related to presenting certain associates and joint ventures on a proportionate consolidation basis. Metals and minerals segment: $266 million and Energy products segment $77 million, see table below, page 58.

2013 US$ million	Metals and minerals	Energy products	Agricultural products	Corporate and other	Total Restated¹
Revenue	65,321	139,768	30,039	138	235,266

Marketing activities
Adjusted EBIT	1,622	629	198	(93)	2,356
Depreciation and amortisation	21	37	185	-	243
Adjusted EBITDA	1,643	666	383	(93)	2,599

Industrial activities
Adjusted EBIT	2,742	907	(6)	(29)	3,614
Depreciation and amortisation²	2,554	1,623	67	9	4,253
Adjusted EBITDA	5,296	2,530	61	(20)	7,867

Total adjusted EBITDA	6,939	3,196	444	(113)	10,466
Depreciation and amortisation	(2,575)	(1,660)	(252)	(9)	(4,496)
Total adjusted EBIT	4,364	1,536	192	(122)	5,970

Significant items³
Other expense - net⁴					(11,488)
Share of associates' exceptional items⁵					(51)
Mark to market loss on certain natural gas contracts⁶					(95)
Unrealised intergroup profit elimination adjustments⁷					(261)
Interest expense - net⁸					(1,394)
Loss on sale of investments⁹					(40)
Income tax expense¹⁰					(583)
Loss for the year					(7,942)

1 Other expense - net adjusted for the final fair value adjustments in relation to the acquisition of Xstrata (see note 4 and 25).

2 Includes an adjustment of $447 million to depreciation and amortisation expenses related to presenting certain associates and joint ventures on a proportionate consolidation basis. Metals and minerals segment: $271 million and Energy products segment $176 million, see table below, page 59.

3 Significant items of income and expense which, due to their financial impacts, nature or the expected infrequency of the events giving rise to them, have been separated for internal reporting and analysis of Glencore's results.

4 See note 4.

5 Share of associates' exceptional items comprise Glencore's share of exceptional charges booked directly by Xstrata relating mainly to various costs incurred by Xstrata in connection with its acquisition by Glencore.

6 Represents an accounting measurement mismatch between spot and forward prices in respect of certain aluminium commercial hedging activities where such amounts will reverse in future periods. Due to the hedging being done on a portfolio basis, hedge treatment for IFRS accounting purposes (where such amounts would not impact the consolidated statement of income) is not achievable.

7 Represents the required adjustment to eliminate unrealised profit or losses arising on intergroup transactions. For Glencore, such adjustments arise on the sale of product, in the ordinary course of business, from its Industrial operations to its Marketing arm and management assesses segment performance prior to any such adjustments, as if the sales were to third parties.

8 Includes an adjustment of $6 million to interest expenses related to presenting certain associates and joint ventures on a proportionate consolidation basis. Metals and minerals segment: interest income of $1 million and Energy products segment interest expense of $7 million, see table below, page 59.

9 See note 3.

10 Includes an adjustment of $329 million to income tax expenses related to presenting certain associates and joint ventures on a proportionate consolidation basis. Metals and minerals segment: $299 million and Energy products segment $30 million, see table below, page 59.

2014 US$ million	Metals and minerals	Energy products	Agricultural products	Corporate and other	Total
Current assets	29,620	14,433	6,758	(447)	50,364
Current liabilities	(11,334)	(17,264)	(2,870)	(474)	(31,942)
Allocatable current capital employed	18,286	(2,831)	3,888	(921)	18,422
Property, plant and equipment	38,663	28,039	2,899	509	70,110
Intangible assets	3,728	4,097	902	139	8,866
Investments in associates and other investments	9,660	3,561	525	-	13,746
Non-current advances and loans	1,834	2,518	138	107	4,597
Allocatable non-current capital employed	53,885	38,215	4,464	755	97,319
Other assets¹				4,522	4,522
Other liabilities²				(68,783)	(68,783)
Total net assets	72,171	35,384	8,352	(64,427)	51,480

Capital expenditure	6,982	2,294	249	2	9,527

1 Other assets include deferred tax assets, marketable securities and cash and cash equivalents.

2 Other liabilities include borrowings, non-current deferred income, deferred tax liabilities, non-current provisions and non-current financial liabilities.

2013 US$ million	Metals and minerals	Energy products	Agricultural products	Corporate and other	Total Restated¹
Current assets	26,737	17,164	6,554	316	50,771
Current liabilities	(10,456)	(15,671)	(2,708)	(529)	(29,364)
Allocatable current capital employed	16,281	1,493	3,846	(213)	21,407
Property, plant and equipment	36,533	27,173	3,195	332	67,233
Intangible assets	3,755	4,374	883	146	9,158
Investments in associates and other investments	9,439	3,191	430	19	13,079
Non-current advances and loans	987	2,461	141	406	3,995
Allocatable non-current capital employed	50,714	37,199	4,649	903	93,465
Other assets²				10,626	10,626
Other liabilities³				(72,817)	(72,817)
Total net assets	66,995	38,692	8,495	(61,501)	52,681

Capital expenditure	7,114	2,696	293	4	10,107

1 Adjusted for final fair value adjustments in relation to the acquisition of Xstrata (see note 25).

2 Other assets include deferred tax assets, marketable securities, cash and cash equivalents and assets held for sale.

3 Other liabilities include borrowings, non-current deferred income, deferred tax liabilities, non-current provisions, non-current financial liabilities and liabilities held for sale.

The reconciliation of certain associates' and joint venture's Adjusted EBIT to 'Share of net income from associates and joint ventures' for the years ended 31 December 2014 and 2013 is as follows:

2014 US$ million	Metals and minerals	Energy products	Agricultural products	Corporate and other	Total

Revenue
Revenue	66,050	131,980	25,821	132	223,983
Impact of presenting certain associates and joint ventures on a proportionate consolidation basis	(2,156)	(754)	-	-	(2,910)
Revenue - reported measure	63,894	131,226	25,821	132	221,073
Share of income from certain associates and joint ventures
Associates' and joint ventures' Adjusted EBITDA	1,292	260	-	-	1,552
Depreciation and amortisation	(430)	(180)	-	-	(610)
Associates' and joint ventures' Adjusted EBIT	862	80	-	-	942
Net finance costs	18	(4)	-	-	14
Income tax expense	(266)	(77)	-	-	(343)
Net finance costs and income tax expense	(248)	(81)	-	-	(329)
Share of income from certain associates and joint ventures	614	(1)	-	-	613
Share of income from other associates	(36)	3	58	-	25
Share of income from associates and joint ventures	578	2	58	-	638
Capital expenditure
Capital expenditure	6,982	2,294	249	2	9,527
Impact of presenting certain associates and joint ventures on a proportionate consolidation basis	(368)	(99)	-	-	(467)
Capital expenditure - reported measure	6,614	2,195	249	2	9,060

2013 US$ million	Metals and minerals	Energy products	Agricultural products	Corporate and other	Total

Revenue
Revenue	65,321	139,768	30,039	138	235,266
Impact of presenting certain associates and joint ventures on a proportionate consolidation basis	(1,973)	(599)	-	-	(2,572)
Revenue - reported measure	63,348	139,169	30,039	138	232,694

Share of income from certain associates and joint ventures
Associates' and joint ventures' Adjusted EBITDA	1,249	238	-	-	1,487
Depreciation and amortisation	(271)	(176)	-	-	(447)
Associates' and joint ventures' Adjusted EBIT	978	62	-	-	1,040
Net finance costs	1	(7)	-	-	(6)
Income tax expense	(299)	(30)	-	-	(329)
Net finance costs and income tax expense	(298)	(37)	-	-	(335)
Share of income from certain associates and joint ventures	680	25	-	-	705
Share of income from other associates	(37)	45	7	126	141
Share of income from associates and joint ventures	643	70	7	126	846

Capital expenditure
Capital expenditure	7,114	2,696	293	4	10,107
Impact of presenting certain associates and joint ventures on a proportionate consolidation basis	(376)	(144)	-	-	(520)
Capital expenditure - reported measure	6,738	2,552	293	4	9,587

Adjusted EBIT is revenue 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 underlying Adjusted EBIT of certain associates and joint ventures. Adjusted EBITDA consists of Adjusted EBIT plus depreciation and amortisation. The reconciliation of Adjusted EBIT/EBITDA to the reported measures is as follows:

US$ million	2014	2013
Reported measures
Revenue	221,073	232,694
Cost of goods sold	(214,344)	(227,145)
Selling and administrative expenses	(1,304)	(1,206)
Share of associates and joint ventures	638	846
Dividend income	19	39
	6,082	5,228
Adjustments to reported measures
Share of associates exceptional items	74	51
Mark to market valuation on certain contracts	-	95
Unrealised intergroup profit elimination	221	261
	295	407
Net finance and income tax expense impact of presenting certain associates and joint ventures on a proportionate consolidation basis	329	335
Adjusted EBIT	6,706	5,970
Depreciation and amortisation	5,448	4,049
Depreciation impact of presenting certain associates and joint ventures on a proportionate consolidation basis	610	447
Adjusted EBITDA	12,764	10,466

Geographical information

US$ million	2014	2013 Restated¹
Revenue from third parties²
The Americas	47,274	54,675
Europe	70,595	78,782
Asia	86,619	84,835
Africa	8,206	8,688
Oceania	8,379	5,714
	221,073	232,694
Non-current assets³
The Americas	23,471	23,817
Europe	9,316	9,331
Asia	5,922	5,692
Africa	23,642	21,524
Oceania	28,899	28,183
	91,250	88,547

1 Adjusted for final fair value adjustments in relation to the acquisition of Xstrata (see note 25).

2 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 counterpart's ultimate parent and/or final destination of product.

3 Non-current assets are non-current assets excluding other investments, advances and loans and deferred tax assets.

3. GAIN/(LOSS) ON SALE OF INVESTMENTS

US$ million	2014	2013
Gain on sale of Las Bambas	715	-
Loss on sale in investment in associates	-	(40)
Total	715	(40)

On 31 July 2014, the Las Bambas sale transaction was completed, resulting in a gain of $715 million. Tax of $531 million was paid upon completion, resulting in a net gain of $184 million (see note 15).

The net loss on sale of investments in associates in 2013 comprised primarily an accounting dilution loss following an Xstrata share issuance in April 2013, which saw Glencore's ownership reduce.

4. OTHER EXPENSE - NET

US$ million	Notes	2014	2013 Restated¹
Impairments	5	(1,101)	(9,730)
Changes in mark to market valuations on investments held for trading - net		134	(308)
Foreign exchange loss		(76)	(126)
Acquisition related expenses		(10)	(330)
Premium on bond buybacks		(95)	-
Revaluation of previously held interest in newly acquired businesses - net		-	(1,160)
Changes in mark to market valuation of certain coal forward contracts²		-	87
Other expense - net³		75	79
Total		(1,073)	(11,488)

1 Adjusted for final fair value adjustments in relation to the acquisition of Xstrata (see note 25).

2 This item, if classified by function of expense would be recognised in cost of goods sold. All other amounts in Other expense - net are classified by function.

3 'Other expense - net' for the year ended 31 December 2014 comprises a $75 million gain on disposal of property, plant and equipment. 'Other expense - net' for the year ended 31 December 2013 includes a $15 million gain on disposal of property, plant and equipment and $37 million of income relating to the Agrium and Richardson assets which were acquired and subsequently sold as part of the Viterra acquisition.

Together with foreign exchange movements and mark to market movements on investments held for trading, other expenses - net includes other significant items of income and expense which due to their non-operational nature or expected infrequency of the events giving rise to them are reported separately from operating segment results. Other expenses - net includes, but is not limited to, impairment charges, revaluation of previously held interests in business combinations and acquisitions, restructuring and closure costs.

Changes in mark to market valuations on investments held for trading - net

Primarily relates to movements on interests in investments classified as held for trading and carried at fair value, with Glencore's interest in Volcan Compania Minera S.A.A. and Century Aluminum Company cash settled swaps accounting for the majority of the movement (see note 10).

Acquisition related expenses

2014 acquisition related expenses were incurred in connection with current year acquisitions (see note 25).

2013 acquisition related expenses occurred in connection with the acquisition of Xstrata (see note 25) and comprise $59 million of costs incurred with the required cancellation of the Nyrstar offtake agreement, $98 million of professional / advisors' fees related to the acquisition and $137 million of stamp duty and restructuring costs. In addition, there was $36 million of Viterra acquisition related expenses in 2013.

Premium on bond buybacks

In June, Glencore tendered for and cancelled 25% of its outstanding convertible bonds and Canadian dollar bonds originally issued by the Viterra Group (acquired by Glencore in 2012), booking the 'premium' over book carrying value as an expense of $70 million (see note 20) and $25 million respectively.

Revaluation of previously held interest in newly acquired businesses - net

In May 2013, Glencore completed the acquisition of the additional 66% interest in Xstrata it did not previously own (see note 25). At the date of acquisition, the previously owned interest was revalued to its fair value based on the share price at 2 May 2013 (the "Acquisition Date") as prescribed by IFRS 13 Fair Value Measurement and as a result, a $1,160 million loss was recognised.

Changes in mark to market valuation of certain coal forward contracts

This previously represented movements in the fair value of certain fixed price forward coal sales contracts relating to Prodeco's future production, into which it planned to physically deliver. Following the legal reacquisition of Prodeco in March 2010, from an accounting perspective, these forward sales contracts could not technically be classified as "own use" or as cash flow hedges, which would have deferred the income statement effect until performance of the underlying future sale transactions. As at year end 2013, all tonnes of such coal had been physically delivered.

5. IMPAIRMENTS

US$ million	Notes	2014	2013 Restated¹
Xstrata acquisition goodwill impairment		-	(8,124)
Available for sale instruments	10	-	(446)
Non-current advances and loans	11	-	(300)
Property, plant and equipment and intangible assets	7/8	(886)	(779)
Investments	10	(135)	-
Non-current inventory and other²		(80)	(81)
Total impairments³		(1,101)	(9,730)

1 The Xstrata acquisition goodwill impairment has been adjusted by $(466) million as a result of the finalisation of the fair value adjustments relating to the acquisition of Xstrata (see note 25).

2 These items, if classified by function of expense would be recognised in cost of goods sold.

3 Impairments recognised during the year are allocated to Glencore's operating segments as follows: Metals and minerals $791 million (2013: $8,933 million), Energy products $247 million (2013: $797 million) and Agricultural products $63 million (2013: $nil).

Property, plant and equipment and intangible assets

During the regular assessment of whether there is an indication of asset impairment or whether a previously recorded impairment may no longer be required (as part of our regular portfolio review), the following impairment charges resulted:

2014

• Following the steep decline in iron ore prices and the decision to slow down development at our Mauritanian and Congo iron ore operations (Metals and minerals segment), their carrying values were impaired by $431 million, to their estimated recoverable value of $50 million.

• Upon further review and evaluation of our exploration activities at the Matanda Oil field in Cameroon (Energy product segment), it was determined that the technical risk of continuing to evaluate/develop the field was unacceptably high and as a result, the full carrying value of $212 million was impaired.

• The continued challenging platinum market conditions resulted in the carrying value of our South African platinum operations (Metals and minerals segment) being written down to their estimated recoverable value, resulting in an impairment charge of $146 million being recognised.

• The balance of the property, plant and equipment related impairment charges (none of which were individually material) arose due to changes in production and development plans and resulted in impairments of $53 million, $26 million and $18 million being recognised in our Agricultural products, Energy products and Metals and minerals segments respectively.

2013

• Following the continuing low nickel price forecasts, the carrying value of our Murrin Murrin operation (Metals and minerals segment) was impaired by $454 million, to it's estimated recoverable amount of $434 million.

• Further to the decision to suspend a mine shaft expansion project, the carrying value of our Cobar copper operations (Metals and minerals segment) was impaired by $137 million, to it's estimated recoverable value of $329 million.

• Resulting primarily from an evaluation of below expectation exploration programs (none of which were individually material), further impairment charges of $124 million and $64 million were recognised in our Metals and minerals and Energy product segments respectively.

The recoverable amounts of the property, plant and equipment and intangible assets were measured based on fair value less costs of disposal ("FVLCD"), determined by discounted cash flow techniques based on the most recent approved financial budgets and 3 year business plans both of which are underpinned and supported by life of mine plans of the respective operations. The valuation models use the most recent reserve and resource estimates, relevant cost assumptions generally based on past experience and where possible, market forecasts of commodity price and foreign exchange rate assumptions discounted using operation specific discount rates ranging from 5.5% - 13% (2013: 7.5% - 12%). The valuations remain sensitive to price and further deterioration/improvements in the pricing outlook may result in additional impairments/reversals. The determination of FVLCD uses Level 3 valuation techniques for both years.

Investments

As noted above, in relation to iron ore prices and the associated development activity, our investment in the El Aouj Joint Venture, Mauritania was impaired by $58 million. In addition, an impairment charge of $77 million was recognised related to a copper minority investment, Mineracao Caraiba S.A., in Brazil, due to operational challenges. Post these charges, the estimated recoverable values of these investments amounted to $51 million and $28 million respectively. The recoverable amounts of the investments were determined using similar valuation techniques and inputs as described above.

Xstrata acquisition goodwill impairment

In accordance with IFRS 3, following a comprehensive process to identify and determine the fair value of all acquired assets and liabilities in connection with the Xstrata acquisition (see note 25), Glencore recognised goodwill of $13.1 billion of which $5.0 billion was allocated to the metals and coal marketing cash generating units ("CGUs") (see notes 8 and 9) and $8,124 million was allocated to the Xstrata mining operations' CGUs.

The goodwill allocated to the metals and minerals and coal marketing businesses was based on the value of expected margin synergies to be realised by the Group's existing marketing operations as a result of increased product flows from Xstrata, while the residual balance of $8,124 million was allocated to the Xstrata mining operations.

IAS 36 Impairment of assets requires that CGUs containing goodwill be tested for impairment whenever there are indications that goodwill may be impaired. As at the Acquisition Date the assets and liabilities of the Xstrata mining operations were then recorded at fair value (including reserves and resources and expected operational synergies) following the finalisation of the extensive valuation process as at the Acquisition Date, there was an indicator that the goodwill allocated to these operations was impaired.

Accordingly, Glencore completed an impairment test of the Xstrata mining operations based on the results of the final purchase price allocation process (see note 25) and determined that the allocated goodwill was impaired and therefore recorded an impairment charge at acquisition of $8,124 million.

The key circumstances that led to the impairment were:

• The IFRS 3 requirement to measure the consideration paid by reference to Glencore's share price at the Acquisition Date and the significant time lag between pricing the acquisition in September 2012 and the Acquisition Date; and

• The negative broader macro-economic environment facing the extractive industry, particularly around the actual and perceived heightened risks associated with greenfield and large scale expansion projects during the first half of 2013.

The recoverable amount of the Xstrata mining operations was measured based on fair value less cost of disposal determined in accordance with IFRS 13 and was primarily based on discounted cash flow techniques using, where possible, market based forecasts and assumptions and discounted using operation specific discount rates ranging from 8 - 13%. The determination of FVLCD uses Level 3 valuation techniques.

Available for sale instruments

Glencore accounts for its interest in United Company Rusal plc ("UC Rusal") as an available for sale investment at fair value with mark to market movements recognised in other comprehensive income ("OCI"). At 31 December 2013 it was determined that previously recognised negative fair value adjustments were of a prolonged nature and thus were reclassified from OCI to the consolidated statement of income as required under IAS 39 (see note 10). During the year ended 31 December 2014, there was a recovery in UC Rusal's share price and as such a positive mark to market movement of $501 million was recognised in OCI.

6. INCOME TAXES

Income taxes consist of the following:

US$ million	2014	2013
Current income tax expense	(1,447)	(737)
Deferred income tax (expense)/credit	(362)	483
Total tax expense	(1,809)	(254)

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

US$ million	2014	2013 Restated¹
Income/(Loss) before income taxes and attribution	4,253	(7,688)
Less: Share of income from associates and joint ventures	(638)	(846)
Parent Company's and subsidiaries' income/(loss) before income tax and attribution	3,615	(8,534)
Income tax (expense)/credit calculated at the Swiss income tax rate	(542)	1,280
Tax effects of:
Different tax rates from the standard Swiss income tax rate	(971)	(605)
Non-deductible Xstrata related revaluation and goodwill impairment charges	-	(1,218)
Tax exempt income	150	192
Items not tax deductible	(488)	(19)
Foreign exchange fluctuations	(851)	240
Changes in tax rates	(20)	-
Utilisation and changes in recognition of tax losses and temporary differences²	915	(122)
Other	(2)	(2)
Income tax expense	(1,809)	(254)

1 Adjusted for the final fair value adjustments in relation to the acquisition of Xstrata (see note 25).

2 2014 includes $636 million of available capital deductions not previously recognised.

Deferred taxes as at 31 December 2014 and 2013 are attributable to the items detailed in the table below:

US$ million	Notes	2014	2013 Restated¹
Deferred tax assets²
Tax losses carried forward		1,417	1,861
Other		250	244
Total		1,667	2,105

Deferred tax liabilities²
Depreciation and amortisation		(5,894)	(5,784)
Mark to market valuations		(87)	(11)
Other		(454)	(903)
Total		(6,435)	(6,698)
Total Deferred tax - net		(4,768)	(4,593)

Reconciliation of deferred tax - net
1 January		(4,593)	(1,395)
Recognised in income for the year		(362)	483
Recognised in other comprehensive income		86	(89)
Disposal of business	25	-	40
Business combination	25	(52)	(4,134)
Effect of foreign currency exchange movements		156	310
Other		(3)	192
31 December		(4,768)	(4,593)

1 Adjusted for the final fair value adjustments in relation to the acquisition of Xstrata (see note 25).

2 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 recognised for tax losses carried forward only to the extent that realisation of the related tax benefit is probable. As at 31 December 2014, $3,355 million (2013: $2,520 million) of deferred tax assets related to available loss carry forwards that have been brought to account, of which $1,417 million (2013: $1,861 million) are disclosed as deferred tax assets with the remaining balance being offset against deferred tax liabilities arising in the same respective entity. $528 million (2013: $725 million) of net deferred tax assets arise in entities that have been loss making for tax purposes in either 2014 or 2013. 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 planning and 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 and that 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.

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

US$ million	2014	2013
1 year	204	200
2 years	49	215
3 years	38	70
Thereafter	2,543	1,449
Unlimited	1,022	1,778
Total	3,856	3,712

As at 31 December 2014, unremitted earnings of $63,245 million (2013: $43,407 million) have been retained by subsidiaries and associates for reinvestment. No provision is made for income taxes that would be payable upon the distribution of such earnings.

7. PROPERTY, PLANT AND EQUIPMENT

US$ million	Notes	Freehold land and buildings	Plant and equipment	Mineral and petroleum rights	Exploration and evaluation	Deferred mining costs	Total
Gross carrying amount:
1 January 2014 (Restated)¹		5,301	47,782	21,392	823	1,417	76,715
Business combination	25	37	302	1,634	204	-	2,177
Disposal of subsidiaries	25	(1)	(28)	-	(74)	-	(103)
Additions		138	6,847	354	245	487	8,071
Disposals		(28)	(348)	(14)	(60)	(3)	(453)
Effect of foreign currency exchange movements		(83)	(611)	(329)	-	-	(1,023)
Other movements		204	(1,104)	379	147	429	55
31 December 2014		5,568	52,840	23,416	1,285	2,330	85,439

Accumulated depreciation and impairment:
1 January 2014 (Restated)¹		542	6,835	1,866	130	109	9,482
Disposal of subsidiaries	25	-	(14)	-	-	-	(14)
Depreciation		245	3,699	1,144	-	224	5,312
Disposals		(9)	(231)	-	(58)	(1)	(299)
Impairments	5	20	257	39	555	-	871
Effect of foreign currency exchange movements		(8)	(83)	(26)	-	-	(117)
Other movements		(15)	(58)	(136)	54	249	94
31 December 2014		775	10,405	2,887	681	581	15,329
Net book value 31 December 2014		4,793	42,435	20,529	604	1,749	70,110

1 Adjusted for the final fair value adjustments in relation to the acquisition of Xstrata (see note 25).

US$ million	Notes	Freehold land and buildings	Plant and equipment	Mineral and petroleum rights	Exploration and evaluation	Deferred mining costs	Total
Gross carrying amount:
1 January 2013		2,609	17,349	8,267	407	743	29,375
Business combination¹	25	1,585	25,012	13,279	559	866	41,301
Disposal of subsidiaries	25	(131)	(555)	-	-	-	(686)
Additions		308	8,099	601	28	452	9,488
Disposals		(49)	(756)	(65)	-	(3)	(873)
Effect of foreign currency exchange movements		(110)	(1,267)	(588)	-	-	(1,965)
Other movements		1,089	(100)	(102)	(171)	(641)	75
31 December 2013 (Restated)		5,301	47,782	21,392	823	1,417	76,715

Accumulated depreciation and impairment:
1 January 2013		397	4,030	1,047	130	148	5,752
Depreciation		200	2,698	863	-	165	3,926
Disposal of subsidiaries	25	(2)	(9)	-	-	-	(11)
Disposals		(25)	(534)	(21)	-	(26)	(606)
Impairments	5	5	635	49	-	90	779
Effect of foreign currency exchange movements		(33)	15	(72)	-	(268)	(358)
31 December 2013		542	6,835	1,866	130	109	9,482

Net book value 31 December 2013 (Restated)		4,759	40,947	19,526	693	1,308	67,233

1 Adjusted for the final fair value adjustments in relation to the acquisition of Xstrata (see note 25).

Plant and equipment includes expenditure for construction in progress of $9,862 million (2013: $11,149 million) and a net book value of $536 million (2013: $412 million) of obligations recognised under finance lease agreements. Mineral and petroleum rights include biological assets of $98 million (2013: $94 million). Depreciation expenses included in cost of goods sold are $5,287 million (2013: $3,905 million) and in selling and administrative expenses $25 million (2013: $21 million).

During 2014, $348 million (2013: $310 million) of interest was capitalised, $263 million (2013: $231 million) within property, plant and equipment and $85 million within assets held for sale (2013: $79 million). With the exception of project specific borrowings, the rate used to determine the amount of borrowing costs eligible for capitalisation was 3.3% (2013: 3.5%).

8. INTANGIBLE ASSETS

US$ million	Goodwill	Port allocation rights	Licences, trademarks and software	Royalty and acquired offtake arrangements	Total
Cost:
1 January 2014 (Restated)¹	14,122	2,604	326	438	17,490
Business combination²	-	-	1	12	13
Additions	-		17	11	28
Disposals	-	-	(26)	(2)	(28)
Effect of foreign currency exchange movements	-	(235)	(5)	(3)	(243)
Other movements	-	-	52	29	81
31 December 2014	14,122	2,369	365	485	17,341

Accumulated amortisation and impairment:
1 January 2014 (Restated)¹	8,124	57	69	82	8,332
Amortisation expense³	-	44	35	57	136
Impairment⁴	-		15	-	15
Disposals	-	-	(21)	(2)	(23)
Effect of foreign currency exchange movements	-	(7)	(1)	-	(8)
Other movements	-	-	14	9	23
31 December 2014	8,124	94	111	146	8,475
Net carrying amount 31 December 2014	5,998	2,275	254	339	8,866

1 Adjusted for the final fair value adjustments in relation to the acquisition of Xstrata (see note 25).

2 See note 25.

3 Recognised in cost of goods sold.

4 See note 5.

US$ million	Goodwill²	Port allocation rights²	Licences, trademarks and software	Royalty and acquired offtake arrangements	Total
Cost:
1 January 2013	962	1,101	151	32	2,246
Business combination¹	13,154	1,998	271	156	15,579
Disposal of subsidiaries²	-	-	(43)	-	(43)
Additions	-	-	59	85	144
Effect of foreign currency exchange movements	6	(473)	(3)	-	(470)
Other movements	-	(22)	(109)	165	34
31 December 2013 (Restated)	14,122	2,604	326	438	17,490

Accumulated amortisation and impairment:
1 January 2013	-	16	12	11	39
Amortisation expense³	-	25	44	54	123
Impairment⁴	8,124	-	-	-	8,124
Effect of foreign currency exchange movements	-	16	13	17	46
31 December 2013 (Restated)	8,124	57	69	82	8,332

Net carrying amount 31 December 2013 (Restated)	5,998	2,547	257	356	9,158

1 Adjusted for the final fair value adjustments in relation to the acquisition of Xstrata (see note 25).

2 See note 25.

3 Recognised in cost of goods sold.

4 See note 5.

Goodwill

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

US$ million	2014	2013
Grain marketing business	829	829
Metals and minerals marketing businesses	3,326	3,326
Coal marketing business	1,674	1,674
Metals warehousing business	169	169
Total	5,998	5,998

Grain marketing business

Goodwill of $829 million (2013: $829 million) was recognised as part of the acquisition of Viterra in 2012 attributable to synergies associated with the grain marketing division CGU.

Metals and minerals and coal marketing businesses

Goodwill of $13,154 million was recognised in connection with the acquisition of Xstrata (see note 25) and allocated to the metals and minerals marketing CGU, the coal marketing CGU and the Xstrata mining operations' CGUs on a basis consistent with the expected benefits arising from the business combination. The metals and minerals marketing and coal marketing synergies were fair valued at $5.0 billion based on the annual synergies expected to accrue to the respective marketing departments as a result of increased volumes, blending opportunities and freight and logistics arbitrage opportunities. The residual balance of the goodwill ($8.1 billion) was allocated to the acquired mining operations of Xstrata and subsequently impaired (see note 5).

Metals warehousing business

Goodwill of $169 million (2013: $169 million) relates to the Pacorini metals warehousing business CGU.

Port allocation rights

Port allocation rights represent contractual entitlements to export certain amounts of coal on an annual basis from Richard Bay Coal Terminal in South Africa recognised as part of previous business combinations. The rights are amortised on a straight line basis over the estimated economic life of the port of 40 years.

Licences, trademarks and software

Intangibles related to internally developed technology and patents were recognised in previous business combinations and are amortised over the estimated economic life of the technology which ranges between 10 - 15 years.

Royalty and acquired offtake arrangements

The fair value of a royalty income stream related to output from the Antamina copper mine was recognised as part of a previous business combination. This amount is amortised on a unit of production basis through to 2027, the expected mine life.

Acquired offtake arrangements represent contractual entitlements acquired from third parties to provide marketing services and receive certain products produced from a mining or processing operation over a finite period of time. These rights are amortised on a straight line basis over the contractual term which currently ranges between 10 - 15 years.

9. 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 will monitor and manage the goodwill as follows:

US$ million	2014	2013
Grain marketing business	829	829
Metals and minerals marketing businesses	3,326	3,326
Coal marketing business	1,674	1,674
Metals warehousing business	169	169
Total	5,998	5,998

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 amount of 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 is not reversed in subsequent periods.

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 (compared against a VIU cash flow projection)which utilises a price to earnings multiple approach based on the 2015 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 11.5 times is derived from observable market data for broadly comparable businesses;

• the recoverable amount of the metals warehousing business is determined by reference to its VIU which utilises pre-tax cash flow projections based on the approved financial budgets for 3 years which includes key assumptions, such as inventory levels, volumes and operating costs (key assumptions are based on past experience and, where available, observable market data), discounted to present value at a rate of 10%. The cash flows beyond the 3 year period have been extrapolated using a growth rate of 2.5% per annum, which is the projected inflation rate; and

• Glencore believes that no reasonably possible change in any of the above key assumptions would cause the recoverable amount to fall below the carrying value of the CGU. The determination of FVLCD for each of the marketing CGUs uses Level 3 valuation techniques in both years.

10. INVESTMENTS IN ASSOCIATES, JOINT VENTURES AND OTHER INVESTMENTS

Investments in associates and joint ventures

US$ million	Notes	2014	2013 Restated¹
1 January		12,156	18,764
Additions		372	76
Disposals		(38)	(40)
Share of income from associates and joint ventures		638	846
Share of other comprehensive income from associates and joint ventures		(23)	26
Dividends received		(1,129)	(551)
Impairments of investments	5	(135)	-
Reclassification		396	-
Loss on revaluation of previously held interest on acquisition	4	-	(1,160)
Transfer of previous equity accounted investments to subsidiary - Xstrata	25	-	(15,142)
Transfer of previous equity accounted investments to subsidiary - Other²		-	(212)
Assumed in business combination³	25	-	9,689
Other movements		37	(140)
31 December		12,274	12,156
Of which:
Investments in associates		9,066	8,675
Investments in joint ventures		3,208	3,481

1 Adjusted for the final fair value adjustments in relation to the acquisition of Xstrata (see note 25).

2 In July 2013, Glencore completed the planned merger of Mutanda and Kansuki, previously an associate of the Group. The transaction did not meet the definition of a business combination under IFRS 3 and therefore has been accounted for as an acquisition of assets.

3 Comprises primarily investments in Cerrejón Coal mine, Antamina Copper/Zinc mine, Collahuasi Copper mine and Lonmin plc.

As at 31 December 2014, the fair value of listed associates and joint ventures, which have a carrying value of $1,487 million (2013: $1,487 million), using published price quotations (a Level 1 fair value measurement) was $1,394 million (2013: $1,212 million). In 2014 and 2013, this predominantly comprises Century Aluminum ("Century") and Lonmin plc ("Lonmin"). The 2014 carrying value of the Group's investment in Century and Lonmin is $792 million (2013: $734 million) and $560 million ($604 million) respectively.

In May 2014, Glencore completed the acquisition of an effective 25.05% economic interest in the Clermont thermal coal mine in Australia for $250 million. The acquisition was affected through a jointly controlled entity owned 50:50 by Glencore and Sumitomo Corporation. Based on the contractual arrangement between Glencore and Sumitomo, the joint investment constitutes a joint arrangement subject to joint control by virtue of the shareholders' agreement as defined under IFRS 11 as unanimous consent is required for all key decisions regarding the relevant activities of the joint investment. As the investment has been structured through a separate legal entity with both Glencore's and Sumitomo's risks equating to their net investment in the entity, the investment is deemed to be a joint venture and therefore accounted for using the equity method required by IFRS 11.

Details of material associates and joint ventures

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

US$ million	Cerrejón	Antamina	Total material associates	Collahuasi	Total material joint ventures	Total material associates and joint ventures
Non-current assets	2,838	4,181	7,019	4,918	4,918	11,937
Current assets	771	952	1,723	1,073	1,073	2,796
Non-current liabilities	(959)	(634)	(1,593)	(1,006)	(1,006)	(2,599)
Current liabilities	(217)	(443)	(660)	(451)	(451)	(1,111)

The above amounts of assets and liabilities include the following:
Cash and cash equivalents	238	228	466	124	124	590
Current financial liabilities¹	(9)	(270)	(279)	(2)	(2)	(281)
Non-current financial liabilities¹	(9)	-	(9)	(81)	(81)	(90)
Net assets 31 December 2014	2,433	4,056	6,489	4,534	4,534	11,023
Glencore's ownership interest	33.33%	33.75%		44.0%
Acquisition fair value and other adjustments	1,494	2,121	3,615	1,213	1,213	4,828
Carrying value	2,305	3,490	5,795	3,208	3,208	9,003

1 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 associate's and joint venture's relevant figures for the year ended 31 December 2014, is set out below.

US$ million 2014	Cerrejón	Antamina	Total of material associates	Collahuasi	Total of material joint ventures	Total of material associates and joint ventures
Revenue	2,263	2,504	4,767	2,980	2,980	7,747
(Loss)/Income for the year	(4)	1,319	1,315	385	385	1,700
Other comprehensive income	-	-	-	(8)	(8)	(8)
Total comprehensive (loss)/income	(4)	1,319	1,315	377	377	1,692
Glencore's share of dividends paid	239	343	582	440	440	1,022

The above profit for the year includes the following:
Depreciation and amortisation	(541)	(565)	(1,106)	(543)	(543)	(1,649)
Interest income	-	1	1	1	1	2
Interest expense	(17)	(2)	(19)	(8)	(8)	(27)
Income tax (expense)/credit	(232)	114	(118)	(691)	(691)	(809)

US$ million	Cerrejón	Antamina	Total material associates	Collahuasi	Total material joint ventures	Total material associates and joint ventures
Non-current assets	2,787	3,902	6,689	4,929	4,929	11,618
Current assets	793	1,419	2,212	1,334	1,334	3,546
Non-current liabilities	(1,489)	(684)	(2,173)	(767)	(767)	(2,940)
Current liabilities	(273)	(565)	(838)	(640)	(640)	(1,478)

The above amounts of assets and liabilities include the following:
Cash and cash equivalents	198	224	422	92	92	514
Current financial liabilities¹	-	(196)	(196)	(4)	(4)	(200)
Non-current financial liabilities¹	-	(100)	(100)	(19)	(19)	(119)
Net assets 31 December 2013	1,818	4,072	5,890	4,856	4,856	10,746
Glencore's ownership interest	33.33%	33.75%		44.0%
Acquisition fair value and other adjustments²	1,543	2,012	3,555	1,344	1,344	4,899
Carrying value²	2,149	3,386	5,536	3,481	3,481	9,017

1 Financial liabilities exclude trade, other payables and provisions.

2 Adjusted for the final fair value adjustments in relation to the acquisition of Xstrata (see note 25).

Summarised profit and loss in respect of Glencore's associates and joint ventures, reflecting 100% of the underlying associate's and joint venture's relevant figures for the period post the acquisition of Xstrata until 31 December 2013, is set out below.

US$ million 2013	Cerrejón	Antamina	Total of material associates	Collahuasi	Total of material joint ventures	Total of material associates and joint ventures
Revenue	1,798	2,631	4,429	2,466	2,466	6,895
Income for the year	76	936	1,012	827	827	1,839
Other comprehensive income	-	-	-	-	-	-
Total comprehensive income	76	936	1,012	827	827	1,839
Glencore's share of dividends paid	84	226	310	207	207	517

The above profit for the year includes the following:
Depreciation and amortisation	529	359	888	341	341	1,229
Interest income	-	1	1	-	-	1
Interest expense	(12)	(7)	(19)	(6)	(6)	(25)
Income tax expense	(90)	(555)	(645)	(254)	(254)	(899)

Aggregate information of associates that are not individually material:

US$ million	2014	2013
The Group's share of income	26	141
The Group's share of other comprehensive (loss)/income	(23)	26
The Group's share of total comprehensive income	3	167
Aggregate carrying value of the Group's interests	3,271	3,139

Glencore's share of total comprehensive income did not include joint ventures other than the material joint venture discussed above.

The amount of corporate guarantees in favour of joint ventures as at 31 December 2014 was $354 million (2013: $463 million). Glencore's share of joint ventures' capital commitments amounts to $310 million (2013: $648 million).

Other investments

US$ million	2014	2013
Available for sale
United Company Rusal plc	895	394
Fair value through profit and loss
Volcan Compania Minera S.A.A.	149	204
Century Aluminum Company cash-settled equity swaps	223	95
Jurong Aromatics Corporation Pte Ltd	55	55
Caracal Energy Inc.	-	15
Other	150	160
	577	529
Total	1,472	923

In July 2014, Glencore acquired the remaining issued and outstanding equity of Caracal Energy Inc. (see note 25).

11. ADVANCES AND LOANS

US$ million	2014	2013 Restated¹
Loans to associates²	548	909
Rehabilitation trust fund	327	317
Other non-current receivables and loans¹	3,722	2,769
Total	4,597	3,995

1 Adjusted for the final fair value adjustments in relation to the acquisition of Xstrata (see note 25).

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

Other non-current receivables and loans comprise the following:

US$ million	2014	2013 Restated¹
Counterparty
Russneft loan	984	984
Rosneft trade advance	109	500
Secured marketing related financing arrangements²	1,347	995
Societe Nationale d'Electricite (SNEL) power advances	232	138
Chad State National Oil Company	426	-
Other	624	152
Total	3,722	2,769

1 Adjusted for the final fair value adjustments in relation to the acquisition of Xstrata (see Note 25).

2 Various marketing related financing facilities, generally secured against certain assets and/or payable from the future sale of production of the counterparty. The weighted average interest rate of the advances and loans is 10% and on average are to be repaid over a three-year period. In December 2013, an impairment charge of $300 million was recognised following non-performance of contractual terms and rescheduling of the timing of product supply and a recoverable value provision was recorded in respect of other advances and loans (see note 5).

Russneft loans

In December 2013, OAO Russneft ("Russneft") refinanced part of its debt and repaid Glencore $1.0 billion, which followed earlier repayments of $88 million and $135 million respectively, amounting to a total of $1,223 million received by Glencore in 2013. As part of the 2013 refinancing, Glencore and Russneft agreed to amend the terms of the outstanding loan balance, requiring Glencore to convert a minimum of $900 million of the outstanding debt into an equity stake in Russneft during 2014, subject to finalisation of due diligence and valuation. Until conversion, interest and repayment terms remain materially unchanged. During 2014, no agreement was reached on the debt to equity conversion and an extension to the existing conversion term was agreed, which did not result in a material change to the existing conversion terms. Negotiations regarding a potential conversion will continue through 2015. The outstanding loan balance and/or any equity resulting from the conversion to shares in Russneft has been pledged as a guarantee for a loan between Russneft and a third party bank.

Rosneft trade advance

In March 2013, Glencore signed a long term crude and oil products supply contract with Russian oil producer OJSC Neftyanaya Companiya Rosneft ("Rosneft") while simultaneously participating with $500 million in a large financing facility to Rosneft. In March 2014, part of the prepayment was sold, at its carrying value, to a third party bank for $350 million. The remaining prepayment is to be repaid through future deliveries of oil over 3 years starting March 2015. Of the amount advanced, $109 million is receivable after 12 months and is presented within Other non-current receivables and loans and $41 million is due within 12 months and as such is included within 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 will contribute $306 million to a major electricity infrastructure refurbishment programme, including transmission and distribution systems. This is expected to facilitate a progressive increase in power availability to 450 megawatts by the end of 2017. Funding commenced in the second quarter of 2012 and will continue until the end of 2017. The loans will be repaid via discounts on future electricity purchases by Katanga and Mutanda upon completion of the refurbishment program.

Chad State National Oil Company

At 31 December 2014, Glencore had advanced a net $512 million to the Chad State National Oil Company ("SHT") to be repaid through future oil deliveries over 4 years. The advance is net of $1,023 million provided by a syndicate of banks, the repayment terms of which are contingent upon and connected to the receipt of oil due from SHT under the prepayment. Of the net amount advanced, $426 million is receivable after 12 months and is presented within Other non-current receivables and loans and $86 million is due within 12 months and as such is included within Accounts receivable.

12. INVENTORIES

US$ million	2014	2013
Production inventories	4,938	6,108
Marketing inventories	19,498	16,645
Total	24,436	22,753

Production inventories consist of materials, spare parts and work in process. Marketing inventories are saleable commodities held primarily by the marketing entities as well as finished goods and certain other readily saleable materials held by the industrial assets. Marketing inventories of $16,297 million (2013: $12,997 million) are carried at fair value less costs of disposal.

Fair value of inventories is a Level 2 fair value measurement (see note 28) using observable market prices obtained from exchanges, traded reference indices or market survey services adjusted for relevant location and quality differentials. There are no significant unobservable inputs in the fair value measurement of marketing inventories.

Glencore has a number of dedicated financing facilities, which finance a portion of its marketing inventories. In each case, the inventory has not been derecognised as the Group retains the principal risks and rewards of ownership. The proceeds received are recognised as current borrowings (see note 20). As at 31 December 2014, the total amount of inventory secured under such facilities was $1,707 million (2013: $2,246 million). The proceeds received and recognised as current borrowings were $1,558 million (2013: $1,829 million).

13. ACCOUNTS RECEIVABLE

US$ million	2014	2013
Trade receivables¹	14,466	18,029
Trade advances and deposits¹	4,596	3,516
Associated companies¹	359	452
Other receivables	2,035	2,539
Total	21,456	24,536

1 Collectively referred to as receivables presented net of allowance for doubtful debts.

The average credit period on sales of goods is 27 days (2013: 29 days).

As at 31 December 2014, 8% (2013: 8%) of receivables were between 1 to 60 days overdue, and 6% (2013: 5%) were greater than 60 days overdue. Such receivables, although contractually past their due dates, are not considered impaired as there has not been a significant change in credit quality of the relevant counterparty, and the amounts are still considered recoverable taking into account customary payment patterns and in many cases, offsetting accounts payable balances.

The movement in allowance for doubtful accounts is detailed in the table below:

US$ million	2014	2013
1 January	252	212
Released during the year	(62)	(46)
Charged during the year	168	125
Utilised during the year	(65)	(39)
31 December	293	252

Glencore has a number of dedicated financing facilities, which finance a portion of its receivables. In each case, 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 20). As at 31 December 2014, the total amount of trade receivables secured was $1,733 million (2013: $4,034 million) and proceeds received and classified as current borrowings amounted to $1,283 million (2013: $3,200 million).

14. CASH AND CASH EQUIVALENTS

US$ million	2014	2013
Bank and cash on hand	2,093	2,341
Deposits and treasury bills	731	508
Total	2,824	2,849

As at 31 December 2014, $17 million (2013: $18 million) was restricted.

15. ASSETS AND LIABILITIES HELD FOR SALE

In accordance with the Merger Remedy Commitments made to the Ministry of Commerce of the Peoples' Republic of China ("MOFCOM") in respect of the Xstrata acquisition, Glencore commenced a process to sell its entire interest in the Las Bambas copper mine project in Peru.

As a result, assets of $4,366 million (restated) and liabilities of $539 million (restated) acquired in the Xstrata acquisition (see note 25) were classified as held for sale within the metals and minerals segment. Subsequent to the acquisition date, further capital expenditure was incurred and liabilities settled as they fell due, such that the assets held for sale increased to $5,636 million and liabilities held for sale decreased to $501 million as at 31 December 2013 and were classified as non-recurring Level 2 fair value measurements in accordance with IFRS 13.

In April 2014, Glencore reached an agreement to sell its entire interest in Las Bambas for cash consideration of $5.85 billion, plus reimbursement for all capital expenditure and other costs incurred in developing the mine in the period from 1 January 2014 to completion of the sale. On 31 July 2014, the sale completed with Glencore receiving proceeds, net of tax, of approximately $6.5 billion, which resulted in a net gain of $184 million (see note 3).

16. SHARE CAPITAL AND RESERVES

	Number of shares (thousand)	Share capital (US$ million)	Share premium (US$ million)
Authorised:
31 December 2014 and 2013 Ordinary shares with a par value of $0.01 each	50,000,000	-	-
Issued and fully paid up:
1 January 2013 - Ordinary shares	7,099,456	71	26,688
2 May 2013 - Ordinary shares issued on acquisition of Xstrata	6,163,949	62	30,073
27 December 2013 - Ordinary shares issued to satisfy employee share awards (see note 19)	15,000	-	78
Distributions paid (see note 18)	-	-	(2,062)
31 December 2013 - Ordinary shares	13,278,405	133	54,777
1 January 2014	13,278,405	133	54,777
Distributions paid (see note 18)	-	-	(2,244)
31 December 2014 - Ordinary shares	13,278,405	133	52,533

Ordinary shares issued on acquisition of Xstrata

On 2 May 2013, Glencore completed its acquisition of the remaining 66% of the issued and outstanding equity of Xstrata (see note 25) that the Group did not previously own, through the issuance of 6,163,949,435 new ordinary shares of the Company, of which 212,743,594 shares were issued to the Orbis Trust to satisfy the potential future settlement of certain stock and option awards held by Xstrata employees.

Own shares

Own shares comprise shares acquired under the Company's share buyback program and shares of Glencore plc held by Orbis Trust (the Trust) to satisfy the potential future settlement of the Group's employee stock plans, primarily assumed as part of the Xstrata acquisition (see note 19).

The Trust also coordinates the funding and manages the delivery of ordinary shares and free share awards under certain of Glencore's share plans. The shares are acquired by either stock market purchases or share issues from the Company. The Trustee is permitted to sell the shares and may hold up to 5% of the issued share capital of the Company at any one time. The Trust has waived the right to receive distributions from the shares that it holds. Costs relating to the administration of the Trust are expensed in the period in which they are incurred.

As at 31 December 2014, 293,740,462 shares (2013: 156,789,593 shares), equivalent to 2.2% (2013: 1.2%) of the issued share capital were held at a cost of $1,493 million (2013: $767 million) and market value of $1,368 million (2013: $813 million).

	Treasury Shares		Trust Shares		Total
	Number of shares (thousand)	Share premium (US$ million)	Number of shares (thousand)	Share premium (US$ million)	Number of shares (thousand)	Share premium (US$ million)
Own shares:
1 January 2013	-	-	-	-	-	-
Own shares assumed on acquisition of Xstrata	-	-	212,744	(1,041)	212,744	(1,041)
Own shares purchased during the year	-	-	3,087	(13)	3,087	(13)
Own shares disposed during the year	-	-	(59,041)	287	(59,041)	287
31 December 2013	-	-	156,790	(767)	156,790	(767)
1 January 2014	-	-	156,790	(767)	156,790	(767)
Own shares purchased during the year	143,278	(758)	7,000	(37)	150,278	(795)
Own shares disposed during the year	-	-	(13,328)	69	(13,328)	69
31 December 2014	143,278	(758)	150,462	(735)	293,740	(1,493)

Other reserves

US$ million	Translation adjustment	Equity portion of Convertible bonds	Cash flow hedge reserve	Net unrealised gain/(loss)	Net ownership changes in subsidiaries	Other reserves	Total
1 January 2013	(191)	89	(70)	-	(706)	10	(868)
Exchange loss on translation of foreign operations	(1,126)	-	-	-	-	-	(1,126)
Loss on cash flow hedges, net of tax	-	-	(287)	-	-	-	(287)
Cash flow hedges transferred to the statement of income, net of tax	-	-	1	-	-	-	1
Change in ownership interest in subsidiaries	-	-	-	-	(138)	-	(138)
31 December 2013	(1,317)	89	(356)	-	(844)	10	(2,418)

1 January 2014	(1,317)	89	(356)	-	(844)	10	(2,418)
Exchange loss on translation of foreign operations	(846)	-	-	-	-	-	(846)
Gain on cash flow hedges, net of tax	-	-	415	-	-	-	415
Cash flow hedges transferred to the statement of income, net of tax	-	-	(1)	-	-	-	(1)
Gain on available for sale financial instruments	-	-	-	501	-	-	501
Equity portion of repaid convertible bond	-	(89)	-	-	-	-	(89)
Change in ownership interest in subsidiaries	-	-	-	-	29	-	29
31 December 2014	(2,163)	-	58	501	(815)	10	(2,409)

17. EARNINGS PER SHARE

US$ million		Notes	2014	2013 Restated¹
Profit/(loss) attributable to equity holders for basic earnings per share			2,308	(8,046)
Interest in respect of convertible bonds²			-	-
Profit/(loss) attributable to equity holders for diluted earnings per share			2,308	(8,046)
Weighted average number of shares for the purposes of basic earnings per share (thousand)			13,098,766	11,093,184
Effect of dilution:
Equity-settled share-based payments (thousand)			52,579	-
Convertible bonds² (thousand)		20	-	-
Weighted average number of shares for the purposes of diluted earnings per share (thousand)			13,151,345	11,093,184
Basic earnings/(loss) per share (US$)			0.18	(0.73)
Diluted earnings/(loss) per share (US$)			0.18	(0.73)
1 Adjusted for the final fair value adjustments in relation to the acquisition of Xstrata (see note 25). 2 In 2014, the convertible bonds were repaid upon maturity and/or repurchased. In 2013 the convertible bonds were anti-dilutive and therefore excluded from the diluted earnings per share calculation. 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 2/2013 as issued by the South African Institute of Chartered Accountants ("SAICA"), is reconciled using the following data:
Headline earnings:
US$ million	Notes		2014	2013 Restated¹
Profit/(loss) attributable to equity holders for basic earnings per share			2,308	(8,046)
Loss on acquisitions (no tax and non-controlling interest impact)	10		-	1,160
Net (gain)/loss on disposals (no non-controlling interest impact)			(790)	25
Net loss/(gain) on disposals - tax			550	(6)
Impairments	5		1,101	9,730
Impairments - non-controlling interest			(99)	(17)
Impairments - tax			(270)	(245)
Headline earnings for the year			2,800	2,601

Headline earnings per share (US$)			0.21	0.23
Diluted headline earnings per share (US$)			0.21	0.23

1 Adjusted for the final fair value adjustments in relation to the acquisition of Xstrata (see note 25).

18. DISTRIBUTIONS

US$ million	2014	2013
Paid during the year:
Final distribution for 2013 - $0.111 per ordinary share (2012: $0.1035 per ordinary share)	1,457	1,355
Interim distribution for 2014 - $0.06 per ordinary share (2013: $0.054 per ordinary share)	787	707
Total	2,244	2,062

The proposed final distribution of $12 cents per ordinary share amounting to $1,558 million, excluding any distribution on own shares, and the proposed distribution in specie of the Group's 23.9% stake in Lonmin are subject to approval by shareholders at the Annual General Meeting and have not been included as a liability in these financial statements. Distributions declared in respect of the year ended 31 December 2014 will be paid in May 2015. The 2014 interim distribution was paid on 19 September 2014.

19. SHARE-BASED PAYMENTS

	Number of awards granted (thousand)	Fair value at grant date (US$ million)	Number of awards outstanding 2014 (thousand)	Number of awards outstanding 2013 (thousand)	Expense recognised 2014 (US$ million)	Expense recognised 2013 (US$ million)
Deferred Bonus Plan
2012 Series	3,442	20	-	1,680	-	-
2013 Series	4,958	24	3,717	4,958	-	24
2014 Series	3,633	20	3,633	-	20	-
Performance Share Plan
2012 Series	3,375	18	1,049	2,235	4	10
2013 Series	11,065	60	7,472	5,295	36	3
2014 Series	15,611	86	15,611	-	10	-
Total			31,482	14,168	70	37

Deferred Bonus Plan

Under the Glencore Deferred Bonus Plan ("DBP"), the payment of a portion of a participant's annual bonus is deferred for a period of one to two years as an award of either ordinary shares (a ''Bonus Share Award'') or cash (a "Bonus Cash Award"). The awards are vested at grant date with no further service conditions however they are subject to forfeiture for malus events. The Bonus Share Awards may be satisfied, at Glencore's option, in shares by the issue of new ordinary shares, by the transfer of ordinary shares held in treasury or by the transfer of ordinary shares purchased in the market 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 these awards in shares. The associated expense is recorded in the statement of income as part of the regular expense for performance bonuses.

Performance share plan

Under the Glencore Performance Share Plan ("PSP"), participants are awarded PSP awards which vest in annual tranches over a specified period, subject to continued employment and forfeiture for malus events. At grant date, each PSP award is equivalent to one ordinary share of Glencore. The awards vest in three or five equal tranches on 30 June or 31 December of the years following the year of grant. The fair value of the awards is determined by reference to the market price of Glencore's ordinary shares at grant date. The PSP awards may be satisfied, at Glencore's option, in shares by the issue of new ordinary shares, by the transfer of ordinary shares held in treasury or by the transfer of ordinary shares purchased 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.

Share based awards assumed upon the acquisition of Xstrata

	Total options outstanding (thousands)	Weighted average exercise price (GBP)
1 January 2013	-	-
Assumed in business combination	212,744	2.83
Forfeited	(3,807)	3.76
Exercised¹	(53,776)	0.13
31 December 2013	155,161
1 January 2014	155,161	3.74
Forfeited	-	-
Lapsed	(42)	4.93
Exercised¹	(6,557)	1.71
31 December 2014	148,562

1 The weighted average share price at date of exercise of the share based awards was GBP3.42 (2013: GBP3.34).

The completion of the acquisition of Xstrata by Glencore triggered the change in control vesting criteria for all options and free shares of the former Xstrata award plans, comprising a total of 212,743,594 underlying shares, which, in accordance with the acquisition agreement, were replaced with equivalent Glencore instruments. These instruments had a fair value of $383 million and were included in the consideration paid for the acquisition (see note 25).

The options were valued at a weighted average of $1.53 per option determined using a Black-Scholes option pricing model using the following assumptions on a weighted average basis: share price of $4.89, exercise price of $5.72, option life of 6.9 years, dividend yield of 4%, risk free interest rate of 1.65% and an expected volatility of 32% based on the historical volatility of Glencore and Xstrata shares prior to the acquisition. Free share units were valued at $4.89 per unit based on Glencore's share price at the date of acquisition.

As at December 31, 2014, a total of 148,561,546 options (2013: 155,161,370 options) were outstanding and exercisable, having a range of exercise prices from GBP1.098 to GBP6.880 (2013: GBPnil to GBP3.914) and a weighted average exercise price of GBP3.825 (2013: GBP3.741). These outstanding awards have expiry dates ranging from March 2015 to February 2022 (2013: March 2014 to March 2022) and a weighted average contractual life of 3.4 years (2013: 6.2 years). The awards may be satisfied at Glencore's option, by the issue of new ordinary shares, by the transfer of ordinary shares held in treasury or by the transfer of ordinary shares purchased in the market. Glencore currently intends to settle these awards by the transfer of ordinary shares held in treasury.

20. BORROWINGS

US$ million	Notes	2014	2013 Restated¹
Non-current borrowings
Capital market notes		30,877	30,900
Committed syndicated revolving credit facilities		7,933	5,702
Finance lease obligations	30	425	344
Other bank loans		1,453	1,766
Total non-current borrowings		40,688	38,712

Current borrowings
Committed secured inventory/receivables facilities	12/13	435	1,353
Uncommitted secured inventory/receivables facilities	12/13	2,406	3,676
Other committed and uncommitted secured facilities		890	590
Convertible bonds		-	2,236
U.S. commercial paper		813	1,645
Capital market notes		3,504	1,750
Finance lease obligations	30	51	49
Other bank loans²		3,906	5,162
Total current borrowings		12,005	16,461

1 Adjusted for the final fair value adjustments in relation to the acquisition of Xstrata (see note 25).

2 Comprises various uncommitted bilateral bank credit facilities and other financings.

Committed syndicated revolving credit facility

In June 2014, Glencore signed new revolving credit facilities for a total amount of $15.3 billion. These facilities refinanced earlier $12,990 million of one-year and three-year revolving credit facilities (with the three-year tranche repaid and cancelled) and amended / extended the $4,350 million five-year revolving credit facility signed in June 2013. Funds drawn under the facilities bear interest at U.S. $ LIBOR plus a margin ranging from 50 to 90 basis points per annum.

The new and amended facilities comprise:

- an $8.7 billion 12 month revolving credit facility with a 12 month term-out option and 12-month extension option; and

- a $6.6 billion 5 year revolving credit facility with two 12 month extension options.

Convertible bonds

In 2014, Glencore repaid and/or purchased and subsequently cancelled convertible bonds with a nominal value of $2,295 million for consideration of $2,365 million, resulting in a premium cost of $70 million, which is recognised within other expenses (see note 4).

U.S. commercial paper

Glencore has in place a standalone U.S. commercial paper program for $4,000 million rated A2 and P2 respectively by S&P's and Moody's rating agencies. The notes issued under this programme carry interest at floating market rates and mature not more than 397 days from the date of issue. Funds drawn under the facilities bear interest at U.S. $ LIBOR plus a margin ranging from 35 to 70 basis points per annum.

Capital Market Notes

US$ million	Maturity	2014	2013
AUD 500 million 4.500% coupon bonds	Sep 2019	424	-
Euro 750 million 7.125% coupon bonds	Apr 2015	-	1,029
Euro 600 million 6.250% coupon bonds	May 2015	-	855
Euro 1,250 million 1.750% coupon bonds	May 2016	1,512	1,708
Euro 1,250 million 5.250% coupon bonds	Mar 2017	1,511	1,722
Euro 500 million 5.250%, coupon bonds	Jun 2017	676	780
Euro 1,250 million 4.625% coupon bonds	April 2018	1,511	1,713
Euro 1,000 million 2.625% coupon bonds	Nov 2018	1,210	1,396
Euro 750 million 3.375% coupon bonds	Sep 2020	901	1,026
Euro 600 million 2.750% coupon bonds	Apr 2021	719	-
Euro 700 million 1.625% coupon bonds	Jan 2022	837	-
Euro 400 million 3.700% coupon bonds	Oct 2023	479	548
Euro 500 million 3.750% coupon bonds	Apr 2026	599	-
Eurobonds		9,955	10,777
GBP 650 million 6.500% coupon bonds	Feb 2019	1,003	1,067
GBP 500 million 7.375% coupon bonds	May 2020	886	913
GBP 500 million 6.000% coupon bonds	April 2022	792	842
Sterling bonds		2,681	2,822
CHF 825 million 3.625% coupon bonds	April 2016	831	927
CHF 450 million 2.625% coupon bonds	Dec 2018	453	505
CHF 175 million 2.125% coupon bonds	Dec 2019	175	196
CHF 500 million 1.250% coupon bonds	Dec 2020	502	-
Swiss Franc bonds		1,961	1,628
CAD 200 million 6.406% coupon bonds	Feb 2021	-	188
US$ 250 million 5.375% coupon bonds	Jun 2015	-	264
US$ 1,250 million 2.050% coupon bonds	Oct 2015	-	1,261
US$ 341 million 6.000% coupon bonds	Oct 2015	-	367
US$ 500 million Libor plus 1.16% coupon bonds	May 2016	499	499
US$ 1,000 million 1.700% coupon bonds	May 2016	999	998
US$ 1,000 million 5.800% coupon bonds	Nov 2016	1,076	1,117
US$ 700 million 3.600% coupon bonds	Jan 2017	724	735
US$ 250 million 5.500% coupon bonds	Jun 2017	270	278
US$ 1,750 million 2.700% coupon bonds	Oct 2017	1,771	1,778
US$ 200 million Libor plus 1.200% coupon bonds	May 2018	200	-
US$ 500 million Libor plus 1.360% coupon bonds	Jan 2019	499	498
US$ 1,500 million 2.500% coupon bonds	Jan 2019	1,499	1,489
US$ 1,000 million 3.125% coupon bonds	Apr 2019	1,001	-
US$ 400 million 5.950% coupon bonds	Aug 2020	400	400
US$ 1,000 million 4.950% coupon bonds	Nov 2021	1,076	1,085
US$ 1,000 million 4.250% coupon bonds	Oct 2022	1,022	1,025
US$ 1,500 million 4.125% coupon bonds	May 2023	1,537	1,446
US$ 1,000 million 4.625% coupon bonds	Apr 2024	1,041	-
US$ 250 million 6.200% coupon bonds	Jun 2035	275	275
US$ 500 million 6.900% coupon bonds	Nov 2037	602	604
US$ 500 million 6.000% coupon bonds	Nov 2041	542	546
US$ 500 million 5.550% coupon bonds	Oct 2042	474	471
US$ 350 million 7.500% coupon bonds	Perpetual	349	349
US$ bonds		15,856	15,485
Total non-current bonds		30,877	30,900
Euro 750 million 7.125% coupon bonds	Apr 2015	907	-
Euro 600 million 6.250% coupon bonds	May 2015	735	-
Eurobonds		1,642	-
US$ 950 million 6.000% coupon bonds	Apr 2014	-	950
US$ 800 million 2.850% coupon bonds	Nov 2014	-	800
US$ 250 million 5.375% coupon bonds	Jun 2015	254	-
US$ 1,250 million 2.050% coupon bonds	Oct 2015	1,255	-
US$ 341 million 6.000% coupon bonds	Oct 2015	353	-
US$ bonds		1,862	1,750
Total current bonds		3,504	1,750

2014 Bond issuances

AUD bonds

• In September 2014, Glencore issued 5 year AUD 500 million, 4.50% fixed coupon bonds.

Eurobonds

• In April 2014, Glencore issued in two tranches EUR 1.1 billion of interest bearing notes as follows:

- 7 year EUR 600 million, 2.750% fixed coupon bonds; and

- 12 year EUR 500 million, 3.750% fixed coupon bonds.

• In September 2014, Glencore issued EUR 700 million, 1.625% fixed coupon bonds due January 2022.

Swiss Franc bonds

• In December 2014, Glencore issued 6 year CHF 500 million, 1.25% fixed coupon bonds.

US$ bonds

• In April 2014, Glencore issued in two tranches $2 billion of interest bearing notes as follows:

- 5 year $1,000 million, 3.125% fixed coupon bonds; and

- 10 year $1,000 million, 4.625% fixed coupon bonds.

• In May 2014, Glencore issued 4 year $200 million, Libor plus 1.20% coupon notes.

Committed secured facilities

US$ million	Maturity	Borrowing base	Interest	2014	2013
Syndicated metals inventory/receivables facilities	Jan/Mar 2015	503	US$ LIBOR + 120 bps	435	-
Oil receivables facility	May/Aug 2014	1,250	US$ LIBOR + 120 bps	-	1,250
Secured facilities on various equity stakes	July 2015	750	US$ LIBOR + 80 bps	-	540
Equipment financing	April 2016	150	US$ LIBOR + 2.25% margin	-	50
Metals receivables facilities	Jan 2014	197	US$/JPY LIBOR + 80/200 bps	-	103
Total				435	1,943

21. DEFERRED INCOME

US$ million	Notes	Unfavourable contracts	Prepayment	Total Restated¹
1 January 2013		554	163	717
Assumed in business combination¹	25	1,099	7	1,106
Utilised in the year		(156)	(8)	(164)
Effect of foreign currency exchange difference		(177)	-	(177)
31 December 2013		1,320	162	1,482
Current		121	24	145
Non-current		1,199	138	1,337


1 January 2014		1,320	162	1,482
Utilised in the year		(122)	(27)	(149)
Effect of foreign currency exchange difference		(60)	-	(60)
31 December 2014		1,138	135	1,273
Current		129	24	153
Non-current		1,009	111	1,120

1 Adjusted for the final fair value adjustments in relation to the acquisition of Xstrata (see note 25).

Unfavourable contracts

In previous business combinations, Glencore recognised liabilities related to various assumed contractual agreements to deliver tonnes of coal and zinc concentrates over periods ending between 2017 and 2045 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 implied forward price curves at the time of the acquisitions.

Prepayment

In 2006, Glencore entered into an agreement to deliver, dependant on mine production, up to 4.75 million ounces per year of silver, a by-product from its mining operations, for a period of 15 years at a fixed price for which Glencore received an upfront payment of $285 million. The outstanding balance represents the remaining portion of the upfront payment, which is released to revenue at a rate consistent with the implied forward price curve at the time of the transaction and the actual quantities delivered. As at 31 December 2014, 22.7 million ounces (2013: 19.3 million ounces) have been delivered.

22. PROVISIONS

US$ million	Notes	Post retirement benefits (Note 23)	Employee entitlements	Rehabilitation costs	Onerous contracts	Other¹	Total
1 January 2013		284	147	951	-	400	1,782
Provision utilised in the year		(528)	(108)	(116)	(94)	(286)	(1,132)
Accretion in the year		-	2	37	14	-	53
Assumed in business combination²	25	1,271	266	3,065	2,007	972	7,581
Additional provision in the year		-	60	156	3	57	276
Effect of foreign currency exchange difference		(47)	(4)	(130)	-	8	(173)
31 December 2013 (Restated)		980	363	3,963	1,930	1,151	8,387
Current		-	-	25	105	193	323
Non-current		980	363	3,938	1,825	958	8,064

1 January 2014		980	363	3,963	1,930	1,151	8,387
Provision utilised in the year		(285)	(125)	(369)	(229)	(243)	(1,251)
Accretion in the year		-	-	181	9	-	190
Assumed in business combination	25	-	-	10	4	-	14
Additional provision in the year		455	72	102	36	283	948
Effect of foreign currency exchange difference		(80)	(2)	(51)	(20)	(4)	(157)
31 December 2014		1,070	308	3,836	1,730	1,187	8,131
Current		-	-	86	129	361	576
Non-current		1,070	308	3,750	1,601	826	7,555

1 Other comprises provisions for possible demurrage, mine concession, tax and construction related claims.

2 Adjusted for the final fair value adjustments in relation to the acquisition of Xstrata (see note 25).

Employee entitlements

The employee entitlement provision represents the value of governed employee entitlements due to employees upon their termination of employment. The associated expenditure will occur in a pattern consistent with when employees choose to exercise their entitlements.

Rehabilitation costs

Rehabilitation provision represents the accrued cost required to provide adequate restoration and rehabilitation upon the completion 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 the majority of the costs expected to be incurred in the final years of the underlying operations.

Onerous contracts

Upon the acquisition of Xstrata (see note 25), Glencore recognised a liability related to assumed contractual take or pay commitments for securing coal logistics capacity at fixed prices and quantities higher than the acquisition date forecasted usage and prevailing market price. The provision will be released to costs of goods sold as the underlying commitments are incurred.

23. PERSONNEL COSTS AND EMPLOYEE BENEFITS

Total personnel costs, which include salaries, wages, social security, other personnel costs and share-based payments, incurred for the years ended 31 December 2014 and 2013, were $6,011 million and $5,012 million, respectively. Personnel costs related to consolidated industrial subsidiaries of $5,083 million (2013: $4,157 million) are included in cost of goods sold. Other personnel costs, including the 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 of hire. The plans provide for certain employee and employer contributions, ranging from 5% to 16% of annual salaries, depending on the employee's years of service. Among these schemes are defined contribution plans as well as defined benefit plans.

Defined contribution plans

Glencore's contributions under these plans amounted to $235 million in 2014 (2013: $145 million).

Defined benefit plans

The Company operates defined benefit plans in various countries, the main locations being Canada, Switzerland, UK and the US. Approximately 80% of the present value of obligations accrued to date relates to the defined benefit plans in Canada, which are pension 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 and associated federal taxation rules. Glencore also operates post-employment medical benefit plans, principally in Canada, which provide coverage for prescription drugs, medical, dental, hospital and life insurance to eligible retirees.

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 in each country. Responsibility for governance of the plans - overseeing all aspects of the plans including investment decisions and contribution 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 obligation and fair value of plan assets of pension plans over the year is as follows:

US$ million	Note	Present value of defined benefit obligation	Fair value of plan assets	Post retirement benefits
1 January 2014		4,643	(3,663)	980
Current service cost		81	-	81
Past service cost - plan amendments		(1)	-	(1)
Settlement		(40)	26	(14)
Interest expense/(income)		200	(160)	40
Total expense/(income) recognised in consolidated statement of income		240	(134)	106
(Gain) on plan assets, excluding amounts included in interest expense - net		-	(254)	(254)
Loss from change in demographic assumptions		89	-	89
Loss from change in financial assumptions		448	-	448
Loss from actuarial experience		2	-	2
Change in asset ceiling, excluding amounts included in interest expense		(31)	-	(31)
Actuarial losses/(gains) recognised in consolidated statement of comprehensive income		508	(254)	254
Employer contributions		-	(190)	(190)
Employee contributions		2	(2)	-
Benefits paid directly by the company		(39)	39	-
Benefits paid from plan assets		(248)	248	-
Net cash (outflow)/inflow		(285)	95	(190)
Exchange differences		(382)	302	(80)
Other		(382)	302	(80)
31 December 2014		4,724	(3,654)	1,070

US$ million	Note	Present value of defined benefit obligation	Fair value of plan assets	Post retirement benefits
1 January 2013		631	(347)	284
Current service cost		75	-	75
Past service cost - plan amendments		(1)	-	(1)
Past service cost - curtailment		(4)	-	(4)
Interest expense/(income)		142	(101)	41
Total expense/(income) recognised in consolidated statement of income		212	(101)	111
(Gain) on plan assets, excluding amounts included in interest expense - net		-	(100)	(100)
Loss from change in demographic assumptions		20	-	20
(Gain) from change in financial assumptions		(441)	-	(441)
Loss from actuarial experience		10	-	10
Change in asset ceiling, excluding amounts included in interest expense		48	-	48
Actuarial (gains) recognised in consolidated statement of comprehensive income		(363)	(100)	(463)
Employer contributions		-	(176)	(176)
Employee contributions		2	(2)	-
Benefits paid directly by the company		(26)	26	-
Benefits paid from plan assets		(176)	176	-
Net cash (outflow)/inflow		(200)	24	(176)
Assumed in business combinations	22	4,562	(3,291)	1,271
Exchange differences		(199)	152	(47)
Other		4,363	(3,139)	1,224
31 December 2013		4,643	(3,663)	980

The Group expects to make a contribution of $153 million to the defined benefit plans during the next financial year.

The present value of defined benefit obligations accrued to date in Canada represents the majority for the Company. The breakdown below provides details of the Canadian plans for both the balance sheet and the weighted average duration of the defined benefit obligation as at 31 December 2014 and 2013. The defined benefit obligation of any other of the Group's defined benefit plans as at 31 December 2014 does not exceed $205 million (2013: $189 million).

2014 US$ million	Canada	Other	Total
Present value of defined benefit obligation	3,739	985	4,724
of which: amounts owing to active members	889	494	1,383
of which: amounts owing to not active members	142	217	359
of which: amounts owing to pensioners	2,708	274	2,982
Fair value of plan assets	(3,026)	(628)	(3,654)
Net defined benefit liability at 31 December 2014	713	357	1,070
Weighted average duration of defined benefit obligation - years	12	17	13

2013 US$ million	Canada	Other	Total
Present value of defined benefit obligation	3,749	894	4,643
of which: amounts owing to active members	1,028	500	1,528
of which: amounts owing to not active members	100	186	286
of which: amounts owing to pensioners	2,621	208	2,829
Fair value of plan assets	(3,034)	(629)	(3,663)
Net defined benefit liability at 31 December 2013	715	265	980
Weighted average duration of defined benefit obligation - years	12	18	13

The actual return on plan assets amounted to $112 million (2013: $50 million).

The plan assets consist of the following:

US$ million	2014	2013
Cash and short-term investments	80	91
Fixed income	2,056	1,900
Equities	1,379	1,496
Other¹	139	176
Total	3,654	3,663

1 Includes securities in non-active markets in the amount of $60 million (2013: $50 million).

The fair value of plan assets includes negligible amounts of Glencore's own financial instruments and no property occupied by or other assets used by Glencore. For many of the plans, representing a large portion of the global plan assets, asset-liability matching strategies are in place, 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.

Through its defined benefit plans, Glencore is exposed to a number of risks, the most significant of which are detailed below:

Asset volatility: 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 to outperform bonds in the long-term while contributing volatility and risk in the short-term. Glencore believes that due to the long-term 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.

Change in bond yields: A decrease in corporate bond yields will increase plan liabilities, although this will be partially offset by an increase in the value of the plans' bond holdings.

Inflation risk: 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.

Life expectancy: 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 plan's liability.

Salary increases: 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:

	2014	2013
Discount rate	3.8%	4.6%
Future salary increases	2.9%	3.1%
Future pension increases	0.4%	0.4%

Mortality assumptions are based on the latest available standard mortality tables for the individual countries concerned. As at 31 December 2014, these tables imply expected future lifetimes, for employees aged 65, 16 to 24 years for males (2013: 16 to 24) and 20 to 26 years for females (2013: 20 to 26). The assumptions for each country are reviewed each year and are adjusted where necessary to reflect changes in fund experience and actuarial recommendations.

The sensitivity of the defined benefit obligation to changes in principal assumptions as at 31 December 2014 is set out below.

US$ million	Increase/(decrease) in pension obligation Canada	Increase/(decrease) in pension obligation Other	Increase/(decrease) in pension obligation Total
Discount rate
Increase by 100 basis points	(399)	(150)	(549)
Decrease by 100 basis points	458	188	646
Rate of future salary increase
Increase by 100 basis points	16	31	47
Decrease by 100 basis points	(17)	(32)	(49)
Rate of future pension benefit increase
Increase by 100 basis points	7	33	40
Decrease by 100 basis points	(6)	(32)	(38)
Life expectancy
Increase in longevity by 1 year	82	18	100

24. ACCOUNTS PAYABLE

US$ million	2014	2013
Trade payables	22,896	21,815
Trade advances from buyers	1,479	640
Associated companies	473	648
Other payables and accrued liabilities	2,033	2,938
Total	26,881	26,041

25. ACQUISITION AND DISPOSAL OF SUBSIDIARIES

2014 Acquisitions

In 2014, Glencore acquired controlling interests in Caracal Energy Inc ("Caracal"), Zhairemsky GOK JSC ("Zhairemsky") and other immaterial entities. The net cash used in the acquisition of subsidiaries and the provisional fair value of the assets acquired and liabilities assumed on the acquisition dates are detailed below:

US$ million	Caracal	Zhairemsky	Other	Total
Non-current assets
Property, plant and equipment	1,799	351	27	2,177
Intangible assets	1	-	12	13
Advances and loans¹	-	-	1	1
Deferred tax assets	1	-	-	1
	1,801	351	40	2,192
Current assets
Inventories	-	9	8	17
Accounts receivable¹	86	8	20	114
Cash and cash equivalents	31	17	-	48
	117	34	28	179
Non-controlling interest²	-	-	(8)	(8)
Non-current liabilities
Deferred tax liabilities	-	(52)	-	(52)
Other financial liabilities	-	(3)	(5)	(8)
Provisions	(1)	(13)	-	(14)
	(1)	(68)	(5)	(74)
Current liabilities
Borrowings	(161)	-	-	(161)
Accounts payable	(149)	(9)	(53)	(211)
	(310)	(9)	(53)	(372)
Total fair value of net assets acquired	1,607	308	2	1,917
Less: amounts previously recognised through investments and loans	(77)	-	-	(77)
Less: cash and cash equivalents acquired	(31)	(17)	-	(48)
Net cash used in acquisition of subsidiaries	1,499	291	2	1,792

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

2 Non-controlling interest measured at its percentage of net assets acquired.

Caracal

On 8 July 2014, Glencore completed the acquisition of the remaining issued and outstanding equity of Caracal, an oil and gas exploration and development company with operations in the Republic of Chad, Africa, for a total consideration of $1,607 million. This increased Glencore's ownership from 13.2% to 100% and provides Glencore the ability to exercise control over Caracal.

If the acquisition had taken place effective 1 January 2014, the operation would have contributed additional revenue of $56 million and additional attributable loss of $25 million. From the date of acquisition, the operation contributed $101 million and $80 million of revenue and attributable loss, respectively.

The acquisition of Caracal adds further value and expertise to Glencore's growing oil business in Africa, with the enlarged portfolio allowing Glencore to take further advantage of opportunities across the African oil sector, as they arise.

Zhairemsky

On 11 December 2014, Glencore completed the acquisition of a 100% interest in Zhairemsky GOK JSC, located in Kazakhstan, for cash consideration of $308 million. The acquisition enhances and complements Glencore's existing operations in Kazakhstan, including an expectation that the additional zinc/lead resources will significantly increase Kazzinc's weighted average own-source life of mine.

If the acquisition had taken place effective 1 January 2014, the operation would have contributed additional revenue of $78 million and additional attributable loss of $2 million. From the date of acquisition the operation contributed $6 million and $1 million of revenue and attributable loss, respectively.

Other

Other comprises primarily the acquisition of an additional 16.99% interest in Energia Austral, increasing Glencore's ultimate ownership to 65.99%. From the date of acquisition, 1 January 2014, the operations contributed $25 million and $15 million to Glencore's revenue and attributable income, respectively.

2014 Disposals

In 2014, Glencore disposed of its controlling interest in Las Bambas that was acquired as part of the Xstrata business combination in May 2013. Other consists primarily of the disposal of Frieda River, a copper project in Papua New Guinea. The carrying value of the assets and liabilities over which control was lost and net cash received from these disposals are detailed below:

US$ million	Las Bambas	Other	Total
Property, plant and equipment	-	89	89
Accounts receivable	-	9	9
Assets held for sale	6,884	-	6,884
Accounts payable	-	(2)	(2)
Liabilities held for sale	(604)	-	(604)
Non-controlling interest	-	(16)	(16)
Total carrying value of net assets disposed	6,280	80	6,360
Cash and cash equivalents received	6,449	33	6,482
Future consideration/ receivable	15	34	49
Total consideration	6,464	67	6,531
Net gain/(loss) on disposal	184	(13)	171

2013 Acquisitions

In 2013, Glencore acquired controlling interests in Xstrata and other immaterial entities. The net cash used in the acquisition of subsidiaries and the fair value of the assets acquired and liabilities assumed at the date of acquisition are detailed below:

US$ million	Xstrata provisional fair values as reported at 31.12.2013	Fair value adjustments to the provisional allocation	Total Xstrata fair values	Other fair values	Total fair values
Non-current assets
Property, plant and equipment	41,381	(274)	41,107	194	41,301
Intangible assets	2,314	105	2,419	6	2,425
Investments in associates and joint ventures	10,240	(551)	9,689	-	9,689
Advances and loans¹	1,163	(100)	1,063	-	1,063
Deferred tax asset	253	-	253	-	253
	55,351	(820)	54,531	200	54,731
Current assets
Inventories	6,068	-	6,068	47	6,115
Accounts receivable¹	3,693	-	3,693	38	3,731
Other financial assets	518	-	518	-	518
Cash and cash equivalents	1,684	-	1,684	1	1,685
Assets held for sale	3,616	750	4,366	-	4,366
	15,579	750	16,329	86	16,415
Non-controlling interest²	(924)	(176)	(1,100)	(9)	(1,109)
Non-current liabilities
Borrowings	(17,587)	12	(17,575)	(4)	(17,579)
Deferred income	(973)	(60)	(1,033)	-	(1,033)
Deferred tax liabilities	(4,270)	(85)	(4,355)	(32)	(4,387)
Other financial liabilities	(325)	-	(325)	(9)	(334)
Provisions	(7,312)	19	(7,293)	(14)	(7,307)
	(30,467)	(114)	(30,581)	(59)	(30,640)
Current liabilities
Borrowings	(1,726)	-	(1,726)	(17)	(1,743)
Accounts payable	(4,981)	-	(4,981)	(30)	(5,011)
Deferred income	(73)	-	(73)	-	(73)
Provisions	(215)	(59)	(274)	-	(274)
Other financial liabilities	(91)	-	(91)	-	(91)
Liabilities held for sale	(314)	(225)	(539)	-	(539)
	(7,400)	(284)	(7,684)	(47)	(7,731)
Total fair value of net assets acquired	32,139	(644)	31,495	171	31,666
Goodwill arising on acquisition³	12,480	644	13,124	30	13,154
Less: amounts previously recognised through investments and loans	(15,142)	-	(15,142)	-	(15,142)
Less: Fair value of ordinary shares issued	(29,094)	-	(29,094)	-	(29,094)
Less: Fair value of share based awards	(383)	-	(383)	-	(383)
Less: cash and cash equivalents acquired	(1,684)	-	(1,684)	(1)	(1,685)
Acquisition related costs	275	-	275	-	275
Net cash (received from)/used in acquisition of subsidiaries	(1,409)	-	(1,409)	200	(1,209)

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

2 Non-controlling interest measured at its percentage of net assets acquired.

3 The goodwill arising on acquisition is not deductible for tax purposes.

Xstrata

On 2 May 2013, Glencore completed its acquisition of the remaining 66% (which it did not previously own) of the issued and outstanding equity of Xstrata, a leading global diversified mining group, for consideration of $29.5 billion. The acquisition was completed through an all share exchange which gave Xstrata shareholders 3.05 Glencore shares for every Xstrata share, valuing Xstrata's equity at approximately $44.6 billion.

The acquisition accounting has now been finalised. The final fair value adjustments to the provisionally reported values primarily relate to adjustments to property, plant and equipment and investments in associates and joint ventures resulting from revisions to assumptions that existed at the acquisition date regarding mine plans, ramp-up schedules, expected processing capacity and classification of acquired joint arrangements. Additionally, the Las Bambas assets and liabilities held for sale were reassessed to reflect the fair value less cost of disposal, resulting from finalisation of the sales process.

The acquisition of Xstrata creates a unique global natural resources group, well positioned to seize opportunities in a world where trends continue to evolve towards a new global map, reflecting the degree to which changes are unfolding relating to where natural resources are consumed and supplied, especially as a result of demand from and emerging supply growth in developing economies.

If the acquisition had been effective 1 January 2013, the operations would have contributed additional revenue of $9,443 million and an increase in attributable income of $259 million. From the date of acquisition, the operations contributed $16,769 million and $1,485 million of revenue and attributable income, respectively.

Other

Other acquisitions primarily consist of the acquisition of an 89.5% controlling interest in Orion Minerals LLC, an entity holding two operations in northern Kazakhstan, for cash consideration of $175 million. If the other acquisitions had taken place effective 1 January 2013, the operations would have contributed additional revenue of $4 million and additional attributable income of $1 million. From the date of acquisition, the other acquisitions contributed $51 million and $7 million to Glencore's revenue and attributable income, respectively.

2013 Disposals

In 2013 Glencore disposed of controlling interests in various businesses that were acquired as part of the Viterra business combination in December 2012. The carrying value of the assets and liabilities over which control was lost and net cash received from these disposals are detailed below:

US$ million	Dakota Growers Pasta Company	Joe White Maltings	Total
Property, plant and equipment	320	355	675
Intangible assets	42	1	43
Inventories	35	23	58
Accounts receivable	24	38	62
Cash and cash equivalents	3	-	3
Deferred tax liabilities	(40)	-	(40)
Accounts payable	(21)	(33)	(54)
Financial liabilities	-	(3)	(3)
Total carrying value of net assets disposed	363	381	744
Cash and cash equivalents received	366	381	747
Less: cash and cash equivalent disposed	(3)	-	(3)
Total consideration received	363	381	744
Gain/(loss) on disposal	-	-	-

26. FINANCIAL AND CAPITAL RISK MANAGEMENT

Financial risks arising in the normal course of business from Glencore's operations comprise market risk (including commodity price risk, 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 to support its objectives in managing its capital and future financial security and flexibility. Glencore's overall risk management program focuses on the unpredictability of financial markets and seeks to protect its financial security and flexibility by using derivative financial instruments where possible to substantially 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 and effectiveness 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 and strength 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 sustainable long-term profitability. Paramount in meeting these objectives is maintaining an investment grade credit rating status. Glencore's current credit ratings are Baa2 (stable) from Moody's and BBB (stable) from S&P.

Distribution policy and other capital management initiatives

The Company intends to return excess capital to its shareholders by pursuing a progressive distribution policy with the intention of maintaining or increasing its total ordinary distribution each year, supplemented through other capital management initiatives, including share buy-backs, as and when appropriate. Distributions are expected to be declared by the Board semi-annually (with the half-year results and the preliminary full-year results). Interim distributions are expected to represent approximately one-third of the total distribution for any year. Distributions will be declared and paid in U.S. dollars, although 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 Hong Kong branch register will receive their distributions in Hong Kong dollars, while shareholders on the JSE will receive their distributions in South African Rand.

Commodity price risk

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 price risks, there remains the possibility that the hedging instruments chosen may not always provide effective mitigation of the underlying 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.

Value at risk

One of the tools used by Glencore to monitor and limit its primary market risk exposure, principally 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 a threshold 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, probability based approach that takes into account market volatilities, as well as risk diversification by recognising offsetting positions and correlations between commodities and markets. In this way, risks can be measured consistently across markets and commodities and risk measures can be aggregated to derive a single risk value. Glencore's Board has set a consolidated VaR limit (one day 95% confidence level) of $100 million representing less than 0.5% of total equity, which the Board reviews annually. The consolidated VaR limit of $100 million was not exceeded during the year.

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.

Position sheets are regularly distributed and monitored and daily Monte Carlo simulations are applied to the various business groups' net marketing positions to determine potential losses.

Market risk VaR (one day 95% confidence level) ranges and year end positions were as follows:

US millions	2014	2013
Year end position	39	35
Average during the year	36	32
High during the year	65	63
Low during the year	16	20

VaR does not purport to represent actual gains or losses in fair value on earnings to be incurred by Glencore, nor does Glencore claim that these VaR results are indicative of future market movements or representative of any actual impact on its future results. VaR should 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 VaR analysis by analysing forward looking stress scenarios, benchmarking against an alternative VaR computation based on historical simulations 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, lead), coal, iron ore, oil-/natural gas and main risks in the agricultural products business segment (grain, oil seeds, sugar and cotton) 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 not include a VaR calculation for products such as alumina, molybdenum, cobalt, freight and some risk associated with 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 exposures related to these products.

Net present value at risk

Glencore's future cash flows related to its forecast energy, metals and minerals and agricultural 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 and options transactions, insurance products and continuous internal monitoring, reporting and quantification of the underlying operations' estimated cash flows and valuations.

Interest rate risk

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. 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 primarily based on US$ LIBOR plus an appropriate premium. Accordingly, prevailing market interest rates are continuously 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 50 basis points higher/lower and all other variables held constant, Glencore's income and equity for the year ended 31 December 2014 would decrease/increase by $95 million (2013: $105 million).

Currency risk

The US 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 of commodities 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 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 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 of currencies 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 Australian dollar denominated bonds (see note 20). Cross currency swaps were concluded to hedge the currency risk on the principal and related interest payments of these bonds. These contracts were designated as cash flow hedges of the foreign currency risks associated with the bonds. The fair value of these derivatives is as follows:

	Notional amounts		Recognised fair values		Average
US$ million	Buy	Sell	Assets	Liabilities	maturity¹
Cross currency swap agreements - 2014	-	15,762	15	1,727	2019
Cross currency swap agreements - 2013	-	16,658	167	-	2018

1 Refer to note 20 for details.

Credit risk

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 process includes 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. 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 of credit, netting, collateral and insurance arrangements where appropriate. Additionally, 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 offsetting of balances due to/from a common counterparty in the event of default by the counterparty. Glencore actively and continuously 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 internal rating are typically enhanced to investment grade through the extensive use of credit enhancement products, such as letters of credit or insurance products. Glencore has a diverse customer base, with no customer representing more than 2.5% (2013: 2.5%) of its trade receivables (on a gross basis taking into account credit enhancements) or accounting for more than 3.5% of its revenues over the year ended 31 December 2014 (2013: 3%).

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 27).

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's commodity portfolio which does not fix prices beyond three months, with the main exceptions being coal, where longer-term fixed price contracts are common, ensure that performance risk is adequately 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 development of more transparent and liquid spot markets, e.g. coal and iron ore and associated derivative products and indexes.

Liquidity risk

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 (2013: $3 billion). 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 and proposed investments, as well as credit facility refinancing/extension requirements, well ahead of time.

As at 31 December 2014, Glencore had available committed undrawn credit facilities, cash and marketable securities amounting to $9,409 million (2013: $12,878 million). The maturity profile of Glencore's financial liabilities based on the contractual terms is as follows:

US$ million 2014	After 5 years	Due 3-5 years	Due 2-3 years	Due 1-2 years	Due 0-1 year	Total
Borrowings	13,467	8,122	5,286	13,813	12,005	52,693
Expected future interest payments	4,363	1,686	906	992	1,068	9,015
Accounts payable	-	-	-	-	26,881	26,881
Other financial liabilities	295	342	-	343	3,956	4,936
Total	18,125	10,150	6,192	15,148	43,910	93,525
Current assets					53,219	53,219

US$ million 2013	After 5 years	Due 3-5 years	Due 2-3 years	Due 1-2 years	Due 0-1 year	Total (Restated)¹
Borrowings	13,112	9,111	11,832	4,657	16,461	55,173
Expected future interest payments	7,907	1,557	1,175	1,326	1,722	13,687
Accounts payable	-	-	-	-	26,041	26,041
Other financial liabilities	359	342	343	-	2,366	3,410
Total	21,378	11,010	13,350	5,983	46,590	98,311
Current assets					59,292	59,292

1 Adjusted for the final fair value adjustments in relation to the acquisition of Xstrata (see note 25).

27. FINANCIAL INSTRUMENTS

Fair value of financial instruments

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 the measurement 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 $52,693 million (2013: $55,173 million) of borrowings, the fair value of which at 31 December 2014 was $53,285 million (31 December 2013: $56,723 million) based on observable market prices applied to the borrowing portfolio (a Level 2 fair value measurement).

US$ million 2014	Carrying value¹	Available for sale	FVtPL²	Total
Assets
Other investments³	-	895	577	1,472
Advances and loans	4,597	-	-	4,597
Accounts receivable	21,456	-	-	21,456
Other financial assets (see note 28)	-	-	4,036	4,036
Cash and cash equivalents and marketable securities⁴	-	-	2,855	2,855
Total financial assets	26,053	895	7,468	34,416

Liabilities
Borrowings	52,693	-	-	52,693
Non-current other financial liabilities (see note 28)	-	-	980	980
Accounts payable	26,881	-	-	26,881
Other financial liabilities (see note 28)	-	-	3,956	3,956
Total financial liabilities	79,574	-	4,936	84,510

1 Carrying value comprises investments, loans, accounts receivable, accounts payable and other liabilities measured at amortised cost.

2 FVtPL - Fair value through profit and loss - held for trading.

3 Other investments of $1,354 million are classified as Level 1 measured using quoted market prices with the remaining balance of $118 million being investments in private companies whose fair value cannot be reliably measured which are carried cost.

4 Classified as Level 1, measured using quoted exchange rates and/or market prices.

US$ million 2013	Carrying value¹	Available for sale	FVtPL²	Total (Restated)³
Assets
Other investments⁴	-	394	529	923
Advances and loans	3,995	-	-	3,995
Accounts receivable	24,536	-	-	24,536
Other financial assets (see note 28)	-	-	2,904	2,904
Cash and cash equivalents and marketable securities⁵	-	-	2,885	2,885
Total financial assets	28,531	394	6,318	35,243

Liabilities
Borrowings	55,173	-	-	55,173
Non-current other financial liabilities (see note 28)	-	-	1,044	1,044
Accounts payable	26,041	-	-	26,041
Other financial liabilities (see note 28)	-	-	2,366	2,366
Total financial liabilities	81,214	-	3,410	84,624

1 Carrying value comprises investments, loans, accounts receivable, accounts payable and other liabilities measured at amortised cost.

2 FVtPL - Fair value through profit and loss - held for trading.

3 Adjusted for the final fair value adjustments in relation to the acquisition of Xstrata (see note 25).

4 Other investments of $772 million are classified as Level 1 measured using quoted market prices with the remaining balance of $151 million being investments in private companies whose fair value cannot be reliably measured which are carried cost.

5 Classified as Level 1, measured using quoted exchange rates and/or market prices.

Offsetting of financial assets and liabilities

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, or to realise the asset and settle the liability simultaneously. The financial assets and liabilities subject to offsetting, enforceable master netting and similar agreements as at 31 December 2014 and 2013 were as follows:

US$ million 2014	Amounts eligible for set off under netting agreements			Related amounts not set off under netting agreements			Amounts not subject to netting agreements	Total as presented in the consolidated statement of financial position
	Gross amount	Amounts offset	Net amount	Financial instruments	Financial collateral	Net amount
Derivative assets¹	19,282	(17,115)	2,167	(483)	(497)	1,187	1,869		4,036
Derivative liabilities¹	(19,022)	17,115	(1,906)	483	924	(499)	(2,050)		(3,956)

1 Presented within current other financial assets and current other financial liabilities.

US$ million 2013	Amounts eligible for set off under netting agreements			Related amounts not set off under netting agreements			Amounts not subject to netting agreements	Total as presented in the consolidated statement of financial position
	Gross amount	Amounts offset	Net amount	Financial instruments	Financial collateral	Net amount
Derivative assets¹	4,001	(2,905)	1,096	(237)	(262)	597	1,808		2,904
Derivative liabilities¹	(3,624)	2,905	(719)	237	285	(197)	(1,647)		(2,366)

1 Presented within current other financial assets and current 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 when both elect to settle on a net basis. In the absence of such an election, financial assets and liabilities may be settled on a gross basis, 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 make payment 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.

28. FAIR VALUE MEASUREMENTS

Fair values are primarily determined using quoted market prices or standard pricing models using observable market inputs where available 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 the fair 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 the measurement date; or

Level 2 Inputs other than quoted inputs included in Level 1 that are observable for the assets or liabilities, either directly or indirectly; or

Level 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 physical forward 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 predominately 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 fair value.

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.

The following tables show the fair values of the derivative financial instruments including trade related financial and physical forward purchase and sale commitments by type of contract and non-current other financial liabilities as at 31 December 2014 and 2013. Other assets and liabilities which are measured at fair value on a recurring basis are marketing inventories, other investments, cash and cash equivalents and marketable securities. Refer to notes 12 and 27 for disclosures in connection with these fair value measurements. There are no non-recurring fair value measurements.

Other financial assets

US$ million 2014	Level 1	Level 2	Level 3	Total
Commodity related contracts
Futures	1,008	183	-	1,191
Options	21	27	1	49
Swaps	133	771	-	904
Physical forwards	21	1,101	339	1,461
Financial contracts
Cross currency swaps	-	158	-	158
Foreign currency and interest rate contracts	2	271	-	273
Total	1,185	2,511	340	4,036

US$ million 2013	Level 1	Level 2	Level 3	Total
Commodity related contracts
Futures	444	261	-	705
Options	26	2	-	28
Swaps	65	94	-	159
Physical forwards	-	701	481	1,182
Financial contracts
Cross currency swaps	-	519	-	519
Foreign currency and interest rate contracts	41	270	-	311
Total	576	1,847	481	2,904

Other financial liabilities

US$ million 2014	Level 1	Level 2	Level 3	Total
Commodity related contracts
Futures	580	8	-	588
Options	199	12	40	251
Swaps	118	98	-	216
Physical forwards	4	893	264	1,161
Financial contracts
Cross currency swaps	-	1,281	-	1,281
Foreign currency and interest rate contracts	-	459	-	459
Current other financial liabilities	901	2,751	304	3,956
Non-current other financial liabilities
Non-discretionary dividend obligation¹	-	-	295	295
Put option over non-controlling interest²	-	-	685	685
Non-current other financial liabilities	-	-	980	980
Total	901	2,751	1,284	4,936

1 A ZAR denominated derivative liability payable to ARM Coal, 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 and has no fixed repayment date and is not cancellable within 12 months.

2 A put option over the remaining 31% of Mutanda is exercisable in two equal tranches in July 2016 and July 2018. The exercise price of the put option is subject to the fair value of Mutanda at the date of exercise, see note 33.

US$ million 2013	Level 1	Level 2	Level 3	Total
Commodity related contracts
Futures	542	84	-	626
Options	15	4	31	50
Swaps	27	72	-	99
Physical forwards	9	572	266	847
Financial contracts
Cross currency swaps	-	512	-	512
Foreign currency and interest rate contracts	60	172	-	232
Current other financial liabilities	653	1,416	297	2,366
Non-current other financial liabilities
Non-discretionary dividend obligation¹	-	-	359	359
Put option over non-controlling interest²	-	-	685	685
Non-current other financial liabilities	-	-	1,044	1,044
Total	653	1,416	1,341	3,410

The following table shows the net changes in fair value of Level 3 other financial assets and other financial liabilities:

US$ million	Notes	Physical forwards	Options	Loans and other	Total Level 3
1 January 2013		96	(456)	-	(360)
Business combination	25	(13)	-	(359)	(372)
Total gain/(loss) recognised in cost of goods sold		220	(30)	-	190
Put option over non-controlling interest		-	(266)	-	(266)
Realised		(88)	36	-	(52)
31 December 2013		215	(716)	(359)	(860)

1 January 2014		215	(716)	(359)	(860)
Total gain/(loss) recognised in cost of goods sold		(34)	(39)	-	(73)
Non-discretionary dividend obligation		-	-	64	64
Realised		(106)	31	-	(75)
31 December 2014		75	(724)	(295)	(944)

During the year no amounts were transferred between Level 1 and Level 2 of the fair value hierarchy and no amounts were transferred 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. The following table provides information about how the fair values of these financial assets and financial liabilities are determined, in particular, the valuation techniques and inputs used.

Fair value of financial assets/financial liabilities US$ million			2014	2013
Futures - Level 1		Assets Liabilities	1,008 (580)	444 (542)
Valuation techniques and key inputs:	Quoted bid prices in an active market
Significant unobservable inputs:	None
Futures - Level 2		Assets Liabilities	183 (8)	261 (84)
Valuation techniques and key inputs:	Discounted cash flow model 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.
Significant unobservable inputs:	None

Fair value of financial assets/financial liabilities US$ million					2014		2013
Swaps - Level 2		Assets Liabilities		771 (98)		94 (72)
Valuation techniques and key inputs:	Discounted cash flow model 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.
Significant unobservable inputs:	None
Physical Forwards - Level 1			Assets Liabilities		21 (4)		- (9)
Valuation techniques and key inputs:	Quoted bid prices in an active market
Significant unobservable inputs:	None
Physical Forwards - Level 2			Assets Liabilities		1,101 (893)		701 (572)
Valuation techniques and key inputs:	Discounted cash flow model 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, such as history of non-performance, collateral held and current market developments, as required.
Significant unobservable inputs:	None
Physical Forwards - Level 3			Assets Liabilities		339 (264)		481 (266)
Valuation techniques and key inputs:	Discounted cash flow model Prices are adjusted by differentials, as required, including: - Quality; - Geographic location; - Local supply & demand; - Customer requirements; and - Counterparty credit considerations. These significant unobservable inputs generally represent 2% - 50% of the overall value of the instruments. These differentials are generally symmetrical with an increase/decrease in one input resulting in an opposite movement in another input, resulting in no material change in the underlying value.
Cross currency swaps - Level 2			Assets Liabilities		158 (1,281)		519 (512)
Valuation techniques and key inputs:	Discounted cash flow model 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.
Significant unobservable inputs:	None
Foreign currency and interest rate contracts - Level 1			Assets Liabilities		2 -		41 (60)
Valuation techniques and key inputs:	Quoted bid prices in an active market
Significant unobservable inputs:	None

Fair value of financial assets/financial liabilities US$ million			2014	2013
Foreign currency and interest rate contracts - Level 2		Assets Liabilities	271 (459)	270 (172)
Valuation techniques and key inputs:	Discounted cash flow model 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.
Significant unobservable inputs:	None
Non-discretionary dividend obligation - Level 3		Assets Liabilities	- (295)	- (359)
Valuation techniques:	Discounted cash flow model
Significant observable inputs:	- Forecast commodity prices; and - Discount rates using weighted average cost of capital methodology.
Significant unobservable inputs	- 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. There are no reasonable changes in assumptions which would result in a material change to the fair value of the underlying liability.
Put option over non-controlling interest - Level 3		Assets Liabilities	- (685)	- (685)
Valuation techniques:	Discounted cash flow model
Significant observable inputs:	- Forecast commodity prices; and - Discount rates using weighted average cost of capital methodology
Significant unobservable inputs	- 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. There are no reasonable changes in assumptions which would result in a material change to the fair value of the underlying liability.

29. AUDITORS' REMUNERATION

US$ million	2014	2013
Remuneration in respect of the audit of Glencore's consolidated financial statements	4	7
Other audit fees, primarily in respect of audits of accounts of subsidiaries	20	24
Audit-related assurance services¹	5	5
Total audit and related assurance fees	29	36

Corporate finance services	1	1
Taxation compliance services	2	2
Other taxation advisory services	2	6
Other assurance services	1	1
Other services	2	3
Total non-audit-fees	8	13
Total professional fees	37	49

1 Audit-related assurance services primarily related to interim reviews of the Group's half year accounts and quarterly accounts of the Group's publicly listed subsidiaries.

30. FUTURE COMMITMENTS

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 2014, $2,497 million (2013: $2,817 million), of which 80% (2013: 74%) 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 licenses 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 2014, $255 million (2013: $623 million) of such development expenditures are to be incurred, of which 23% (2013: 55%) are for commitments to be settled over the next year.

Glencore procures seagoing vessels/chartering services to meet its overall marketing objectives and commitments. As at 31 December 2014, Glencore has committed to future hire costs to meet future physical delivery and sale obligations and expectations of $1,728 million (2013: $1,433 million), of which $540 million (2013: $578 million) are with associated companies. 37% (2013: 55%) of the total charters are for services to be received over the next two years.

As part of Glencore's ordinary sourcing and procurement of physical commodities and other ordinary marketing obligations, the selling 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. As at 31 December 2014, $16,307 million (2013: $13,886 million) of such commitments have been issued on behalf of Glencore, which will generally be settled simultaneously with the payment for such commodity.

Glencore has entered into various operating leases mainly as lessee for office and warehouse/storage facilities. Rental expenses for these leases totalled respectively $279 million and $203 million for the years ended 31 December 2014 and 2013. Future net minimum lease payments under non-cancellable operating leases are as follows:

US$ million	2014	2013
Within 1 year	142	105
Between 2 and 5 years	275	216
After 5 years	255	114
Total	672	435

Glencore has entered into finance leases for various plant and equipment items, primarily vessels and machinery. Future net minimum lease payments under finance leases together with the future finance charges are as follows:

US$ million	Undiscounted minimum lease payments		Present value of minimum lease payments
US$ million	2014	2013	2014	2013
Within 1 year	76	70	51	49
Between 1 and 5 years	236	276	173	188
After 5 years	280	201	252	156
Total minimum lease payments	592	547	476	393
Less: amounts representing finance lease charges	116	154	-	-
Present value of minimum lease payments	476	393	476	393

Future development and related commitments

• On 12 December 2014, Glencore agreed to acquire Prokon Pflanzenöl GmbH, a German producer of biodiesel and rapeseed oil for a consideration of $134 million. The acquisition is subject to standard regulatory approvals and is expected to close in the first half of 2015.

• On 19 December 2014, Glencore agreed to acquire a 50% stake in the Barcarena grain export terminal in northern Brazil for a consideration of $115 million. The acquisition is subject to standard regulatory approvals and is expected to close in the first half of 2015.

31. CONTINGENT LIABILITIES

The amount of corporate guarantees in favour of third parties as at 31 December 2014 was $Nil (2013: $Nil). Also see note 10.

The Group is subject to various claims which arise in the ordinary course of business as detailed below. These contingent liabilities are reviewed on a regular basis and where practical an estimate is made of the potential financial impact on the Group. As at 31 December 2014 and 2013 it was not practical to make such an assessment.

Litigation

Certain legal actions, other claims and unresolved disputes are pending against Glencore. Whilst Glencore cannot predict the results of any litigation, it believes that it has meritorious defences against those actions or claims. Glencore believes the likelihood of any material liability arising from these claims to be remote and that the liability, if any, therefore resulting from any litigation will not have a material adverse effect on its consolidated income, financial position or cash flows.

Environmental contingencies

Glencore's operations are subject to various environmental laws and regulations. Glencore is in material compliance with those laws and regulations. Glencore accrues for environmental contingencies when such contingencies are probable and reasonably estimable. Such accruals are adjusted as new information develops or circumstances change. Recoveries of 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.

Tax audits

Glencore assesses its liabilities and contingencies for all tax years open to audit based upon the latest information available. For those matters where it is probable that an adjustment will be made, the Group records its best estimate of these tax liabilities, including related interest charges. Inherent uncertainties exist in estimates of tax contingencies due to complexities of interpretation and changes in tax laws. Whilst Glencore believes it has adequately provided for the outcome of these matters, future results may include favourable or unfavourable adjustments to these estimated tax liabilities in the period the assessments are made, or resolved. The final outcome of tax examinations may result in a materially different outcome than assumed in the tax liabilities.

32. RELATED PARTY TRANSACTIONS

In the normal course of business, Glencore enters into various arm's length transactions with related parties (including Xstrata pre-acquisition and Century), including fixed price commitments 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 11, 13, and 24). 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 2014, sales and purchases with associates and joint ventures amounted to $1,200 million (2013: $1,924 million) and $3,178 million (2013: $5,008 million) respectively. Also see notes 13 and 24.

33. PRINCIPAL SUBSIDIARIES WITH MATERIAL NON-CONTROLLING INTERESTS

Non-controlling interest is comprised of the following:

US$ million	2014	2013 Restated¹
Kazzinc	1,404	1,436
Optimum	271	326
Alumbrera	182	279
Mutanda	2	(105)
Other²	1,079	1,432
Total	2,938	3,368

1 Adjusted for the final fair value adjustments in relation to the acquisition of Xstrata (see note 25).

2 Other comprises various subsidiaries in which no individual balance attributable to non-controlling interests is material.

Summarised financial information in respect of Glencore's subsidiaries that have material non-controlling interest, reflecting 100% of the underlying subsidiary's relevant figures, is set out below.

US$ million	Kazzinc	Optimum	Alumbrera	Mutanda
31 December 2014
Non-current assets	5,085	1,755	458	4,747
Current assets	1,118	77	373	711
Total assets	6,203	1,832	831	5,458
Non-current liabilities	1,168	628	299	2,247
Current liabilities	402	346	167	322
Total liabilities	1,570	974	466	2,569
Net assets	4,633	858	365	2,889
Equity attributable to owners of the Company	3,229	587	183	2,887
Non-controlling interests	1,404	271	182	2
Non-controlling interests in %	30.3%	32.4%	50.0%	31.0%

2014
Revenue	2,517	592	1,037	1,604
Expenses	(2,552)	(653)	(943)	(1,259)
Profit for the year	(35)	(61)	94	345
Profit attributable to owners of the Company	(25)	(41)	47	238
Profit attributable to non-controlling interests	(10)	(20)	47	107
Other comprehensive income attributable to owners of the Company	-	-	-	-
Other comprehensive income attributable to non-controlling interests	-	-	-	-
Total comprehensive income for the year	(35)	(61)	94	345
Dividends paid to non-controlling interests	(10)	-	(144)	-
Net cash inflow/(outflow) from operating activities	232	(47)	235	484
Net cash (outflow) from investing activities	(714)	(100)	(59)	(241)
Net cash inflow(outflow) from financing activities	460	141	(166)	(128)
Total net cash (outflow)/inflow	(22)	(6)	10	115

US$ million	Kazzinc	Optimum	Alumbrera	Mutanda
31 December 2013
Non-current assets	4,841	1,927	475	4,694
Current assets	1,106	87	641	586
Total assets	5,947	2,014	1,116	5,280
Non-current liabilities	814	827	295	3,790
Current liabilities	408	180	263	977
Total liabilities	1,222	1,007	558	4,767
Net assets	4,725	1,007	558	513
Equity attributable to owners of the Company	3,289	681	279	618
Non-controlling interests	1,436	326	279	(105)
Non-controlling interests in %	30.3%	32.4%	50.0%	31.0%

2013
Revenue	2,587	751	718	1,204
Expenses	(2,437)	(706)	(705)	(1,011)
Profit for the year	150	45	13	193
Profit attributable to owners of the Company	103	30	7	142
Profit attributable to non-controlling interests	47	15	6	51
Other comprehensive income attributable to owners of the Company	-	-	-	-
Other comprehensive income attributable to non-controlling interests	-	-	-	-
Total comprehensive income for the year	150	45	13	193
Dividends paid to non-controlling interests	-	-	(142)	-
Net cash inflow from operating activities	451	74	93	68
Net cash (outflow) from investing activities	(425)	(122)	(46)	(185)
Net cash (outflow)/inflow from financing activities	(43)	46	(441)	96
Total net cash (outflow)	(17)	(2)	(394)	(21)

Mutanda

In July 2013, Glencore completed the merger between Mutanda and Kansuki which was accounted for as an asset acquisition as the acquired assets and liabilities of Kansuki did not meet the definition of a business. In addition, Glencore concurrently entered into a put and call option arrangement, whereby Glencore has a right to acquire and the seller has the ability to force Glencore to acquire the remaining 31% interest in Mutanda at fair market value in two 15.5% tranches in July 2016 and July 2018. The present value of the put option, $685 million at acquisition date, has been accounted for within other financial liabilities (see note 28) with the corresponding amount recognised against non-controlling interest.

Glossary

Available committed liquidity

US$ million	2014	2013
Cash and cash equivalents and marketable securities	2,855	2,885
Headline committed syndicated revolving credit facilities	15,300	17,340
Amount drawn under syndicated revolving credit facilities	(7,933)	(5,702)
Amounts drawn under U.S. commercial paper program	(813)	(1,645)
Total	9,409	12,878

Adjusted current ratio

Current assets over current liabilities, both adjusted to exclude current other financial liabilities.

Current capital employed

Current capital employed is current assets less accounts payable, current deferred income, current provisions, current other financial liabilities and income tax payable.

Readily marketable inventories

Readily marketable inventories are readily convertible into cash due to their very liquid nature, widely available markets and the fact that the price is covered either by a physical sale transaction or hedge transaction.

Reconciliation of selected reported financial information to those applying the proportionate consolidation method to certain associates and joint ventures

For internal reporting and analysis, management evaluates the performance of Antamina copper/zinc mine (34% owned), Cerrejon coal mine (33% owned) and the 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. Below are reconciliations of selected reported financial information to those of applying the proportionate consolidation method to these investments.

Cash flow related adjustments

US$ million	Reported measure	Adjustment for proportionate consolidation	Adjusted reported measure
Cash generated by operating activities before working capital changes	10,978	-	10,978
Addback EBITDA of certain associates and joint ventures	-	1,552	1,552
Cash generated by operating activities before working capital changes	10,978	1,552	12,530
Income taxes paid	(928)	(329)	(1,257)
Interest received	49	-	49
Interest paid	(1,260)	-	(1,260)
Dividend received from associates and joint ventures	1,129	(1,022)	107
Funds from operations ("FFO")	9,968	201	10,169

Working capital changes, excluding readily marketable inventory inflows	2,105	163	2,268
Receipts from/(payments of) non-current advances and loans	(686)	168	(518)
Net cash used in acquisition of subsidiaries	(1,792)	-	(1,792)
Net cash received from disposal of subsidiaries	6,482	-	6,482
Purchase of investments	(374)	-	(374)
Proceeds from sale of investments	64	-	64
Purchase of property, plant and equipment	(7,854)	(467)	(8,321)
Capital expenditures related to assets held for sale	(961)	-	(961)
Payments for exploration and evaluation	(245)	-	(245)
Proceeds from sale of property, plant and equipment	206	-	206
Margin receipts in respect of financing related hedging activities	10	-	10
Acquisition of additional interests in subsidiaries	(101)	-	(101)
Return of capital/dividends to non-controlling interests	(245)	-	(245)
Repurchases of own shares	(786)	-	(786)
Proceeds from own shares	19	-	19
Dividends paid to equity holders of the parent	(2,244)	-	(2,244)
Cash movement in net debt	3,566	65	3,631

Net debt at 31 December 2014

US$ million	Reported measure	Adjustment for proportionate consolidation	Adjusted reported measure
Non-current borrowings	40,688	39	40,727
Current borrowings	12,005	92	12,097
Total borrowings	52,693	131	52,824
Less: cash and cash equivalents and marketable securities	(2,855)	(211)	(3,066)
Less: readily marketable inventories	(19,226)	-	(19,226)
Net debt	30,612	(80)	30,532

Net debt at 31 December 2013

US$ million	Reported measure¹	Adjustment for proportionate consolidation	Adjusted reported measure
Non-current borrowings	38,712	42	38,754
Current borrowings	16,461	68	16,529
Total borrowings	55,173	110	55,283
Less: cash and cash equivalents and marketable securities	(2,885)	(182)	(3,067)
Less: readily marketable inventories	(16,418)	-	(16,418)
Net debt	35,870	(72)	35,798

1 Adjusted for the final fair value adjustments in relation to the acquisition of Xstrata (see note 25).

Reconciliation of tax charge 2014

US$ million		Marketing activities	Industrial activities	Total
Adjusted EBIT, pre-significant items		2,790	3,916	6,706
Interest expense allocation		(227)	(1,465)	(1,692)
Adjustments for:
Certain associates and joint ventures' net finance costs		-	(14)	(14)
Share of income in associates and dividend income		(35)	(83)	(118)
Allocated profit before tax for the basis of tax calculation		2,528	2,354	4,882
Applicable tax rate		10.0%	25.0%	17.2%
Pre-significant tax charge		253	589	842

	Pre-significant tax charge	Las Bambas disposal	Other significant items	Total tax charge
Tax charge on a proportionate consolidation basis	842	531	779	2,152
Adjustment in respect of certain associates and joint ventures tax	(343)	-	-	(343)
Tax charge on the basis of the income statement	499	531	779	1,809

Reconciliation of tax charge 2013 - pro forma basis

US$ million	Marketing activities	Industrial activities	Total
Adjusted EBIT, pre-significant items	2,356	5,078	7,434
Interest expense allocation	(283)	(1,588)	(1,871)
Adjustments for:
Interest income	-	253	253
Share of income in associates and dividend income	(100)	13	(87)
Allocated profit before tax for the basis of tax calculation	1,973	3,756	5,729
Applicable tax rate	10.0%	25.0%	19.8%
Pre-significant tax charge	197	939	1,136

	Pre-significant tax charge	Other significant items	Total tax charge
Tax charge/(credit) on a proportionate consolidation basis	1,136	(183)	953
Adjustment in respect of certain associates and joint ventures tax	(424)	-	(424)
Tax charge/(credit) on the basis of the income statement	712	(183)	529

Reconciliation of tax charge 2013

US$ million	Marketing activities	Industrial activities	Total
Adjusted EBIT, pre-significant items	2,356	3,614	5,970
Interest expense allocation	(283)	(1,475)	(1,758)
Adjustments for:
Interest income	-	221	221
Share of income in associates and dividend income	(100)	(130)	(230)
Allocated profit before tax for the basis of tax calculation	1,973	2,230	4,203
Applicable tax rate	10.0%	25.0%	18.0%
Pre-significant tax charge	197	558	755

	Pre-significant tax charge	Other significant items	Total tax charge
Tax charge/(credit) on a proportionate consolidation basis	755	(172)	583
Adjustment in respect of certain associates and joint ventures tax	(329)	-	(329)
Tax charge/(credit) on the basis of the income statement	426	(172)	254

Debt funding allocation between marketing and industrial activities

(Allocations between Marketing and Industrial are unaudited and unreviewed)

	Group	Allocated to			Illustrative marketing
US$ million	As at 31 December 2014	Marketing	Industrial	Allocated to marketing	% debt funded	Debt funded	Equity funded
Cash, cash equivalents and marketable securities	2,855		X	-
Production inventories	4,938		X	-
Readily marketable inventories	19,226	X		19,226	85%	16,342	2,884
Other inventories	272	X		272	20%	54	218
Net receivable / (payables) excluding cash margining	(5,913)	X		(5,913)	80%	(4,730)	(1,183)
Net brokers (cash margin only)	607	X		607	90%	546	61
Net fair value of trade related financial instruments	80	X		80	85%	68	12
Other net assets / (liabilities)	(788)	X	X	(145)	20%	(29)	(116)
Allocated current capital employed	21,277			14,127		12,251	1,876
Property, plant and equipment	70,110	X	X	3,078	50%	1,539	1,539
Investments	13,746		X	-
Long term advances and loans	4,597	X	X	2,374	20%	475	1,899
Total capital employed including cash - for debt allocation purposes	109,730			19,579		14,265	5,314
Intangible assets	8,866
Total allocated capital employed including cash	118,596
Not allocated¹	(14,423)
Total capital employed	104,173
Representing:
Gross debt	52,693
Equity	51,480

1 Not allocated represents deferred tax assets and liabilities, assets and liabilities held for sale, non-current deferred income, non-current provisions and non-current financial liabilities.

Reconciliation of selected pro forma financial information

(unaudited and unreviewed)

Year ended 31 December 2013

US$ million	Adjusted EBITDA	Adjusted EBIT	Net income before significant items	Net loss after significant items¹
Reported - before adjustments for certain associates and joint ventures	9,684	5,635	3,666	(8,046)
Impact of presenting certain associates and joint ventures on a proportionate consolidation basis	782	335	-	-
Reported in the financial review section	10,466	5,970	3,666	(8,046)
Less: Glencore's pre-acquisition share of Xstrata's earnings	(176)	(176)	(176)	(125)
Add: Xstrata's pre-acquisition earnings on a consolidated basis	2,130	902	536	498
Add: effect of fair value adjustments²	651	738	561	528
Less: deferred tax impact	-	-	(4)	-
Add back: Xstrata acquisition goodwill impairment³	-	-	-	8,124
Add back: revaluation of previously held interests in newly-acquired businesses and losses on sale of investment in associates³	-	-	-	1,200
Add back: transaction costs directly associated with the acquisition³	-	-	-	294
Reported pro forma financial information	13,071	7,434	4,583	2,473

1 Adjusted for the final fair value adjustments in relation to the acquisition of Xstrata (see note 25).

2 The fair value adjustments are determined in accordance with the basis of preparation on page 5. The fair value adjustments for the year ended 31 December 2013 include the pro forma impact for the four month period prior to acquisition. These incorporate adjustments for depreciation, amortisation and onerous contracts, although the major impact is the reversal of the non-cash inventory uplift adjustment of $445 million. Inventories held by Xstrata at the date of acquisition were required to be recognised at fair value under IFRS. This results in negligible margins upon the subsequent sale of these inventories. The income impact of fair value uplift on inventory has been excluded from the pro forma financial information to accurately present the underlying operating margins and provide more useful information about the performance of the Group.

3 Considered for the purposes of the pro forma to have occurred immediately prior to the commencement of the accounting period.

Production by Quarter – Q4 2013 to Q4 2014

Following completion of the merger with Xstrata on 2 May 2013, production information for all periods covered in this report has been presented on a combined basis.

Metals and Minerals

Production from own sources - Total¹

		Q4 2013	Q1 2014	Q2 2014	Q3 2014	Q4 2014	2014	2013	Change 2014 vs 2013 %	Change Q4 14 vs Q4 13 %
Total Copper	kt	426.1	385.6	371.7	391.3	397.4	1,546.0	1,492.8	4	(7)
Total Zinc	kt	336.8	306.4	344.0	347.3	388.8	1,386.5	1,398.5	(1)	15
Total Lead	kt	81.1	79.0	69.9	74.4	84.2	307.5	315.0	(2)	4
Total Nickel	kt	22.8	22.3	26.8	25.9	25.9	100.9	98.4	3	14
Total Gold	koz	267	237	221	230	267	955	1,017	(6)	-
Total Silver	koz	9,837	8,791	7,915	8,761	9,441	34,908	39,041	(11)	(4)
Total Cobalt	kt	4.7	4.6	5.2	5.9	5.0	20.7	19.4	7	6
Total Ferrochrome	kt	345	335	317	287	356	1,295	1,238	5	3
Total Platinum²	koz	22	21	22	24	24	91	90	1	9
Total Palladium²	koz	12	12	12	13	13	50	50	-	8
Total Rhodium²	koz	3	4	4	4	3	15	15	-	-
Total Vanadium Pentoxide	mlb	5.7	5.5	4.2	5.5	5.6	20.8	21.6	(4)	(2)

Production from own sources - Copper assets¹

			Q4 2013	Q1 2014	Q2 2014	Q3 2014	Q4 2014	2014	2013	Change 2014 vs 2013 %	Change Q4 14 vs Q4 13 %
African Copper (Katanga, Mutanda, Mopani, Sable)
Katanga	Copper metal³	kt	41.4	31.6	41.0	42.6	42.8	158.0	136.2	16	3
	Cobalt	kt	0.5	0.5	0.5	0.9	0.9	2.8	2.3	22	80
Mutanda	Copper metal³	kt	49.1	47.1	51.5	52.0	46.5	197.1	150.6	31	(5)
	Cobalt⁴	kt	3.5	3.3	3.8	4.1	3.2	14.4	13.7	5	(9)
Mopani	Copper metal	kt	31.4	27.7	13.4	37.4	31.4	109.9	111.8	(2)	-

African Copper - total production including third party feed
Mopani	Copper metal	kt	53.6	48.5	31.9	51.8	52.9	185.1	212.0	(13)	(1)
Sable	Copper metal	kt	3.7	2.5	1.3	1.1	-	4.9	14.6	(66)	(100)
	Cobalt⁴	kt	0.2	0.1	0.2	0.1	0.1	0.5	0.4	25	(50)

	Total Copper metal³	kt	121.9	106.4	105.9	132.0	120.7	465.0	398.6	17	(1)
	Total Cobalt⁴	kt	4.0	3.8	4.3	5.0	4.1	17.2	16.0	8	3

Collahuasi⁵	Copper metal	kt	2.4	2.3	2.0	2.7	4.0	11.0	12.5	(12)	67
	Copper in concentrates	kt	62.4	50.0	51.6	45.8	48.6	196.0	183.1	7	(22)
	Silver in concentrates	koz	807	675	680	530	591	2,476	2,217	12	(27)

Antamina⁶	Copper in concentrates	kt	43.9	34.2	27.2	26.7	28.3	116.4	149.5	(22)	(36)
	Zinc in concentrates	kt	19.8	11.1	16.0	24.7	19.4	71.2	87.9	(19)	(2)
	Silver in concentrates	koz	1,500	1,068	937	1,060	984	4,049	5,216	(22)	(34)

Other South America (Alumbrera, Lomas Bayas, Antapaccay, Punitaqui)
Alumbrera	Copper in concentrates	kt	34.8	26.1	23.3	20.2	33.0	102.6	109.6	(6)	(5)
	Gold in concentrates and in doré	koz	90	81	65	61	110	317	313	1	22
	Silver in concentrates and in doré	koz	177	180	179	156	251	766	1,145	(33)	42
Lomas Bayas	Copper metal	kt	18.2	18.0	17.3	15.4	15.9	66.6	74.2	(10)	(13)
Antapaccay	Copper metal	kt	0.3	-	-	-	-	-	12.2	(100)	(100)
	Copper in concentrates	kt	31.4	37.3	46.0	45.9	37.9	167.1	139.0	20	21
	Gold in concentrates	koz	11	12	18	24	15	69	79	(13)	36
	Silver in concentrates	koz	188	220	301	293	234	1,048	946	11	24

					Q4 2013	Q1 2014	Q2 2014	Q3 2014	Q4 2014	2014	2013	Change 2014 vs 2013 %	Change Q4 14 vs Q4 13 %
Punitaqui		Copper in concentrates	kt		3.2	3.3	2.6	2.7	2.8	11.4	11.8	(3)	(13)
		Silver in concentrates	koz		25	21	18	20	28	87	101	(14)	12

Punitaqui - total production including third party feed
		Copper in concentrates		kt	3.3	3.3	2.6	2.8	2.9	11.6	12.0	(3)	(12)
		Silver in concentrates		koz	25	22	18	20	29	89	103	(14)	16

		Total Copper metal		kt	18.5	18.0	17.3	15.4	15.9	66.6	86.4	(23)	(14)
		Total Copper in concentrates		kt	69.4	66.7	71.9	68.8	73.7	281.1	260.4	8	6
		Total Gold in concentrates and in doré		koz	101	93	83	85	125	386	392	(2)	24
		Total Silver in concentrates and in doré		koz	390	421	498	469	513	1,901	2,192	(13)	32

Australia (Mount Isa, Ernest Henry, Townsville, Cobar)
Mount Isa, Ernest	Copper metal			kt	57.5	58.3	50.5	44.8	55.9	209.5	197.3	6	(3)
Henry, Townsville	Copper in concentrates			kt	-	-	-	-	-	-	2.8	(100)	n.m.
	Gold			koz	18	18	17	11	16	62	44	41	(11)
	Gold in concentrates			koz	-	-	-	-	-	-	1	(100)	n.m.
	Silver			koz	299	264	234	221	222	941	895	5	(26)
	Silver in concentrates			koz	11	-	-	-	-	-	11	(100)	(100)

Mount Isa, Ernest Henry, Townsville - total production including third party feed
		Copper metal		kt	75.2	72.4	73.0	73.3	73.5	292.2	282.3	4	(2)
		Copper in concentrates		kt	-	-	-	-	-	-	2.8	(100)	n.m.
		Gold		koz	20	21	21	15	23	80	58	38	15
		Gold in concentrates		koz	-	-	-	-	-	-	1	(100)	n.m.
		Silver		koz	618	657	609	998	480	2,744	3,141	(13)	(22)
		Silver in concentrates		koz	11	-	-	-	-	-	11	(100)	(100)

Cobar		Copper in concentrates		kt	11.5	12.6	10.9	11.7	14.4	49.6	45.6	9	25
		Silver in concentrates		koz	107	113	99	112	121	445	428	4	13

		Total Copper		kt	57.5	58.3	50.5	44.8	55.9	209.5	197.3	6	(3)
		Total Copper in concentrates		kt	11.5	12.6	10.9	11.7	14.4	49.6	48.4	2	25
		Total Gold		koz	18	18	17	11	16	62	45	38	(11)
		Total Silver		koz	417	377	333	333	343	1,386	1,334	4	(18)

Total Copper department
		Total Copper		kt	387.5	348.5	337.3	347.9	361.5	1,395.2	1,336.2	4	(7)
		Total Cobalt		kt	4.0	3.8	4.3	5.0	4.1	17.2	16.0	8	3
		Total Zinc		kt	19.8	11.1	16.0	24.7	19.4	71.2	87.9	(19)	(2)
		Total Gold		koz	119	111	100	96	141	448	437	3	18
		Total Silver		koz	3,114	2,541	2,448	2,392	2,431	9,812	10,959	(10)	(22)

Production from own sources - Zinc assets¹

			Q4 2013	Q1 2014	Q2 2014	Q3 2014	Q4 2014	2014	2013	Change 2014 vs 2013 %	Change Q4 14 vs Q4 13 %
Kazzinc
	Zinc metal	kt	55.9	49.2	50.0	47.8	52.3	199.3	216.2	(8)	(6)
	Lead metal	kt	7.2	7.4	4.1	6.7	7.5	25.7	29.8	(14)	4
	Copper metal	kt	11.7	10.8	8.3	15.4	12.3	46.8	50.9	(8)	5
	Gold	koz	148	126	120	134	126	506	579	(13)	(15)
	Silver	koz	1,257	1,132	757	1,206	1,178	4,273	5,251	(19)	(6)

Kazzinc - total production including third party feed
	Zinc metal	kt	77.1	75.3	75.9	76.1	77.2	304.5	300.4	1	-
	Lead metal	kt	23.9	32.2	29.3	33.0	32.0	126.5	90.6	40	34
	Copper metal	kt	16.3	15.4	9.8	16.9	16.1	58.2	62.4	(7)	(1)
	Gold	koz	190	161	159	169	186	675	708	(5)	(2)
	Silver	koz	4,599	5,014	6,065	6,163	7,776	25,018	18,681	34	69

Australia (Mount Isa, McArthur River)
Mount Isa	Zinc in concentrates	kt	102.7	100.8	102.9	102.7	130.9	437.3	405.1	8	27
	Lead in concentrates	kt	46.8	47.2	39.0	38.4	45.6	170.2	167.8	1	(3)
	Silver in concentrates	koz	1,927	2,054	1,461	1,466	1,877	6,858	6,870	-	(3)
McArthur River	Zinc in concentrates	kt	47.3	45.2	53.3	55.7	70.1	224.3	203.3	10	48
	Lead in concentrates	kt	10.9	9.3	11.5	12.0	13.4	46.2	45.8	1	23
	Silver in concentrates	koz	379	297	337	338	489	1,461	1,580	(8)	29

	Total Zinc in concentrates	kt	150.0	146.0	156.2	158.4	201.0	661.6	608.4	9	34
	Total Lead in concentrates	kt	57.7	56.5	50.5	50.4	59.0	216.4	213.6	1	2
	Total Silver in concentrates	koz	2,306	2,351	1,798	1,804	2,366	8,319	8,450	(2)	3

North America (Matagami, Kidd, Brunswick, CEZ Refinery)
Matagami	Zinc in concentrates	kt	20.0	17.9	19.0	19.0	18.9	74.8	74.5	-	(6)
	Copper in concentrates	kt	2.7	2.1	2.5	2.3	1.9	8.8	9.1	(3)	(30)
Kidd	Zinc in concentrates	kt	14.0	10.1	22.0	13.3	15.6	61.0	67.8	(10)	11
	Copper in concentrates	kt	9.3	10.3	8.1	10.9	9.2	38.5	36.9	4	(1)
	Silver in concentrates	koz	572	385	506	463	712	2,066	3,234	(36)	24
Brunswick Mine	Zinc in concentrates	kt	-	-	-	-	-	-	52.0	(100)	n.m.
	Lead in concentrates	kt	-	-	-	-	-	-	13.5	(100)	n.m.
	Copper in concentrates	kt	-	-	-	-	-	-	3.0	(100)	n.m.
	Silver in concentrates	koz	-	-	-	-	-	-	1,315	(100)	n.m.

	Total Zinc in concentrates	kt	34.0	28.0	41.0	32.3	34.5	135.8	194.3	(30)	1
	Total Lead in concentrates	kt	-	-	-	-	-	-	13.5	(100)	n.m.
	Total Copper in concentrates	kt	12.0	12.4	10.6	13.2	11.1	47.3	49.0	(3)	(7)
	Total Silver in concentrates	koz	572	385	506	463	712	2,066	4,549	(55)	24

North America - total production including third party feed
Brunswick Mine	Zinc in concentrates	kt	-	-	-	-	-	-	56.1	(100)	n.m.
	Lead in concentrates	kt	-	-	-	-	-	-	14.6	(100)	n.m.
	Copper in concentrates	kt	-	-	-	-	-	-	3.0	(100)	n.m.
	Silver in concentrates	koz	-	-	-	-	-	-	1,402	(100)	n.m.
Brunswick Smelter	Lead metal	kt	20.1	18.7	17.5	16.9	21.5	74.6	75.3	(1)	7
	Silver metal	koz	4,555	3,120	2,852	3,727	6,125	15,824	16,146	(2)	34
CEZ Refinery⁷	Zinc metal	kt	16.8	14.9	15.6	17.2	17.8	65.5	66.3	(1)	6

			Q4 2013	Q1 2014	Q2 2014	Q3 2014	Q4 2014	2014	2013	Change 2014 vs 2013 %	Change Q4 14 vs Q4 13 %
Other Zinc (AR Zinc, Los Quenuales, Sinchi Wayra, Rosh Pinah, Perkoa)
	Zinc metal	kt	6.2	1.9	8.3	8.0	5.0	23.2	29.7	(22)	(19)
	Zinc in concentrates	kt	70.9	70.2	72.5	76.1	76.6	295.4	262.0	13	8
	Lead metal	kt	3.0	2.4	3.0	3.1	3.2	11.7	11.0	6	7
	Lead in concentrates	kt	13.2	12.7	12.3	14.2	14.5	53.7	47.1	14	10
	Copper in concentrates	kt	0.6	0.8	0.8	0.7	0.4	2.7	2.1	29	(33)
	Silver metal	koz	185	133	159	148	173	613	670	(9)	(6)
	Silver in concentrates	koz	2,403	2,249	2,247	2,748	2,581	9,825	9,162	7	7

Other Zinc - total production including third party feed
	Zinc metal	kt	9.5	2.4	9.3	9.6	7.8	29.1	37.9	(23)	(18)
	Zinc in concentrates	kt	70.9	70.2	72.5	76.1	76.6	295.4	262.0	13	8
	Lead metal	kt	3.0	2.4	3.0	3.1	3.2	11.7	11.0	6	7
	Lead in concentrates	kt	13.2	12.7	12.3	14.2	14.5	53.7	47.1	14	10
	Copper in concentrates	kt	0.6	0.8	0.8	0.7	0.4	2.7	2.1	29	(33)
	Silver metal	koz	185	133	159	148	173	613	670	(9)	(6)
	Silver in concentrates	koz	2,403	2,249	2,247	2,748	2,581	9,825	9,162	7	7

Total Zinc department
	Total Zinc	kt	317.0	295.3	328.0	322.6	369.4	1,315.3	1,310.6	-	17
	Total Lead	kt	81.1	79.0	69.9	74.4	84.2	307.5	315.0	(2)	4
	Total Copper	kt	24.3	24.0	19.7	29.3	23.8	96.8	102.0	(5)	(2)
	Total Gold	koz	148	126	120	134	126	506	579	(13)	(15)
	Total Silver	koz	6,723	6,250	5,467	6,369	7,010	25,096	28,082	(11)	4

Production from own sources - Nickel assets¹

			Q4 2013	Q1 2014	Q2 2014	Q3 2014	Q4 2014	2014	2013	Change 2014 vs 2013 %	Change Q4 14 vs Q4 13 %
Integrated Nickel Operations (Sudbury, Raglan, Nikkelverk)
	Total Nickel metal	kt	13.4	13.3	13.8	11.7	12.5	51.3	47.1	9	(7)
	Total Nickel in concentrates	kt	0.1	0.2	0.1	0.1	0.2	0.6	0.5	20	100
	Total Copper metal	kt	4.4	3.8	4.2	3.9	3.8	15.7	16.7	(6)	(14)
	Total Copper in concentrates	kt	9.9	9.3	10.5	10.2	8.3	38.3	37.6	2	(16)
	Total Cobalt metal	kt	0.2	0.2	0.2	0.2	0.2	0.8	0.7	14	-

Integrated Nickel Operations - total production including third party feed
	Total Nickel metal	kt	23.2	21.7	22.6	23.1	23.1	90.5	91.0	(1)	-
	Total Nickel in concentrates	kt	0.2	0.2	0.2	0.2	0.1	0.7	0.7	-	(50)
	Total Copper metal	kt	9.9	8.7	7.8	9.8	9.5	35.8	37.5	(5)	(4)
	Total Copper in concentrates	kt	12.3	11.7	13.5	12.7	10.1	48.0	46.3	4	(18)
	Total Cobalt metal	kt	1.0	0.8	0.9	1.0	0.9	3.6	3.4	6	(10)

Australia (Murrin Murrin, XNA)
	Total Nickel metal	kt	7.5	7.8	9.8	9.6	9.2	36.4	35.9	1	23
	Total Nickel in concentrates	kt	-	-	-	-	-	-	4.1	(100)	n.m.
	Total Copper in concentrates	kt	-	-	-	-	-	-	0.3	(100)	n.m.
	Total Cobalt metal	kt	0.5	0.6	0.7	0.7	0.7	2.7	2.6	4	40
	Total Cobalt in concentrates	kt	-	-	-	-	-	-	0.1	(100)	n.m.

Australia - total production including third party feed
	Total Nickel metal	kt	8.9	9.4	12.2	11.3	11.2	44.1	41.3	7	26
	Total Nickel in concentrates	kt	-	-	-	-	-	-	4.1	(100)	n.m.
	Total Copper in concentrates	kt	-	-	-	-	-	-	0.3	(100)	n.m.
	Total Cobalt metal	kt	0.5	0.6	0.8	0.8	0.7	2.9	2.7	7	40
	Total Cobalt in concentrates	kt	-	-	-	-	-	-	0.1	(100)	n.m.

Falcondo	Nickel in ferronickel	kt	0.4	-	-	-	-	-	9.4	(100)	(100)

Koniambo	Nickel in ferronickel	kt	1.4	1.0	3.1	4.5	4.0	12.6	1.4	800	186

Total Nickel department
	Total Nickel	kt	22.8	22.3	26.8	25.9	25.9	100.9	98.4	3	14
	Total Copper	kt	14.3	13.1	14.7	14.1	12.1	54.0	54.6	(1)	(15)
	Total Cobalt	kt	0.7	0.8	0.9	0.9	0.9	3.5	3.4	3	29

Production from own sources - Ferroalloys assets¹

			Q4 2013	Q1 2014	Q2 2014	Q3 2014	Q4 2014	2014	2013	Change 2014 vs 2013 %	Change Q4 14 vs Q4 13 %
Ferrochrome⁸		kt	345	335	317	287	356	1,295	1,238	5	3

PGM⁹	Platinum	koz	22	21	22	24	24	91	90	1	9
	Palladium	koz	12	12	12	13	13	50	50	-	8
	Rhodium	koz	3	4	4	4	3	15	15	-	-
	Gold	koz	-	-	1	-	-	1	1	-	n.m.
	4E	koz	37	37	39	41	40	157	156	1	8

Vanadium Pentoxide		mlb	5.7	5.5	4.2	5.5	5.6	20.8	21.6	(4)	(2)

Total production - Custom metallurgical assets¹

			Q4 2013	Q1 2014	Q2 2014	Q3 2014	Q4 2014	2014	2013	Change 2014 vs 2013 %	Change Q4 14 vs Q4 13 %
Copper (Altonorte, Pasar, Horne, CCR)
	Copper metal	kt	104.2	81.3	118.4	116.3	117.8	433.8	468.3	(7)	13
	Copper anode	kt	128.3	125.0	141.0	101.0	126.7	493.7	514.5	(4)	(1)

Zinc (Portovesme, San Juan de Nieva, Nordenham, Northfleet)
	Zinc metal	kt	191.0	193.6	194.6	197.5	196.1	781.8	745.0	5	3
	Lead metal	kt	52.5	48.5	52.0	37.1	39.8	177.4	174.1	2	(24)
	Silver	koz	2,428	2,342	2,823	2,211	2,106	9,482	7,870	20	(13)

Ferroalloys
	Ferromanganese	kt	23	30	27	30	29	116	99	17	26
	Silicon Manganese	kt	26	26	26	28	28	108	92	17	8

Aluminium (Sherwin Alumina)
	Alumina	kt	419	385	391	315	291	1,382	1,606	(14)	(31)

1 Controlled industrial assets and joint ventures only. Production is on a 100% basis, except as stated.

2 Relating to the PGM business within Ferroalloys only.

3 Copper metal includes copper contained in copper concentrates and blister.

4 Cobalt contained in concentrates and hydroxides.

5 The Group's pro-rata share of Collahuasi production (44%).

6 The Group's pro-rata share of Antamina production (33.75%).

7 The Group's pro-rata share of CEZ production (25%).

8 The Group's attributable 79.5% share of the Glencore-Merafe Chrome Venture.

9 Consolidated 100% of Eland and 50% of Mototolo.

Energy Products

Production from own sources

Coal assets¹

		Q4 2013	Q1 2014	Q2 2014	Q3 2014	Q4 2014	2014	2013	Change 2014 vs 2013 %	Change Q4 14 vs Q4 13 %
Australian coking coal	mt	1.7	1.5	1.4	1.7	1.4	6.0	7.3	(18)	(18)
Australian semi-soft coal	mt	1.2	0.9	0.9	0.7	1.0	3.5	4.5	(22)	(17)
Australian thermal coal (export)	mt	11.1	11.8	14.2	16.4	12.2	54.6	48.1	14	10
Australian thermal coal (domestic)	mt	1.2	1.4	1.3	1.5	1.2	5.4	5.1	6	-
South African thermal coal (export)	mt	5.5	5.0	5.2	7.2	6.0	23.4	20.6	14	9
South African thermal coal (domestic)	mt	5.1	5.4	6.1	5.5	5.7	22.7	22.9	(1)	12
Prodeco	mt	4.4	5.2	5.0	4.9	4.4	19.5	18.6	5	-
Cerrejón²	mt	3.3	2.9	3.0	2.3	3.0	11.2	11.0	2	(9)
Total Coal department	mt	33.5	34.1	37.1	40.2	34.9	146.3	138.1	6	4

1 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.

2 The Group's pro-rata share of Cerrejón production (33.3%).

Oil assets

		Q4 2013	Q1 2014	Q2 2014	Q3 2014	Q4 2014	2014	2013	Change 2014 vs 2013 %	Change Q4 14 vs Q4 13 %
Glencore entitlement interest basis
Equatorial Guinea	kbbl	1,394	1,368	1,194	1,243	1,267	5,072	4,799	6	(9)
Chad	kbbl	186	321	276	714	968	2,279	186	1,125	420
Total Oil department	kbbl	1,580	1,689	1,470	1,957	2,235	7,351	4,985	47	41

Gross basis
Equatorial Guinea	kbbl	6,113	6,304	5,731	6,133	6,064	24,232	21,917	11	(1)
Chad	kbbl	619	1,067	916	975	1,326	4,284	619	592	114
Total Oil department	kbbl	6,732	7,371	6,647	7,108	7,390	28,516	22,536	27	10

Agricultural Products

Processing / production data

		Q4 2013	Q1 2014	Q2 2014	Q3 2014	Q4 2014	2014	2013	Change 2014 vs 2013 %	Change Q4 14 vs Q4 13 %
Farming	kt	236	232	34	306	190	762	883	(14)	(19)
Crushing	kt	966	1,062	1,616	1,515	1,471	5,664	3,642	56	52
Long term toll agreement	kt	101	49	157	-	-	206	541	(62)	(100)
Biodiesel	kt	191	172	169	211	205	757	624	21	7
Rice milling	kt	70	36	91	73	30	230	273	(16)	(57)
Wheat milling	kt	267	262	263	257	231	1,013	1,121	(10)	(13)
Sugarcane processing	kt	809	-	723	1,092	416	2,231	2,251	(1)	(49)
Total Agricultural products	kt	2,640	1,813	3,053	3,454	2,543	10,863	9,335	16	(4)

Forward looking statements

This document contains statements that are, or may be deemed to be, "forward looking statements" which are prospective in nature. These forward looking statements may be identified by the use of forward looking terminology, or the negative thereof such as "plans", "expects" or "does not expect", "is expected", "continues", "assumes", "is subject to", "budget", "scheduled", "estimates", "aims", "forecasts", "risks", "intends", "positioned", "predicts", "anticipates" or "does not anticipate", or "believes", or variations of such words or comparable terminology and phrases or statements that certain actions, events or results "may", "could", "should", "shall", "would", "might" or "will" be taken, occur or be achieved. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. 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 condition and discussions of strategy.

By their nature, forward looking statements involve known and unknown risks and uncertainties, many of which are beyond Glencore's control. Forward looking statements are not guarantees of future performance and may and often do differ materially from actual results. Important factors that could cause these uncertainties include, but are not limited to, those discussed in Glencore's Annual Report 2013 and "Risks and uncertainties" in Glencore's Half-Year Results 2014.

Neither Glencore nor any of its associates or directors, officers or advisers, provides any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in this document will actually occur. You are cautioned not to place undue reliance on these forward-looking statements which only speak as of the date of this document. Other than in accordance with its legal or regulatory obligations (including under the UK Listing Rules and the Disclosure and Transparency Rules of the Financial Conduct Authority and the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited and the Listing Requirements of the Johannesburg Stock Exchange Limited), Glencore is not under any obligation and Glencore and its affiliates expressly disclaim any intention, obligation or undertaking to update or revise any forward looking statements, whether as a result of new information, future events or otherwise. This document shall not, under any circumstances, create any implication that there has been no change in the business or affairs of Glencore since the date of this document or that the information contained herein is correct as at any time subsequent to its date.

No statement in this document is intended as a profit forecast or a profit estimate and no statement in this document should be interpreted to mean that earnings per Glencore share for the current or future financial years would necessarily match or exceed the historical published earnings per Glencore share.

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. The making of this document does not constitute a recommendation regarding any securities.

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Preliminary Results 2014

NEWS RELEASE

Highlights

Investors

Media

Investors

Investors

Background

Financial performance

Corporate Governance

Sustainability

Looking forwards

Basis of presentation

Financial results

Adjusted EBITDA/EBIT

Earnings

Significant items

Net finance costs

Income taxes

Assets, leverage and working capital

Cash flow and net debt

Net debt

Cash and non-cash movements in net debt

Net debt

Capital expenditure

Subsidiary acquisitions and disposals

Liquidity and funding activities

Credit ratings

Value at risk

Distributions

Notional allocation of debt and interest expense

Highlights

Selected average commodity prices

Currency table

Marketing

Highlights

Financial information

Copper

Zinc/Lead

Nickel

Ferroalloys

Alumina/Aluminium

Iron Ore

Industrial activities

Highlights

Financial information

Production data

Production from own sources - Total1

Production from own sources - Copper assets1

Production from own sources - Zinc assets1

Production from own sources - Nickel assets1

Production from own sources - Ferroalloys assets1

Total production - Custom metallurgical assets1

Operating highlights

Copper assets

African copper

Collahuasi

Antamina

Other South America

Australia

Custom metallurgical assets

Zinc assets

Kazzinc

Australia

North America

North America produced no lead in 2014 (2013 related fully to the closed Brunswick mine).

Other Zinc

The Other Zinc asset group produced 318,600 tonnes of own sourced zinc, a 9% (26,900 tonnes) increase over 2013, mainly due to the ramp-up of Perkoa (started in April 2013) to 65,000 tonnes of own sourced zinc, from 32,200 tonnes..

Own sourced lead production was 65,400 tonnes, a 13% (7,300 tonnes) increase over 2013, mainly relating to higher milling capacity and head grades at AR Zinc.

European custom metallurgical assets

Custom zinc production was 781,800 tonnes, up 5%. The increase mainly relates to Portovesme, which benefited from the commissioning of the SX plant during 2013.

Nickel assets

Integrated Nickel Operations ("INO")

Australia

Koniambo

Ferroalloys assets

Ferrochrome

Platinum Group Metals

Vanadium

Manganese

Production from own sources - Total¹

Production from own sources - Copper assets¹

Production from own sources - Zinc assets¹

Production from own sources - Nickel assets¹

Production from own sources - Ferroalloys assets¹

Total production - Custom metallurgical assets¹

Coal assets¹