TIDMANTO
RNS Number : 9163Z
Antofagasta PLC
17 January 2024
Q4 2023 PRODUCTION REPORT
delivering increased production in 2023, entering a new phase of
growth
Antofagasta plc CEO, Iván Arriagada said: "2023 was a year of
significant progress, and we are pleased to be moving forward into
the next phase of development and growth for our Company. In 2023,
we recorded another strong year of safety performance, with no
fatalities and a reduction in lost time injury rates. We have
delivered a year of robust operational performance in 2023, with
production increasing by 2% and net cash costs in line
year-on-year, with our strong cost discipline and increased output
of by-products offsetting industry-wide cost inflation. Production
in 2024 is expected to increase to 670-710,000 tonnes of copper, as
previously announced, with guidance for net cash costs set at
$1.60/lb.
"On growth, we are finalising the delivery of the Phase 1
Expansion Project at Los Pelambres, which will help to maintain
this asset's future production. Underpinning our future growth, we
recently announced the approval of the Centinela Second
Concentrator Project, which will provide an additional 170,000
copper-equivalent tonnes of production into an increasingly
constrained global market for copper.[1]
"In line with our strategy of prioritising exploration and
investment in the Americas, in December we disclosed our investment
in Buenaventura[2], reflecting the potential we see in
Buenaventura's asset portfolio and the highly prospective geology
of Peru.
"With the delivery of projects and announcement of a new phase
of investment in growth, our Company is well-positioned for the
future. Copper prices continued to show stability in 2023 and we
believe in copper's fundamental role in the energy transition and
electrification, which will support long-term pricing."
HIGHLIGHTS
PRODUCTION
-- Group copper production in Q4 2023 was 191,500 tonnes, 10%
higher than Q3 2023, primarily related to production increases at
both Los Pelambres and Centinela.
-- Group copper production for the full year was 660,600 tonnes,
2% higher than the previous year, with an increasing contribution
from Los Pelambres, as the Phase 1 Expansion Project ramps up.
-- Gold production for the full year 2023 was 209,100 ounces,
18% higher than 2022 due to higher gold grades at Centinela. Gold
production of 65,500 in Q4 represents a 14% increase compared to
the previous quarter, with this increase driven by higher gold
grades at Centinela.
-- Molybdenum production for the full year 2023 was 11,000
tonnes, representing a 13% increase year-on-year due to higher
throughput rates at Los Pelambres and higher recoveries at
Centinela. Molybdenum production in Q4 2023 fell by 9% to 2,900
tonnes, primarily due to lower recoveries at Centinela.
CASH COSTS
-- Cash costs before by-product credits in Q4 2023 were
$2.07/lb, 9% lower than the previous quarter due to higher
production across the Group and lower costs in Q4 at all our
operations.
-- Cash costs before by-product credits in full year 2023 were
$2.31/lb, 5% higher than the prior year, primarily due to local
inflation, appreciation of the Chilean peso and the conclusion of a
number of 3-year labour agreements.
-- Net cash costs in Q4 2023 were $1.50/lb, 2% higher than in
the previous quarter, with lower cash costs before by-products
offset by lower by-product credits, related to lower molybdenum
production and pricing.
-- Net cash costs for the full year 2023 were $1.61/lb, in line
with 2022 and ahead of guidance for the year, reflecting a balance
of higher underlying cash costs before by-products, alongside
higher production and pricing for by-products.
GROWTH PROJECTS UPDATE
-- The Company announced the approval of the Centinela Second
Concentrator in late December 2023, which is a growth project that
is expected to add 170,000 tonnes of copper-equivalent
production[3] to the Company's portfolio. The project is expected
to deliver a reduction in Centinela's overall net cash costs,
moving it towards the first quartile on the global cost curve, due
to a greater emphasis on modern technologies and by-products, and
economies of scale. The capital cost estimate for this project is
$4.4 billion, which will be financed by a combination of project
finance (c.60%) and direct funding (c.40%) from Centinela's
shareholders (Antofagasta plc and Marubeni Corporation). Critical
path works began immediately after announcement, with full
construction expected to commence after definitive project finance
documents have been executed during Q1 2024. In parallel, the
Company is reviewing a potential outsourcing of Centinela's water
supply, the impact of which is not included in capital cost
estimate referenced above. For further details, please see the
press release and presentation provided on the Company's website
(www.antofagasta.co.uk/).
-- Following the commissioning of the Phase 1 desalination plant
for Los Pelambres, the successful ramp up towards this facility's
instantaneous design capacity of 400 litres per second is nearing
completion, with an average output of approximately 307 litres per
second during December 2023 (Q3 2023: 248 litres per second).
-- The fourth concentrator line at Los Pelambres is successfully
completing its commissioning phase, with an additional two million
tonnes of ore processed as of the end of the year.
-- In November 2023, the Environmental Impact Assessment (EIA)
was approved for the project to double the size of the Los
Pelambres' desalination plant to an instantaneous design capacity
of 800 litres per second, as well as replacing the concentrate
pipeline and the construction of certain planned enclosures at the
El Mauro tailings storage facility. This work represents one part
of the Los Pelambres Phase 2 Expansion Project, approval of which
will be considered by the Board of Directors during Q1 2024.
-- The Company continues to progress test work on its patented
Cuprochlor-T technology for the leaching of primary sulphides,
which has now achieved recovery rates of more than 70% after 220
days. The Company is now evaluating the feasibility of advancing
this technology across other mining operations, including third
parties.
-- In December 2023, the Company announced an investment to
acquire beneficial ownership of approximately 19% of the
outstanding shares of Compañía de Minas Buenaventura S.A.A.
("Buenaventura"). Buenaventura is Peru's largest, publicly traded
precious and base metals company and a major holder of mining
rights in Peru, with the Company's investment in line with its
strategy of prioritising exploration and investment in the
Americas.
2024 GUIDANCE
-- As previously announced, Group production in 2024 is expected
to be 670-710,000 tonnes of copper. Output of by-products is
expected to be 195-215,000 ounces of gold and 11.0-12.5 tonnes of
molybdenum. The expected increase in copper production in 2024
principally reflects the addition of the Los Pelambres Phase 1
Expansion Project in 2023, with increased water availability and
ore processing capacity expected in 2024.
-- Group cash costs in 2024 before by-product credits are
expected to be $2.25/lb, in line with 2023, with the positive
impact of higher production balanced by a short-term reduction in
ore grades at Los Pelambres.
-- Group net cash costs in 2024 are expected to be $1.60/lb,
with by-product credits expected to remain in line
year-on-year.
-- In 2024, consolidated Group capital expenditure, which
excludes Zaldívar, is expected to be $2.7 billion, with sustaining
and mine development expenditure broadly in line year-on-year, and
as development expenditure commences on the Centinela Second
Concentrator (not including any potential reduction in capital
expenditures as a result of the process to outsource Centinela's
water supply) and other growth projects at Los Pelambres and
Centinela.
SAFETY AND SUSTAINABILITY
-- The Group continues to prioritise the safety of its
workforce, achieving a strong performance in safety metrics during
2023, with no fatalities during the year (2022: zero) and the
Group's lost time injury frequency rate (LTIFR) of 0.62
representing a 26% reduction year-on-year. Recent safety highlights
within the Group include the completion of more than 39 million
hours worked to date on the Los Pelambres Phase 1 Expansion Project
with a LTIFR of less than 1.0, and our Transport Division reducing
its incidence rate for lost time injuries by more than 50% in 2023,
resulting in a LTIFR of 0.9 (2022: 2.2).
-- In June 2023, Zaldívar submitted an EIA application to extend
its mining and water environmental permits through to 2051. This
includes a proposal to develop the primary sulphide ore deposit and
extend the current life of mine at an estimated investment over the
mine life of $1.2 billion. It also includes a plan to change the
mine's water source from the local aquifer to either seawater or
water provided by third parties. This will follow a transition
period during which the current continental water extraction permit
is extended from 2025 to 2028. In parallel, the Company has
submitted a Declaration of Environmental Impact ("DIA") to align
the expiry date of Zaldivar's current mining permit (2024) to the
current water permit (2025).
-- Considering the continuing drought in central Chile and the
recent changes in the Water Code, discussions have continued during
the quarter with stakeholders in the Choapa Valley about water
distribution arrangements in the area, following an agreement being
reached with local communities in 2023. The relevant water
authority has continued in the process of reviewing this proposal.
This ongoing process involves no material change to the
availability of continental water at Los Pelambres.
LEGISLATIVE
-- In December 2023, Chileans voted to reject a proposed
constitution, and as a result the country will now continue with
the existing constitution, which has been in place for several
decades.
OTHER
-- During Q4 2023, the Company concluded three-year labour
agreements with two workers unions at Centinela.
-- In 2024, the Company has one labour agreement scheduled to
expire during the year, which is an agreement with a worker's union
at Centinela (due to expire in November 2024).
-- In November 2023, Twin Metals Minnesota (TMM) appealed the
September 2023 order issued by a District Court in the United
States, which dismissed the claims filed by TMM that challenged the
administrative actions that resulted in the rejection of its
preference right lease applications, the cancellation of its
federal leases 1352 and 1353 and the rejection of its Mine Plan of
Operations for the Maturi Deposit in Minnesota. This action is
pending.
GROUP PRODUCTION AND CASH COSTS Year to Date Q4 Q3
--------------------- ------ ------
2023 2022 % 2023 2023 %
------------------------------------- ------ ------ ----- ------ ------ ------
Copper production kt 660.6 646.2 2.2 191.5 173.6 10.3
Copper sales kt 667.2 642.5 3.8 213.4 158.4 34.7
Gold production koz 209.1 176.8 18.3 65.5 57.4 14.1
Molybdenum production kt 11.0 9.7 13.4 2.9 3.2 (9.4)
------------------------------ ------ ------ ------ ----- ------ ------ ------
Cash costs before by-product
credits (1) $/lb 2.31 2.19 5.5 2.07 2.27 (8.8)
Net cash costs (1) $/lb 1.61 1.61 - 1.50 1.47 2.0
------------------------------ ------ ------ ------ ----- ------ ------ ------
(1) Cash cost is a non-GAAP measure used by the mining industry
to express the cost of production in US dollars per pound of copper
produced.
Investors - London Media - London
Rosario Orchard rorchard@antofagasta.co.uk Carole Cable antofagasta@brunswickgroup.com
Robert Simmons rsimmons@antofagasta.co.uk Telephone +44 20 7404 5959
Telephone +44 20 7808 0988
Media - Santiago
Pablo Orozco porozco@aminerals.cl
Carolina Pica cpica@aminerals.cl
Telephone +56 2 2798 7000
Register on our website to receive our email alerts at the
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MINING OPERATIONS
Los Pelambres
Copper production at Los Pelambres during Q4 2023 was 90,700
tonnes, 12% higher than in the previous quarter due to higher
throughput rates, in line with the ramp up of the Phase 1 Expansion
Project. Copper sales in Q4 2023 benefitted from adverse weather
conditions at the Company's port, which pushed shipments from
September to October 2023.
For the full year 2023, copper production was 300,300 tonnes, 9%
higher than the prior year. This increase was driven by increased
throughput rates in 2023, which resulted from increasing
availability of water from the Company's desalination plant as it
successfully completes its ramp up, and additional ore processing
capacity provided by the fourth concentrator line that is nearing
the end of its commissioning phase. Molybdenum production in Q4
2023 was 2,300 tonnes, representing a 4% reduction on the previous
quarter due to lower grades. Full year molybdenum production was
8,100 tonnes, representing a 13% increase year-on-year, which was
the result of higher throughput rates.
Cash costs before by-product credits in Q4 were $1.79/lb, 5%
lower than in the previous quarter. For the full year cash costs
before by-product credits were $1.92/lb, 4% higher than in 2022.
The key drivers behind this increase in 2023 are appreciation of
the Chilean peso, local inflation, and the conclusion of 3-year
labour agreements, partially offset by higher production and lower
input costs. Net cash costs for the quarter were $1.27/lb, 34%
higher than in Q3 2023, with this increase driven primarily by
reduced by-product credits, for the reasons outlined above. For the
full year, net cash costs were $1.14/lb, 4% higher than in 2022,
reflecting a similar increase in the underlying cash costs and
higher production and pricing for molybdenum.
Following the commissioning of the Phase 1 desalination plant
for Los Pelambres, the ramp up towards this facility's
instantaneous design capacity of 400 litres per second continues,
with an average output of approximately 307 litres per second
during December 2023 (Q3 2023: 248 litres per second). The fourth
concentrator line at Los Pelambres is nearing the successful
completion of its commissioning phase, with an additional two
million tonnes of ore processed as of the end of the year.
Major maintenance is scheduled in Q1 and Q4 2024, which is
factored into full year guidance.
LOS PELAMBRES Year to Date Q4 Q3
---------------------- ------ ------
2023 2022 % 2023 2023 %
-------------------------------------- ------ ------ ------ ------ ------ -------
Daily ore throughput kt 152.4 136.9 11.3 185.5 164.1 13.0
Copper grade % 0.62 0.64 (3.1) 0.61 0.61 -
Copper recovery % 89.3 89.3 - 89.7 89.2 0.6
Copper production kt 300.3 275.0 9.2 90.7 81.1 11.8
Copper sales kt 299.0 271.2 10.3 100.8 69.1 45.9
------------------------------- ------ ------ ------ ------ ------ ------ -------
Molybdenum grade % 0.017 0.017 - 0.016 0.017 (5.9)
Molybdenum recovery % 85.5 85.6 (0.1) 85.0 84.6 0.5
Molybdenum production kt 8.1 7.2 12.5 2.3 2.4 (4.2)
Molybdenum sales kt 8.1 6.8 19.1 2.3 2.1 9.5
Gold grade g/t 0.038 0.042 (9.5) 0.030 0.041 (26.8)
Gold recovery % 69.0 70.0 (1.4) 76.4 63.7 19.9
Gold production koz 43.3 43.1 0.5 11.8 11.9 (0.8)
Gold sales koz 42.1 42.3 (0.5) 12.4 9.3 33.3
------------------------------- ------ ------ ------ ------ ------ ------ -------
Cash costs before by-product
credits (1) $/lb 1.92 1.84 4.3 1.79 1.88 (4.8)
Net cash costs (1) $/lb 1.14 1.10 3.6 1.27 0.95 33.7
------------------------------- ------ ------ ------ ------ ------ ------ -------
(1) Includes tolling charges of $0.25/lb in Q4 2023, $0.24/lb in
Q3 2023, $0.23/lb in FY 2023 and $0.18/lb FY 2022.
Centinela
During Q4 2023, total copper production was 68,900 tonnes, 8%
higher than the previous quarter, with production of both cathodes
and copper concentrates contributing higher production volumes.
Sales of copper in concentrate in Q4 2023 benefitted from adverse
weather conditions at the Company's port, which pushed shipments
from September to October 2023. Total copper production for the
full year was 242,000 tonnes, 2% lower than last year but in line
with the Company's original guidance given for 2023. This reduction
in output reflects lower ore grades at Centinela Cathodes, which
was partially offset by higher ore grades at Centinela
Concentrates.
Concentrate production for the quarter was 45,700 tonnes, 7%
higher than in Q3, due to elevated processing throughput rates,
copper grades and recoveries. For the full year, copper in
concentrate production was 162,700 tonnes, 9% higher than in 2022,
reflecting a combination of higher ore grades and copper
recoveries, with the concentrator operating in line with its design
capacity.
Cathode production during the quarter was 23,200 tonnes, 10%
higher than the previous quarter, primarily as a result of higher
copper grades and recoveries. Full year copper cathode production
was 79,300 tonnes, 19% lower than in 2022 due to lower copper
grades, offset by higher throughput rates.
Gold production for the quarter was 53,600 ounces, 18% higher
than the previous quarter on higher gold grades. For the full year,
gold production was 165,800 ounces, 24% higher than in 2022 due to
higher gold grades (which are positively correlated to copper
grades). Molybdenum production fell by 25% in Q4 2023, reflecting
lower molybdenum recoveries. Full year production of molybdenum
reached 2,900 tonnes - a record for Centinela, with this
year-on-year increase of 21% reflecting higher molybdenum
recoveries during the year.
Cash costs before by-product credits in Q4 2023 were $2.19/lb,
14% lower than in the previous quarter, reflecting higher
production volumes of both concentrates and cathodes during the
quarter, in addition to lower input costs during the period. Cash
costs before by-product credits for the full year were $2.57/lb, 5%
higher than in 2022 due to lower copper production, the conclusion
of 3-year labour agreements and higher contractor costs related to
mining.
In Q4 by-product credits decreased by 10c/lb compared with Q3,
which relates to lower molybdenum production and pricing, which was
partially offset by higher gold output and pricing. For the full
year, by-product credits were $0.94/lb, 25c/lb higher than in 2022
due to higher production and pricing of both gold and
molybdenum.
Net cash costs in Q4 were $1.30/lb, 16% lower than in the
previous quarter due to higher copper production and the reasons
stated above related to lower cash costs before by-products. During
the full year net cash costs were $1.63/lb, 12c/lb lower than 2022
due to higher by-product credits.
In 2024, the labour agreement with a worker's union expires in
November.
In line with previous years, major maintenance is scheduled in
Q1 and Q3 2024, which is factored into full year guidance.
CENTINELA Year to Date Q4 Q3
----------------------- ------ ------
2023 2022 % 2023 2023 %
------------------------------------- ------ ------ ------- ------ ------ -------
CONCENTRATES
Daily ore throughput kt 107.4 108.9 (1.4) 111.7 109.5 2.0
Copper grade % 0.52 0.49 6.1 0.55 0.53 3.8
Copper recovery % 83.2 80.5 3.4 84.1 82.8 1.6
Copper production kt 162.7 149.3 9.0 45.7 42.8 6.8
Copper sales kt 166.9 148.6 12.3 52.3 43.1 21.3
------------------------------ ------ ------ ------ ------- ------ ------ -------
Molybdenum grade % 0.013 0.013 - 0.011 0.011 -
Molybdenum recovery % 66.7 56.9 17.2 58.4 67.8 (13.9)
Molybdenum production kt 2.9 2.4 20.8 0.6 0.8 (25.0)
Molybdenum sales kt 3.0 2.4 25.0 0.6 0.9 (33.3)
Gold grade g/t 0.21 0.17 23.5 0.26 0.22 18.2
Gold recovery % 66.6 65.0 2.5 66.8 67.2 (0.6)
Gold production koz 165.8 133.7 24.0 53.6 45.5 17.8
Gold sales koz 162.8 132.3 23.1 59.0 45.4 30.0
------ ------ ------- ------ ------ -------
CATHODES
Daily ore throughput kt 58.3 55.0 6.0 64.3 65.6 (2.0)
Copper grade % 0.53 0.69 (23.2) 0.56 0.51 9.8
Copper recovery % 67.0 66.2 1.2 71.0 64.0 10.9
Copper production - heap
leach kt 75.6 94.2 (19.7) 22.5 20.2 11.4
Copper production - total
(1) kt 79.3 98.2 (19.2) 23.2 21.1 10.0
Copper sales kt 81.0 97.5 (16.9) 23.1 20.9 10.5
------------------------------ ------ ------ ------ ------- ------ ------ -------
Total copper production kt 242.0 247.5 (2.2) 68.9 63.8 8.0
Cash costs before by-product
credits (2) $/lb 2.57 2.44 5.3 2.19 2.54 (13.8)
Net cash costs (2) $/lb 1.63 1.75 (6.9) 1.30 1.55 (16.1)
------------------------------ ------ ------ ------ ------- ------ ------ -------
(1) Includes production from ROM material
(2) Includes tolling charges of $0.17/lb in Q4 2023, $0.18/lb in
Q3 2023, $0.17/lb in FY 2023 and $0.14/lb FY 2022.
Antucoya
During Q4 production was 21,600 tonnes, 18% higher than the
previous quarter, which was largely due to throughput increasing to
a new record of 93,500 tonnes per day. Copper sales in Q4 2023
benefitted from adverse weather conditions at the Company's port,
which pushed shipments from September to October 2023. Production
for the full year was 77,800 tonnes, 1.8% lower than last year due
to a combination of marginally lower ore grades and recoveries. The
plant continues to operate in line with its design throughput.
Costs during the full year were 5% higher at $2.63/lb,
reflecting local inflation, appreciation of the Chilean peso,
higher consumption rates of sulphuric acid in line with
expectations, with lower input costs serving to partially offset
these effects. During the quarter, cash costs were $2.44/lb,
compared to $2.65/lb in Q3, with this reduction due to the increase
in copper production during the quarter, lower sulphuric acid
consumption rates and depreciation of the Chilean peso, offset by
higher unit prices for sulphuric acid.
Major maintenance scheduled to take place in Q1 and Q2 2024,
with this factored into full year guidance.
ANTUCOYA Year to Date Q4 Q3
-------------------- ----- -----
2023 2022 % 2023 2023 %
----------------------------- ----- ----- ------ ----- ----- ------
Daily ore throughput kt 88.6 89.4 (0.9) 93.5 81.5 14.7
Copper grade % 0.33 0.34 (2.9) 0.34 0.34 -
Copper recovery % 67.9 69.0 (1.6) 68.9 67.8 1.6
Copper production kt 77.8 79.2 (1.8) 21.6 18.3 18.0
Copper sales kt 78.4 80.8 (3.1) 25.3 15.7 61.1
---------------------- ------ ----- ----- ------ ----- ----- ------
Cash costs $/lb 2.63 2.50 5.2 2.44 2.65 (7.9)
---------------------- ------ ----- ----- ------ ----- ----- ------
Zaldívar
During the quarter attributable production at Zaldívar was
10,300 tonnes of copper, broadly in line with the previous quarter,
which was the result of a balance between lower recoveries and
higher ore processing rates. Attributable copper production for the
year was 40,500 tonnes, 9% lower than in 2022 mainly due to lower
ore processing rates, which were partially mitigated by improved
recoveries during the year.
Cash costs for the full year were $2.95/lb, 23% higher than the
previous year's costs due to lower production, local inflation,
increased costs for maintenance and utilisation of stocks from the
prior period. During the quarter, cash costs were $2.91/lb compared
to $2.98/lb in Q3, with costs reflecting a balance of a reduction
of inventory during the quarter, higher sulphuric acid consumption
rates and higher input costs, with the prior period including costs
associated with the conclusion of a 3-year labour agreement.
Major maintenance scheduled in Q1 and Q3 2024 is included in
full year guidance.
ZALDÍVAR Year to Date Q4 Q3
--------------------- ----- -----
2023 2022 % 2023 2023 %
---------------------------------- ----- ----- ------- ----- ----- ------
Daily ore throughput kt 35.0 40.4 (13.4) 38.1 36.5 4.4
Copper grade % 0.79 0.79 - 0.82 0.82 -
Copper recovery % 57.6 54.0 6.7 52.1 57.7 (9.7)
Copper production - heap
leach (1) kt 28.5 31.9 (10.7) 7.5 7.2 4.2
Copper production - total
(1,2) kt 40.5 44.5 (9.0) 10.3 10.4 (1.0)
Copper sales (1) kt 41.9 44.4 (5.6) 11.9 9.7 22.7
Cash costs $/lb 2.95 2.39 23.4 2.91 2.98 (2.3)
----- ----- ----- -----
(1) Group's 50% share
(2) Includes production from secondary leaching
Transport Division
Total transport volumes in 2023 were in line with 2022,
maintaining the record volume set of 7.1 million tonnes in both
years. In Q4 2023, transport volumes were 1.7 million tonnes, 5%
lower than the previous quarter due to adverse weather conditions
at the port and lower demand due to maintenance at a client's
operation.
Within the Transport Division, the Company concluded on a total
of seven 3-year labour agreements during the year, with no further
negotiations until 2026.
TRANSPORT Year to Date Q4 Q3
---------------------- ------ ------
2023 2022 % 2023 2023 %
-------------------------------- ------ ------ ------ ------ ------ -------
Rail kt 5,381 5,368 0.2 1,333 1,374 (3.0)
Road kt 1,729 1,741 (0.7) 398 453 (12.1)
Total tonnage transported kt 7,110 7,109 0.0 1,731 1,828 (5.3)
------ ------ ------ ------
Commodity prices, exchange rates and other
Year to Date Q4 Q3
---------------------- ------ ------
2023 2022 % 2023 2023 %
------ ------ ------ ------ ------
Copper
Market price $/lb 3.85 4.00 (3.8) 3.70 3.79 (2.4)
Realised price $/lb 3.89 3.84 1.3 3.84 3.77 1.9
---------------- ------ ------ ------ ------ ------ ------ --------
Gold
Market price $/oz 1,942 1,800 7.9 1,974 1,929 2.3
Realised price $/oz 1,990 1,801 10.5 2,060 1,898 8.5
---------------- ------ ------ ------ ------ ------ ------ --------
Molybdenum
Market price $/lb 24.2 18.7 29.4 18.6 23.7 (21.5)
Realised price $/lb 22.0 20.8 5.8 13.1 25.3 (48.2)
---------------- ------ ------ ------ ------ ------ ------ --------
Exchange rates
per
Chilean peso $ 839 872 (3.8) 896 853 5.0
---------------- ------ ------ ------ ------ ------ ------ --------
Spot commodity prices for copper, gold and molybdenum as at 31
December 2023 were $3.84/lb, $2,062/oz and $20.0/lb respectively,
compared with $3.73/lb, $1,871/oz and $22.5/lb as at 30 September
2023 and $3.80/lb, $1,824/oz and $31.8/lb as at 31 December
2022.
The provisional pricing adjustments for copper, gold and
molybdenum for the quarter were positive $58.3 million, positive
$5.3 million and negative $46.8 million respectively.
The provisional pricing adjustments for copper, gold and
molybdenum for the year to date were positive $81.3 million,
positive $9.2 million and negative $77.2 million respectively.
Depreciation, amortisation and loss on disposals
For the full year 2023, depreciation, amortisation and loss on
disposals will be approximately $1.25 billion.
Tax
The full year effective tax rate in 2023 is expected to be
approximately 35%.
2024 Guidance
Los Pelambres Centinela Antucoya Zaldívar Group
-------------- ---------- ---------
Production
670 -
Copper kt 335 - 350 225 - 240 75 - 80 35 - 40 710
195 -
Gold koz 45 - 55 150 - 160 215
Molybdenum kt 8.5 - 9.5 2.5 - 3.0 11.0 -
12.5
------------------------ ------ -------------- ---------- --------- -------------- -------
Grade
Copper % 0.56 0.54 0.34 0.66 -
------------------------ ------ -------------- ---------- --------- -------------- -------
Cash costs
Cash costs before
by-product credits(1) $/lb 2.05 2.30 2.50 2.95 2.25
Net cash costs (1,
2) $/lb 1.35 1.45 2.50 2.95 1.60
------------------------ ------ -------------- ---------- --------- -------------- -------
(1) Assumed CLP/USD exchange rate of 850.
(2) Includes by-product credits at a gold price of $ 1,900 /oz
and a molybdenum price of $ 18 /lb.
As previously announced, Group production in 2024 is expected to
be 670-710,000 tonnes of copper. Output of by-products is expected
to be 195-215,000 ounces of gold and 11.0-12.5 tonnes of
molybdenum. The expected increase in copper production in 2024
principally reflects the addition of the Los Pelambres Phase 1
Expansion Project in 2023, with increased water availability and
ore processing capacity expected in 2024.
Group cash costs in 2024 before by-product credits are expected
to be $2.25/lb, in line with 2023, with the positive impact of
higher production balanced by a short-term reduction in ore grades
at Los Pelambres.
Group net cash costs in 2024 are expected to be $1.60/lb, with
by-product credits expected to remain in line year-on-year.
In 2024, consolidated Group capital expenditure, which excludes
Zaldívar, is expected to be $2.7 billion, as sustaining and mine
development expenditure broadly in line year-on-year, and as
development expenditure commences on the Centinela Second
Concentrator (not including any potential reduction in capital
expenditures as a result of the process to outsource Centinela's
water supply) and other growth projects at Los Pelambres and
Centinela.
_____________________________________________________________________________________________
Cautionary Statement
This announcement contains certain forward-looking statements.
All statements other than historical facts are forward-looking
statements. Examples of forward-looking statements include, without
limitation, those regarding the Group's strategy, plans, objectives
or future operating or financial performance, reserve and resource
estimates, commodity demand and trends in commodity prices, growth
opportunities, and any assumptions underlying or relating to any of
the foregoing. Words such as "intend", "aim", "project",
"anticipate", "estimate", "plan", "believe", "expect", "may",
"should", "will", "continue" and similar expressions identify
forward-looking statements.
Forward-looking statements involve known and unknown risks,
uncertainties, assumptions and other factors that are beyond the
Group's control. Given these risks, uncertainties and assumptions,
actual results, performance or achievements could differ materially
from any future results, performance or achievements expressed or
implied by these forward-looking statements, which apply only as at
the date of this report. These forward-looking statements are based
on numerous assumptions regarding the Group's present and future
business strategies and the environment in which the Group will
operate in the future. Important factors that could cause actual
results, performance or achievements to differ from those in the
forward-looking statements include, but are not limited to: natural
events, global economic and financial conditions (which may affect
our business, results of operations or financial condition);
various political, economic, legal, regulatory, social and other
risks and uncertainties across jurisdictions in which the Group
operates; changes to mining concessions or the imposition of new
mining royalties, or changes to existing mining royalties in the
jurisdictions in which the Group operates; the Group's ability to
comply with the extensive body of regulations governing the mining
industry, as well as the need to manage relationships with local
communities; the ongoing effects of the global COVID-19 pandemic;
demand, supply and prices for copper and other long-term commodity
price assumptions (as they materially affect the timing and
feasibility of future projects and developments); trends in the
copper mining industry and conditions of the international copper
markets; the effect of currency exchange rates on commodity prices
and operating costs; the availability and costs associated with
mining inputs and labour; operating or technical difficulties in
connection with mining or development activities; risks, hazards
and/or events and conditions inherent to the mining industry, which
may affect our operations or facilities; employee relations;
climate change as well as the effects of extreme weather
conditions; the outcome of any litigation arbitration, regulatory
or administrative proceedings to which the Group is and may be
subject in the future; and actions and activities of governmental
authorities, including changes to laws, regulations or
taxation.
Except as required by applicable law, rule or regulation, the
Group does not undertake any obligation to publicly update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise. Past performance cannot be
relied on as a guide to future performance.
No statement in this announcement is intended as a profit
forecast or estimate for any period. No statement in this
announcement should be interpreted to indicate a particular level
of profit and, as a consequence, it should not be possible to
derive a profit figure for any future period from this report.
[1] Production average over an initial 10-year period.
[2] Compañía de Minas Buenaventura S.A.A.
[3] Production average over an initial 10-year period.
This information is provided by RNS, the news service of the
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END
DRLBFMTTMTBBTRI
(END) Dow Jones Newswires
January 17, 2024 02:00 ET (07:00 GMT)
Grafico Azioni Antofagasta (LSE:ANTO)
Storico
Da Dic 2024 a Gen 2025
Grafico Azioni Antofagasta (LSE:ANTO)
Storico
Da Gen 2024 a Gen 2025