TIDMANTO
RNS Number : 4327W
Antofagasta PLC
27 April 2016
NEWS RELEASE, 27 APRIL, 2016
Q1 2016 PRODUCTION REPORT
Antofagasta plc CEO, Iván Arriagada said:
"We made good progress during the first quarter of 2016, with
the integration of Zaldivar and the ramp-up at Antucoya. Combined,
these projects added 25,000 tonnes of production over the period.
Our cost savings programme is also benefiting our results,
contributing to a fall in our net cash costs of 4% versus Q1 2015
to $1.37/lb and our guidance for the year remains unchanged at
710-740,000 tonnes, at a net cash cost of $1.35/lb.
"Movements in the copper price over the quarter may suggest the
market is beginning to stabilise. However, with price growth likely
to remain subdued in the near term our focus continues to be on
operating safely, efficiently and profitably."
HIGHLIGHTS
PRODUCTION
-- Copper production in Q1 2016 was 157,100 tonnes, an increase
of 7.3% on Q1 2015 with the first full quarter of production from
Zaldívar and increases at Antucoya offset by lower production at
Centinela Cathodes, as grade declined, and no contribution from
Michilla, now that it is on care and maintenance
-- Copper production in the quarter was 7.5% lower than in Q4
2015 despite the production from Zaldívar and Antucoya following
extended maintenance during the quarter at Los Pelambres coupled
with lower production at Centinela Cathodes and no production from
Michilla
-- Gold production in Q1 2016 was 56,700 ounces, a 1.8% increase
on Q4 2015 largely due to higher gold recoveries at Centinela
-- Molybdenum production at Los Pelambres was 1,700 tonnes in Q1
2016, compared to 2,100 tonnes in Q1 2015, principally due to a
fall in grade
CASH COSTS
-- Cash costs before by-product credits in Q1 2016 were
$1.72/lb, 6.0% lower than in Q1 2015, but 4.2% higher than in Q4
2015. The increase from Q4 2015 is mainly related to lower
production offset by cost savings and lower input prices,
particularly energy
-- Net cash costs were better than expected at $1.37/lb in Q1
2016, a 4.2% decrease compared with Q1 2015 with a significantly
higher realised gold price offsetting the impact of lower
production
OTHER
-- As previously announced, Iván Arriagada succeeded Diego
Hernández as CEO on 8 April 2016
-- Antucoya achieved commercial production at the end of the quarter
-- Group production and cash cost guidance for the full year is
unchanged with an improvement in throughput expected at Los
Pelambres and Centinela Concentrates, and in copper grade at
Centinela Concentrates together with the continued ramp-up of
Antucoya
-- Michilla was put on care and maintenance at the end of 2015
with no production in this quarter.
GROUP PRODUCTION AND Year to date Q1 Q4
CASH COSTS
------------------------------- ----------------------- ------ ------ -------
2016 2015 % 2016 2015 %
----------------------- ------ ------ ------ ------- ------ ------ -------
Copper production(1) kt 157.1 146.4 7.3 157.1 169.9 (7.5)
Gold production koz 56.7 57.4 (1.2) 56.7 55.7 1.8
Molybdenum production kt 1.7 2.1 (19.0) 1.7 2.8 (39.3)
----------------------- ------ ------ ------ ------- ------ ------ -------
Cash costs before
by-product credits $/lb 1.72 1.83 (6.0) 1.72 1.65 4.2
Net cash costs $/lb 1.37 1.43 (4.2) 1.37 1.38 (0.7)
----------------------- ------ ------ ------ ------- ------ ------ -------
(1) Copper production tonnage includes pre-commercial production
at Antucoya, which is not included in unit costs, and attributable
production from Zaldívar from 1 December 2015
MINING OPERATIONS
Los Pelambres
Los Pelambres produced 82,200 tonnes of copper in Q1 2016
compared with 78,800 tonnes in the same quarter in the prior year.
This increase of 4.3% was primarily due to one-off community
disruptions at the mine access road during Q1 2015. Compared to the
previous quarter copper production decreased by 15.8%, mainly due
to lower throughput as a result of extended maintenance in February
and harder ore.
Molybdenum production was lower at 1,700 tonnes in Q1 2016
compared to the previous quarter, primarily due to the lower
grades.
Cash costs before by-product credits in Q1 2016 were $1.49/lb,
6.9% lower than in Q1 2015. This decrease was principally due to
higher production during 2016, and lower input prices and cost
savings. Compared with the previous quarter cash costs before
by-product credits were 6.4% higher mainly due to lower production,
offset slightly by lower input prices, such as diesel and
energy.
Net cash costs in Q1 2016 at $1.22/lb were 3.9% lower than in Q1
2015, reflecting higher copper and gold production and a higher
realised gold price, offset by a much lower contribution from
molybdenum with production down and lower realised prices.
LOS PELAMBRES Year to date Q1 Q4
2016 2015 % 2016 2015 %
------------------------ ------ ------ ------ ------- ------ ------ -------
Daily ore throughput kt 147.5 151.8 (2.8) 147.5 170.2 (13.3)
Copper grade % 0.70 0.69 1.4 0.70 0.72 (2.8)
Copper recovery % 89.3 87.0 2.6 89.3 89.3 -
Copper production kt 82.2 78.8 4.3 82.2 97.6 (15.8)
Copper sales kt 83.4 79.9 4.4 83.4 103.8 (19.7)
------------------------ ------ ------ ------ ------- ------ ------ -------
Molybdenum grade % 0.016 0.019 (15.8) 0.016 0.022 (27.3)
Molybdenum recovery % 76.5 81.3 (5.9) 76.5 76.6 (0.1)
Molybdenum production kt 1.7 2.1 (19.0) 1.7 2.8 (39.3)
Molybdenum sales kt 1.9 1.9 - 1.9 2.8 (32.1)
Gold production koz 14.2 11.3 25.7 14.2 15.9 (10.7)
Gold sales koz 15.7 12.4 26.6 15.7 17.3 (9.2)
------------------------ ------ ------ ------ ------- ------ ------ -------
Cash costs before
by-product credits(1) $/lb 1.49 1.60 (6.9) 1.49 1.40 6.4
Net cash costs(1) $/lb 1.22 1.27 (3.9) 1.22 1.15 6.1
------------------------ ------ ------ ------ ------- ------ ------ -------
(1) Includes tolling charges of $0.26/lb in Q1 2016, $0.26/lb in
Q4 2015 and $0.24/lb in Q1 2015
Centinela
Total copper production at Centinela was 49,800 tonnes in Q1
2016, 17.5% lower than in the same quarter last year due to
significantly lower grades at both Centinela Concentrates and
Centinela Cathodes offset in part by higher throughput at Centinela
Concentrates. Compared with the previous quarter production was
4.4% lower due to lower production of copper cathodes slightly
offset by higher production of copper in concentrates.
Production of copper in concentrates was 37,200 tonnes in Q1
2016, compared with 38,400 tonnes in the same period last year as
grade declined by 26.8% to 0.52% offset by throughput increasing by
23.2% to 92,000 tonnes of ore per day. Compared to the previous
quarter production increased by 6.6% primarily due to higher
recoveries partially offset by slightly lower throughput.
The copper grade at Centinela Concentrates is expected to
increase during the second half of the year together with
throughput, which will increase throughput to a maximum of 105,000
tonnes of ore per day once the final thickener is completed in the
fourth quarter of the year.
Cathode production in Q1 2016 was 12,600 tonnes, a 42.5%
decrease on the 21,900 tonnes produced in Q1 2015 as grades
declined as expected as mining moved to the lower grade zones of
the Tesoro Central and Tesoro Noreste pits, together with lower
throughput and recoveries. Compared with the last quarter, cathode
production was 26.7% lower largely as a result of lower throughput,
due to restrictions at the reclamation system, and lower
grades.
Gold production was 42,500 ounces in Q1 2016, 3,600 ounces lower
than in the same quarter last year primarily due to higher
recoveries slightly offset by a drop in the grade.
Cash costs before by-product credits were $2.14/lb in Q1 2016
were 3.9% higher than in Q1 2015 as grades at Centinela
Concentrates and Centinela Cathodes declined significantly.
Compared with the previous quarter costs were 13.4% lower as lower
input prices and cost savings more than offset the impact of lower
production.
Net cash costs in Q1 2016 at $1.57/lb were marginally better
than in the same period last year and 24.5% lower than in the
previous quarter with the substantial improvement in realised gold
prices and higher gold production.
CENTINELA Year to date Q1 Q4
2016 2015 % 2016 2015 %
------------------------- ------ ------ ----- ------- ----- ----- -------
CONCENTRATES
------ ------ ----- ------- -----
Daily ore throughput kt 92.0 74.7 23.2 92.0 93.3 (1.4)
Copper grade % 0.52 0.71 (26.8) 0.52 0.50 4.0
Copper recovery % 85.6 88.0 (2.7) 85.6 83.0 3.1
Copper production kt 37.2 38.4 (3.1) 37.2 34.9 6.6
Copper sales kt 33.6 37.8 (11.1) 33.6 35.4 (5.1)
------------------------- ------ ------ ----- ------- ----- ----- -------
Gold grade g/t 0.21 0.30 (30.0) 0.21 0.22 (4.5)
Gold recovery % 75.9 78.8 (3.7) 75.9 68.0 11.6
(MORE TO FOLLOW) Dow Jones Newswires
April 27, 2016 02:00 ET (06:00 GMT)
Gold production koz 42.5 46.1 (7.8) 42.5 39.8 6.8
Gold sales koz 37.5 46.9 (20.0) 37.5 40.6 (7.6)
------------------------- ------ ------ ----- ------- ----- ----- -------
CATHODES
------------------------- ------ ------ ----- ------- ----- ----- -------
Daily ore throughput kt 21.9 25.4 (13.8) 21.9 25.0 (12.4)
Copper grade % 0.75 1.17 (35.9) 0.75 0.85 (11.8)
Copper recovery % 66.2 70.6 (6.2) 66.2 69.6 (4.9)
Copper production
- heap leach kt 10.5 19.4 (45.9) 10.5 14.3 (26.6)
Copper production
- total((1) kt 12.6 21.9 (42.5) 12.6 17.2 (26.7)
Copper sales kt 13.0 21.8 (40.4) 13.0 19.8 (34.3)
Total copper production kt 49.8 60.4 (17.5) 49.8 52.1 (4.4)
------------------------- ------ ------ ----- ------- ----- ----- -------
Cash costs before
by-product credits(2) $/lb 2.14 2.06 3.9 2.14 2.47 (13.4)
------------------------- ------ ------ ----- ------- ----- ----- -------
Net cash costs(2) $/lb 1.57 1.58 (0.6) 1.57 2.08 (24.5)
------------------------- ------ ------ ----- ------- ----- ----- -------
(1) Includes production from ROM material
(2) Includes tolling charges for copper in concentrates of
$0.28/lb in Q1 2016, $0.27/lb in Q4 2015 and $0.25/lb in Q1
2015
Zaldívar
Following the acquisition of 50% of Zaldívar in December last
year attributable copper production was 12,400 tonnes in Q1 2016
compared with 4,400 tonnes in December. Lower plant throughput was
due to maintenance of the stacking and reclaiming system, which was
completed during the quarter.
Zaldívar has a heap leach operation with secondary leaching as
well as a run-of-mine (ROM) dump leach and production is separated
between the two principal process routes in the table below. A
small quantity of copper in concentrates is also produced, which is
reported as part of total production.
Despite the fall in throughput in the heap leach, cash costs in
Q1 2016 were $1.59/lb compared with $1.73/lb in the previous
quarter primarily due to savings under the Group's Cost and
Competitiveness Programme and lower input costs.
ZALDÍVAR(1) Year to date Q1 Q4
2016 2015 % 2016 2015 %
---------------------- ------ ------ ----- ----- ----- -------
Daily ore throughput kt 44.8 - - 44.8 51.6 (13.2)
Copper grade % 0.65 - - 0.65 0.65 -
Copper recovery % 62.9 - - 62.9 64.9 (3.1)
Copper production -
heap leach kt 8.2 - - 8.2 2.9 182.8
Copper production -
total(2) kt 12.4 - - 12.4 4.4 181.8
Copper sales kt 11.5 - - 11.5 5.5 109.1
---------------------- ------ ------ ----- ----- ----- -------
Cash costs(3) $/lb 1.59 - - 1.59 1.73 (8.1)
---------------------- ------ ------ ----- ----- ----- -------
(1) Acquired 1 December 2015. Attributable production and sales
(2) Includes production from ROM material and in concentrates
Antucoya
The ramp-up of Antucoya advanced, with production of 12,700
tonnes during the quarter and full capacity expected to be reached
by mid-2016. A solution for the problem with excessive dust has
started and is expected to be completed by the end of the year.
By the end of March, approximately 12 million tonnes of crushed
material were stacked on the heap, with 4.9 million tonnes of
material added to the heap during the quarter.
With both lines now operating simultaneously in the
electro-winning plant commercial production is regarded as starting
at the beginning of April.
The project's final total construction capital expenditure was
in line with the budget of $ 1.9 billion.
Transport
Total volumes transported by the division were 1.7 million
tonnes in Q1 2016, 12.8% higher than in the same period last year
and 4.1% lower than in the previous quarter. The increase compared
with Q1 2015 reflects the improved utilisation of rolling stock and
additional demand. The decrease since Q4 2015 is mainly due to the
seasonality of copper shipments.
Year to date Q1 Q4
2016 2015 % 2016 2015 %
--------------------------------- ------ --------- ------ ------ ------ ------
TONNAGE TRANSPORTED
---------------------------------- ------ --------- ------ ------ ------ ------
Rail kt 1,368 1,168(1) 17.1 1,368 1,417 (3.5)
Road kt 302 313 (3.5) 302 325 (7.1)
---------------------------- ---- ------ --------- ------ ------ ------ ------
Total tonnage transported kt 1,670 1,481 12.8 1,670 1,742 (4.1)
---------------------------- ---- ------ --------- ------ ------ ------ ------
(1) Excludes 233kt transported by FCA, which was sold in August 2015
Commodity prices and exchange rates
Year to date Q1 Q4
2016 2015 % 2016 2015 %
---------------- ------ ------ ------ ------- ------ ------ --------
Copper
---------------------------------------------------------------------------
Market price $/lb 2.12 2.64 (19.7) 2.12 2.22 (4.5)
Realised price $/lb 2.22 2.45 (9.4) 2.22 2.00 11.0
---------------- ------ ------ ------ ------- ------ ------ --------
Gold
---------------------------------------------------------------------------
Market price $/oz 1,180 1,220 (3.3) 1,180 1,105 6.8
Realised price $/oz 1,316 1,252 5.1 1,316 1,077 22.2
---------------- ------ ------ ------ ------- ------ ------ ------
Molybdenum
---------------------------------------------------------------------------
Market price $/lb 5.3 8.5 (37.6) 5.3 4.8 10.3
Realised price $/lb 5.4 7.6 (28.9) 5.4 4.3 24.5
---------------- ------ ------ ------ ------- ------ ------ --------
Exchange rates
---------------------------------------------------------------------------
per
Chilean peso $ 702 624 12.5 702 698 0.6
---------------- ------ ------ ------ ------- ------ ------ ------
The spot commodity prices for copper, gold and molybdenum as at
31 March 2016 were $2.21/lb, $1,236/oz and $5.3/lb respectively
compared with $2.13/lb, $1,062/oz and $5.3/lb as at 31 December
2015 and $2.75/lb, $1,188oz and $8.2/lb as at 31 March 2015.
The provisional pricing adjustments for copper, gold and
molybdenum for the quarter were positive $24.8 million, positive
$10.2 million and negative $0.04 million respectively.
Investors Media
- London - London
Andrew Lindsay alindsay@antofagasta.co.uk Carole antofagasta@brunswickgroup.com
Cable
Paresh Bhanderi pbhanderi@antofagasta.co.uk Will Medvei antofagasta@brunswickgroup.com
Telephone +44 20 7808 0988 Telephone +44 20 7404 5959
Investors Media
- Santiago - Santiago
Alfredo aatucha@aminerals.cl Pablo porozco@aminerals.cl
Atucha Orozco
Telephone +56 2 2798 7000 Carolina cpica@aminerals.cl
Pica
Telephone +56 2 2798 7000
----------------- ---------------------------- ------------ -------------------------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
DRLIFMPTMBITBIF
(END) Dow Jones Newswires
April 27, 2016 02:00 ET (06:00 GMT)
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