TIDMANTO
RNS Number : 7038C
Antofagasta PLC
21 October 2020
NEWS RELEASE, 21 OCTOBER 2020
Q3 2020 PRODUCTION REPORT
PRODUCTION AND COSTS IN LINE WITH EXPECTATIONS
Antofagasta plc CEO, Iván Arriagada said: "Our copper production
and cost control performance during the quarter were in line with
expectations. For the year to date production was 541,300 tonnes at
a net cash cost of $1.14/lb.
"We remain focused on the health and safety of our employees and
contractors, and the communities near our operations. Although the
rate of infections of COVID-19 in Chile fell during this quarter,
we remain vigilant and continue to apply all the health protocols
we have put in place. Following the temporary and precautionary
suspension of the Los Pelambres Expansion project in Q2,
approximately 75% of the original planned numbers are now working
on site and all COVID-19 protocols are being followed. Similarly,
work has also started at the Esperanza Sur and Zaldívar Chloride
Leach projects.
"For the full year 2020 we continue to expect production to be
at the lower end of the original 725-755,000 tonnes guidance range,
and net cash costs are now expected to be below the originally
guided $1.20/lb. In 2021 we expect production to be in the range of
730-760,000 tonnes of copper, as grades increase at Centinela
Concentrates, and we conservatively assume that COVID-19 health
protocols will stay in place for the whole year."
HIGHLIGHTS
PRODUCTION
-- Group copper production in Q3 2020 was 169,600 tonnes, 4.6%
lower than in the previous quarter on lower production at Los
Pelambres, due to major maintenance work during the period, and
expected lower grades at Antucoya
-- Group copper production for the first nine months of the year
was in line with expectations at 541,300 tonnes, 7.3% lower than in
the same period last year mainly on expected lower grades at
Centinela Concentrates, partly offset by higher production at
Centinela Cathodes
-- Gold production for the quarter was 38,300 ounces, 16.7%
lower than in the previous quarter as grades and recoveries
declined at Centinela, and for the year to date production fell by
34.1% to 149,400 ounces on lower grades and throughput at Centinela
in line with the mine plan for the year
-- Molybdenum production in the quarter was 3,400 tonnes, 9.7%
higher than the previous quarter on higher grades and recoveries at
Centinela. For the year to date, production was 8,900 tonnes, 400
tonnes lower than in the same period last year
CASH COSTS
-- Cash costs before by-product credits in Q3 2020 were $1.60/lb
and for the first nine months of the year were $1.54/lb, 6.7%
higher than in Q2 2020 and 6.1% lower than in the year to date last
year. This improvement in unit costs during the year to date is due
to the weaker Chilean peso, lower input costs and continued tight
cost control, partially offset by the lower production
-- Net cash costs were $1.19/lb in Q3 2020 and $1.14/lb for the
year to date, a 5.3% increase compared with the previous quarter
and 2.6% lower than the same period last year, primarily due to
lower cash costs before by-product credits, offset by lower
by-product credits
GUIDANCE
-- Copper production guidance for 2020 is unchanged at the lower
end of the original 725-755,000 tonnes range, and net cash costs
are now expected to be below $1.20/lb, assuming no material change
to the exchange rate during the reminder of the year
-- In 2021 production is expected to be to 730-760,000 tonnes of
copper mainly as grades start to increase at Centinela Concentrates
in Q4 2020 and assuming that COVID-19 health protocols remain in
place for the whole year
COVID-19
-- The rate of COVID-19 infections in Chile peaked in June
before declining to much lower levels that have remained stable
since then. Government imposed restrictions are being eased but at
the Company's operations the COVID-19 protocols are being
maintained and will continue for the foreseeable future
-- The Company continues to operate with approximately
two-thirds of its workforce at its operations, with the balance
working from home or in preventative quarantine
-- The workforce at the Los Pelambres Expansion project has
built up to 75% of the originally planned numbers and will stay at
this level until the COVID-19 restrictions can be relaxed
OTHER
-- Earlier this month the Company successfully issued its
inaugural $500 million 2.375% note due 2030, which was 12 times
oversubscribed. The bond diversifies the Company's funding sources
and provides access to longer tenors without changing the Company's
levels of net debt
-- Progress on the Los Pelambres Expansion project was 39%
complete as at the end of the quarter and, with the increased
number of workers on site, the rate of progress is accelerating. As
indicated on 20 August, an update on the impact of the COVID-19
restrictions and changes to the desalination plant on the
construction schedule and costs is underway and will be completed
by the end of the year. The revised cost and schedule estimates
will be included in the Q4 Production Report in January 2021
-- As previously reported, labour negotiations were successfully
concluded with the workers' union at Zaldívar, and two unions at
Centinela during the quarter. Negotiations have recently started
with the two remaining workers' unions at Centinela and are
expected to be concluded by the end of the year
GROUP PRODUCTION AND CASH COSTS Year to Date Q3 Q2
----------------------- ------ ------
2020 2019 % 2020 2020 %
------------------------------ ------ ------ ------ ------- ------ ------ -------
Copper production kt 541.3 584.2 (7.3) 169.6 177.7 (4.6)
Copper sales kt 536.3 578.6 (7.3) 162.1 178.9 (9.4)
Gold production koz 149.4 226.6 (34.1) 38.3 46.0 (16.7)
Molybdenum production kt 8.9 9.3 (4.3) 3.4 3.1 9.7
------------------------------ ------ ------ ------ ------- ------ ------ -------
Cash costs before by-product
credits (1) $/lb 1.54 1.64 (6.1) 1.60 1.50 6.7
Net cash costs (1) $/lb 1.14 1.17 (2.6) 1.19 1.13 5.3
------------------------------ ------ ------ ------ ------- ------ ------ -------
(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 Media - London
- London
Andrew Lindsay alindsay@antofagasta.co.uk Carole Cable antofagasta@brunswickgroup.com
Telephone +44 20 7808 0988 Telephone +44 20 7404 5959
Andres Vergara avergara@antofagasta.co.uk Will Medvei antofagasta@brunswickgroup.com
Telephone +44 20 7808 0988 Telephone +44 20 7404 5959
Media - Santiago
Pablo Orozco porozco@aminerals.cl
Paola Raffo praffo.van@aminerals.cl
Telephone +56 2 2798 7000
---------------- --------------------------- ----------------- -------------------------------
MINING OPERATIONS
Los Pelambres
Copper production at Los Pelambres in the quarter was 85,900
tonnes, 4.4% lower than in the previous quarter as throughput
reduced by 3.1% primarily due to major maintenance work during the
period that had been rescheduled from Q2 following COVID-19
restrictions and was completed in accordance with its original
scope of work.
In the first nine months of 2020, copper production was 269,100
tonnes, 0.7% lower than in the same period last year primarily due
to lower throughput, partially offset by higher grades and
recoveries.
Molybdenum production was 2,700 tonnes in Q3 2020, slightly
lower than in the previous quarter, and for the year to date was
7,900 tonnes, 12.2% lower than the same period last year as a
result of the lower throughput and lower molybdenum grades.
Cash costs before by-product credits in Q3 were $1.33/lb, 12.7%
higher than in previous quarter on lower production and savings
achieved in the previous quarter. For the first nine months of the
year cash costs before by-product credits were $1.25/lb, 12.0%
lower than same period last year on a more favourable local
exchange rate, lower input costs and savings from our Cost and
Competitiveness Programme.
Net cash costs for the quarter were $0.86/lb, and for the year
to date were $0.82/lb, 6.8% lower than the same period last year
despite by-product credits being 11c/lb less than last year.
LOS PELAMBRES Year to Date Q3 Q2
----------------------- ------ ------
2020 2019 % 2020 2020 %
------------------------------ ------ ------ ------ ------- ------ ------ ------
Daily ore throughput kt 159.9 169.6 (5.7) 155.4 160.4 (3.1)
Copper grade % 0.71 0.69 2.9 0.70 0.70 0.0
Copper recovery % 89.9 87.7 2.5 89.9 89.9 0.0
Copper production kt 269.1 271.0 (0.7) 85.9 89.9 (4.4)
Copper sales kt 268.9 259.4 3.7 82.1 88.6 (7.3)
------------------------------ ------ ------ ------ ------- ------ ------ ------
Molybdenum grade % 0.020 0.021 (4.8) 0.023 0.021 9.5
Molybdenum recovery % 85.9 85.5 0.5 86.4 86.4 0.0
Molybdenum production kt 7.9 9.0 (12.2) 2.7 2.8 (3.6)
Molybdenum sales kt 7.5 9.5 (21.1) 2.9 2.5 16.0
Gold grade g/t 0.05 0.05 (1.7) 0.05 0.05 (3.1)
Gold recovery % 72.5 68.8 5.4 73.3 68.6 6.9
Gold production koz 43.7 44.8 (2.5) 14.6 14.3 2.1
Gold sales koz 41.7 38.0 9.7 14.0 14.4 (2.8)
------------------------------ ------ ------ ------ ------- ------ ------ ------
Cash costs before by-product
credits (1) $/lb 1.25 1.42 (12.0) 1.33 1.18 12.7
Net cash costs (1) $/lb 0.82 0.88 (6.8) 0.86 0.77 11.7
------------------------------ ------ ------ ------ ------- ------ ------ ------
(1) Includes tolling charges of $0.17/lb in Q3 2020, $0.18/lb in
Q2 2020, $0.18/lb YTD 2020 and $0.23/lb YTD 2019
Centinela
Centinela produced 55,200 tonnes of copper during the quarter,
slightly higher than in the previous quarter as higher copper
grades at Centinela Concentrates were partially offset by lower
throughput, and lower grades at Centinela Cathodes. Production for
the year to date was 176,800 tonnes, 17.8% lower than in the same
period last year, primarily because of the expected lower grades at
Centinela Concentrates, partially offset by increased production at
Centinela Cathodes due to higher throughput with the plant running
consistently at, or above, nominal capacity.
Production of copper in concentrate was 32,100 tonnes in Q3
2020, 2.9% higher than in the previous quarter. For the first nine
months of the year, copper in concentrate production was 106,900
tonnes, compared with 156,800 tonnes in the same period last year,
reflecting expected lower grades.
Copper cathode production during the quarter was 23,100 tonnes,
3.3% lower than Q2 2020 primarily as grades and recoveries
decreased. For the year to date, copper cathode production was
70,000 tonnes, 19.9% higher than in the same period last year
primarily due to higher throughput and grades.
Gold production was 23,700 ounces in the quarter, 25.2% lower
than the previous quarter on lower throughput, grades and
recoveries, and for the first nine months was 105,700 ounces, 41.9%
lower than same period last year, due to expected lower grades.
Cash costs before by-product credits were $1.93/lb, 1.6% higher
than in the previous quarter. Cash costs before by-product credits
for the first nine months of the year were $1.86/lb, 6.9% higher
than the same period in 2019 as a result of lower copper
production, partially offset by tight cost control, a weaker
Chilean Peso and lower input costs.
By-product credits were unchanged in Q2 and Q3 at $0.53/lb. For
the first nine months of 2020, by-product credits were $0.55/lb,
$0.05/lb lower than in the same period last year due to lower gold
production, partially offset by a higher realised gold price.
Net cash costs in Q3 2020 were $1.40/lb, 2.2% higher than in the
previous quarter. During the first nine months of the year net cash
costs were $1.31/lb, 14.9% higher than in same period last year due
to higher cash costs before by-product credits and lower by-product
credits.
Labour negotiations with the one of the workers' unions and the
supervisors' union were successfully concluded during the quarter
and negotiations with the two remaining workers' unions have
started and are expected to be completed by the end of the
year.
CENTINELA Year to Date Q3 Q2
----------------------- ------ ------
2020 2019 % 2020 2020 %
------------------------------ ------ ------ ------ ------- ------ ------ -------
CONCENTRATES
Daily ore throughput kt 93.3 95.3 (2.1) 92.5 96.2 (3.8)
Copper grade % 0.51 0.73 (30.1) 0.49 0.43 14.0
Copper recovery % 85.3 85.6 (0.4) 82.3 82.9 (0.7)
Copper production kt 106.9 156.8 (31.8) 32.1 31.2 2.9
Copper sales kt 107.6 161.9 (33.5) 35.7 28.9 23.5
------------------------------ ------ ------ ------ ------- ------ ------ -------
Molybdenum grade % 0.010 0.007 42.9 0.014 0.010 40.0
Molybdenum recovery % 35.2 76.1 (53.7) 50.1 30.4 64.8
Molybdenum production kt 1.0 0.3 233.3 0.7 0.2 250.0
Molybdenum sales kt 0.8 0.3 166.7 0.7 0.1 600.0
Gold grade g/t 0.19 0.32 (40.6) 0.14 0.16 (12.5)
Gold recovery % 71.2 69.7 2.2 65.7 68.6 (4.2)
Gold production koz 105.7 181.9 (41.9) 23.7 31.7 (25.2)
Gold sales koz 106.3 190.4 (44.2) 25.6 30.3 (15.5)
------ ------ ------- ------ ------ -------
CATHODES
Daily ore throughput kt 56.5 46.1 22.6 57.8 58.1 (0.5)
Copper grade % 0.64 0.58 10.3 0.63 0.65 (3.1)
Copper recovery % 68.4 70.0 (2.3) 66.9 68.8 (2.8)
Copper production - heap
leach kt 66.8 54.0 23.7 22.4 22.9 (2.2)
Copper production - total
(1) kt 70.0 58.4 19.9 23.1 23.9 (3.3)
Copper sales kt 68.9 63.5 8.5 21.3 25.4 (16.1)
------------------------------ ------ ------ ------ ------- ------ ------ -------
Total copper production kt 176.8 215.2 (17.8) 55.2 55.1 0.2
Cash costs before by-product
credits (2) $/lb 1.86 1.74 6.9 1.93 1.90 1.6
Net cash costs (2) $/lb 1.31 1.14 14.9 1.40 1.37 2.2
------------------------------ ------ ------ ------ ------- ------ ------ -------
(1) Includes production from ROM material
(2) Includes tolling charges of $0.15/lb in Q3 2020, $0.14/lb in
Q2 2020, $0.14/lb YTD 2020 and $0.18/lb YTD 2019
Antucoya
Total copper production at Antucoya during the quarter was
17,300 tonnes, 14.4% lower than previous quarter as grades
decreased as expected and following major maintenance in August and
unplanned downtime at the plant, partly due to COVID-19
precautionary restrictions temporarily impacting the number of
workers on site. Production in the first nine months of 2020 was
57,700 tonnes, 2.9% higher than the same period last year on higher
throughput, partially offset by lower grades and recoveries.
During the quarter, cash costs were $1.95/lb compared to
$1.69/lb in Q2 as production decreased. For the year to date, cash
costs were $1.80/lb, 18.2% lower than same period last year due to
tight cost control, higher production, the weaker Chilean peso and
lower input prices.
ANTUCOYA Year to Date Q3 Q2
--------------------- ----- -----
2020 2019 % 2020 2020 %
---------------------- ------ ----- ----- ------- ----- ----- -------
Daily ore throughput Kt 74.8 72.2 3.6 68.5 82.4 (16.9)
Copper grade % 0.38 0.39 (2.6) 0.35 0.37 (5.4)
Copper recovery % 73.2 73.7 (0.7) 72.4 71.1 1.8
Copper production Kt 57.7 56.1 2.9 17.3 20.2 (14.4)
Copper sales Kt 53.8 55.4 (2.9) 13.2 22.2 (40.5)
---------------------- ------ ----- ----- ------- ----- ----- -------
Cash costs $/lb 1.80 2.20 (18.2) 1.95 1.69 15.4
---------------------- ------ ----- ----- ------- ----- ----- -------
Zaldívar
Copper production for the quarter at Zaldívar was 11,100 tonnes,
11.2% lower than in the previous quarter on lower throughput partly
due to COVID-19 precautionary restrictions temporarily impacting
the number of workers on site, partially offset by higher grades.
Production for the year to date was 37,700 tonnes, 10.0% lower than
in the same period last year due to lower grades and recoveries,
partially offset by higher throughput.
Cash costs during the quarter were $1.55/lb, $0.23/lb lower than
in Q2 2020 as the new lower-cost 100% renewable energy contract
came into effect and accounted for about half of the decrease,
partially offset by the lower production volumes. However, due to
some one-off factors savings from the new power contract in future
periods will be lower. Cash costs for the first nine months of the
year were $1.67/lb, 6.2% lower than in the same period last year,
primarily due to the weaker exchange rate and lower input prices,
partially offset by lower production.
Labour negotiations with the workers union were successfully
concluded during the quarter.
ZALDÍVAR Year to Date Q3 Q2
--------------------- ----- -----
2020 2019 % 2020 2020 %
--------------------------- ------ ----- ----- ------- ----- ----- -------
Daily ore throughput kt 40.9 38.4 6.5 33.4 47.2 (29.2)
Copper grade % 1.03 1.15 (10.4) 1.19 0.95 25.3
Copper recovery (1) % 53.7 61.7 (13.0) 53.7 60.1 (10.6)
Copper production - heap
leach (2) kt 28.6 34.5 (17.1) 8.2 9.5 (13.7)
Copper production - total
(2,3) kt 37.7 41.9 (10.0) 11.1 12.5 (11.2)
Copper sales (2) kt 37.1 38.4 (3.4) 9.8 13.9 (29.5)
Cash costs $/lb 1.67 1.78 (6.2) 1.55 1.78 (12.9)
----- ----- ----- -----
(1) Restated from average over full leach cycle to 12-month
rolling recoveries
(2) Group's 50% share
(3) Includes production from secondary leaching
Transport Division
Total transport volumes in Q3 2020 were 1.6 million tonnes,
marginally lower than in the previous quarter. For the first nine
months of the year, transport volumes decreased by 2.6% to 4.8
million tonnes.
TRANSPORT Year to Date Q3 Q2
---------------------- ------ ------
2020 2019 % 2020 2020 %
--------------------------- ---- ------ ------ ------ ------ ------ ------
Rail kt 3,592 3,770 (4.7) 1,185 1,186 (0.1)
Road kt 1,207 1,156 4.4 396 406 (2.5)
Total tonnage transported kt 4,799 4,926 (2.6) 1,581 1,592 (0.7)
------ ------ ------ ------
Commodity prices and exchange rates
Year to Date Q3 Q2
----------------------- ------ ------
2020 2019 % 2020 2020 %
------ ------ ------- ------ ------
Copper
Market price $/lb 2.65 2.74 (3.4) 2.96 2.42 18.2
Realised price $/lb 2.71 2.71 0.0 3.28 2.94 10.4
---------------- ------ ------ ------ ------- ------ ------ ------
Gold
Market price $/oz 1,735 1,364 21.4 1,912 1,710 10.4
Realised price $/oz 1,761 1,388 21.2 1,982 1,786 9.9
---------------- ------ ------ ------ ------- ------ ------ ------
Molybdenum
Market price $/lb 8.6 11.9 (38.4) 7.7 8.4 (9.1)
Realised price $/lb 8.3 11.9 (43.4) 7.8 7.7 (1.3)
---------------- ------ ------ ------ ------- ------ ------ ------
Exchange rates
per
Chilean peso $ 802 685 14.6 781 823 (5.4)
---------------- ------ ------ ------ ------- ------ ------ ------
Spot commodity prices for copper, gold and molybdenum as at 30
September 2020 were $3.00/lb, $1,885/oz and $8.2/lb respectively,
compared with $2.74/lb, $1,769/oz and $7.4/lb as at 30 June 2020
and $2.79/lb, $1,523/oz and $9.2/lb as at 31 December 2019.
The provisional pricing adjustments for copper, gold and
molybdenum for the quarter were positive $105.8 million, negative
$1.9 million and positive $4.4 million respectively.
The provisional pricing adjustments for copper, gold and
molybdenum for the first nine months of the year were positive
$78.5 million, positive $4.2 million and negative $1.9 million
respectively.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
DRLMMBRTMTBTBBM
(END) Dow Jones Newswires
October 21, 2020 02:00 ET (06:00 GMT)
Antofagasta (LSE:ANTO)
Historical Stock Chart
From Mar 2024 to Apr 2024
Antofagasta (LSE:ANTO)
Historical Stock Chart
From Apr 2023 to Apr 2024
