Antofagasta plc
Quarterly Production Report Q1 2012
3 May, 2012
Highlights
· Group copper production was 162,900 tonnes in Q1 2012, a 25.5% increase on production in Q1 2011 when Esperanza was commencing production. Nevertheless, there was a 12.9% decrease in copper production compared with Q4 2011, mainly due to planned maintenance and expected lower grades at Los Pelambres and lower throughput at Esperanza in February and March as a result of damage to the feed conveyor which has since been repaired.
· Gold production was 63,500 ounces in Q1 2012, compared with 22,100 ounces in Q1 2011 also reflecting the greater contribution from Esperanza. The decrease compared to the previous quarter was mainly due to the lower plant throughput in Q1 2012 at Esperanza.
· Forecast 2012 production for Esperanza is expected to remain within the range of 160,000 to 175,000 tonnes of copper and 240,000 to 260,000 ounces of gold announced earlier this year, albeit at the lower end of these ranges. Expected production levels at the other three mines remain in line with the previous forecast.
· Molybdenum production at Los Pelambres was 3,100 tonnes in Q1 2012, 19.2% above the previous quarter, mainly due to higher grades.
· Group cash costs (net of by-product credits) in Q1 were 98.1 cents per pound, a 9.0% reduction compared to Q1 2011 but broadly in line with the previous quarter of 97.3 cents per pound.
· Cash costs excluding by-product credits in Q1 were 163.6 cents per pound compared with 151.3 cents per pound in the previous quarter, mainly reflecting the impact of lower production volumes on unit costs and in line with the forecast for the full year.
· Antucoya is expected to start production in H2 2014, with the development cost of the project estimated at US$1.7 billion.
