08:00 Wed 22 Apr 2020
Antofagasta PLC - Antofagasta plc Q1 2020 Production report
NEWS RELEASE,
Q1 2020 PRODUCTION REPORT
RESILIENT BUSINESS WITH STRONG FINANCIAL POSITION
"Although we are currently operating with about two-thirds of our workforce on-site in line with our preventative health measures, this has so far had a limited impact on production. Indeed, in Q1 2020 copper production was 194,000 tonnes, 4.6% higher than in the previous quarter, and net cash costs were
"Capital expenditure for the year is now expected to be less than
"We have a solid balance sheet with
HIGHLIGHTS
PRODUCTION
· Copper production in Q1 2020 was 194,000 tonnes, an increase of 2.9% compared with the same quarter in 2019 and 4.6% higher than in Q4 2019
· Gold production was 65,100 ounces in Q1 2020, 4.7% higher than in Q1 2019, mainly due to higher grades at Centinela
· Molybdenum production was 2,400 tonnes, a decrease of 1,100 tonnes compared to the same period in 2019 due to lower grades at Los Pelambres, and 100 tonnes higher production than in Q4 2019
CASH COSTS
· Cash costs before by-product credits in the quarter decreased by 11.2% to
· Net cash costs were
COVID-19
· Multiple measures to prevent or slow the spread of infection have been implemented across the Group. These actions are intended to protect the health of the Company's employees and contractors, and maintain a safe and healthy environment at the operations
· A
· As announced on 6 April, the Los Pelambres Expansion project is currently suspended on a precautionary care and maintenance basis because of the health emergency caused by COVID-19. The suspension is expected to be for a maximum of 120 days and in most cases, will not lead to the early termination of contracts. During the suspension, contractors' monthly salaries will be maintained at a level of at least the minimum set by the Group
· During the current crisis, the Group is monitoring and assisting smaller and medium sized suppliers
2020 GUIDANCE
· Copper production, costs and capital expenditure guidance for 2020 is highly dependent on how the health emergency evolves over the coming months
· Assuming mining operations continue to run at or close to capacity and no shutdowns are required, Group copper production in 2020 is expected to be at the lower end of the original 725-755,000 tonnes guidance range as the new health measures and lower manpower on-site have required mine movement and maintenance activities to be rescheduled, which will impact copper production during the rest of the year
· Group net cash costs for the full year are expected to be
· Capital expenditure in 2020 is expected to be less than
· During the suspension of the Pelambres Expansion project some work is continuing on the desalination plant and the camp infrastructure. Additional critical activities are expected to be resumed progressively during the suspension period as government health protocols are revised with full resumption dependent on how the health emergency evolves. A revised project schedule and cost estimate is expected to be available once the suspension period concludes
OTHER
· As announced on 1 April, Centinela has signed a 100% renewable energy contract which will be effective from 2022 until 2033. This new power contract will be value accretive as power costs will be significantly reduced in stages from 2020 onwards. As part of the transaction Centinela will cancel two existing Power Purchase Agreements, that expire in 2026 and 2027, and the Company will sell its indirect 40% interest in the Hornitos thermal power station to ENGIE, resulting in an attributable post-tax write down of approximately
· As at the end of the period the Group's total cash and liquid investments were
· As announced on 14 April, in view of the current compulsory
GROUP PRODUCTION AND CASH COSTS |
Year to Date |
Q1 |
Q4 |
|
|||
|
|
2020 |
2019 |
% |
2020 |
2019 |
% |
Copper production |
kt |
194.0 |
188.6 |
2.9 |
194.0 |
185.5 |
4.6 |
Copper sales |
kt |
195.3 |
178.9 |
9.2 |
195.3 |
193.8 |
0.8 |
Gold production |
koz |
65.1 |
62.2 |
4.7 |
65.1 |
55.6 |
17.1 |
Molybdenum production |
kt |
2.4 |
3.5 |
(31.4) |
2.4 |
2.3 |
4.3 |
Cash costs before by-product credits (1) |
$/lb |
1.51 |
1.70 |
(11.2) |
1.51 |
1.70 |
(11.2) |
Net cash costs (1) |
$/lb |
1.10 |
1.24 |
(11.3) |
1.10 |
1.37 |
(19.7) |
(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
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
Carolina Pica cpica@aminerals.cl
Telephone +56 2 2798 7000
MINING OPERATIONS
Los Pelambres
Los Pelambres produced 93,300 tonnes of copper in Q1 2020, 4.6% higher than in the same quarter last year, on higher grades and recoveries.
Molybdenum production in Q1 2020 decreased to 2,400 tonnes from 3,300 in Q1 2019, primarily due to lower molybdenum grades and throughput.
Gold production for the quarter was 14,800 ounces, 5.1% lower than the same period last year.
Cash costs before by-product credits at
Net cash costs in Q1 2020 decreased by 2c/lb compared to Q1 2019 to
LOS PELAMBRES |
Year to Date |
Q1 |
Q4 |
|
|||
|
|
2020 |
2019 |
% |
2020 |
2019 |
% |
Daily ore throughput |
kt |
163.9 |
171.9 |
(4.7) |
163.9 |
162.8 |
0.7 |
Copper grade |
% |
0.72 |
0.68 |
5.9 |
0.72 |
0.72 |
0.0 |
Copper recovery |
% |
90.0 |
86.6 |
3.9 |
90.0 |
88.3 |
1.9 |
Copper production |
kt |
93.3 |
89.2 |
4.6 |
93.3 |
92.3 |
1.1 |
Copper sales |
kt |
98.2 |
74.9 |
31.1 |
98.2 |
96.7 |
1.6 |
Molybdenum grade |
% |
0.017 |
0.021 |
(19.0) |
0.017 |
0.019 |
(10.5) |
Molybdenum recovery |
% |
84.4 |
84.2 |
0.2 |
84.4 |
83.4 |
1.2 |
Molybdenum production |
kt |
2.4 |
3.3 |
(27.3) |
2.4 |
2.2 |
9.1 |
Molybdenum sales |
kt |
2.1 |
3.3 |
(36.4) |
2.1 |
2.4 |
(12.5) |
Gold grade |
g/t |
0.045 |
0.049 |
(8.9) |
0.045 |
0.045 |
0.0 |
Gold recovery |
% |
75.7 |
70.2 |
7.8 |
75.7 |
75.9 |
(0.3) |
Gold production |
koz |
14.8 |
15.6 |
(5.1) |
14.8 |
14.9 |
(0.7) |
Gold sales |
koz |
13.3 |
10.6 |
25.5 |
13.3 |
14.5 |
(8.3) |
Cash costs before by-product credits (1) |
$/lb |
1.23 |
1.44 |
(14.6) |
1.23 |
1.33 |
(7.5) |
Net cash costs (1) |
$/lb |
0.82 |
0.84 |
(2.4) |
0.82 |
1.01 |
(18.8) |
(1) Includes tolling charges of
Centinela
Total copper production in Q1 2020 at Centinela was 66,500 tonnes, 3.3% lower than in the same quarter in 2019, due to lower production of copper in concentrates and cathodes. Compared to the previous quarter copper production increased by 8.3% on higher production of copper in concentrates.
Copper in concentrates production was 43,600 tonnes in Q1 2020, 2.2% lower than in Q1 2019 on lower throughput in the concentrate plant, partially offset by higher grades and recoveries. Compared to the previous quarter, copper in concentrate increased by 12.7% on expected higher grades, and higher throughput and recoveries.
Production of copper in cathodes fell 5.8% compared to Q1 2019. This was primarily due to lower recoveries.
Gold production was 50,300 ounces in Q1 2020, 7.9% higher than in the same period last year due to higher gold grades and recoveries, partially offset by lower throughput, and 23.6% higher than Q4 2019 on higher throughput, gold grades and recoveries.
Cash costs before by-product credits in Q1 2020 were
Net cash costs in Q1 2020 were
CENTINELA |
Year to Date |
Q1 |
Q4 |
|
|||
|
|
2020 |
2019 |
% |
2020 |
2019 |
% |
CONCENTRATES |
|
|
|
|
|
|
|
Daily ore throughput |
kt |
91.1 |
101.6 |
(10.3) |
91.1 |
85.4 |
6.7 |
Copper grade |
% |
0.64 |
0.61 |
4.9 |
0.64 |
0.57 |
12.3 |
Copper recovery |
% |
89.3 |
81.9 |
9.0 |
89.3 |
86.8 |
2.9 |
Copper production |
kt |
43.6 |
44.6 |
(2.2) |
43.6 |
38.7 |
12.7 |
Copper sales |
kt |
43.0 |
49.6 |
(13.3) |
43.0 |
43.4 |
(0.9) |
Molybdenum grade |
% |
0.007 |
0.009 |
(22.2) |
0.007 |
0.010 |
(30.0) |
Molybdenum recovery |
% |
11.1 |
77.9 |
(85.8) |
11.1 |
82.7 |
(86.6) |
Molybdenum production |
kt |
0.1 |
0.2 |
(50.0) |
0.1 |
0.1 |
0.0 |
Molybdenum sales |
kt |
0.1 |
0.1 |
0.0 |
0.1 |
0.0 |
100.0 |
Gold grade |
g/t |
0.270 |
0.242 |
11.6 |
0.270 |
0.223 |
21.1 |
Gold recovery |
% |
75.7 |
65.8 |
15.0 |
75.7 |
71.9 |
5.3 |
Gold production |
koz |
50.3 |
46.6 |
7.9 |
50.3 |
40.7 |
23.6 |
Gold sales |
koz |
50.4 |
50.9 |
(1.0) |
50.4 |
45.9 |
9.8 |
CATHODES |
|
|
|
|
|
|
|
Daily ore throughput |
kt |
53.6 |
49.7 |
7.8 |
53.6 |
55.3 |
(3.1) |
Copper grade |
% |
0.64 |
0.62 |
3.2 |
0.64 |
0.61 |
4.9 |
Copper recovery |
% |
69.7 |
73.4 |
(5.0) |
69.7 |
70.1 |
(0.6) |
Copper production - heap leach |
kt |
21.5 |
22.6 |
(4.9) |
21.5 |
21.4 |
0.5 |
Copper production - total (1) |
kt |
22.9 |
24.3 |
(5.8) |
22.9 |
22.7 |
0.9 |
Copper sales |
kt |
22.2 |
24.8 |
(10.1) |
22.2 |
19.1 |
16.8 |
Total copper production |
kt |
66.5 |
68.8 |
(3.3) |
66.5 |
61.4 |
8.3 |
Cash costs before by-product credits (2) |
$/lb |
1.78 |
1.85 |
(3.8) |
1.78 |
2.17 |
(18.0) |
Net cash costs (2) |
$/lb |
1.17 |
1.38 |
(15.2) |
1.17 |
1.66 |
(29.5) |
(1) Includes production from ROM material
(2) Includes tolling charges of
Antucoya
Antucoya produced 20,200 tonnes of copper in Q1 2020, 12.8% higher than the same quarter last year on higher grades and recoveries, partially offset by lower throughput. Production increased by 28.7% compared to Q4 2019 following the strike which lowered production by 4,000 tonnes during that quarter.
During the quarter, the cash costs were
ANTUCOYA |
Year to Date |
Q1 |
Q4 |
|
|||
|
|
2020 |
2019 |
% |
2020 |
2019 |
% |
Daily ore throughput |
kt |
73.5 |
75.8 |
(3.0) |
73.5 |
49.5 |
48.5 |
Copper grade |
% |
0.41 |
0.37 |
10.8 |
0.41 |
0.42 |
(2.4) |
Copper recovery |
% |
75.9 |
71.3 |
6.5 |
75.9 |
78.9 |
(3.8) |
Copper production |
kt |
20.2 |
17.9 |
12.8 |
20.2 |
15.7 |
28.7 |
Copper sales |
kt |
18.3 |
17.0 |
7.6 |
18.3 |
16.3 |
12.3 |
Cash costs (1) |
$/lb |
1.78 |
2.22 |
(19.8) |
1.78 |
2.09 |
(14.8) |
Zaldívar
Copper production at Zaldívar was 14,000 tonnes in Q1 2020, a 10.2% increase compared with the same period last year on higher throughput partially offset by lower grades and recoveries.
Cash costs at
ZALDÍVAR |
Year to Date |
Q1 |
Q4 |
|
|||
|
|
2020 |
2019 |
% |
2020 |
2019 |
% |
Daily ore throughput |
kt |
42.2 |
32.3 |
30.7 |
42.2 |
43.3 |
(2.5) |
Copper grade |
% |
0.99 |
1.09 |
(9.2) |
0.99 |
1.01 |
(2.0) |
Copper recovery (1) |
% |
61.3 |
64.4 |
(4.8) |
61.3 |
63.6 |
(3.6) |
Copper production - heap leach (2) |
kt |
11.0 |
9.5 |
15.8 |
11.0 |
12.6 |
(12.7) |
Copper production - total (2,3) |
kt |
14.0 |
12.7 |
10.2 |
14.0 |
16.1 |
(13.0) |
Copper sales (2) |
kt |
13.5 |
12.6 |
7.1 |
13.5 |
18.3 |
(26.2) |
Cash costs |
$/lb |
1.66 |
1.91 |
(13.1) |
1.66 |
1.67 |
(0.6) |
(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 in Q1 2020 were 1.6 million tonnes, 11.9% higher than in the same quarter last year and 1.2% higher than Q4 2019.
This increase in transport volumes were mainly as new haulage contracts are in place and the severe flooding in
TRANSPORT |
Year to Date |
Q1 |
Q4 |
|
|||
|
|
2020 |
2019 |
% |
2020 |
2019 |
% |
Rail |
kt |
1,221 |
1,145 |
6.7 |
1,221 |
1,212 |
0.8 |
Road |
kt |
405 |
308 |
31.6 |
405 |
395 |
2.6 |
Total tonnage transported |
kt |
1,626 |
1,453 |
11.9 |
1,626 |
1,607 |
1.2 |
Commodity prices and exchange rates
|
Year to Date |
Q1 |
Q4 |
|
|||
|
|
2020 |
2019 |
% |
2020 |
2019 |
% |
Copper |
|
|
|
|
|
|
|
Market price |
$/lb |
2.56 |
2.82 |
(9.4) |
2.56 |
2.67 |
(4.2) |
Realised price |
$/lb |
2.02 |
3.03 |
(33.2) |
2.02 |
2.88 |
(29.7) |
Gold |
|
|
|
|
|
|
|
Market price |
$/oz |
1,584 |
1,307 |
21.2 |
1,584 |
1,483 |
6.8 |
Realised price |
$/oz |
1,605 |
1,309 |
22.5 |
1,605 |
1,523 |
5.4 |
Molybdenum |
|
|
|
|
|
|
|
Market price |
$/lb |
9.7 |
11.8 |
(18.1) |
9.7 |
9.6 |
0.5 |
Realised price |
$/lb |
9.8 |
12.0 |
(18.7) |
9.8 |
6.5 |
51.1 |
Exchange rates |
|
|
|
|
|
|
|
Chilean peso |
per $ |
804 |
667 |
20.6 |
804 |
756 |
6.4 |
The spot commodity prices for copper, gold and molybdenum as at
The provisional pricing adjustments for copper, gold and molybdenum for the quarter were negative
This information is provided by RNS, the news service of the
The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of...
FOR OUR FULL DISCLAIMER CLICK HERE