Antofagasta Q3 copper production declines due to lower ore grades
hemscott.com
Highlights
• Group copper production in Q3 was 100,600 tonnes compared to 106,100
tonnes in Q2, mainly due to lower ore grades and plant throughput at Los
Pelambres.
• Copper production in the first nine months of 2007 was 312,600 tonnes
compared with 334,300 tonnes in the first nine months of 2006.
• Molybdenum production at Los Pelambres in the first nine months of 2007
was 7,400 tonnes compared with 7,000 tonnes in the first nine months of
2006. Production in Q3 was 2,500 tonnes compared with 2,800 tonnes in Q2 due
to the lower throughput and marginally lower molybdenum ore grades.
• Group cash costs in Q3 were 30.1 cents per pound compared with 24.8
cents per pound in Q2, reflecting the continued strong by-product credits.
Los Pelambres
Los Pelambres produced 66,600 tonnes of payable copper in Q3, 6.4% below Q2
production. This was mainly due to lower ore grades, and reduced plant
throughput as a result of the higher proportion of the harder primary ore
treated in the period. The forecast for full year production is now expected to
be approximately 285,000 tonnes, as the primary ore is continuing to affect the
plant throughput.
Molybdenum production was 2,500 tonnes in Q3 and 7,400 tonnes in the first nine
months of 2007, 5.7% above the first nine months of 2006. The increase was
mainly due to the higher molybdenum grade, partly offset by the lower
recoveries. Molybdenum production for the full year is expected to be around
11,000 tonnes.
Cash costs in Q3 were negative 19.6 cents per pound compared to negative 21.3
cents per pound in Q2, an increase of 1.7 cents per pound. This was mainly due
to lower by-product credits as well as higher tolling charges, partly offset by
reduced on-site and shipping costs.
Cash costs during the first nine months of 2007 were negative 12.1 cents per
pound compared with 17.2 cents per pound for the same period last year, a
decrease of 29.3 cents per pound. This was mainly due to higher by-product
credits (reflecting the increase in molybdenum production and the average
molybdenum price compared with the same period last year) and lower tolling
charges (mainly due to decreased price participation as a result of the 2007
calendar year negotiations). This was partly offset by higher on-site costs, as
a result of increased machinery hire, maintenance, energy, fuel and oil costs.
El Tesoro
Cathode production at El Tesoro in Q3 was 22,500 tonnes, slightly below Q2 but
above budget. Year-to-date production was also slightly ahead of budget due to
better ore grades and higher metallurgical recoveries, partly offset by a lower
level of ore treated. Full year cathode production is expected to be 92,000
tonnes.
Cash costs in Q3 were 116.9 cents per pound, an increase of 10.4 cents per pound
from the previous quarter, mainly due to higher variable energy costs (following
the re-negotiation of the power supply contract) as well as higher acid and fuel
prices. Cash costs for the first nine months of the year were 103.4 cents per
pound, in line with budget.
Michilla
Michilla produced 11,400 tonnes of copper cathodes in Q3, and 34,900 tonnes
during the first nine months of the year, 5% above the year-to-date budget. This
was the result of the higher than expected levels of ore treated and
metallurgical recoveries, partly offset by the lower than expected grades. Full
year cathode production is expected to be 46,000 tonnes.
Cash costs in Q3 were 148.8 cents per pound, 7.4 cents per pound above the prior
quarter, mainly due to higher costs of energy as well as other input costs. Year
to date cash costs of 137.7 cents are in line with budget. – Edited Press Release |
