Antofagasta Regulatory News (ANTO)

3 May 2006 10:00

Antofagasta PLC03 May 2006 3 May 2006 Antofagasta plc Quarterly Production Report - Q1 2006 Highlights • Group copper production in Q1 of 107,000 tonnes is in line with forecast but 8.4% below the quarterly average for 2005. • Molybdenum production at Los Pelambres in Q1 was 2,000 tonnes, compared with 8,700 tonnes for the 2005 full year. • Group cash costs for Q1 were 49.7 c/lb compared with 13.9 c/lb in 2005, mainly due to lower molybdenum prices in Q1 compared with 2005. Group Q1 Q2 Q3 Q4 Acc Acc Full YearTotal 2006 2006 2006 2006 2006 2005 2005 Total production of payable copper ('000tonnes) 107.0 107.0 118.9 467.3 Total production of payable moly ('000 tonnes) 2.0 2.0 2.2 8.7 Weighted average cash costs (cents per pound) 49.7 49.7 (7.9) 13.9 Los Pelambres Los Pelambres produced 74,100 tonnes of payable copper in the first quarter, inline with forecast but 8.1% below the quarterly average for 2005. The decreasewas mainly due to lower throughput which resulted from a higher proportion ofharder primary ore under the current phase of the mine plan. The decrease inproduction was also due to lower recoveries, partly compensated by the higherore grade. Molybdenum production in the first quarter was 2,000 tonnes, 7.7% below thequarterly average for 2005. The decrease was mainly due to the lower throughputof ore and lower recoveries, offset by the higher molybdenum grade. Cash costs in the quarter increased to 29.8 c/lb, compared with negative 17.1 c/lb for 2005. The increase was mainly due to the lower by-product credit whichdecreased by 32.3 c/lb, resulting from lower market molybdenum prices (whichaveraged US$23.0/lb in the first quarter against US$32.0/lb in 2005). Molybdenumproduction was also lower this quarter. Treatment and refining charges increasedby 7.2 c/lb, mainly due to price participation by smelters as the LME copperprice increased in the first quarter of 2006. On site and shipping costs rose by7.4 c/lb compared with 2005 but remained in line with the fourth quarter of lastyear. The increase was due mainly to the lower production level, together withhigher shipping costs, fuel prices and a stronger Chilean peso. El Tesoro Cathode production at El Tesoro was 20,800 tonnes in the first quarter, 3,800tonnes below the quarterly average for 2005. This was mainly due to the expectedlower ore grade combined with lower recoveries, compensated in part by thehigher processing level following the completion of the 10.5 million tonnes peryear throughput expansion at the beginning of this year. Cash costs at El Tesoro were 79.6 c/lb this quarter, 13.5 cents higher than theaverage for 2005, due to the lower production level and higher movement ofmaterial at the mine (which increased 19.3% compared with 2005). Higher inputcosts included fuel and explosives prices and copper price-linked payments. Michilla Michilla produced 12,100 tonnes of copper cathodes in the first quarter, anincrease of 4.5% over the quarterly average for 2005. This was due to higher oregrades and improved recoveries, partly offset by the lower expected treatmentlevel. Cash costs were 120.2 c/lb, marginally above the average for 2005 but lower thanthe current forecast for the year. The cash costs at Michilla mainly reflecttransport and loading costs, as well as higher input costs and the strongerChilean peso. These factors were mostly offset by the higher production level. Transport The transport division continued to perform strongly, with total rail tonnagesup 5.3% and road tonnages up 0.6% over the quarterly average for 2005. Water The water division had a strong first quarter, with volumes rising to 9.3million cubic metres. This represented an increase of 12.5% compared with thequarterly average of 2005 and 11.9% with the first quarter of 2005. Thisreflected both higher domestic consumption and increased sales to miningcustomers. Los Pelambres Q1 Q2 Q3 Q4 Acc Acc Full Year 2006 2006 2006 2006 2006 2005 2005 Production statistics Daily average ore 120.9 120.9 129.0 128.1treated ('000 tonnes)Average ore grade 0.81 0.81 0.79 0.80(%)Average recovery 88.1 88.1 91.0 89.2(%)Concentrate produced 194.8 194.8 222.0 865.1('000 tonnes)Average concentrate 39.6 39.6 37.5 38.5grade (%)Fine copper in 76.6 76.6 83.3 333.8concentrate ('000 tonnes)Payable copper in 74.1 74.1 80.6 322.8concentrate ('000 tonnes) Average moly ore 0.026 0.026 0.024 0.022grade (%)Average moly 74.4 74.4 78.1 79.9recovery (%)Payable moly 2.0 2.0 2.2 8.7('000 tonnes) Cash costs statistics On-site and shipment 54.5 54.5 41.8 47.1costs (cents per pound)Tolling charges for concentrates 34.8 34.8 22.2 27.6(cents per pound)By - product credits (59.5) (59.5) (109.9) (91.8)(cents per pound) *Cash costs 29.8 29.8 (45.9) (17.1)(cents per pound) (*) Note: By-products credits do not include any costs attributable to theproduction of molybdenum concentrate. By-product calculations also do not takeinto account unrealised mark-to-market gains at the beginning or end of eachperiod. El Tesoro Q1 Q2 Q3 Q4 Acc Acc Full Year 2006 2006 2006 2006 2006 2005 2005 Daily average ore 29.7 29.7 26.3 27.2treated ('000 tonnes)Average ore grade 0.99 0.99 1.34 1.23(%)Average recovery 77.9 77.9 82.4 80.2(%)Copper cathodes 20.8 20.8 26.3 98.1('000 tonnes)Cash costs 79.6 79.6 57.8 66.1(cents per pound) Michilla Q1 Q2 Q3 Q4 Acc Acc Full Year 2006 2006 2006 2006 2006 2005 2005 Daily average ore 14.6 14.6 15.3 14.9treated('000 tonnes)Average ore grade 1.13 1.13 1.09 1.10(%)Average recovery 76.2 76.2 76.1 75.4(%)Copper cathodes 12.1 12.1 12.0 46.4('000 tonnes)Cash costs 120.2 120.2 102.4 118.8(cents per pound) Transport Q1 Q2 Q3 Q4 Acc Acc Full Year 2006 2006 2006 2006 2006 2005 2005 Rail tonnage transported 1,141 1,141 1,126 4,336('000 tons)Road tonnage transported 383 383 348 1,522('000 tons) Water Q1 Q2 Q3 Q4 Acc Acc Full Year 2006 2006 2006 2006 2006 2005 2005 Water volume sold - potable 9,304 9,304 8,315 33,074and untreated ('000 m3) ** (**) Note: Water volumes include water transportation of 270,000 m3 in Q1. For further enquiries: Desmond O'Conor, Antofagasta plcdoconor@antofagasta.co.uk (44) 20 7808 0988 Hussein Barma, Antofagasta plc (44) 20 7808 0988hbarma@antofagasta.co.uk Alejandro Rivera, Antofagasta Minerals (56-2) 377 5145arivera@aminerals.cl Issued by: Keith Irons, Bankside Consultants (44) 20 7367 8873keith@bankside.com Oliver Winters, Bankside Consultants (44) 20 7367 8874oliver.winters@bankside.com This information is provided by RNS The company news service from the London Stock Exchange