Antofagasta Regulatory News (ANTO)

3 May 2007 10:00

Antofagasta PLC03 May 2007 Antofagasta plc 3 May 2007 Quarterly Production Report - Q1 2007 Highlights • Group copper production in Q1 was 105,900 tonnes, in line with forecast but 9.0% below the quarterly average for 2006. • Molybdenum production at Los Pelambres in Q1 was 2,100 tonnes compared with the quarterly average of 2,500 tonnes in 2006, mainly due to inventory movements and lower recoveries in the quarter. • Group cash costs for Q1 were 35.8 cents per pound compared with 40.2 cents per pound in the 2006 full year, due to improved by-product credits and lower tolling charges. Group Total Q1 Q2 Q3 Q4 Acc Acc Full Year 2007 2007 2007 2007 2007 2006 2006 Total production of 105.9 105.9 107.0 465.5payable copper ('000 tonnes) Total production of 2.1 2.1 2.0 9.8payable moly ('000 tonnes) Weighted average cash 35.8 35.8 49.7 40.2costs (cents per pound) Los Pelambres Los Pelambres produced 70,700 tonnes of payable copper in the first quarter ofthe year, a decrease of 12.8% over the quarterly average for 2006. Thisreduction was mainly due to the expected decrease in grades and also to thelower plant throughput resulting from the higher proportion of hard ore thisquarter. This was partly offset by the improved recoveries due to the increasein plant capacity. Molybdenum production in the first quarter was 2,100 tonnes, compared with thequarterly average in 2006 of 2,500 tonnes. The decrease resulted mainly frominventory movements. Lower recoveries and the lower plant throughput were offsetby higher molybdenum grades. Cash costs during the first quarter of the year decreased to 4.2 cents perpound, compared with 16.4 cents per pound in the 2006 full year. This resultedfrom a combination of lower tolling charges and higher by-product credits,partly offset by higher on-site costs. Tolling charges decreased by 14.0 centsper pound, due to improved annual terms and lower price participation.By-product credits (expressed in cents per pound of copper produced) improved by6.6 cents as a result of lower copper production in the quarter and highermolybdenum prices. On-site costs increased by 8.3 cents mainly due to the impactof lower ore grades and plant throughput. As explained in the Group's 2006 preliminary results announcement of 13 March2007, there are a number of claims currently at first instance or on appeal inthe Chilean courts against third parties (either governmental authorities orformer owners of land in the El Mauro area) which relate to the Mauro tailingsdam project. None of these cases are directly against Los Pelambres, but in somecases the company has participated in proceedings in case an eventual judgementaffects the Mauro tailings dam project. The Group is confident that these claimswill not have any material impact on the project. Construction of the dam iscontinuing in accordance with the original schedule and the project is expectedto be completed as planned by the end of 2007. El Tesoro Cathode production at El Tesoro in the first quarter was 23,600 tonnes,marginally above the quarterly average for 2006. This reflected the increase inore grades, partly offset by the decrease in plant throughput and slightly lowerrecoveries. Cash costs in the first quarter were 87.4 cents per pound, 8.8 cents above theprevious full year but below forecast levels. The increase resulted from thehigher waste to ore ratio, and also from the higher prices and consumption ofsulphuric acid. Michilla Michilla produced 11,600 tonnes of copper cathodes in the first quarter of theyear, in line with forecast but slightly below the quarterly average of 2006.This was due to minor reductions in throughput and ore grades, offset byimproved recoveries due to the higher proportion of sulphide ore processed. Cash costs in Q1 were 123.1 cents per pound, 2.6% lower than the 2006 full year.This was mainly due to lower transportation costs. Transport The transport division continued to perform strongly. Rail tonnages in the firstquarter were 1,253,000 tons, 11.7% higher than the quarterly average for 2006.This compensated for a reduction in road tonnages. Water The water division also performed well with volumes up by 6.6% over thequarterly average for 2006 mainly due to increased sales to industrialcustomers. Los Pelambres Q1 Q2 Q3 Q4 Acc Acc Full Year 2007 2007 2007 2007 2007 2006 2006Production statistics Daily average ore treated 125.0 125.0 120.9 127.4('000 tonnes) Average ore grade 0.71 0.71 0.81 0.81(%) Average recovery 92.5 92.5 88.1 88.7(%) Concentrate produced 186.5 186.5 194.8 842.6('000 tonnes) Average concentrate grade 39.6 39.6 39.6 39.9(%) Fine copper in concentrate 73.1 73.1 76.6 335.2('000 tonnes) Payable copper in 70.7 70.7 74.1 324.2concentrate ('000 tonnes) Average moly ore grade 0.033 0.033 0.026 0.028(%) Average moly recovery 66.7 66.7 74.4 76.1(%) Payable moly 2.1 2.1 2.0 9.8('000 tonnes) Cash costs statistics On-site and shipment costs 64.7 64.7 54.5 56.4(cents per pound) Tolling charges for 25.7 25.7 34.8 39.7concentrates (cents per pound) By - product credits (86.3) (86.3) (59.5) (79.7)(cents per pound) * Cash costs 4.2 4.2 29.8 16.4(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 2007 2007 2007 2007 2007 2006 2006 Daily average ore 27.8 27.8 29.7 28.7treated ('000 tonnes) Average ore grade 1.21 1.21 0.99 1.16(%) Average recovery 77.4 77.4 77.9 78.1(%) Copper cathodes 23.6 23.6 20.8 94.0('000 tonnes) Cash costs 87.4 87.4 79.6 78.6(cents per pound) Michilla Q1 Q2 Q3 Q4 Acc Acc Full Year 2007 2007 2007 2007 2007 2006 2006 Daily average ore 15.2 15.2 14.6 15.2treated ('000 tonnes) Average ore grade 1.04 1.04 1.13 1.05(%) Average recovery 81.2 81.2 76.2 78.2(%) Copper cathodes 11.6 11.6 12.1 47.3('000 tonnes) Cash costs 123.1 123.1 120.2 126.4(cents per pound) Transport Q1 Q2 Q3 Q4 Acc Acc Full Year 2007 2007 2007 2007 2007 2006 2006 Rail tonnage 1,253 1,253 1,122 4,486transported ('000 tons) Road tonnage 321 321 383 1,456transported ('000 tons) Water Q1 Q2 Q3 Q4 Acc Acc Full Year 2007 2007 2007 2007 2007 2006 2006 Water volume sold - 10,069 10,069 9,304 37,798potable and untreated ('000 m3) ** (**) Note: Water volumes include water transportation of 300,000 m3 in Q1(270,000 m3 in Q1 2006 and total for 2006 of 1,604,000 m3). For further enquiries: Alejandro Riveraarivera@aminerals.cl Santiago: (56-2) 377 5145 Desmond O'Conordoconor@antofagasta.co.uk London: (44) 20 7808 0988 Hussein Barma London: (44) 20 7808 0988hbarma@antofagasta.co.uk 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