Antofagasta Regulatory News (ANTO)

27 Jul 2005 10:00

Antofagasta PLC27 July 2005 The following statement has been released by Antofagasta plc and is distributedin London by Bankside Consultants Ltd on behalf of the Company. Contact: KeithIrons, 020 7367 8873. 27 July 2005 Antofagasta plc Quarterly Production Report - Q2 2005 Highlights * Group cash costs remain at a record low due to continued high molybdenum prices. * Group production in Q2 was 108,500 tonnes compared with 118,900 tonnes in Q1. * Molybdenum production at Los Pelambres increased to 2,500 tonnes in Q2 compared with 2,200 tonnes in Q1. Q1 Q2 Q3 Q4 Acc Acc Full YearGroup Total 2005 2005 2005 2005 2005 2004 2004Total copper production('000 tonnes) 118.9 108.5 227.4 235.4 498.4Weighted average Cash costs (cents per pound) (7.9) (9.6) (8.7) 31.2 24.3 Los PelambresLos Pelambres produced 74,400 tonnes of payable copper in Q2, 7.7% less than inthe previous quarter. This reduction was due both to lower ore throughput as aresult of planned maintenance carried out in June as well as the lower ore gradeexpected in the current sequence of the mine plan. Production in the first sixmonths of the year reached 154,900 tonnes whilst shipments, due to timingdifferences, were 150,600 tonnes. Molybdenum production rose from 2,200 tonnes in Q1 to 2,500 tonnes in Q2, due tobetter grades and recoveries. Molybdenum prices also increased, with marketprices averaging US$35.3 per pound compared with US$31.4 per pound in Q1. Theby-product credit reached 126.8 cents per pound of copper produced, 16.9 centsabove Q1. The significant by-product credit outweighed underlying costs by 50.6 cents(i.e. negative cash costs) compared with -45.9 cents in Q1. Increasedunderlying costs were affected by the lower production volume as well as highertreatment and refining charges due to a significant volume of spot sales inJune. El Tesoro El Tesoro produced 23,600 tonnes in Q2, 10.3% lower than in the previous quartermainly due to reduced ore throughput while additional processing capacity wasinstalled. In addition, the SX-EW plant suffered a temporary stoppage in Junedue to a rupture in the raffinate pipeline which has since been resolved.Nevertheless, these factors were partly offset by the higher ore grade in thequarter in line with the mine plan. Cash costs increased 2.3 cents per pound compared to the previous quarter toreach 60.1 cents per pound in Q2 in line with expectations. The higher cash costwas due to the lower production level and higher costs arising from a higherwaste-to-ore ratio, fuel costs and acid costs. El Tesoro is continuing to seek environmental approval for the crushing plantexpansion which may delay its implementation and could marginally impact thecurrent production forecast of 99,000 tonnes for 2005 by up to 5,000 tonnes. Michilla Production in Q1 was 10,600 tonnes, 11.7% below the previous quarter. Thedecrease was mainly due to the lower ore grade as a result of operationalfactors in the underground mine referred to in last quarter's report as well aslower grades in the Lince open pit. In addition the ore processing level waslower this quarter due to a difficulty with the secondary crushing system. Cash costs reached 123.2 c/lb in Q2, 20.8 cents per pound over the previousquarter due primarily to lower production and increases in acid, fuel andreagent prices. TransportTotal tonnage transported (both rail and road) in the first half of 2005 reached2.9 million tons which represents an increase of 4% compared to the same periodlast year. Water Water sales in the first half of 2005 increased 3.3% to 16.6 million cubicmetres in comparison with the same period last year. Q1 Q2 Q3 Q4 Acc Acc Full YearLos Pelambres 2005 2005 2005 2005 2005 2004 2004 Daily average ore treated('000 tonnes) 129.0 124.0 126.5 121.4 125.9 Average ore grade(%) 0.79 0.77 0.78 0.88 0.88 Average recovery(%) 91.0 90.2 90.6 88.1 89.1 Concentrate produced('000 tonnes) 222.0 202.6 424.6 453.5 948.8 Average concentrate grade(%) 37.5 38.6 38.0 37.6 38.2 Fine copper in concentrate('000 tonnes) 83.3 76.9 160.3 170.7 362.6 Payable copper inconcentrate 80.6 74.4 154.9 165.0 350.6('000 tonnes) Payable moly('000 tonnes) 2.2 2.5 4.7 3.7 7.9 Cash costs (beforeby-product) (cents perpound) 64.0 76.2 69.9 53.1 53.7 By-product credits(cents per pound) (109.9) (126.8) (118.0) (35.0) (45.8) Cash costs(cents per pound) (45.9) (50.6) (48.1) 18.0 7.9 Q1 Q2 Q3 Q4 Acc Acc 2004 Full YearEl Tesoro 2005 2005 2005 2005 2005 2004Daily average ore treated('000 tonnes)* 26.3 22.9 24.6 24.2 25.4 Average ore grade(%) 1.34 1.41 1.37 1.34 1.35 Average recovery(%) 82.4 81.8 82.1 78.2 78.1 Copper cathodes('000 tonnes) 26.3 23.6 49.9 46.9 97.8 Cash costs(cents per pound) 57.8 60.1 58.9 50.5 52.4 Q1 Q2 Q3 Q4 Acc Acc Full YearMichilla 2005 2005 2005 2005 2005 2004 2004Daily average ore treated('000 tonnes) 15.3 14.5 14.9 15.9 16.1 Average ore grade(%) 1.09 0.99 1.04 1.08 1.11 Average recovery(%) 76.1 75.7 75.9 75.1 75.4 Copper cathodes('000 tonnes)* 12.0 10.6 22.6 23.5 50.0 Cash costs(cents per pound) 102.4 123.2 112.2 84.7 85.6 Q1 Q2 Q3 Q4 Acc Acc Full YearTransport 2005 2005 2005 2005 2005 2004 2004Rail tonnage transported('000 tons) 1,126 1,090 2,216 2,132 4,479 Road tonnage transported('000 tons) 348 379 728 698 1,414 Q1 Q2 Q3 Q4 Acc Acc Full yearWater 2005 2005 2005 2005 2005 2004 2004Water volume sold - potableand untreated ('000 m3)* 8,315 8,242 16,557 16,025 32,575 (*) Note : Minor adjustments have been made to the Q1 2005 figures previouslyreported for El Tesoro daily average ore treated, Michilla copper cathodes (andtherefore group copper production and group cash cost) and water sales. For further enquiries: Desmond O'Conor, Antofagasta plcdoconor@antofagasta.co.uk (44) 20 7808 0988 Hussein Barma, Antofagasta plchbarma@antofagasta.co.uk (44) 20 7808 0988 Alejandro Rivera, Antofagasta Mineralsarivera@aminerals.cl (56-2) 377 5145 Issued by: Keith Irons, Bankside Consultantskeith@bankside.com (44) 20 7367 8873 This information is provided by RNS The company news service from the London Stock Exchange