Antofagasta Regulatory News (ANTO)

31 Oct 2007 10:00

Antofagasta PLC31 October 2007 Antofagasta plc 31 October 2007 Quarterly Production Report - Q3 2007 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. • 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. Group Total Q1 Q2 Q3 Q4 Acc Acc Full Year 2007 2007 2007 2007 2007 2006 2006 Total production of 105.9 106.1 100.6 312.6 334.3 465.5payable copper ('000tonnes)Total production of 2.1 2.8 2.5 7.4 7.0 9.8payable moly ('000tonnes)Weighted average 35.8 24.8 30.1 30.2 41.0 40.2cash costs (centsper pound) Los Pelambres Los Pelambres produced 66,600 tonnes of payable copper in Q3, 6.4% below Q2production. This was mainly due to lower ore grades, and reduced plantthroughput as a result of the higher proportion of the harder primary oretreated in the period. The forecast for full year production is now expected tobe approximately 285,000 tonnes, as the primary ore is continuing to affect theplant throughput. Molybdenum production was 2,500 tonnes in Q3 and 7,400 tonnes in the first ninemonths of 2007, 5.7% above the first nine months of 2006. The increase wasmainly due to the higher molybdenum grade, partly offset by the lowerrecoveries. Molybdenum production for the full year is expected to be around11,000 tonnes. Cash costs in Q3 were negative 19.6 cents per pound compared to negative 21.3cents per pound in Q2, an increase of 1.7 cents per pound. This was mainly dueto lower by-product credits as well as higher tolling charges, partly offset byreduced on-site and shipping costs. Cash costs during the first nine months of 2007 were negative 12.1 cents perpound compared with 17.2 cents per pound for the same period last year, adecrease of 29.3 cents per pound. This was mainly due to higher by-productcredits (reflecting the increase in molybdenum production and the averagemolybdenum price compared with the same period last year) and lower tollingcharges (mainly due to decreased price participation as a result of the 2007calendar year negotiations). This was partly offset by higher on-site costs, asa 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 butabove budget. Year-to-date production was also slightly ahead of budget due tobetter ore grades and higher metallurgical recoveries, partly offset by a lowerlevel of ore treated. Full year cathode production is expected to be 92,000tonnes. Cash costs in Q3 were 116.9 cents per pound, an increase of 10.4 cents per poundfrom the previous quarter, mainly due to higher variable energy costs (followingthe re-negotiation of the power supply contract) as well as higher acid and fuelprices. Cash costs for the first nine months of the year were 103.4 cents perpound, in line with budget. Michilla Michilla produced 11,400 tonnes of copper cathodes in Q3, and 34,900 tonnesduring the first nine months of the year, 5% above the year-to-date budget. Thiswas the result of the higher than expected levels of ore treated andmetallurgical recoveries, partly offset by the lower than expected grades. Fullyear 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 priorquarter, mainly due to higher costs of energy as well as other input costs. Yearto date cash costs of 137.7 cents are in line with budget. Transport The transport business continued its strong operational performance. Combinedrail and road volumes transported during the first nine months of the year were9.3% higher than the same period in 2006. The increase is mainly attributable tothe impact of the Spence mine, where the combined volumes of sulphuric acid andcopper cathodes accounted for more than 270,000 tonnes of the increase. Water The water division continued to perform well. Volumes sold during the year are5.8% above the same period of 2006, mainly explained by water volumes sold tothe Spence project. Los Pelambres Q1 Q2 Q3 Q4 Acc Acc Full Year 2007 2007 2007 2007 2007 2006 2006 Production statistics Daily average ore 125.0 126.0 120.9 123.9 123.5 127.4treated ('000 tonnes)Average ore grade 0.71 0.70 0.68 0.70 0.81 0.81(%)Average recovery 92.5 91.9 91.1 91.8 88.6 88.7(%)Concentrate produced 186.5 202.6 208.8 597.9 602.4 842.6('000 tonnes)Average concentrate 39.6 36.5 32.9 36.2 40.0 39.9grade(%)Fine copper in 73.1 73.6 68.9 215.6 238.2 335.2concentrate ('000 tonnes)Payable copper in 70.7 71.1 66.6 208.4 230.4 324.2concentrate ('000 tonnes) Average moly ore grade 0.033 0.030 0.027 0.030 0.027 0.028(%)Average moly recovery 66.7 75.6 78.7 73.3 76.2 76.1(%)Payable moly 2.1 2.8 2.5 7.4 7.0 9.8('000 tonnes) Cash costs statistics On-site and shipping 64.7 82.0 77.3 74.7 55.9 56.4costs(cents per pound)Tolling charges for 25.7 31.9 33.8 30.4 40.6 39.7concentrates(cents per pound)By - product credits (86.3) (135.2) (130.8) (117.2)(79.4) (79.7)(cents per pound) *Cash costs 4.2 (21.3) (19.6) (12.1) 17.2 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 26.3 24.7 26.3 28.7 28.7treated ('000 tonnes)Average ore grade 1.21 1.25 1.27 1.24 1.14 1.16(%)Average recovery 77.4 77.3 79.4 78.0 77.4 78.1(%)Copper cathodes 23.6 23.2 22.5 69.4 68.4 94.0('000 tonnes)Cash costs 87.4 106.5 116.9 103.4 78.3 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 15.4 15.1 15.2 15.0 15.2treated ('000 tonnes)Average ore grade 1.04 1.04 1.04 1.04 1.07 1.05(%)Average recovery 81.2 78.3 78.3 79.2 77.8 78.2(%)Copper cathodes 11.6 11.8 11.4 34.9 35.4 47.3('000 tonnes)Cash costs 123.1 141.4 148.8 137.7 123.9 126.4(cents per pound) Transport Q1 Q2 Q3 Q4 Acc Acc Full Year 2007 2007 2007 2007 2007 2006 2006 Rail tonnage 1,253 1,301 1,195 3,749 3,237 4,486transported('000 tons)Road tonnage 321 342 340 1,003 1,111 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 9,740 9,679 29,488 27,864 37,798potable anduntreated ('000 m3)** (**) Note: Water volumes include water transportation of 300,000 m3 in Q1,266,000 m3 in Q2 and 348,000 m3 in Q3 (270,000 m3 in Q1 2006, 740,000 m3 in Q22006 and 254,000 m3 in Q3). Enquiries - investor relations: Alejandro Riveraarivera@aminerals.cl Santiago: (56-2) 798 7145 Desmond O'Conordoconor@antofagasta.co.uk London: (44) 20 7808 0988 Hussein Barmahbarma@antofagasta.co.uk London: (44) 20 7808 0988 Enquiries - media: 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