Antofagasta Regulatory News (ANTO)

25 Jan 2006 10:00

Antofagasta PLC25 January 2006 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. 25 January 2006 Antofagasta plcQuarterly Production Report - Q4 2005 Highlights • Group annual production of payable copper for 2005 reached 467,300 tonnes as forecast. • Molybdenum production at Los Pelambres increased 10.9% over 2004 to 8,700 tonnes. • Group cash costs for 2005 were reduced to an annual record low of 13.9 c/lb due to improved by-product credits. Cash costs at Los Pelambres were negative 17.1 c/lb. Group Total Q1 Q2 Q3 Q4 Full Year Full Year 2005 2005 2005 2005 2005 2004 Total production ofpayable copper 118.9 108.5 116.0 123.9 467.3 498.4('000 tonnes) Total production ofpayable moly 2.2 2.5 2.0 2.0 8.7 7.9('000 tonnes) Weighted average (7.9) (9.6) 31.2 39.1 13.9 24.3cash costs (centsper pound) Los Pelambres Los Pelambres produced 86,900 tonnes of payable copper in Q4, the highestquarterly volume of the year. Annual production for 2005 reached 322,800 tonnes,with shipments of 318,100 tonnes. As expected under the mine plan, productiondecreased by 7.9% compared to the previous year. This was mainly due to a lowerore grade of 0.80% in 2005 compared with 0.88% in 2004, which was partly offsetby a 1.8% increase in throughput which reached an average of 128,100 tonnes perday (tpd). Molybdenum production in Q4 was similar to Q3 at 2,000 tonnes. Total productionfor 2005 reached 8,700 tonnes, an increase of 10.9% over 2004, with shipments inthe year of 8,500 tonnes. By-product credits (excluding period-endmark-to-market adjustments) more than doubled in 2005 to 91.8 c/lb due to highermolybdenum market prices (which in 2005 averaged US$32 per pound (2004 - US$16.2per pound)) as well as increased production. Cash costs before by-product credits were 74.7 c/lb in 2005. The increase of 21c/lb over 2004 was mainly due to industry cost pressures, principally higher TC/RCs for copper concentrate and higher roasting charges for molybdenumconcentrate which together increased by 11.1 c/lb to 27.6 c/lb in 2005. Othercost pressures included fuel, energy and steel prices as well as thestrengthening of the Chilean peso against the US dollar. Operational factorsincluded the impact of longer haulage distances within the mine and higher fleetmaintenance costs. Nevertheless, net cash costs fell from 7.9 cents per pound in2004 to a record negative 17.1 cents per pound this year due to very strongby-product credits. El Tesoro Copper production in Q4 was 24,300 tonnes. Annual production for 2005 reached98,100 tonnes, which compared favourably with 97,800 tonnes produced in 2004, asthe higher ore throughput level compensated for the expected lower ore grade. Cash costs for 2005 were 66.1 c/lb, an increase of 13.7 c/lb compared with 2004.This increase was due to a higher waste-to-ore ratio, lower ore grades and costpressures including higher water costs indexed to the copper price, the strongerChilean peso and higher fuel, energy, and sulphuric acid prices. Michilla Copper production during Q4 was 12,700 tonnes, the highest quarterly figure in2005. Total production for the year reached 46,400 tonnes, a decrease of 7.2%compared to the previous year due to lower throughput and slightly lower oregrades. The lower throughput was due to previously reported operational issuesat the underground mine (since resolved) which necessitated changes in the mineworking sequence and modifications required to the secondary crushing line. Cash costs reached 118.8 c/lb in 2005, 33.2 c/lb over the previous year, dueboth to operational factors and industry cost pressures. Operational factorsincluded the lower ore grade in the open pit due to old mine workings, a higherwaste-to-ore ratio and the above-mentioned operational issues. Cost pressuresincluded the strengthening of the Chilean peso, higher acid prices and to alesser extent higher fuel costs. Transport Rail and road transport volumes in 2005 were 4.3 million tons and 1.5 milliontons respectively. The combined volumes were very marginally below 2004 due tominor temporary differences in volumes moved by some customers. Water The water business continued to perform well in 2005, with sales volumesreaching 33.1 million cubic metres, an increase of 1.5% compared to last year. Los Pelambres Q1 Q2 Q3 Q4 Full Year Full Year 2005 2005 2005 2005 2005 2004 Daily average oretreated ('000 tonnes) 129.0 124.0 131.9 127.6 128.1 125.9 Average copper oregrade (%) 0.79 0.77 0.80 0.83 0.80 0.88 Average copperrecovery (%) 91.0 90.2 88.4 87.6 89.2 89.1 Copper concentrateproduced ('000 tonnes) 222.0 202.6 220.9 219.6 865.1 948.8 Average copperconcentrate grade (%) 37.5 38.6 39.0 38.8 38.5 38.2 Fine copper inconcentrate 83.3 76.9 83.7 89.9 333.8 362.6('000 tonnes) Payable copper inconcentrate ('000tonnes) 80.6 74.4 81.0 86.9 322.8 350.6 Average moly ore grade (%) 0.024 0.025 0.021 0.019 0.022 0.022 Average moly recovery (%) 78.1 81.9 79.9 79.4 79.9 79.6 Payable moly inconcentrate ('000tonnes) 2.2 2.5 2.0 2.0 8.7 7.9 Cash costs (beforeby-product) (cents perpound) 64.0 76.2 75.6 82.5 74.7 53.7 By-product credits (109.9) (126.8) (70.0) (65.5) (91.8) (45.8)(cents per pound) Cash costs (45.9) (50.6) 5.6 17.0 (17.1) 7.9(cents per pound) El Tesoro Q1 Q2 Q3 Q4 Full Year Full Year 2005 2005 2005 2005 2005 2004 Daily average ore treated 26.3 22.9 29.0 30.4 27.2 25.4('000 tonnes) Average ore grade 1.34 1.41 1.14 1.08 1.23 1.35(%) Average recovery 82.4 81.8 75.0 81.6 80.2 78.1(%) Copper cathodes 26.3 23.6 24.0 24.3 98.1 97.8('000 tonnes) Cash costs 57.8 60.1 73.1 74.1 66.1 52.4(cents per pound) Michilla Q1 Q2 Q3 Q4 Full Year Full Year 2005 2005 2005 2005 2005 2004 Daily average ore 15.3 14.5 14.9 15.0 14.9 16.1treated ('000 tonnes) Average ore grade 1.09 0.99 1.11 1.20 1.10 1.11(%) Average recovery 76.1 75.7 74.8 75.2 75.4 75.4(%) Copper cathodes 12.0 10.6 11.1 12.7 46.4 50.0('000 tonnes) Cash costs 102.4 123.2 127.6 123.0 118.8 85.6(cents per pound) Transport Q1 Q2 Q3 Q4 Full Year Full Year 2005 2005 2005 2005 2005 2004 Rail tonnage transported 1,126 1,090 1,085 1,035 4,336 4,479('000 tons) Road tonnage transported 348 379 395 400 1,522 1,414('000 tons) Water Q1 Q2 Q3 Q4 Full Year Full Year 2005 2005 2005 2005 2005 2004 Water volume sold -potable and untreated 8,315 8,242 7,969 8,548 33,074 32,575('000 m3)* (*) Note: Water volumes include water transportation of 336 thousand m3 in Q1, 234 thousand m3 in Q2, 236 thousand m3 in Q3 and 241 thousand m3 in Q4. 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