Antofagasta Regulatory News (ANTO)

26 Jan 2005 10:00

Antofagasta PLC26 January 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 7444 4155. 26 January 2005 Antofagasta plcQuarterly Production Report - Q4 2004 Highlights • Annual group copper production increased by 5.6% to 498,400 tonnes in 2004. • Group cash costs for the year reduced by 33.2% to 24.3 cents per pound in 2004, as Los Pelambres benefited from exceptional molybdenum prices. Q1 Q2 Q3 Q4 Full Year Full Year Group Total 2004 2004 2004 2004 2004 2003 Total copper production('000 tonnes) 109.0 126.4 130.7 132.2 498.4 471.8 Weighted averageCash costs (cents per pound) 41.9 21.9 24.9 11.6 24.3 36.4 Los Pelambres Los Pelambres produced 350,600 tonnes in 2004 - an increase of 7.3% over 2003.The increase was primarily due to the completion of modifications to thegrinding lines at the end of the previous year. The resulting increase in theprocessing level compensated for lower ore grades and lower recoveries.Shipments of concentrate in 2004 amounted to 352,200 tonnes. Molybdenumproduction was 9.6% lower at 7,900 tonnes, due to lower ore grades and lowerrecoveries. Annual cash costs averaged 7.9 cents per pound, a significant decrease of 73.1%over 2003. The main reason for this exceptionally low figure was thesubstantial increase in the market price of Molybdenum, which averaged US$16.2per pound in 2004 compared to US$5.3 per pound in 2003. Consequently theby-product credit for 2004 was equivalent to 45.8 cents per pound of copperproduced, an increase of 181.3% over the by-product credit of 16.3 cents in2003. Los Pelambres' cash costs in 2004 Q4 were negative 11.3 cents. El Tesoro In 2004, El Tesoro produced 97,800 tonnes of cathodes - 5.8% more than in 2003.Optimisation of the crushing line resulted in a higher level of ore processed,which compensated for lower grades and marginally lower recoveries. Orecrushing capacity has now been raised to 9.7 million tonnes per year compared tothe previous 9.0 million tonnes level. The average cash cost in 2004 increased to 52.4 cents per pound compared to 42.4cents per pound in 2003. A combination of lower ore grades, higher costs ofsulphuric acid and fuel as well as a higher waste to ore ratio in the minecaused the increase. Michilla Cathode production was 50,000 tonnes compared to 52,700 tonnes in 2003. Thefall in production was caused by a reduction in grades during the period andsome operational problems - since resolved - which were encountered at thebeginning of the year. The impact on production of the lower grades was partlylessened by the higher ore throughput achieved. Notwithstanding, Michilla'sproduction in the last quarter of 2004 recovered strongly to a production levelof 13,800 tonnes which exceeded the average quarterly production level in 2003. Michilla's cash cost increased from 69.8 cents per pound in 2003 to 85.6 centsper pound in 2004. Once again, lower grades and higher sulphuric acid and fuelcosts were the principal reasons, accentuated by a stronger Chilean peso. Transport (FCAB) Freight carried in 2004 increased to 4.5 million tons - a new all time recordfor the railway. In Q4, the FCAB acquired a 30% stake in the AntofagastaInternational Terminal for US$2.9 million, continuing its strategy of makingacquisitions which can broaden its services to clients in the region. Aguas de Antofagasta S.A. Water sales reached 32.6 million cubic metres and exceeded FCAB's expectationsat the time the concession was acquired in December 2003. Q1 Q2 Q3 Q4 Full Year Full Year Los Pelambres 2004 2004 2004 2004 2004 2003 Daily average ore treated('000 tonnes) 115.4 127.3 128.4 132.2 125.9 113.3 Average ore grade(%) 0.84 0.93 0.91 0.86 0.88 0.91 Average recovery(%) 87.4 88.7 89.3 90.6 89.1 89.9 Concentrate produced('000 tonnes) 186.9 266.6 254.1 241.1 948.8 826.5 Average concentrate grade(%) 40.0 36.0 38.0 39.5 38.2 40.9 Fine copper in concentrate('000 tonnes) 74.8 95.9 96.7 95.2 362.6 337.8 Payable copper in concentrate('000 tonnes) 72.4 92.6 93.5 92.1 350.6 326.7 Payable moly('000 tonnes) 1.8 1.9 2.1 2.1 7.9 8.7 Cash costs(cents per pound) 33.3 6.2 8.8 (11.3) 7.9 29.3 Q1 Q2 Q3 Q4 Full Year Full Year El Tesoro 2004 2004 2004 2004 2004 2003 Daily average ore treated('000 tonnes) 24.2 24.2 27.0 26.0 25.4 22.1 Average ore grade(%) 1.35 1.33 1.33 1.39 1.35 1.46 Average recovery(%) 81.0 75.4 77.9 78.3 78.1 78.2 Copper cathodes('000 tonnes) 24.0 22.9 24.6 26.3 97.8 92.4 Cash costs(cents per pound) 47.2 53.9 55.2 53.2 52.4 42.4 Q1 Q2 Q3 Q4 Full Year Full Year Michilla 2004 2004 2004 2004 2004 2003 Daily average ore treated('000 tonnes) 16.8 15.1 16.2 16.4 16.1 15.6 Average ore grade(%) 1.09 1.06 1.15 1.13 1.11 1.25 Average recovery(%) 75.2 74.9 74.8 76.6 75.4 75.0 Copper cathodes('000 tonnes) 12.6 10.9 12.6 13.8 50.0 52.7 Cash costs(cents per pound) 81.2 88.7 85.4 87.4 85.6 69.8 Q1 Q2 Q3 Q4 Full Year Full Year Transport 2004 2004 2004 2004 2004 2003 Rail tonnage transported('000 tons) 1,056 1,076 1,165 1,182 4,479 4,388 Q1 Q2 Q3 Q4 Full Year Water 2004 2004 2004 2004 2004 Water volume sold - potable anduntreated ('000 m3) 7,937 8,088 8,203 8,347 32,575 For further enquiries: Philip Adeane, Antofagasta plcnwakefield@antofagasta.co.uk (44) 20 7808 0988 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 7444 4155 This information is provided by RNS The company news service from the London Stock Exchange