REG - Antofagasta PLC - Q1 2024 PRODUCTION REPORT

AntofagastaAnnouncement

17/04/2024 07:01

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240417:nRSQ8742Ka&default-theme=true

RNS Number : 8742K  Antofagasta PLC  17 April 2024

NEWS RELEASE, 17 APRIL 2024

 

Q1 2024 PRODUCTION REPORT

FULL YEAR GUIDANCE UNCHANGED

 

Antofagasta plc CEO, Iván Arriagada said: "Production and cost performance at
our mine sites over the quarter was in line with our expectations, with lower
grades at Centinela during the period, and Los Pelambres product inventories
increasing due to the extended concentrate pipeline maintenance and cleaning
activities in February. This production, which is the equivalent of 27kt 1  of
copper in concentrate, has been rescheduled into future quarters. Furthermore,
we continue to see the positive impact at Los Pelambres of the new
desalination plant and fourth concentrator line on volumes. Full year guidance
is unchanged, and the Company's production profile is expected to increase
quarter-on-quarter throughout the remainder of the year.

"Our next phase of copper growth has begun, with full construction of the
Centinela Second Concentrator Project commencing during the quarter, which
will add a further 170kt per year 2  of copper-equivalent production, with
first copper scheduled for 2027. Following approval of the relevant
Environmental Impact Assessment for Los Pelambres, preparations are underway
to commence construction work to double the capacity of the existing
desalination plant and build a new concentrate pipeline, both of which will
serve as key enablers for further growth.

"As we move toward further global electrification, Antofagasta is in a strong
position to provide a growing supply of responsibly produced copper and
creating value for all our stakeholders."

HIGHLIGHTS

PRODUCTION

·    Copper production in Q1 2024 was 129,400 tonnes, 11% lower than Q1
2023, primarily due to lower grades and increased ore hardness at Centinela,
in line with the mine plan, as well as maintenance and cleaning activities on
the Los Pelambres concentrate pipeline that delayed moving concentrate to the
Company's port facilities. The pipeline has recommenced operations, and
approximately 27,000 tonnes of accumulated copper in concentrate will be
rescheduled into future quarters as production and sales.

·    Gold production in Q1 2024 was 33,300 tonnes, 21% lower than Q1 2023,
as a result of expected lower gold grades at Centinela and the delay in moving
material through the Los Pelambres concentrate pipeline.

·    Molybdenum production in Q1 2024 was 2,700 tonnes, 8% higher than Q1
2023 due to higher molybdenum production at Los Pelambres, with this output
unaffected by recent maintenance of the concentrate pipeline since
transportation of this product is by road.

CASH COSTS

·    Cash costs before by-product credits in Q1 2024 were $2.67/lb,
representing a 7% increase year-on-year, principally related to lower
production at Centinela and Los Pelambres during the quarter, offset by lower
unit costs for key consumables and depreciation of the Chilean peso. On a
quarter-on-quarter basis, cash costs rose by 29%, primarily as a result of the
lower production.

·    By-product credits in Q1 2024 were 74c/lb (Q1 2023: 95c/lb),
reflecting lower production volumes and lower molybdenum pricing, partially
offset by higher gold pricing. On a quarter-on-quarter basis, by-product
credits rose by 30%, following higher realised prices for molybdenum.

·    Net cash costs in Q1 2024 were $1.93/lb, 25% higher than Q1 2023 as a
result of lower production volumes and lower credits for by-products.
Quarter-on-quarter net cash costs rose by 29%, in line with the movement in
cash costs before by-products.

PROJECT DEVELOPMENT UPDATE

·    Following definitive financing agreements for the Centinela Second
Concentrator Project, as announced on 19 March 2024, full construction has
commenced, with a project workforce of approximately 2,000 people and all
critical equipment orders placed with suppliers. The financing entered into by
Minera Centinela is with a group of international lenders for $2.5 billion,
consisting of a term loan facility with a 4-year drawdown period and a term of
approximately 12 years, and the first tranche of funding has now been received
under this facility.

·    The Company also announced on 19 March 2024 that it has entered into
a detailed agreement that provides Centinela with the option to receive water
for its current and future operations from an experienced international
consortium who would acquire Centinela's existing water supply system and
build an expansion of this system to supply the Centinela Second Concentrator
Project. In order to complete this agreement, the international consortium is
required to close its financing, which is expected to be finalised during the
course of the year.

·    The recently constructed Los Pelambres Phase 1 Expansion continues to
operate in line with expectations, with the desalination plant operating at
its design capacity, and the fourth concentrator line ramping up and
increasing the overall nameplate capacity of the plant to 190,000 tonnes of
ore per day. In March 2024, an inauguration ceremony was held to celebrate the
completion of the desalination plant, with a delegation of government
representatives attending, including the President of Chile, Ministers,
Members of the Regional Congress, and representatives from the local
authorities and communities.

·    Following approval of the relevant EIA in late 2023, preparations are
well underway at Los Pelambres for the commencement of construction of the
next phase of development projects, which includes the doubling of the
existing desalination plant to 800 litres per second and the construction of a
new concentrate pipeline. Details of these projects, including capital cost
estimates and the construction window for each project, were provided in the
Full Year Results announcement in February 2024.

CORPORATE UPDATE

·    As announced on 28 March 2024, the Company owns 19% of Compañía de
Minas Buenaventura S.A.A. (Buenaventura), and Iván Arriagada and Andrónico
Luksic Lederer have joined Buenaventura's board of directors.

·    In January 2024, the Company announced that the Board of Directors
had appointed Tracey Kerr as an independent Non-Executive Director with effect
from 29 January 2024.

2024 GUIDANCE

·    Guidance for the year remains unchanged. Group copper production for
the full year is expected to be in the range of 670-710,000 tonnes, as
quarterly production increases over the year.

·    Cash cost guidance, both before and after by-product credits, is also
unchanged at $2.25/lb and $1.60/lb respectively.

·    Capital expenditure guidance is also unchanged at $2.7 billion.

SAFETY AND SUSTAINABILITY

·    Safety performance continued in line with the performance registered
in Full Year 2023, with no fatalities and lost time injury frequency rates
continuing at a level below 1.0. Furthermore, the Company is pleased to report
a reduction of more than 30% in the high-potential accident frequency rate in
Q1 2024, relative to Full Year 2023, with this metric an important leading
indicator of safety across the business.

·    In March 2024, the Company published its Sustainability Report and
Climate Action Plan alongside its Annual Report and Accounts, in addition to
the Company's Sustainability Databook, in line with previous years. The
Climate Action Plan includes the decarbonisation strategy to accompany the
emissions reduction targets that were released in February 2024.

·    At Los Pelambres, following discussions with our stakeholders in the
Choapa Valley about water distribution arrangements under drought conditions
and the provisions of the new Water Code, a revised agreement is in place that
was approved in Q1 2024 by the relevant water authority. Under the terms of
this agreement, when in drought, Los Pelambres will be able to draw its full
freshwater intake requirements, subject to certain administrative conditions
being exercised and kept in place by the relevant water authority, which have
largely been fulfilled already.

ZALDÍVAR UPDATE

·    In early 2024 approval was received from the authorities for the
separate DIA (Declaration of Environmental Impact) to extend the mining permit
and, therefore, align the water and mining permits at Zaldívar. This approval
ensures that this operation has rights to mine ore and extract water until
2025. The mine life after 2025 is, therefore, subject to the approval of the
EIA.

·    In June 2023, Zaldívar submitted an EIA application to extend its
mining and water environmental permits through to 2051. This includes a
proposal to develop the primary sulphide ore deposit and extend the current
life of mine at an estimated investment over the mine life of $1.2 billion. It
also includes a plan to change the mine's water source from the local aquifer
to either seawater or water provided by third parties. This is proposed to
follow a transition period during which the current continental water
extraction permit is extended from 2025 to 2028. Following this submission,
and in accordance with the normal regulatory process, the Company filed its
first round of responses during Q1 2024 to the requests for information
received from the relevant authorities reviewing the permit application.

·    Separate to the above permits, and as previously reported, the
Company (as well as other named defendants) submitted a response contradicting
the allegations made by the Consejo de Defensa del Estado (CDE), an
independent governmental agency that represents the interests of the Chilean
state, who previously filed a claim against Minera Escondida, Albemarle and
Zaldívar, alleging that their extraction of water from the
Monturaqui-Negrillar-Tilopozo aquifer over the years has impacted the
underground water level. The evidentiary record is now closed, and a decision
from the Court is pending. However, conversations regarding a potential
settlement are continuing.

OTHER

·    As previously announced in the Company's Full Year Results, with an
update provided on 28 March 2024, on 31 January 2024, during regular cleaning
activities prior to scheduled maintenance of the concentrate pipeline that
connects the processing plant at Los Pelambres to the port at Los Vilos,
concentrate material was detected that was stopping the normal transit of
concentrate. This material was successfully cleared, and the filtering of
concentrates at the port facilities resumed at the end of February. Mining and
processing operations at Los Pelambres continued to operate unaffected
throughout and concentrates were stockpiled at the processing plant in
pre-existing stockpile locations. As a result, a portion of the Los Pelambres'
concentrate filtered production and sales from Q1 2024, estimated to be
approximately 27,000 tonnes of copper in concentrate, will be rescheduled into
future quarters.

 GROUP PRODUCTION AND CASH COSTS                               Year to Date          Q1     Q4
                                                               2024   2023   %       2024   2023   %
 Copper production                           kt                129.4  145.9  (11.3)  129.4  191.5  (32.4)
 Copper sales                                kt                115.7  149.0  (22.3)  115.7  213.4  (45.8)
 Gold production                             koz               33.3   42.2   (21.1)  33.3   65.5   (49.2)
 Molybdenum production                       kt                2.7    2.5    8.0     2.7    2.9    (6.9)
 Cash costs before by-product credits ((1))  $/lb              2.67   2.49   7.2     2.67   2.07   29.0
 Net cash costs ((1))                        $/lb              1.93   1.54   25.3    1.93   1.50   28.7

(1)   Cash cost is a non-GAAP measure used by the mining industry to express
the cost of production in US dollars per pound of copper produced.

 

 Investors - London                                                                   Media - London
 Rosario Orchard      rorchard@antofagasta.co.uk (mailto:rorchard@antofagasta.co.uk)  Carole Cable   antofagasta@brunswickgroup.com (mailto:antofagasta@brunswickgroup.com)
 Robert Simmons       rsimmons@antofagasta.co.uk (mailto:rsimmons@antofagasta.co.uk)  Telephone      +44 20 7404 5959
 Telephone            +44 20 7808 0988

                                                                                      Media - Santiago
                                                                                      Pablo Orozco   porozco@aminerals.cl (mailto:porozco@aminerals.cl)
                                                                                      Carolina Pica  cpica@aminerals.cl (mailto:cpica@aminerals.cl)
                                                                                      Telephone      +56 2 2798 7000

Register on our website to receive our email alerts at the following address:
https://www.antofagasta.co.uk/investors/news/email-alerts/
(https://www.antofagasta.co.uk/investors/news/email-alerts/)

 

 

MINING OPERATIONS

Los Pelambres

Copper production at Los Pelambres during Q1 2024 was 55,300 tonnes, 7% below
Q1 2023, due to a balance of 53% higher processing rates following the recent
completion of the Los Pelambres Phase 1 Expansion, which was offset by
maintenance on the Los Pelambres concentrate pipeline during February 2024,
and lower grades, with the former resulting in approximately 27,000 tonnes of
copper in concentrate being stockpiled at the processing plant. Production on
a quarter-on-quarter basis fell by 39%, primarily reflecting the
aforementioned maintenance on the concentrate pipeline and lower copper grades
in line with the mine plan.

The recently completed Phase 1 Expansion continues to perform in line with
expectations, with the desalination plant operating at its design capacity,
and the fourth concentrator line ramping up to increase the processing plant's
overall nameplate capacity to 190,000 tonnes of ore per day.

In respect of the concentrate pipeline maintenance and cleaning activities
during February 2024, mining and processing operations at Los Pelambres
continued to operate throughout this process, with concentrate stockpiled at
the processing plant in pre-existing stockpile locations. The Company records
production of concentrate at its port facilities, and the concentrate
accumulated at the Los Pelambres during Q1 2024 will be rescheduled into
future quarters, as it is transported to the Company's port facilities and
recorded as production.

Copper sales for the quarter were 50,700 tonnes, 11% below the same period in
2023 and 50% below the prior period, with both figures broadly mirroring the
movement in production volumes

In respect of by-products, molybdenum production during Q1 2024 was 2,200
tonnes, representing a 22% increase year-on-year, which reflects an increase
in processing rates at the molybdenum plant, partially offset by lower grades.
Molybdenum production was largely in line on a quarter-on-quarter basis (Q4
2023: 2,300 tonnes). Molybdenum production is transported by road, rather than
the concentrate pipeline, and was therefore not subject to the same
constraints as other products during the period.

Gold production during the quarter was 15% lower on a year-on-year basis at
8,400 ounces, with this decrease related to the concentrate pipeline
maintenance referenced above, and lower gold grades. On a quarter-on-quarter
basis, gold production fell during Q1 2024 by 29% as a result of lower
concentrate production and lower gold recoveries, partially offset by higher
gold grades.

Cash costs before by-product credits in Q1 2024 were $2.19/lb, 1% higher
year-on-year, despite the lower concentrate production during the quarter.
This movement reflects the effect of lower unit costs for key consumables such
as diesel, grinding media and explosives, as well as local currency
depreciation, offset by lower copper production. Cash costs rose by 22% on a
quarter-on-quarter basis, primarily driven by the lower production seen during
the quarter, and the resulting movement in inventories.

Net cash costs for the quarter were $1.14/lb, 36% higher than Q1 2023,
principally reflecting movements in cash costs before by-products, lower
molybdenum pricing and gold production, partially offset by higher molybdenum
production. Net cash costs fell by 10% on a quarter-on-quarter basis, with
higher molybdenum pricing serving to offset the increase in cash costs before
by-products.

 

 LOS PELAMBRES                                        Year to Date          Q1     Q4
                                                      2024   2023   %       2024   2023   %
 Daily ore throughput                          kt     177.1  115.5  53.3    177.1  185.5  (4.5)
 Copper grade                                  %      0.56   0.66   (15.2)  0.56   0.61   (8.2)
 Copper recovery                               %      88.2   89.2   (1.1)   88.2   89.7   (1.7)
 Copper production                             kt     55.3   59.3   (6.7)   55.3   90.7   (39.0)
 Copper sales                                  kt     50.7   56.8   (10.7)  50.7   100.8  (49.7)
 Molybdenum grade                              %      0.016  0.019  (15.8)  0.016  0.016  -
 Molybdenum recovery                           %      84.9   87.3   (2.7)   84.9   85.0   (0.1)
 Molybdenum production                         kt     2.2    1.8    22.2    2.2    2.3    (4.3)
 Molybdenum sales                              kt     2.5    1.8    38.9    2.5    2.3    8.7
 Gold grade                                    g/t    0.034  0.046  (26.1)  0.034  0.030  13.3
 Gold recovery                                 %      69.6   70.0   (0.6)   69.6   76.4   (8.9)
 Gold production                               koz    8.4    9.9    (15.2)  8.4    11.8   (28.8)
 Gold sales                                    koz    6.8    9.8    (30.6)  6.8    12.4   (45.2)
 Cash costs before by-product credits((1))     $/lb   2.19   2.17   0.9     2.19   1.79   22.3
 Net cash costs ((1))                          $/lb   1.14   0.84   35.7    1.14   1.27   (10.2)

(1) Includes tolling charges of $0.27/lb in Q1 2024, $0.25/lb in Q4 2023, and
$0.21/lb in Q1 2023.

 
Centinela

During Q1 2024, total copper production at Centinela was 45,000 tonnes, 22%
lower year-on-year and 35% lower quarter-on-quarter, primarily reflecting
increased ore hardness and lower grades in line with the mine plan, and
unplanned maintenance at the concentrator, which was completed during the
period. Sales of copper in concentrate during Q1 2024 were 15,300 tonnes,
representing a level 63% lower year-on-year and 71% lower quarter-on-quarter,
with this movement the result of a delay to the arrival of an inbound vessel
at the end of the quarter.

Copper in concentrate production during the quarter was 23,000 tonnes,
representing a 40% reduction on a year-on-year basis, as a result of the
factors discussed above. Ore processing rates were 12% lower during the
quarter as a result of processing harder ore types from the Esperanza pit,
with production also lowered as a result of operations entering a sequence of
lower ore grades in line with expectations. On a quarter-on-quarter basis,
copper in concentrate production fell by 50%, with this movement primarily
related to lower throughput rates and ore grades.

Cathode production during the quarter was 13% higher year-on-year at 22,000
tonnes, with higher grades, plant throughput and recoveries all contributing
to this result. On a quarter-on-quarter basis, copper cathode production fell
by 5% as a result of lower processing rates, offset by higher grades. Copper
cathode sales in Q1 2024 were broadly in line with production on a
year-on-year and quarter-on-quarter basis.

Gold production for the quarter was 24,900 ounces, 23% below Q1 2023,
reflecting the lower degree of concentrate production and lower gold grades.
Output of gold was 54% below the previous quarter, primarily reflecting lower
grades.

Cash costs before by-product credits in Q1 2024 were $3.23/lb, 21% higher on a
year-on-year basis, in line with expectations, due to lower copper in
concentrate production and cost inflation, partially offset by deprecation of
the Chilean peso and the increase in cathode production. On a
quarter-on-quarter basis, cash costs rose by 48%, reflecting lower production
and higher electricity costs, which were partially offset by depreciation of
the Chilean peso and lower diesel costs.

Net cash costs in Q1 2024 were $2.39/lb, representing a 49% increase
year-on-year and an 84% increase quarter-on-quarter, with both increases
coming as a result of lower production of both copper in concentrate and
associated by-products.

 

 CENTINELA                                             Year to Date                 Q1    Q4
                                                       2024  2023      %            2024  2023      %
 CONCENTRATES
 Daily ore throughput                            kt    90.1       103.2     (12.7)  90.1       111.7     (19.3)
 Copper grade                                    %     0.35       0.51      (31.4)  0.35       0.55      (36.4)
 Copper recovery                                 %     81.5       83.3      (2.2)   81.5       84.1      (3.1)
 Copper production                               kt    23.0       38.2      (39.8)  23.0       45.7      (49.7)
 Copper sales                                    kt    15.3       41.0      (62.7)  15.3       52.3      (70.7)
 Molybdenum grade                                %     0.011      0.016     (31.3)  0.011      0.011     -
 Molybdenum recovery                             %     67.0       71.0      (5.6)   67.0       58.4      14.7
 Molybdenum production                           kt    0.5        0.8       (37.5)  0.5        0.6       (16.7)
 Molybdenum sales                                kt    0.5        0.8       (37.5)  0.5        0.6       (16.7)
 Gold grade                                      g/t   0.14       0.17      (17.6)  0.14       0.26      (46.2)
 Gold recovery                                   %     64.4       65.1      (1.1)   64.4       66.8      (3.6)
 Gold production                                 koz   24.9       32.3      (22.9)  24.9       53.6      (53.5)
 Gold sales                                      koz   16.4       33.5      (51.0)  16.4       59.0      (72.2)
 CATHODES
 Daily ore throughput                            kt    54.7       49.4      10.7    54.7       64.3      (14.9)
 Copper grade                                    %     0.60       0.56      7.1     0.60       0.56      7.1
 Copper recovery                                 %     71.6       69.2      3.5     71.6       71.0      0.8
 Copper production - heap leach                  kt    21.3       18.2      17.0    21.3       22.5      (5.3)
 Copper production - total ((1))                 kt    22.0       19.5      12.8    22.0       23.2      (5.2)
 Copper sales                                    kt    21.2       21.5      (1.4)   21.2       23.1      (8.2)
 Total copper production                         kt    45.0       57.7      (22.0)  45.0       68.9      (34.7)
 Cash costs before by-product credits((2))       $/lb  3.23       2.66      21.4    3.23       2.19      47.5
 Net cash costs((2))                             $/lb  2.39       1.60      49.4    2.39       1.30      83.8

(1) Includes production from ROM material

(2) Includes tolling charges of $0.16/lb in Q1 2024, $0.17/lb in Q4 2023, and
$0.17/lb in Q1 2023.

 
Antucoya

During Q1 2024, copper production was 19,600 tonnes, 4% higher than Q1 2023,
as a result of higher throughput during the period. On a quarter-on-quarter
basis, copper production fell by 9% compared to Q4 2023, reflecting lower
grades and recoveries. Copper sales during the quarter mirrored production
volumes on both a year-on-year and quarter-on-quarter basis, with 19,200
tonnes shipped during Q1 2024.

Cash costs during Q1 2024 were $2.61/lb, representing a 7% decrease
year-on-year, with this movement principally related to higher production
volumes, depreciation of the Chilean peso and reduced unit costs for key
consumables, principally sulphuric acid. Cash costs rose by 7% on a
quarter-on-quarter basis, reflecting lower production volumes, partially
offset by depreciation of the Chilean peso and a lower cost for sulphuric
acid.

 ANTUCOYA                     Year to Date         Q1    Q4
                              2024   2023   %      2024  2023  %
 Daily ore throughput  kt     90.5   84.8   6.7    90.5  93.5  (3.2)
 Copper grade          %      0.33   0.33   -      0.33  0.34  (2.9)
 Copper recovery       %      66.2   66.8   (0.9)  66.2  68.9  (3.9)
 Copper production     kt     19.6   18.8   4.3    19.6  21.6  (9.3)
 Copper sales          kt     19.2   19.1   0.5    19.2  25.3  (24.1)
 Cash costs            $/lb   2.61   2.80   (6.8)  2.61  2.44  7.0

 

Zaldívar

Total attributable production during Q1 2024 was 9,500 tonnes of copper, 5%
below the same period in 2023, representing a balance of higher copper grades
and ore tonnes treated, with lower recoveries. Compared to the previous
quarter, total attributable copper production fell by 8%, with this movement
reflecting the result of lower copper grades and ore tonnes treated, with
higher recoveries.

Cash costs for the quarter were $2.97/lb, which represents a figure 3% higher
than the same period in 2023 and 2% higher than the previous quarter, with
both comparative periods affected by lower production and inflation, partially
offset by depreciation of the Chilean peso and lower unit costs for key
consumables, such as sulphuric acid and diesel.

 ZALDÍVAR                                     Year to Date          Q1    Q4
                                              2024   2023   %       2024  2023  %
 Daily ore throughput                  kt     35.2   33.6   4.8     35.2  38.1  (7.6)
 Copper grade                          %      0.78   0.70   11.4    0.78  0.82  (4.9)
 Copper recovery                       %      56.1   60.6   (7.4)   56.1  52.1  7.7
 Copper production - heap leach ((1))  kt     7.0    7.0    -       7.0   7.5   (6.7)
 Copper production - total ((1,2))     kt     9.5    10.0   (5.0)   9.5   10.3  (7.8)
 Copper sales ((1))                    kt     9.3    10.6   (12.3)  9.3   11.9  (21.8)
 Cash costs                            $/lb   2.97   2.89   2.8     2.97  2.91  2.1

(1) Group's 50% share

(2) Includes production from secondary leaching

 

Transport Division

The total volume transported in Q1 2024 was 1.7 million tonnes, representing a
2% decrease compared to the same period in 2023 and a result in line with the
prior quarter. Rail volumes performed ahead of both prior periods, reflecting
higher quantities of concentrate material handled. Road volumes were down on
both a year-on-year and quarter-on-quarter basis due to lower volumes of
lithium brines.

 TRANSPORT                         Year to Date          Q1     Q4
                                   2024   2023   %       2024   2023   %
 Rail                       kt     1,346  1,309  2.8     1,346  1,333  1.0
 Road                       kt     376    442    (14.9)  376    398    (5.5)
 Total tonnage transported  kt     1,722  1,751  (1.7)   1,722  1,731  (0.5)

 

Commodity prices and exchange rates

                        Year to Date                Q1        Q4
                        2024   2023   %       2024       2023      %
 Copper
 Market price    $/lb   3.83   4.05   (5.4)   3.83       3.70      3.5
 Realised price  $/lb   3.97   4.48   (11.4)  3.97       3.84      3.4
 Gold
 Market price    $/oz   2,070  1,890  9.5     2,070      1,974     4.9
 Realised price  $/oz   2,176  2,029  7.2     2,176      2,060     5.6
 Molybdenum
 Market price    $/lb   19.9   32.8   (39.3)  19.9       18.6      7.0
 Realised price  $/lb   21.1   37.0   (43.0)  21.1       13.1      61.1
 Exchange rates
 Chilean peso    per $  947    810    16.9    947        896       5.7

 

Spot commodity prices for copper, gold and molybdenum as of 31 March 2024 were
$3.96/lb, $2,211/oz and $19.7/lb respectively, compared with $3.84/lb,
$2,062/oz and $20.0/lb as at 31 December 2023 and $4.05/lb, $1,979/oz and
$24.0/lb as at 31 March 2023.

The provisional pricing adjustments for copper, gold and molybdenum for the
quarter were positive $18.0 million, negative $0.4 million and positive $8.0
million respectively.

 

___________________________________________________________________________________________________

Cautionary Statement

This announcement contains certain forward-looking statements. All statements
other than historical facts are forward-looking statements. Examples of
forward-looking statements include, without limitation, those regarding the
Group's strategy, plans, objectives or future operating or financial
performance, reserve and resource estimates, commodity demand and trends in
commodity prices, growth opportunities, and any assumptions underlying or
relating to any of the foregoing. Words such as "intend", "aim", "project",
"anticipate", "estimate", "plan", "believe", "expect", "may", "should",
"will", "continue" and similar expressions identify forward-looking
statements.

 

Forward-looking statements involve known and unknown risks, uncertainties,
assumptions and other factors that are beyond the Group's control. Given these
risks, uncertainties and assumptions, actual results, performance or
achievements could differ materially from any future results, performance or
achievements expressed or implied by these forward-looking statements, which
apply only as at the date of this report. These forward-looking statements are
based on numerous assumptions regarding the Group's present and future
business strategies and the environment in which the Group will operate in the
future. Important factors that could cause actual results, performance or
achievements to differ from those in the forward-looking statements include,
but are not limited to: natural events, global economic and financial
conditions (which may affect our business, results of operations or financial
condition); various political, economic, legal, regulatory, social and other
risks and uncertainties across jurisdictions in which the Group operates;
changes to mining concessions or the imposition of new mining royalties, or
changes to existing mining royalties in the jurisdictions in which the Group
operates; the Group's ability to comply with the extensive body of regulations
governing the mining industry, as well as the need to manage relationships
with local communities; the ongoing effects of the global COVID-19 pandemic;
demand, supply and prices for copper and other long-term commodity price
assumptions (as they materially affect the timing and feasibility of future
projects and developments); trends in the copper mining industry and
conditions of the international copper markets; the effect of currency
exchange rates on commodity prices and operating costs; the availability and
costs associated with mining inputs and labour; operating or technical
difficulties in connection with mining or development activities; risks,
hazards and/or events and conditions inherent to the mining industry, which
may affect our operations or facilities; employee relations; climate change as
well as the effects of extreme weather conditions; the outcome of any
litigation arbitration, regulatory or administrative proceedings to which the
Group is and may be subject in the future; and actions and activities of
governmental authorities, including changes to laws, regulations or taxation.

 

Except as required by applicable law, rule or regulation, the Group does not
undertake any obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise. Past performance cannot be relied on as a guide to future
performance.

 

No statement in this announcement is intended as a profit forecast or estimate
for any period. No statement in this announcement should be interpreted to
indicate a particular level of profit and, as a consequence, it should not be
possible to derive a profit figure for any future period from this report.

 

 1  Approximate figure. The term 'kt' refers to thousand tonnes.

 2  Average production over an initial 10-year period.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  DRLIFMPTMTMBBII