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HIGHLIGHTS
PRODUCTION
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Copper production in Q1 2020 was 194,000 tonnes, an increase of 2.9%
compared with the same quarter in 2019 and 4.6% higher than in Q4 2019
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Gold production was 65,100 ounces in Q1 2020, 4.7% higher than in Q1
2019, mainly due to higher grades at Centinela
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Molybdenum production was 2,400 tonnes, a decrease of 1,100 tonnes
compared to the same period in 2019 due to lower grades at Los
Pelambres, and 100 tonnes higher production than in Q4 2019
CASH COSTS
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Cash costs before by-product credits in the quarter decreased by 11.2%
to $1.51/lb from $1.70/lb in the same period last year and in Q4 2019
primarily because of the weaker Chilean peso, higher production and
tighter cost control
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Net cash costs were $1.10/lb in Q1 2020, compared to $1.24/lb in Q1 2019
and $1.37/lb in the previous quarter, reflecting the changes in cash
costs before by-product credits
2020 GUIDANCE
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Copper production, costs and capital expenditure guidance for 2020 is
highly dependent on how the health emergency evolves over the coming
months
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Assuming mining operations continue to run at or close to capacity and
no shutdowns are required, Group copper production in 2020 is expected
to be at the lower end of the original 725-755,000 tonnes guidance range
as the new health measures and lower manpower on-site have required
mine movement and maintenance activities to be rescheduled, which will
impact copper production during the rest of the year
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Group net cash costs for the full year are expected to be $1.20/lb,
10c/lb lower than originally guided, assuming revised production
guidance is achieved and the Chilean peso averages 800 pesos to the US
dollar for the year
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Capital expenditure in 2020 is expected to be less than $1.3 billion, a
decrease on the $1.5 billion originally guided for 2020 with the
temporary suspension of the Los Pelambres Expansion project, the
deferral of sustaining and other development capital expenditure, lower
mine development and a weaker Chilean peso
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During the suspension of the Pelambres Expansion project some work is
continuing on the desalination plant and the camp infrastructure.
Additional critical activities are expected to be resumed progressively
during the suspension period as government health protocols are revised
with full resumption dependent on how the health emergency evolves. A
revised project schedule and cost estimate is expected to be available
once the suspension period concludes
|
GROUP PRODUCTION AND CASH COSTS |
2020 |
2019 |
% |
2020Q1 |
2019Q4 |
% |
|
Copper production kt |
194 |
188.6 |
2.9 |
194 |
185.5 |
4.6 |
|
Copper sales kt |
195.3 |
178.9 |
9.2 |
195.3 |
193.8 |
0.8 |
|
Gold production koz |
65.1 |
62.2 |
4.7 |
65.1 |
55.6 |
17.1 |
|
Molybdenum production kt |
2.4 |
3.5 |
-31.4 |
2.4 |
2.3 |
4.3 |
|
Cash costs before by-product credits $/lb |
1.51 |
1.7 |
-11.2 |
1.51 |
1.7 |
-11.2 |
|
Net cash costs $/lb |
1.1 |
1.24 |
-11.3 |
1.1 |
1.37 |
-19.7 |
Source:
Antofagasta |
