Strategic and Operational Objectives

The Group uses KPIs to assess performance in terms of meeting its strategic and operational objectives. Performance is measured against the following financial, operational and sustainability objectives:

Group revenue
$3,394.6m

Why it is important

Revenue represents the income from sales, principally from the sale of copper as well as the gold, molybdenum and silver by-product credits.

Performance in 2015

Revenue fell 34.0% in 2015, mainly due to lower realised copper prices, lower copper sales volumes and reduced gold by-product revenues.

Ebitda
$890.7m

Why it is important

This is a measure of the Group’s underlying profitability.

Performance in 2015

EBITDA fell by over 58% in 2015 as a result of lower production, lower realised prices and slightly higher unit operating costs.

Earnings per share (1)
0.6 cents

Why it is important

This is a measure of the profit attributable to shareholders.

Performance in 2015

EPS was impacted by lower profitability as costs rose and realised prices fell.

(1) Restated.
(2) From continuing operations.

Copper production
630,300 tonnes

Why it is important

Copper is the Group’s main product and its production is a key operational parameter.

Performance in 2015

Copper production decreased by 10.6% in 2015, primarily due to lower production at Los Pelambres and Centinela. Attributable production for the year was 4,400 tonnes from Zaldívar.

Net cash costs (2)
$1.50/lb

Why it is important

This is a key indicator of operational efficiency and profitability.

Performance in 2015

Net cash costs rose 4.9% compared to 2014, as lower realised by-product prices and lower gold production outweighed the lower cash costs before by-product credits.

(2) Net cash costs are an industry measure of the cost of production.

 

Mineral resources (3)
18.7 billion tonnes

Why it is important

Expansion of the Group’s mineral resources base has supported its strong organic growth pipeline.

Performance in 2015

The mineral resource base grew by over 6%, reflecting the incorporation of additional resources at Los Volcanes and the acquisition of the Zaldívar mine.

(3) Mineral resources relating to the Group’s subsidiaries on a 100% basis, and Zaldívar on a 50% basis.

Lost time injury frequency rate (4)
1.98

Why it is important

Safety is a key priority for the Group, with the LTIFR being one of the principal measures of performance.

Performance in 2015

The LTIFR of the Group in 2015 was 1.98 accidents with lost time per million hours worked. One fatality was reported in 2015 and is not acceptable: the Group continues to target zero fatalities across all operations.

(4) The Lost Time Injury Frequency Rate is the number of accidents with lost time during the year per million hours worked.

Water Consumption (5)
45.2 million m3

Why it is important

Water is a precious resource and the Group is focused on maximising efficient use and utilising the most sustainable sources as production grows.

Performance in 2015

Consumption of water decreased during 2015, in line with the Group’s efforts to maximise water efficiency.

(5) Water consumption relates to the mining division only.

Carbon Emissions (6)
3.24 tonnes

Why it is important

The Group recognises the risks and opportunities of climate change and the need to measure and mitigate its greenhouse gas (“GHG”) emissions. The Group is investing in renewable energy projects both to address rising costs and as part of its approach to mitigate climate change.

Performance in 2015

Carbon emission intensity rose from 2014 primarily due to lower copper production at the Group’s operations.

(6) Total CO2 emissions per tonne of copper produced. Data relates to the mining division only.