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:

Net Cash/(Debt) (1)
$(1,072)m

Why it is important

Net Cash/Debt is a measure of the financial position of the Group.

Performance in 2016

Net Debt rose by $48.2m in 2016 as a result of new borrowings offset by higher cash generation.

1. Non IFRS measures, refer to the alternative performance measures in Note 39 to the financial statements

Ebitda*
$1,626.1m

Why it is important

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

Performance in 2016

EBITDA rose in 2016 as a result of higher production, higher realised prices and lower unit operating costs.

* Restated for discontinued operations

Earnings per share*
12.1 cents

Why it is important

This is a measure of the profit attributable to shareholders.

Performance in 2016

EPS rose due to higher profitability as production and realised prices rose, while operating cost fell.

* Restated for discontinued operations

Copper production
709,400 tonnes

Why it is important

Copper is the Group’s main product and its production is a key operating parameter. Includes all production from Los Pelambres, Centinela, Antucoya and 50% from Zaldívar.

Performance in 2016

Copper production increased by 12.5% in 2016, primarily due to inclusion of production from Antucoya and Zaldívar and improved performance at Centinela.

Net cash costs (1)
$1.20/lb

Why it is important

This is a key indicator of operating efficiency and profitability.

Performance in 2016

Net cash costs decreased 20.0% compared to 2015, reflecting cost savings, higher copper and gold production and lower input prices.

1. Non IFRS measures, refer to the alternative performance measures in Note 39 to the financial statements.

Mineral resources (2)
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 2016

Mineral resources remained similar due to the incorporation of additional resources at Penacho Blanco and Mirador was offset by the closure of Michilla.

2. Mineral resources relating to the Group’s subsidiaries on a 100% basis and Zaldívar on a 50% basis.

Lost time injury frequency rate (1)
1.5

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 2016

The LTIFR of the Group in 2016 declined to 1.5 accidents with lost time per million hours worked.

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

Water Consumption (2)
56.2m m³

Why it is important

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

Performance in 2016

Consumption of water increased during 2016, as two new operations were integrated into the Group, Antucoya and Zaldívar.

2. Water consumption relates to the mining division only.

Emissions (3)
3.67 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 to mitigate climate change.

Performance in 2016

Carbon emission intensity increased from 2015 primarily due to higher copper production at the Group’s operations.

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