Antofagasta plc CEO, Iván Arriagada said:

“We made good progress during the first quarter of 2016, with the integration of Zaldivar and the ramp-up at Antucoya. Combined, these projects added 25,000 tonnes of production over the period. Our cost savings programme is also benefiting our results, contributing to a fall in our net cash costs of 4% versus Q1 2015 to $1.37/lb and our guidance for the year remains unchanged at 710-740,000 tonnes, at a net cash cost of $1.35/lb.

Movements in the copper price over the quarter may suggest the market is beginning to stabilise. However, with price growth likely to remain subdued in the near term our focus continues to be on operating safely, efficiently and profitably.”

HIGHLIGHTS

Production

• Copper production in Q1 2016 was 157,100 tonnes, an increase of 7.3% on Q1 2015 with the first full quarter of production from Zaldívar and increases at Antucoya offset by lower production at Centinela Cathodes, as grade declined, and no contribution from Michilla, now that it is on care and maintenance
• Copper production in the quarter was 7.5% lower than in Q4 2015 despite the production from Zaldívar and Antucoya following extended maintenance during the quarter at Los Pelambres coupled with lower production at Centinela Cathodes and no production from Michilla 
• Gold production in Q1 2016 was 56,700 ounces, a 1.8% increase on Q4 2015 largely due to higher gold recoveries at Centinela
• Molybdenum production at Los Pelambres was 1,700 tonnes in Q1 2016, compared to 2,100 tonnes in Q1 2015, principally due to a fall in grade

Cash Costs

• Cash costs before by-product credits in Q1 2016 were $1.72/lb, 6.0% lower than in Q1 2015, but 4.2% higher than in Q4 2015. The increase from Q4 2015 is mainly related to lower production offset by cost savings and lower input prices, particularly energy
• Net cash costs were better than expected at $1.37/lb in Q1 2016, a 4.2% decrease compared with Q1 2015 with a significantly higher realised gold price offsetting the impact of lower production

Other

• As previously announced, Iván Arriagada succeeded Diego Hernández as CEO on 8 April 2016 
• Antucoya achieved commercial production at the end of the quarter
• Group production and cash cost guidance for the full year is unchanged with an improvement in throughput expected at Los Pelambres and Centinela Concentrates, and in copper grade at Centinela Concentrates together with the continued ramp-up of Antucoya
• Michilla was put on care and maintenance at the end of 2015 with no production in this quarter
  
  
  

  Group Production and Cash Costs	Year to date			Q1	Q4
  	2016	2015	%	2016	2015	%
  Copper production (kt)	157.1	146.4	7.3	157.1	169.9	(7.5)
  Gold production (koz)	56.7	57.4	(1.2)	56.7	55.7	1.8
  Molybdenum production (kt)	1.7	2.1	(19.0)	1.7	2.8	(39.3)
  Cash costs before by-product credit ($/lb)	1.72	1.83	(6.0)	1.72	1.65	4.2
  Net cash cost ($/lb)	1.37	1.43	(4.2)	1.37	1.38	(0.7)

  
  _{(1) Copper production tonnage includes pre-commercial production at Antucoya, which is not included in unit costs, and attributable
  production from Zaldívar from 1 December 2016}