Antofagasta plc CEO, Iván Arriagada said: “Our copper production performance during the year so far has been stronger than in the same period last year, especially at Centinela and Antucoya, which is now operating at full capacity. We have continued our strategy of focusing on improving efficiencies and achieving savings. This has resulted in a net cash cost of $1.20/lb for the second quarter of 2017, down more than 5% on the previous quarter. Production and costs remain in-line with our expectations and our guidance for the year is unchanged.”

HIGHLIGHTS

PRODUCTION

• Group copper production in Q2 2017 was 174,400 tonnes, 1.5% higher than in the previous quarter.
• Group copper production for the first six months of the year was 346,300 tonnes, 7.1% higher than in the same period last year. This was primarily due to higher production at Centinela and Antucoya.
• Gold production during the quarter increased by 10.5% to 58,900 ounces and for the first six months by 2.5% due to improving grades at Centinela.
• Molybdenum production at Los Pelambres increased in Q2 2017 to 2,400 tonnes and for the year to date was 36.4% higher than in the same period last year, principally due to higher molybdenum grades.

CASH COSTS

• Cash costs before by-product credits in Q2 2017 were $1.54/lb, 3.1% lower than in Q1 2017. This decrease is mainly related to increased production at Centinela.
• Cash costs before by-product credits for the first six months were $1.56/lb, 2.5% lower than last year due to higher production and cost savings achieved from the Cost and Competitiveness Programme.
• Net cash costs were $1.20/lb in Q2 2017, a 5.5% decrease compared with the previous quarter, primarily due to lower cash costs before by-product credits, and higher gold production at Centinela.
• Net cash costs for the first six months were $1.24/lb, 1.6% lower than the same period last year as lower cash costs before by-product credits and higher by-products credits.

GUIDANCE

• Copper production for 2017 is expected to be between 685,000 and 720,000 tonnes, unchanged from the beginning of the year, with higher production during the second half of the year.
• Cost guidance for the full year is unchanged with cash costs before by-product credits expected to be $1.55/lb and net cash cost of $1.30/lb. 

OTHER

• Following the end of the quarter, labour negotiations were successful concluded at Centinela for supervisors and at Zaldívar for workers.

_{(1) Includes pre-commercial production at Antucoya of 12,700 tonnes in 2016, which are not included in unit cost calculations.}