Antofagasta plc CEO, Iván Arriagada said: “We have had a further quarter of improved production with tonnages increasing by 3% compared to the previous quarter and by 4.5% on a year to date basis. Unit costs have kept flat, despite increased cost pressures, with higher production at Centinela and Antucoya, and our continued focus on improving efficiencies. With these savings achieved to date we now expect our net cash costs to be below our original guidance for the full year of $1.30/lb.

“In 2018 we plan to increase production to 705-740,000 tonnes of copper as Encuentro Oxides ramps-up to full production.”

HIGHLIGHTS

PRODUCTION

• Group copper production in Q3 2017 was 180,200 tonnes, 3.3% higher than in the previous quarter on increased production at Los Pelambres.
• Group copper production for the first nine months of the year was 526,500 tonnes, 4.5% 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 1.2% to 59,600 ounces and for the first nine months fell by 4.4% with lower production at Centinela and Los Pelambres.
• Molybdenum production at Los Pelambres increased in Q3 2017 to 2,700 tonnes and for the year to date was 38.5% higher than in the same period last year, due to higher molybdenum grades.

CASH COSTS

• Cash costs before by-product credits in Q3 2017 were $1.56/lb, 1.3% higher than in Q2 2017 as costs increased at Centinela after a strong performance in the previous quarter.
• Cash costs before by-product credits for the first nine months were $1.56/lb, 1.3% better than last year due to higher production and cost savings achieved from the Cost and Competitiveness Programme.
• Net cash costs were $1.18/lb in Q3 2017, a 1.7% improvement compared with the previous quarter, as the higher cash costs before by-product credits were offset by increased by-product volumes and realised prices.
• Net cash costs for the first nine months were $1.22/lb, 0.8% better than in the same period last year.

GUIDANCE

• Copper production guidance for 2017 remains unchanged at 685-720,000 tonnes, and production is expected to increase to 705-740,000 tonnes in 2018.
• Cash costs before by-product credits guidance for the full year is unchanged at $1.55/lb and net cash costs are now expected to be lower than the $1.30/lb guided at the beginning of the year reflecting stronger than expected by-product revenue.
• Total capital expenditure for the year is expected to be approximately $900 million, as previously guided.

OTHER

• Successfully concluded labour negotiations at Zaldívar during the quarter.
• Labour negotiations have commenced at Los Pelambres and are expected to be concluded before the deadline in February 2018.

_{(1) Includes pre-commercial production at Antucoya of 12,700 tonnes in 2016, which are n included in unit cost calculations.}