REG - Antofagasta PLC - Q1 2025 PRODUCTION REPORT

AntofagastaAnnouncement

16/04/2025 07:00

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RNS Number : 1751F  Antofagasta PLC  16 April 2025

NEWS RELEASE, 16 APRIL 2025

 

Q1 2025 PRODUCTION REPORT

Solid operating performance; guidance maintained

Antofagasta plc CEO, Iván Arriagada said: "Our portfolio delivered a solid
quarter of operating performance and cash cost discipline, with copper
production up 20% compared with the same period of last year, explained by
consistent or higher throughput across our sites and improved copper grades at
Centinela, and with the production of gold and molybdenum by-products also up
by 29% and 15% respectively."

"The prior year period (Q1 2024) includes the effect of lower concentrate
filtration at Los Pelambres, given the maintenance work undertaken on the
concentrate pipeline, which has since performed reliably and in line with
expectations.

"Our growth programme continues to make material progress, with the Centinela
Second Concentrator Project and the Los Pelambres' Growth Enabling Projects
advancing well, with workforce levels approaching full deployment at each
site. At Zaldívar, we are entering the final stages of our Environmental
Impact Assessment, and we remain focused on the resolution of permitting
during Q2 2025.

"Full year guidance is maintained, with Group production expected to be
between 660,000 and 700,000 tonnes, which assumes a full 12 months of
production at Zaldívar.

"With global markets experiencing significant volatility, our efforts remain
centred on delivering robust operational performance, continued cost
discipline and the timely execution of our growth projects. The medium-term
outlook for copper remains strong given its fundamental role in energy
security and electrification, positioning it as a metal of the future. We
remain well-positioned to meet the rising demand through our pipeline of
projects currently under construction."

 GROUP PRODUCTION AND CASH COSTS                              Year to date          Q1    Q4
                                                              2025   2024   %       2025  2024      %
 Copper production                               Kt           154.7  129.4  19.6    154.7      200.3     (22.8)
 Copper sales                                    Kt           170.2  115.7  47.1    170.2      191.8     (11.3)
 Gold production                                 koz          42.9   33.3   28.8    42.9       68.2      (37.1)
 Molybdenum production                           Kt           3.1    2.7    14.8    3.1        2.8       10.7
 Cash costs before by-product credits ((1))      $/lb         2.37   2.67   (11.2)  2.37       2.01      17.9
 Net cash costs ((1))                            $/lb         1.54   1.93   (20.2)  1.54       1.23      25.2

(1)  Cash cost is a non-GAAP measure used by the mining industry to express
the cost of production in US dollars per pound of copper produced.

 

 

HIGHLIGHTS

PRODUCTION

·    Copper production in Q1 2025 was 154,700 tonnes, 20% higher on a
year-on-year basis, driven by increased production at the Group's two
concentrators - Los Pelambres and Centinela Concentrates.

·    Gold production in Q1 2025 was 42,900 ounces, 29% higher on a
year-on-year basis, following higher gold grades at Centinela Concentrates and
maintenance in the prior year period at Los Pelambres.

·    Molybdenum production in Q1 2025 was 3,100 tonnes, 15% higher on a
year-on-year basis, following higher molybdenum grades processed at Centinela
Concentrates.

CASH COSTS

·    Cash costs before by-product credits in Q1 2025 were $2.37/lb, 11%
lower on a year-on-year basis, principally driven by higher production at the
Group's concentrators (Los Pelambres and Centinela Concentrates).

·    By-product credits in Q1 2025 were 83c/lb, representing a 12%
increase year-on-year, with higher production of by-products and gold prices.

·   Net cash costs in Q1 2025 were $1.54/lb, 20% lower year-on-year,
driven by higher by-product credits and movements in the underlying cash costs
before by-product credits.

GROWTH AND DEVELOPMENT PROJECTS

·    Centinela Second Concentrator: Project continues to progress in line
with expectations, with current work focused on the assembly of mining
equipment, completion of concrete pouring for the foundations of Ball Mills 1
and 2 and initial concreting work for the primary crusher foundations.

·    Los Pelambres' Growth Enabling Projects: Project continues to
progress in line with expectations, with work connected to the new concentrate
pipeline ongoing in both the lower and upper sections of the new route,
including trench excavation activities and adding ventilation to existing
tunnels. Construction work to expand the Group's desalination plant is also
underway, with work during the period to install foundations for the
ultrafiltration feed pumps.

·    Cachorro Exploration Project: Declaration of environmental impact
(DIA) submitted in January 2025 for additional exploration work, including up
to 732 additional drill holes and the construction of an exploration adit to
access the deposit at depth.

GUIDANCE (AS PREVIOUSLY ANNOUNCED)

·    Guidance for the year remains unchanged. Group copper production for
the full year is expected to be in the range of 660-700,000 tonnes.

·    Group-level cash cost guidance, both before and after by-product
credits, is also unchanged at $2.25-2.45/lb and $1.45-1.65/lb respectively.

·    Capital expenditure guidance is also unchanged at $3.9 billion.

SAFETY AND SUSTAINABILITY

·    The Group is pleased to confirm that its operations remain
fatality-free in 2025, and the year-to-date lost time injury frequency rate 1 
continues at a level below 1.0 and in line with the Group's historical
performance level.

·    In accordance with the current Water Code regulations, a water
redistribution agreement approved by the DGA (Chile's water administration
department) is required to be in effect so that when there is drought, certain
conditions are completed to enable Los Pelambres to be able to extract up to
400 litres per second consistently with its water rights at the point of
extraction in the Choapa river.

·    In Q1 2025, the DGA approved an update to the water redistribution
agreement, as Los Pelambres continues to work with both the water council or
JVRCH (Junta de Vigilancia Rio Choapa) and the DGA to ensure an expeditious
process is implemented.

ZALDÍVAR UPDATE

·    As previously disclosed, in December 2024, a settlement was reached
by the parties involved in the claim filed by the Consejo de Defensa del
Estado (CDE), an independent governmental agency that represents the interests
of the Chilean state, with the Company, Minera Escondida and Albemarle related
to water extraction from the Monturaqui-Negrillar-Tilopozo aquifer. This
settlement was thereafter approved by the Environmental Court in January 2025,
thus putting an end to the proceeding.

·    The operation at Zaldívar has rights to mine ore and extract water
until May 2025. The mine life after May 2025 is, therefore, subject to the
approval of an Environmental Impact Assessment (EIA). This EIA is under review
by the relevant authorities, which contemplates up to three rounds of comments
and reviews.

·    The Group's response to the third round of comments made by
government agencies in Chile was filed in March 2025. As of the date of this
report, each of the relevant government agencies have begun filing their
responses to the Group's application in a timely manner, with a formal
decision expected shortly thereafter.

·    Separate to the above EIA, under local environmental regulations, if
a permit allowing continuity of operations is not favourably resolved by the
current permit expiry date in May 2025, Zaldívar will be expected to have in
place at that time an approved temporary closure plan. In line with this
eventual regulatory condition being required, Zaldívar filed in December 2024
a temporary closure plan in compliance with this condition.

·    The Group's full year guidance for 2025 is presented based on
12-months of normal operations at Zaldívar.

CORPORATE UPDATE

·    In March 2025, Los Pelambres successfully closed the financing
associated with its water assets that was previously disclosed in the
Company's Full Year Results announcement on 18 February 2025. Through a
structured financing solution, using a wholly owned subsidiary of Los
Pelambres, the Group has secured

$2 billion on favourable terms, comprising $1,550 million in privately placed
notes with a 20-year tenor and a $450 million loan agreement with a group of
commercial banks with a tenor of approximately nine years.

·    In March 2025, the Group published its 2024 Annual Reporting Suite,
which includes the Group's Annual Report, the Mining Division's Sustainability
Report and Sustainability Databook, on its website (www.antofagasta.co.uk
(http://www.antofagasta.co.uk) ). The Company also published its 2025 Notice
of Annual General Meeting (event to be held on 8 May 2025).

 

 Investors - London                                                                   Media - London
 Rosario Orchard      rorchard@antofagasta.co.uk (mailto:rorchard@antofagasta.co.uk)  Carole Cable   antofagasta@brunswickgroup.com (mailto:antofagasta@brunswickgroup.com)
 Robert Simmons       rsimmons@antofagasta.co.uk (mailto:rsimmons@antofagasta.co.uk)  Telephone      +44 20 7404 5959
 Telephone            +44 20 7808 0988

                                                                                      Media - Santiago
                                                                                      Pablo Orozco   porozco@aminerals.cl (mailto:porozco@aminerals.cl)
                                                                                      Carolina Pica  cpica@aminerals.cl (mailto:cpica@aminerals.cl)
                                                                                      Telephone      +56 2 2798 7000

 

 

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MINING OPERATIONS

Los Pelambres

Copper production in Q1 2025 was 69,900 tonnes, representing a 26% increase
year-on-year, reflecting the pipeline maintenance undertaken in the prior year
period, partially offset by lower grades in line with the mine plan. Ore
processing rates were partially impacted by a national power outage
experienced in February 2025. On a quarter-on-quarter basis, copper production
was 27% lower as a result of lower throughput rates, lower grades and the
completion of destocking of inventories in Q4 2024 associated with the
pipeline maintenance work undertaken in February 2024. Scheduled maintenance
was completed on the processing plant in early April.

Production of by-products increased on a year-on-year basis during the period,
with increases of 5% and 38% for molybdenum and gold respectively, following
higher grades. Quarter-on-quarter production of molybdenum rose by 15%,
reflecting higher grades being partially offset by lower recoveries.

Cash costs before by-product credits were $2.30/lb in Q1 2025, representing a
5% increase year-on-year, driven by lower copper grades and an increased
consumption rate of key consumables. On a quarter-on-quarter basis, cash costs
before by-product credits were 16% higher in Q1 2025 as a result of lower
copper production, maintenance costs and completion of destocking of
inventories in Q4 2024 associated with the pipeline maintenance work
undertaken in February 2024.

Net cash costs in Q1 2025 were $1.36/lb, with by-product credits 10% lower
year-on-year, principally as a result of lower molybdenum pricing being
partially offset by higher production of by-products.

 LOS PELAMBRES                                        Year to date          Q1     Q4
                                                      2025   2024   %       2025   2024   %
 Daily ore throughput                          kt     173.5  177.1  (2.0)   173.5  186.0  (6.7)
 Copper grade                                  %      0.53   0.56   (5.4)   0.53   0.57   (7.0)
 Copper recovery                               %      88.3   88.2   0.1     88.3   89.5   (1.3)
 Copper production                             kt     69.9   55.3   26.4    69.9   95.2   (26.6)
 Copper sales                                  kt     73.0   50.7   44.0    73.0   93.6   (22.0)
 Molybdenum grade                              %      0.019  0.016  18.8    0.019  0.016  18.8
 Molybdenum recovery                           %      75.8   84.9   (10.7)  75.8   81.4   (6.9)
 Molybdenum production                         kt     2.3    2.2    4.5     2.3    2.0    15.0
 Molybdenum sales                              kt     2.0    2.5    (20.0)  2.0    2.2    (9.1)
 Gold grade                                    g/t    0.035  0.034  2.9     0.035  0.037  (5.4)
 Gold recovery                                 %      71.2   69.6   2.3     71.2   70.6   0.8
 Gold production                               koz    11.6   8.4    38.1    11.6   14.7   (21.1)
 Gold sales                                    koz    11.3   6.8    66.2    11.3   14.2   (20.4)
 Cash costs before by-product credits((1))     $/lb   2.30   2.19   5.0     2.30   1.99   15.6
 Net cash costs ((1))                          $/lb   1.36   1.14   19.3    1.36   1.24   9.7

(1) Includes tolling charges of $0.11/lb in Q1 2025, $0.17/lb in Q4 2024 and
$0.27/lb in Q1 2024.

 
Centinela

Total copper production at Centinela was 55,600 tonnes in Q1 2025,
representing a level 24% higher than the same period in 2024, which is the
result of higher production at Centinela Concentrates, offset by lower output
at Centinela Cathodes. Total production was 24% lower on a quarter-on-quarter
basis as a result of lower grades, in line with the mine plan, and reduced ore
processing rates at both Centinela Concentrates and Centinela Cathodes.

At Centinela Concentrates, copper production rose by 56% on a year-on-year
basis to 35,900 tonnes, reflecting higher copper grades and ore processing
rates. Production was 23% lower than the prior quarter, which reflects lower
ore processing rates associated with scheduled maintenance during the period,
in addition to lower grades and recoveries.

Total copper production at Centinela Cathodes was 10% lower year-on-year at
19,800 tonnes, with this decrease principally a reflection of lower copper
grades in line with the mine plan, offset by higher ore processing rates.
Total production during the quarter was 25% lower than the prior quarter,
following lower grades and ore processing rates.

In respect of by-products, gold production of 31,300 ounces during the period
represented a level 26% higher on a year-on-year basis, principally as a
result of higher gold grades and increased ore processing rates. Molybdenum
production during the period of 800 tonnes was 60% higher year-on-year,
reflecting higher molybdenum grades processed.

Copper sales for both Centinela Concentrates and Centinela Cathodes exceeded
production, as normal operations resumed at the Group's port in northern Chile
following adverse weather conditions at the end of 2024 that resulted in a
delay to shipments.

Cash costs before by-product credits were $2.31/lb in Q1 2025, which
represents a level 29% below the same period in the prior year. This fall in
costs reflects the greater contribution to total production from Centinela
Concentrates, which represented approximately two thirds of total production
during the period, compared to approximately 50% in Q1 2024. Additionally,
costs were lower on a year-on-year basis following higher overall production
and lower unit costs for diesel, which was partially offset by higher unit
costs for sulphuric acid. Cash costs before by-product credits were 28% higher
on a quarter-on-quarter basis, principally related to lower production and
higher unit costs for key consumables, such as diesel.

Net cash costs fell to a greater extent than the underlying cash costs before
by-product credits, with a 51% reduction year-on-year to $1.18/lb. This
follows a 35% increase in by-product credits to $1.13/lb, which is close to a
record-level of by-product credit for Centinela and reflects the 26% and 60%
increase in gold and molybdenum production respectively, in addition to higher
gold prices.

 

 CENTINELA                                             Year to date               Q1     Q4
                                                       2025         2024  %       2025   2024  %
 CONCENTRATES
 Daily ore throughput                            kt    100.6  90.1        11.7    100.6  117.2      (14.2)
 Copper grade                                    %     0.51   0.35        45.7    0.51   0.53       (3.8)
 Copper recovery                                 %     81.4   81.5        (0.1)   81.4   83.2       (2.2)
 Copper production                               kt    35.9   23.0        56.1    35.9   46.6       (23.0)
 Copper sales                                    kt    41.9   15.3        173.9   41.9   44.8       (6.5)
 Molybdenum grade                                %     0.017  0.011       54.5    0.017  0.014      21.4
 Molybdenum recovery                             %     67.2   67.0        0.3     67.2   62.7       7.2
 Molybdenum production                           kt    0.8    0.5         60.0    0.8    0.7        14.3
 Molybdenum sales                                kt    0.7    0.5         40.0    0.7    0.7        -
 Gold grade                                      g/t   0.17   0.14        21.4    0.17   0.23       (26.1)
 Gold recovery                                   %     66.8   64.4        3.7     66.8   69.4       (3.7)
 Gold production                                 koz   31.3   24.9        25.7    31.3   53.5       (41.5)
 Gold sales                                      koz   37.2   16.4        126.8   37.2   54.5       (31.7)
 CATHODES
 Daily ore throughput                            kt    57.8   54.7        5.7     57.8   61.4       (5.9)
 Copper grade                                    %     0.50   0.60        (16.7)  0.50   0.65       (23.1)
 Copper recovery                                 %     70.6   71.6        (1.4)   70.6   71.2       (0.8)
 Copper production - heap leach                  kt    19.1   21.3        (10.3)  19.1   26.0       (26.5)
 Copper production - total ((1))                 kt    19.8   22.0        (10.0)  19.8   26.5       (25.3)
 Copper sales                                    kt    24.7   21.2        16.5    24.7   23.1       6.9
 Total copper production                         kt    55.6   45.0        23.6    55.6   73.1       (23.9)
 Cash costs before by-product credits((2))       $/lb  2.31   3.23        (28.5)  2.31   1.80       28.3
 Net cash costs((2))                             $/lb  1.18   2.39        (50.6)  1.18   0.64       84.4

(1) Includes production from ROM material

(2) Includes tolling charges of $0.10/lb in Q1 2025, $0.13/lb in Q4 2024 and
$0.16/lb in Q1 2024.

 
Antucoya

Copper production during the period was 3% higher at 20,200 tonnes, which
reflects improved recoveries and ore processing rates, offset by lower copper
grades. Copper production was 3% lower than the prior quarter, which is a
reflection of lower ore processing rates during the period.

Cash costs during the period were $2.47/lb, 5% lower on a year-on-year basis,
reflecting higher production, lower consumption rates for sulphuric acid,
partially offset by higher unit costs for key consumables, such as sulphuric
acid and diesel. Cash costs on a quarter-on-quarter basis were 11% higher in
Q1 2025, reflecting lower production and higher expenditures associated with
maintenance activities, materials and spare parts.

 ANTUCOYA                     Year to Date         Q1    Q4
                              2025   2024   %      2025  2024  %
 Daily ore throughput  kt     92.5   90.5   2.2    92.5  95.3  (2.9)
 Copper grade          %      0.31   0.33   (6.1)  0.31  0.31  -
 Copper recovery       %      71.9   66.2   8.6    71.9  71.8  0.1
 Copper production     kt     20.2   19.6   3.1    20.2  20.8  (2.9)
 Copper sales          kt     20.8   19.2   8.3    20.8  19.5  6.7
 Cash costs            $/lb   2.47   2.61   (5.4)  2.47  2.23  10.8

 

Zaldívar

Attributable copper production was 5% lower than the same period in 2024 at
9,000 tonnes, which follows a combination of lower grades and recoveries,
partially offset by a higher ore processing rate. Attributable copper
production during the period was 20% lower than Q4 2024, reflecting lower ore
processing rates, recoveries and grades.

Cash costs during the period were 4% higher than the same period in 2024 at
$3.09/lb, primarily as a result of the lower level of copper production, in
addition to higher unit prices for key consumables such as sulphuric acid,
offset by savings associated with an increase in ore tonnage being treated.
Cash costs were in line on a quarter-on-quarter basis, with higher unit costs
for sulphuric acid offset by lower unit costs for other key consumables and
the utilisation of inventory from prior periods.

 ZALDÍVAR                                     Year to date          Q1    Q4
                                              2025   2024   %       2025  2024  %
 Daily ore throughput                  kt     40.7   35.2   15.6    40.7  51.5  (21.0)
 Copper grade                          %      0.59   0.78   (24.4)  0.59  0.64  (7.8)
 Copper recovery                       %      54.4   56.1   (3.0)   54.4  57.4  (5.2)
 Copper production - heap leach ((1))  kt     6.0    7.0    (14.3)  6.0   7.9   (24.1)
 Copper production - total ((1,2))     kt     9.0    9.5    (5.3)   9.0   11.2  (19.6)
 Copper sales ((1))                    kt     9.8    9.3    5.4     9.8   10.8  (9.3)
 Cash costs                            $/lb   3.09   2.97   4.0     3.09  3.09  -

(1) Group's 50% share.

(2) Includes production from secondary leaching.

 

 

Transport Division (FCAB)

The total tonnage transport during the period was 10% lower on a year-on-year
basis at 1.6 million tonnes, which follows a reduction in both rail and road
tonnages.

Rail volumes declined by 10% in Q1 2025 to 1.2 million tonnes, with this
decrease relating to the expiry of a client contract and heavy rains in the
northern region of Chile. Road transport tonnages during the period declined
by 9% on a year-on-year basis to 344,000 tonnes, reflecting conclusion of a
contract to ship lithium brines.

 TRANSPORT                         Year to date         Q1     Q4
                                   2025   2024   %      2025   2024   %
 Rail                       kt     1,213  1,346  (9.9)  1,213  1,450  (16.3)
 Road                       kt     344    376    (8.5)  344    360    (4.4)
 Total tonnage transported  kt     1,557  1,722  (9.6)  1,557  1,810  (14.0)

 

Commodity prices and exchange rates

                        Year to date               Q1        Q4
                        2025   2024   %      2025       2024      %
 Copper
 Market price    $/lb   4.24   3.83   10.7   4.24       4.17      1.7
 Realised price  $/lb   4.69   3.97   18.1   4.69       3.75      25.1
 Gold
 Market price    $/oz   2,859  2,070  38.1   2,859      2,664     7.3
 Realised price  $/oz   3,098  2,176  42.4   3,098      2,669     16.1
 Molybdenum
 Market price    $/lb   20.5   19.9   3.0    20.5       21.7      (5.5)
 Realised price  $/lb   19.3   21.1   (8.5)  19.3       21.5      (10.2)
 Exchange rates
 Chilean peso    per $  963    947    1.8    963        963       -

 

Spot commodity prices for copper, gold and molybdenum as at 31 March 2025 were
$4.39/lb, $3,118/oz and $20.0/lb respectively, compared with $3.95/lb,
$2,610/oz and $21.1/lb as at 31 December 2024 and $3.96/lb, $2,211/oz and
$19.7/lb as at 31 March 2024.

The provisional pricing adjustments for copper, gold and molybdenum for the
quarter were positive $159.9 million, positive $13.8 million and negative $9.7
million respectively.

 

_________________________________________________________________________________________

Cautionary Statement

This announcement may contain certain forward-looking statements. All
statements other than statements of historical fact are, or may be deemed to
be, forward-looking statements.

 

These forward-looking statements are based upon current expectations and
assumptions regarding anticipated developments and other factors affecting the
Group. They are not historical facts, nor are they guarantees of future
performance or outcomes. Readers should not place undue reliance on
forward-looking statements.

 

Forward-looking statements involve known and unknown risks, uncertainties,
assumptions and other factors that are beyond the Group's control. Given these
risks, uncertainties and assumptions, actual results could differ materially
from any future results expressed or implied by these forward-looking
statements.

 

These forward-looking statements speak only as of the date of this document.
Except as required by any applicable law or regulation, the Group expressly
disclaims any obligation or undertaking to release publicly any updates or
revisions to any forward-looking statements contained herein to reflect any
change in the Group's expectations with regard thereto or any change in
events, conditions, or circumstances on which any such statement is based. No
assurance can be given that the forward-looking statements in this document
will be realised. Past performance cannot be relied on as a guide to future
performance.

 

This document does not contain or comprise profit forecasts, investment,
accounting, legal, regulatory or tax advice nor is it an invitation for you to
enter into any transaction. You are advised to exercise your own independent
judgement (with the advice of your professional advisers as necessary) with
respect to the risks and consequences of any matter contained herein.

 

Any securities mentioned in this communication have not been registered under
the U.S. Securities Act of 1933, as amended, and may not be offered or sold in
the United States absent registration or an applicable exemption from
registration requirements.

 

 1  Group-level, covering both Mining and Transport Divisions.

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