Codelco’s 2012 Pre-Tax Profit third highest in Company History

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Codelco’s 2012 Pre-Tax Profit third highest in Company History

•Pre-tax profits increased over prior year, despite lower copper prices and lower output, due to extraordinary gains after Codelco acquired a stake in Anglo American Sur. •Codelco’s output totalled 1, 647,000 metric tons of fine copper, plus 111,000 tons from its stake in El Abra and Anglo American Sur. •Codelco’s comparable net profit, applying the same tax requirement as private companies, totalled US$ 5.718 billion in 2012.

Santiago, 28 March 2013.- Corporación Nacional del Cobre de Chile, Codelco's pre-tax profit totalled US$ 7.518 billion in 2012, a 6.8% increase over US$ 7.033 billion in 2011. Thereby, it was the third highest pre-tax profit in Company history, only exceeded in 2006 and 2007.

It is important to note that results include an extraordinary gain of US$ 3.517 billion after acquiring a stake in Anglo American Sur (AAS) in August.

Comparable net profit (calculated by applying the same tax system as private companies) totalled US$ 5.718 billion.

During this period, the average copper price was US$3.60/lb, down 10% from 2011. Molybdenum prices were also down 17% (an average 28 US$/Kg in 2012), the Company's main by-product.


Codelco's own production in 2012 totalled 1,647,000 metric tons of fine copper (Mt), down 5% from 2011, when the Company had a record output.

This fall represents 88,000 Mt of copper, basically caused by a 20% fall at Chuquicamata (87,000 Mt.). Output was also down at Radomiro Tomic and Salvador divisions; however Minera Gaby, Andina, and El Teniente increased production.

Codelco's lower output is due to decreasing ore grades, as a result of ageing deposits. During 2012, Codelco processed ore containing 0.73% copper, down 9% from the prior year. This lower ore grade was somewhat offset by treating more ore at the different mine operations. For this reason, production only fell 5% and not 9%.

Including Codelco's stake in El Abra (75,000 Mt) and Anglo American Sur (36,000 Mt), the Company's total output was 1,758,000 tons of copper, down 2% from 2011.

In relation to by-products, gold, silver, sulphuric acid and molybdenum output also dropped (molybdenum was down 3,000 tons).


Copper sales revenue totalled US$ 12. 792 billion, compared to US$ 14.338 billion in 2011. This is partly because the average copper price fell 10% to 360.62 cents per pound, and because of lower output.

Gross profit was US$ 5.009 billion in 2012. A further US$ 2.509 billion have to be included for other non-operating revenues. This implies that Codelco's pre-tax profit was US$ 7. 518 billion in 2012, up US$ 485 million over 2011.

2012 2011
Reserve Tax Law 13.196 1.270  1.486
Income Tax (57%)  2.132 3.133
Specific Mining Tax 241 356
Net Profit 3.875 2.055
Pre-Tax Profit 7.518 7.033
Comparable Net Profit * 5.718 5.253

* Equivalent to Codelco's profit applying the same tax requirements as private companies.


As at December 2012, EBITDA (defined as earnings before, interest, tax, reserve law, depreciation and amortization) was US$ US$ 9.531 billion, up from US$ 8.813 billion in 2011.


Codelco, as most of the mining industry in Chile, had higher production costs. Codelco's direct cash cost (C1) was 163.5 cents, up 47.1 cents over 2011. C1 is the type of cost used as a benchmark by the mining industry to compare efficiency.

This rise is mainly the result of lower ore grades, higher fuel, energy and other input prices, as well as a lower by-product credit.

Over the last two years Codelco has experienced a 57% increase in cash cost. This is a similar phenomenon that affects all the mining industry operating in Chile, which on average has undergone a 48% cost increase during this period.


Codelco had to regret one fatal accident in 2012: Manuel Antonio Lara Ramírez, contractor who worked for Sacyr Aguasanta S.A., company providing services to El Teniente Division. In addition to this fatal accident is the death of Tapia Farías, contractor who worked for EMIN, at Minera Gaby.
However, the overall accident frequency rate was 1.35, down 5% from 2011. The accident severity rate (TGG) also dropped 32%.

Communications Department

Codelco Financial ResultsYear 2012 > >