Codelco’s output rose 4.5% thanks to Anglo American and El Teniente

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Codelco’s output rose 4.5% thanks to Anglo American and El Teniente

•During the first months of this year, the Company’s total output was 1,310,000 tonnes of refined copper, i.e., 57,000 tonnes more than in 2012. Molybdenum production also rose 9.5%. •Codelco’s production costs (net cathode) fell 10% year-on-year as a result of measures adopted at the end of 2011 to increase productivity and reduce costs. •However, pre-tax profits fell due to: in 2012 the Company had extraordinary gains after buying a stake in Anglo American Sur (US$ 3.517 billion) and lower revenues caused by a fall in copper prices and other by-products (US$ 713 million).

Santiago, 29 November 2013. The Corporación Nacional del Cobre de Chile, Codelco's pre-tax profits were US$ 2.672 billion in the third quarter 2013, down from US$ 6.940 billion in the same quarter in 2012.

Imagen foto_00000001This fall is due to the effect of US$ 3.517 billion in extraordinary gains from its stake in Anglo American Sur S.A. (AAS) and to lower copper, molybdenum and other by-product prices, that cut Codelco's pre-tax profit by a further US$ 713 million.

In the third quarter, the average price of copper was 334.7 cents per pound, down 7.3% from 2012. Additionally, molybdenum prices fell, Codelco's key by-product, to US$ 23.2 per kilogram. Prices for sulphuric acid (- 39%), gold (-12%) and silver (-19%) also declined.

As a result of these market conditions, net comparable profit (calculated by applying the same tax system as private-sector businesses) totalled US$ 2.099 billion.


For the nine-month period, Codelco's refined copper production totalled 1.310.000 Mt, up 57,000 Mt (or 4.5%) compared to 1.253.000 Mt produced over the same period in 2012. This rise is due to a higher copper output at El Teniente Division and to Codelco's stake in Anglo American Sur S.A.

As for by-products, molybdenum output increased 9.5%. However, gold, silver and sulphuric acid output fell.


In the first nine months of this year, Codelco's total expenses fell 12%, totalling 233.8 US cents per pound (c/lb) of copper, compared to an average 264.5 c/lb throughout 2012.

Net Cathode Cost (C3) dropped 10% to 218.6 C/lb on average. This cost is compared to the prices observed on the London Metal Exchange.

For the third quarter, Codelco's Direct Cash Cost (C1) was 165.2 c/lb of copper, up 1% compared to the average cost in 2012. C1 is the type of cost used as a benchmark by the global mining industry to compare efficiency.

This slight increase is basically due to lower by-product credits as a result of lower molybdenum prices and, to a lesser extent, to the effect of CPI and exchange rate. However, in September cost C1 fell to 165.2 c/lb, significantly lower than 181 c/lb in the last quarter of last year.

These significantly lower costs compared to 2012 are thanks to the progress of the growth project to increase productivity and limit costs, launched by the Company at the end of 2011.


Copper sales revenue totalled US$ 8.808 billion in September 2013, compared to US$ 9.252 billion over the same period last year, mainly because of lower copper prices (down US$ 444 million). Since the cost of copper sold in this period was US$ 6.233 billion, the gross sales profit was US$ 2.575 million.

A further US$ 291 million is included from by-product sales, which also shows a strong decline compared to 2012, when it totalled US$ 560 million (down US$269 million).

In other words, as a result of lower product prices, Codelco's sales revenue fell US$713 billion.

US$ 194 million have to be deducted as other revenues and expenses, which are explained by interest expense, exchange rate variations, collective bargaining and administrative expenses


The Company reported US$ 2.672 billion in pre-tax profit in September 2013, distributed as follows:

2013  2012
Reserve Tax Law 13.196 858  912
Income Tax (57%)  950 2.132
Specific Mining Tax  95 180
Net Profit  769 3.716
Pre-Tax Profit  2.672 6.940
Comparable Profit* 2.099 5.362

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

In the third quarter of 2013, adapted EBITDAL (defined as earnings before, interest, taxes, reserve law, depreciation and amortisation) totalled US$ 4.194 billion, down from US$ 8.436 billion in the same period in 2012.

During the period January-September 2013, Codelco had to regret 4 fatal accidents (3 contractors and 1 employee).
The total accident frequency rate, which includes employees and contractors, was a record 1.19 for the period January-September 2013, significantly lower than the 1.35 rate in the same period in 2012.
Communications Department