Codelco reports Record Production in 2015

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Codelco reports Record Production in 2015

Despite a 20% fall in copper prices, the Company delivered US$1.075 billion in pre-tax profit (before extraordinary items)

Santiago, 24 March 2016.- Codelco CEO, Nelson Pizarro, reported a record copper production of 1.732 million tonnes from its own mines in 2015. This record production is up 3.6% from 2014 and it is one of the highest in company history, despite extreme weather events in northern Chile, the negative impact of a contractor strike and, particularly, lower ore grades (down 19% since 2004, when Codelco had a similar production).

Pizarro added that, despite an increasingly complex global market outlook, both copper and molybdenum prices were down 20% and 41%, respectively, Codelco delivered US$1.075 billion in pre-tax profits before extraordinary items to the Chilean State. This significant result was achieved thanks to a robust cost reduction plan, saving US$1.203 billion, equivalent to 120% of the total target.

In fact, direct costs (C1) fell 8% to US$139.7 c/lb from US$150.4 c/lb in 2014. As a result, the Company moved from third to second cost quartile in the industry, i.e., 50% of the most competitive mining companies.

The CEO also stated that this cost reduction plan maintained Codelco's Mining Ebitda margin at 37%, another significant figure amidst falling copper and molybdenum prices.

Pizarro explained that Codelco's investment plan continued to make progress thanks to a US$ 600 million capitalisation during this period and a successful issuance of USD 2 billion in bonds.

Similar to other companies in the industry, Codelco reported impairments of USD 2.431 billion in 2015 and, after adjusting extraordinary items, a net loss of US$1.492 billion. The CEO explained that this adjustment only has an accounting impact, but it does not affect the amount Codelco delivers to the State nor its investment plan.


  • 1.731.688 tonnes of own copper produced by Codelco. This includes its stake in El Abra and Anglo American Sur, refined copper production increased to 1,891,376 tonnes.
  • Record production, equivalent to 2004 and 2011.
  • US$1.075 billion in pre-tax profits for the Chilean State (before extraordinary items).
  • US$3.576 billion Ebitda in December 2015, and a 37% mining Ebitda margin, maintaining its strong and competitive position in the industry
  • 0 fatal accidents and a lower accident severity rate of 39%. While the accident frequency rate fell 31%.