NEWS RELEASE, 18 FEBRUARY
2025
FULL YEAR RESULTS FOR THE
YEAR ENDED 31 DECEMBER 2024
EBITDA UP 11% WITH HIGHER
MARGINS AND FINAL DIVIDEND OF 23.5 PROPOSED
Antofagasta plc CEO Iván Arriagada
said: "We have delivered another year of strong
revenue growth and cash flow generation, and our EBITDA margin
widened to 52%, maintaining our position at the top-end of our peer
group of pure-play copper producers.
"Copper's unique role in energy security and electrification
means that the world needs more of it, and our projects are on
track to deliver industry-leading levels of responsible copper
supply growth. Our strong balance sheet enables us to invest in
profitable growth for the medium and long term.
"Our disciplined approach to capital allocation allows us to
balance investments and shareholder returns, with the final
dividend that we have proposed today taking total distributions in
respect of 2024 to 50% of underlying earnings, reflecting our
confidence in the future of our business.
"We are encouraged by the outlook for copper as demand
remains strong and global constraints, such as grade decline, ore
hardness and capex inflation, are steadily limiting existing supply
expansions."
|
YEAR ENDING 31 DECEMBER
|
|
2024
|
2023
|
%
|
|
Revenue
|
$m
|
6,613.4
|
6,324.5
|
+5%
|
|
EBITDA[1]
|
$m
|
3,426.8
|
3,087.2
|
+11%
|
|
EBITDA
margin2
|
%
|
51.8%
|
48.8%
|
+3.0pp
|
|
Profit before tax (including
exceptional items)
|
$m
|
2,071.1
|
1,965.5
|
+5%
|
|
Cash flow from operations
|
$m
|
3,276.2
|
3,027.1
|
+8%
|
|
Net debt /
EBITDA1
|
X
|
0.48
|
0.38
|
+26%
|
|
Earnings per share (including
exceptional items)
|
cents
|
84.1
|
84.7
|
(1%)
|
|
Underlying earnings per share
(excluding exceptional items)1
|
cents
|
62.8
|
72.0
|
(13%)
|
|
Dividend per share
|
cents
|
31.4
|
36.0
|
(13%)
|
2024 HIGHLIGHTS
|
●
|
Continued strong safety performance,
with no fatalities and the lost time injury frequency rate
continuing at a level below 1.0.
|
|
●
|
Revenue increased by 5% to $6.6
billion, reflecting the higher copper price, partly offset by lower
sales volumes due to the rescheduling of vessels between periods
following adverse weather conditions (sea swells) during December
2024 in the north of Chile.
|
|
●
|
EBITDA1 was $3.4 billion,
11% higher on stronger revenues and robust cost control, which
helped to increase the Group's EBITDA
margin[2] to
52%.
|
|
●
|
Cash flow from operations increased
by 8% to $3.3 billion, with the same drivers as described
above.
|
|
●
|
Full year capital expenditure was
$2.4 billion in 2024, with major capital projects in line with plan
and reflecting the impact from the depreciation of the Chilean peso
during the year.
|
|
●
|
The Competitiveness Programme
generated savings and productivity improvements of $248 million in
2024 (2023: $135 million), exceeding the Group's original target of
$200 million for the year.
|
|
●
|
The balance sheet remains strong,
with a cash, cash equivalents and liquid investment balance of
$4.3bn, and the net debt to EBITDA ratio continues to be robust at
0.48x (31 December 2023:
0.38x).
|
|
●
|
Recommended final dividend of
23.5 cents per share, which if approved, would
take full year distributions to the equivalent of a pay-out ratio
of 50% of underlying net earnings per share, in line with the
Company's dividend policy.
|
|
●
|
Addition of the Encuentro sulphides
pit to Centinela's Ore Reserve estimate as at 31 December 2024,
adding 738 million tonnes grading 0.45% copper, which is higher in
grade than Centinela's existing average Ore Reserves copper grade.
Following this inclusion, the Ore Reserve estimate for the
Centinela District has increased by 35% to 2.6 billion
tonnes.
|
|
●
|
The Group's guidance for 2025
remains unchanged, with production expected to be between 660,000
and 700,000 tonnes. Cash costs before by-product credits and net
cash costs are expected to be between $2.25/lb and $2.45/lb and
between $1.45/lb and $1.65/lb, respectively.
|
|
●
|
The Group's capital expenditure for
2025[3] is expected to
be $3.9 billion, in line with prior directional guidance given in
the Group's Full Year 2023 Announcement, as development expenditure
peaks on the Centinela Second Concentrator and as we advance other
growth projects at Los Pelambres and Centinela during the
year.
|
A copy of the 2024
full year results presentation is available for download from the Company's
website (http://www.antofagasta.co.uk/investors/reports-presentations/).
There will be a presentation and
Q&A at 9:00am (UK) today, which will be hosted by Iván
Arriagada - Chief Executive Officer, Mauricio Ortiz - Chief
Financial Officer and Alejandra Vial - Vice President
Sustainability. Attendance can be in-person or virtual. Further
details can be found
here.
Register on our website to receive
our email alerts http://www.antofagasta.co.uk/investors/email-alerts/
FINANCIAL AND OPERATING
REVIEW
FINANCIAL HIGHLIGHTS
Revenue increased by 5% to
$6,613.4 million, reflecting the higher copper price, partly offset
by lower sales volumes due to the rescheduling of vessels between
periods, as a consequence of adverse weather conditions (sea
swells) in the north of Chile.
The average realised copper price
rose in 2024 by 7% to $4.18/lb.
The Group's EBITDA was $3,426.8
million, 11% higher than 2023 on higher revenues, and an improved
EBITDA margin of 52%, which reflects the higher copper price and
demonstrates the impact of the Competitiveness Programme and cost
discipline, which collectively served to deliver greater efficiency
and operational performance across the business.
Underlying profit before tax
(excluding exceptional items) was $1,648.7 million, 8% lower than
2023, reflecting the positive underlying movements described above,
offset by higher depreciation and amortisation. This increase is
primarily related to the increase in amortisation of mine
development and new mine fleet
equipment at Centinela, along with the
commencement of the Los Pelambres Phase 1 Expansion Project in
2024.
An exceptional fair value gain of
$51.0 million was recognised in H1 2024 associated with the
agreement to acquire up to an additional 30 million shares in
Compañía de Minas Buenaventura S.A.A. ("Buenaventura"). A deferred
tax expense of $12.7 million has also been recognised in respect of
this gain, resulting in a post-tax impact of $38.3
million.
An exceptional pre-tax gain of
$371.4 million (post-tax impact of $257.4 million) has been
recognised in relation to the reversal of previous impairments
recognised at Antucoya.
Profit before tax (including
exceptional items) was $2,071.1 million, 5% higher than 2023 due
the exceptional items, partly offset by higher depreciation and
amortisation, as described above.
Earnings per share for the year
(including exceptional items) were 84.1 cents, a decrease of 1%
compared with 2023, reflecting movements in profit before
tax.
Earnings per share for the year
(excluding exceptional items) were 62.8 cents, a decrease of 13%
compared with 2023, reflecting underlying movements in profit
before tax.
Cash flow from operations was
$3,276.2 million, an 8% increase compared with last year, primarily
as a result of the Group's higher EBITDA during the year, and a
minor positive movement in working capital.
The Group's balance of cash, cash
equivalents and liquid investments increased by 48% to $4,316.3
million as at 31 December 2024 (31 December 2023: $2,919.4
million), reflecting strong cash flows from operations.
The Group's net debt to EBITDA
ratio remained low at 0.48 as of 31 December 2024 (31 December
2023: 0.38), reflecting the factors described above.
The Board of Directors of the
Company has proposed a final dividend of 23.5 cents per share,
equal to a 50% pay-out of underlying earnings per share, which
represents a level in line with the Company's dividend
policy.
PRODUCTION AND CASH COSTS (AS PREVIOUSLY ANNOUNCED)
Copper production during 2024 was
664,000 tonnes, 1% higher on a year-on-year basis, reflecting
higher production at Centinela Cathodes and Los Pelambres, offset
by lower grades at Centinela Concentrates.
Gold production in full year 2024
decreased by 11% to 186,900 ounces, reflecting lower grades at
Centinela Concentrates.
Full year 2024 molybdenum
production was 10,700 tonnes, in line with the prior
year.
Cash costs in 2024 were $2.37/lb,
a year-on-year increase of 3%, following lower copper grades at Los
Pelambres.
Net cash costs were $1.64/lb for
the year, broadly in line with 2023.
COMPETITIVENESS
PROGRAMME
The Competitiveness Programme was
implemented to reinforce the operational improvement and reduce the
Group's cost base, improving its competitiveness within the
industry. During 2024, the programme achieved improvements of $248
million in the Mining Division, exceeding the Group's original
target of $200 million for the year. These gains were mainly
related to operational efficiencies and throughput run time
($136m), contract management ($71 million), and other cost-saving
initiatives ($41 million).
A target of $100 million for the
Competitiveness Programme has been set for 2025, reflecting the
level of productivity improvements and cost savings expected during
the year.
EXPLORATION AND EVALUATION
COSTS
Exploration and evaluation costs
decreased by $12 million to $53 million, with this decrease related
to the completion of a phase of exploration work at Cachorro and
other exploration properties in Chile.
In early 2025, the Group submitted
a Declaration of Environmental Impact (DIA) for further exploration
work at the Cachorro Project in northern Chile. This next phase of
work includes various forms of drilling, the construction of access
roads, an exploration adit and an expansion of the existing
exploration camp.
TAXATION
The effective tax rate for the
period was 38.1% before exceptional items and 36.5% after
exceptional items (being the reversal of the Antucoya impairment
and the fair valuation in respect of the agreement to acquire up to
30 million shares in Buenaventura), which compares with 34.7% and
33.9% respectively in 2023. This increase is mainly due to the
implementation of the new royalty for Los Pelambres. Centinela and
Antucoya have tax stability agreements in place. Thus, the new
royalty rates will only impact their royalty payments from 2030
onwards.
The income tax expense for the
year excluding exceptional items was $628.4 million, broadly in
line with 2023. Income tax paid during the year was $666.8 million, compared
to $528.1 million in 2023.
The ad-valorem element of the new
royalty was $28.7 million in 2024, which is not included in the
Group's effective tax rate.
For more information on taxation,
see page 20 in the Financial Review Section.
CAPITAL EXPENDITURE
Total capital expenditure in 2024
was $2,414.9 million (2023: $2,129.2 million), including $866.6
million of sustaining capital expenditure, $388.6 million of mine
development activities and $1,159.7 million of growth expenditure.
This overall increase of $285.7 million principally relates to
increased expenditures at Centinela in growth projects and
sustaining capital expenditure, offset by lower mine development
expenditures.
DEPRECIATION AND
AMORTISATION
Depreciation, amortisation and
loss on disposals increased by $362.5 million to $1.6 billion
(2023: $1.2 billion) mainly as a result of
the increase in amortisation of mine development and
new mine fleet equipment at Centinela, as well as the commencement of depreciation of
the Los Pelambres Phase 1 Expansion Project, which went into
operation as of March 2024.
CAPITAL ALLOCATION
The Group's capital allocation
framework is integral in the process to allocate investments for
sustaining capex, development capex and shareholder returns. The
Group remains committed to profitable growth in copper production
and a prudent and consistent approach to capital allocation
required to generate shareholder returns.
Cash flow from operations was
$3,276.2 million, an 8% increase compared with last year, primarily
as a result of the Group's higher EBITDA during the year, and a
minor positive movement in working capital.
Net debt at the end of 2024 was
$1,629.1 million (31 December 2023: $1,160.0 million), with this
increase reflecting the financing of the Group's projects,
partially offset by a strong operating cash generation. The net
debt to EBITDA ratio at the end of the period was 0.48 times (31
December 2023: 0.38 times).
In June 2024, the Group completed
a water transportation agreement, involving Centinela's existing
water supply and future water supply to the Centinela Second
Concentrator Project. Under the terms of the agreement, Centinela's
existing water transportation assets and rights were transferred to
an international consortium, with Centinela receiving cash proceeds
of $600 million during 2024. In addition, the planned expansion of
the water transportation system will now be undertaken by the
acquiring consortium, resulting in a reduction in the overall
capital cost of the Centinela Second Concentrator Project by
approximately $380 million, with this reduction to be realised over
the course of the project's construction period. Following
completion, the acquiring consortium will operate Centinela's
existing water infrastructure.
The Group is working on a
financing associated with Los Pelambres' water assets. Through a
structured financing solution, Los Pelambres seeks to secure a $2
billion facility with favourable financing terms including banks
and a private placement bond with a 20-year term.
The Board has recommended a final
dividend of 23.5 cents per share, equivalent to $231.7 million and,
if approved, would represent a total pay-out of 50% of underlying
earnings per share, in line with the Company's dividend policy
making the total dividend for the year 31.4 cents per share,
equivalent to $309.6 million.
LABOUR
As previously reported, the Mining
Division concluded an early labour negotiation at the end of May
2024 with one of the employees' unions at Centinela, resulting in a
three-year contract. There were no other collective labour contract
negotiations in the remainder of 2024.
The Mining Division has four
labour agreements due to expire in 2025, comprising of one
agreement each at Zaldívar and Los Pelambres, and two at
Antucoya.
2025 GUIDANCE (as previously
announced)
Group copper production in
2025[4] is expected
to be between 660,000 and 700,000 tonnes, with an incremental gain
in production at Centinela Concentrates. Output of by-products is
expected to be 210,000-230,000 ounces of gold and 15,000-16,500
tonnes of molybdenum.
Group cash costs in 2025 before
by-product credits are expected to be between $2.25/lb and
$2.45/lb.
Group net cash costs in 2025 are
expected to be between $1.45/lb and $1.65/lb, with by-product
credits expected to marginally increase year-on-year.
In 2025, consolidated Group capital
expenditure (which excludes Zaldívar) is expected to be $3.9
billion, in line with prior directional guidance given in the
Group's Full Year 2023 Announcement, as development expenditure
peaks on the Centinela Second Concentrator and as we advance other
growth projects at Los Pelambres and Centinela during the
year.
SUSTAINABILITY
Health and safety
The Group recorded another
fatality-free year in 2024 (2023: zero), alongside historical low
levels for lost time injury frequency rate[5] (2024: 0.57; 2023: 0.63) and
total injury frequency rate[6]
(2024: 1.62; 2023: 1.81).
This result reflects a multi-year
progression in developing a safety-first culture, and the
implementation of a range of safety initiatives to promote
awareness of safety-related risks. A key feature of the year has
been the implementation of an updated Operational Excellence
Management System (OEMS), which includes safety as a key component.
Additional safety highlights include Zaldívar completing the year
without a high-potential incident in 2024, which is a key leading
indicator of safety, and the Transport Division reducing its full
year lost time injury frequency rate by more than half to 0.42
(2023: 0.90).
A further area of note in 2024 was
the successful deployment of significant numbers of external
contractors to the Group's major growth and development projects
(see page 12), with over 8,000 contractors mobilised to the
Centinela Second Concentrator Project alone. The Group's major
growth and development projects completed the year with a lost time
injury frequency rate either in line with or lower than the average
for the Group, which is a significant achievement given the efforts
required to integrate external contractors into our safety policies
and procedures.
Environment
During 2024, the Group updated its
Environmental Management Model, a tool that seeks to advance
operational excellence and support the implementation of new
projects. The revised model includes the pillars of Leadership,
Reporting of Operational Events and Environmental Findings,
Regulatory Risk Management, Operational Risk Management, and a
fifth pillar related to the environmental assessment of projects.
With the updated model, it is the intention to continue advancing
the Group's efforts in minimising its environmental
footprint.
In 2024, the Group submitted an
Environmental Impact Assessment (EIA) application for the Los
Pelambres Development Options Project, with more information on
page 12. In relation to Zaldívar's ongoing EIA application, which
was submitted in 2023, the Group has continued to advance
discussions with the relevant government and permitting authorities
in respect of this process, as outlined on page 11 of this
report.
Communities
In 2024, the Group marked 10 years
of Somos Choapa, the principal community engagement programme at
Los Pelambres. During this time, over 150 projects have been
supported with a key focus on supporting the availability of water,
healthcare, education and local economic development. The second
cycle of this programme was launched in August 2024, with a focus
on climate change resilience and fostering social
improvement.
During 2024, Los Pelambres has
worked closely with Indigenous groups and has established more than
10 formal joint working agreements with communities in the Choapa
Valley and surrounding areas.
In the north of Chile, where three
of the Group's four mining operations and Transport Division are
located, social investment agreements were implemented with the
communities of the Salar de Atacama (Peine, Socaire, Camar and
Talabre). Through the "Diálogos
para el Desarrollo" (Dialogues for Development) engagement
programme, 48 initiatives were implemented in 2024, with a focus on
the communities of María Elena, Sierra Gorda, and
Michilla.
Balanced workforce
The Group continues to progress
towards reaching its aspirational goal of 30% female representation
by the end of 2025. As at the end of 2024, the Group's employee
workforce included 26.6% female-representation, increasing from
23.6% as at the end of 2023. This continued progress reflects the
programmes in place to improve the balance of recruitment,
retention and promotion of high-potential individuals based on
merit.
During 2024, the Mining Division's
Corporate Offices underwent an accreditation process for Chilean
Rule No. 3262, which aims to promote equal working conditions,
ensure equal opportunities and contribute to the balance between
work and the personal responsibilities of workers.
In line with our commitment to
inclusion, we meet the minimum 1% required by Chile's Labour
Inclusion Law. As of 2024, people with disabilities represented an
average of 1.6% of our workforce.
Decarbonisation
In Q1 2024, the Group published
its updated emissions targets, covering Scope 1, 2 and 3 emissions
and Climate Action Plan.
A key project for the year in
respect of decarbonisation was the preparation for a trial of a
trolley-assist system for haul trucks at Los Pelambres, with
equipment beginning to arrive in December 2024. Test work is
expected to begin in 2025, following the installation of this
equipment along a haul ramp connecting the mine to a waste
dump.
In line with previous years, the
Group will disclose independently verified emissions estimates, and
associated commentary, as part of its Annual Report reporting
suite, which will include the Annual Report, Sustainability Report
and Sustainability Databook.
As previously announced, the
Group's Transport Division (FCAB) took delivery of a
hydrogen-powered train in December 2024 for operation at FCAB's
yards, representing the first of its kind in South America. This
locomotive is expected to start operating in 2025 and is part of
the Group's strategy to evaluate alternatives to replace diesel
fuel and curb its carbon footprint.
Water
The availability of water remains
a key consideration for mining companies operating in Chile. The
area in which Los Pelambres is located, the Coquimbo Region of
central Chile, has experienced a drought for more than 10 years.
During 2024, Los Pelambres completed the ramp-up of the
desalination plant and water transport system, which is a dedicated
facility on the coast, and as a result this facility commenced full
operation during the year. Following the completion of the first
phase of this project in 2024 with a capacity of 400 litres per
second, in addition to greater installed ore processing capacity,
Los Pelambres was able to increase ore processing rates by 22%
year-on-year. Construction work is already underway to double
desalination capacity to 800 litres per second, with this expanded
facility expected to be operational in 2027 - see page 12 for more
details.
As previously announced, because
of drought conditions and in accordance with the current Water Code
regulations, a water redistribution agreement initially approved by
the DGA (Chile's water administration department) in March 2024,
has now taken effect. This agreement requires that, when there is
drought, certain conditions be completed to enable Los Pelambres to
extract up to 400 litres per second consistently with its water
rights at the point of extraction in the Choapa river. A
declaration of drought was issued by the DGA on 26 July 2024, but
due to stronger precipitation during the year in 2024, water
restrictions were only implemented in January 2025.
Further to the above, in January
2025 the DGA approved an update to the water redistribution
agreement and issued temporary water extraction permits for use
during the aforementioned drought declaration. Los Pelambres
continues to work with the water council or JVRCH (Junta de
Vigilancia Rio Choapa) and the DGA to ensure an expeditious process
is implemented.
In the north of Chile, Centinela
and Antucoya operate on 100% raw seawater, with the last
continental water wells closed in 2022. In 2023, Zaldívar submitted
an Environmental Impact Assessment to undertake a transition to sea
water (or third-party water) sources, which is currently under
evaluation. Details of this application are provided on page
11.
Suppliers
The Group is committed to
fostering development where it operates through engagement with
local suppliers. During 2024, 95% of the Group's purchases by value
were made with Chilean suppliers.
The Group's Suppliers for a Better
Future Programme, launched in December 2022, continues to make good
progress in its efforts to align supplier best practices with the
Group's vision and strategic framework. This workstream has now
achieved a level of 16% of Group purchases coming from local
suppliers based in the regions of Antofagasta and Coquimbo,
increasing from a level of 12% as of early 2023, using the
suppliers considered local under the programme. Contractor labour
is now 50% local, meeting a key objective for the
programme.
INNOVATION
Cuprochlor-T® and other
initiatives
During 2024, the Group has
continued to progress its proprietary technology for primary
sulphide leaching, referred to as Cuprochlor-T®, with test work
ongoing with third-party sites and a view to commercially
validating this technology.
The Group has developed a number of
initiatives connected to optimisation at its SX-EW operations, such
as consumption of sulphuric acid, which helped to contribute to a
reduction in cash costs at Antucoya during 2024. These initiatives,
such as Mineral Tracker 2.0, help to optimise metallurgical
processes.
RESERVES AND
RESOURCES
The Group completed work during
the year to include the Encuentro sulphides pit in Centinela's Ore
Reserves as at 31 December 2024, adding 738 million tonnes grading
0.45% copper, which is higher in grade than Centinela's existing
average copper Ore Reserves. Following
this inclusion, the Ore Reserve estimate for the Centinela District
has increased by 35% to 2.6 billion tonnes.
In line with previous years, the
Group will publish its reserves and resources in its Annual
Report.
FUTURE OUTLOOK
Copper continues to demonstrate
robust medium-term market fundamentals, given its critical role for
energy security and the transition to electrification. The IEA
(International Energy Agency) estimates that growth in global
electricity demand increased from 2.5% in 2023 to 4.0% in 2024,
with this higher growth rate expected to be sustained into 2025,
driven by increasing uptake of modern technologies such as battery
electric vehicles, AI, data centres and heat
pumps.[7] The global
supply of copper continues to face the technical challenges of
grade decline and rising ore hardness, and increasing capital
intensities for new projects. Given the decline in output from the
world's existing global portfolio of active copper mines, Wood
Mackenzie estimates that the market requires project approvals with
the combined equivalent of 790,000 tonnes of additional copper
supply per year in order to balance the global copper market by
2034, either in the form of greenfield projects or brownfield
expansions.[8]
The Group has a significant
Mineral Resource base of more than 21 billion tonnes of resources,
including more than 6 billion tonnes at Los Pelambres and 5 billion
tonnes at Centinela.
The Group has a pipeline of
projects already in construction that will deliver growth in annual
production close to 900,000 tonnes in the medium-term, representing
one of the highest levels of growth amongst pure-play copper
producers. Having commenced construction on a range of projects to
deliver this growth, and a platform for further growth, the Group
is well-positioned to deliver responsibly produced copper to meet
the world's growing needs.
REVIEW OF OPERATIONS AND
PROJECTS
MINING DIVISION
LOS PELAMBRES
Financial
performance
EBITDA was $1,861.2 million,
compared with $1,692.0 million in 2023, reflecting higher sales
volumes, and higher realised prices for copper and
by-products.
Production
Full year copper production was
319,600 tonnes, representing a 6% increase year-on-year, with this
increase related to higher ore processing rates following
completion of the Phase 1 Expansion Project, delivering additional
water availability and ore processing capacity, more than
compensating for the planned reduction in ore grades
processed.
As at year-end, Los Pelambres had
transferred the full stockpile of material to its port at Los Vilos
that had previously accumulated at the processing plant
following pipeline maintenance in Q1
2024.
Molybdenum production in 2024 was
8,400 tonnes, representing a 4% increase year-on-year, which was
the result of higher throughput rates, offset by lower grades. Gold
production in 2024 rose by 8%, reflecting a balance of higher ore
processing rates and lower gold grades.
Costs
Full year cash costs before
by-product credits of $2.09/lb were 9% higher than the prior year,
impacted primarily by lower ore grades partially compensated by
increased production, lower unit costs for key consumables such as
diesel and electricity, grinding media and explosives, and
depreciation of the Chilean peso.
Full year 2024 net cash costs were
11% higher at $1.27/lb, as a result of higher underlying cash costs
partly offset by stronger by-products credits increasing to
82c/lb.
Capital
expenditure
Capital expenditure was $833.0
million ($897.1 million in 2023), including $547.9 million of
sustaining capital expenditure which includes $247.6 million
related to projects outlined on page 12 that are classified as
sustaining, $136.2 million of mine development and $148.9 million
of development capital expenditure.
CENTINELA
Financial
performance
EBITDA at Centinela was $1,130.3
million in 2024, compared with $1,183.6 million in 2023, on lower
copper sales volumes partially offset by lower unit net cash costs
and higher realised copper prices.
Production
Total year copper production was
8% lower in 2024 compare with 2023, at 223,800 tonnes, with this
decrease related to lower production at Centinela Concentrates due
to lower grades, partially offset by higher output at Centinela
Cathodes.
Copper in concentrate production
in 2024 was 121,800 tonnes, 25% below the prior year, primarily due
to lower grades. Copper cathode production in 2024 was 102,000
tonnes, representing a 29% increase year-on-year driven by higher
grades, an improved throughput rate and higher
recoveries.
Gold production during the year
was 140,300 ounces, 15% lower than in 2023 due to lower gold grades
(which are positively correlated to copper grades). Molybdenum
production in 2024 was 2,400 tonnes, 17% lower than 2023 due to
lower grades and recoveries.
Costs
Full year 2024 cash costs before
by-product credits of $2.60/lb were 1% higher year-on-year, which
was the result of lower production during the year, offset by lower
costs for maintenance and input prices for key consumables, and
depreciation of the Chilean peso.
Full year net cash costs were 2%
lower year-on-year at $1.60/lb, with this movement representing a
balance of an increase in the underlying cash cost and a 6%
increase in the by-product credit.
Capital
expenditure
Capital expenditure was $1,414.0
million ($1,044.6 million in 2023), including $210.8 million of
mine development, $240.1 million of sustaining capital expenditure
and $963.1 million of development capital expenditure ($877.6
million related to Centinela Second
Concentrator project).
ANTUCOYA
Financial
performance
EBITDA was $275.8 million,
compared with $206.9 million in 2023, an increase of 33% reflecting
mainly higher realised prices for copper, higher sales volumes and
lower unit cost.
Production
Full year 2024 production rose by
3% to 80,400 tonnes, which reflected a record year for ore tonnes
processed, with higher recoveries offset by lower grades on a
year-on-year basis.
Costs
Cash costs in 2024 of $2.53/lb
represented a 4% year-on-year decrease, representing higher
production, lower unit costs for key consumables, and depreciation
of the Chilean peso, with these factors mitigated by higher level
of mining activities during the period.
Capital
expenditure
Capital expenditure was $123.4
million (2023: $121.6 million), including $80.3 million on
sustaining capital expenditure.
ZALDÍVAR
Financial
performance
Attributable EBITDA at Zaldívar
was $99.9 million in 2024, compared with $86.8 million in the same
period last year, with this increase linked to higher realised
copper prices and lower operating costs, partially offset by lower
sales volumes.
Production
Full year copper production in
2024 was 1% lower than the previous year, with 40,100 tonnes
produced, with a 15% year-on-year drop in copper grades in line
with expectations, being partly compensated by higher ore
throughput rates.
Costs
Full year cash costs of $3.02/lb
in 2024 represent a level 2% higher than 2023, reflecting a balance
of lower unit costs for key consumables such as sulphuric acid,
depreciation of the Chilean peso, a reduction in costs associated
with maintenance and the settlement of a three-year labour
agreement in the prior period. These factors were balanced by lower
production due to lower grade and an increase in costs associated
with the utilisation of inventory from prior periods.
Capital
expenditure
Attributable capital expenditure
in 2024 was $42.2 million (2023: $43.8 million), of which
$29.6 million was sustaining capital expenditure.
Other matters (as previously
announced)
In relation to the previously
announced claim filed by the Consejo de Defensa del Estado (CDE),
an independent governmental agency that represents the interests of
the Chilean state, against Zaldívar, Minera Escondida and Albemarle
regarding water extraction from the Monturaqui-Negrillar-Tilopozo
aquifer, in December 2024 the parties reached a settlement
agreement, which 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, a process which contemplates up to three
rounds of comments and reviews.
Responses to the second round of
comments made by government agencies in Chile were filed as planned
in Q4 2024. In line with expectations, the third round of comments
were received in January 2025.
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 required 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 application with the mining
authority. However, the Group's full year guidance for 2025 is
presented based on 12-months of normal operations at Zaldívar - see
page 35 for more details.
TRANSPORT DIVISION
Financial
performance
EBITDA at the Transport Division
reached $75.9 million, a 7% decrease compared to 2023, due to
higher operational costs and lower results in the truck transport
business.
Transport
volumes
Total transportation volumes in
2024 remained broadly consistent with those of 2023, with 7.1
million tonnes of transported material.
Rail volumes increased by 4% to
5.6 million tonnes following strong demand for rail services from
key customers. Road transport volumes declined by 14% year-on-year,
reflecting reduced levels of activity with customers that produce
lithium brines.
Capital
expenditure
Capital expenditure for the year
was $37.4 million (2023: $50.4 million), a decrease of 26% compared
with the same period in 2023.
OPERATIONS - KEY GROWTH PROJECTS
AND OPPORTUNITIES
|
Operation
|
Description
|
Capex
(Total)
|
Capex to
date[9]
|
Status (Scheduled
completion)
|
Comments
|
|
Los
Pelambres
|
|
|
|
|
|
|
Phase 1 Expansion
|
Construction of a desalination
plant (400 L/S) and additional concentrator line, facilitating
plant capacity of 190kt per day.
|
$2.3Bn
|
Completed
|
Operational (2024)
|
Opening ceremony held in March
2024.
|
|
Desalination plant expansion
|
Key enabling project for future
growth - project to double capacity of existing desalination plant
to 800 l/s.
|
Approx.
$1Bn
|
$176m
|
Underway (2027)
|
Progressing on schedule and on
budget.
Following a successful
mobilisation of personnel and equipment, construction work is
expected to commence in Q1 2025.
|
|
Concentrate pipeline and El Mauro
enclosures
|
Key enabling project for future
growth - installation of a new concentrate pipeline and development
of certain planned facilities at the El Mauro tailings storage
facility.
|
Approx.
$1Bn
|
$156m
|
Underway (2027)
|
Progressing on schedule and on
budget.
Work focused on trench excavation
work and the welding of pipe sections.
|
|
Development Options Project
|
Mine life extension beyond 2035,
adding a minimum of 15 additional years by increasing El Mauro's
capacity (1.2bt). The EIA will include the option to increase
throughput to 205ktpd annual average (from 190ktpd) and the option
to enable a modular increase of any water requirement for the
enlarged capacity of this operation by up to 800 l/s, after the
current expansion.
|
Under
study
Approx.
$2Bn
|
N/A
|
Evaluation phase
|
EIA submitted in December
2024.
|
|
Centinela
|
|
|
|
|
|
|
Second Concentrator Project
|
Brownfield development to add
170,000 tonnes of copper-equivalent production and lower Centinela
District towards the first quartile of global cash cost
curve.
|
$4.4Bn[10]
|
$1.0Bn
|
Underway (2027)
|
Progressing on schedule and on
budget, with work focused on the camp facilities, ore
delivery
system, concentrator, tailings
facility and primary crusher foundations.
|
|
Encuentro mine development
|
Mine development work to access
sulphide ores below the existing Encuentro oxide pit.
|
Approx.
$1Bn
|
N/A
|
Not
commenced (2027-2028)
|
|
|
Zaldívar
|
|
|
|
|
|
|
Ongoing EIA (Mine life extension and water
transition)
|
Mine life extension to 2051, to
realise the full potential of the Zaldívar deposit, including a
3-year transition period prior to utilising sea water or
third-party water sources.
|
N/A
(Associate)
|
N/A
|
Evaluation phase
|
EIA submitted in H1 2023.
Consultation period with Chilean authorities ongoing, with the
third round of comments received in January 2025.
|
DEVELOPMENT PROJECTS
Twin Metals Minnesota
(USA)
Twin Metals Minnesota (Twin
Metals) is a wholly owned copper, nickel, and platinum group metals
(PGM) underground mining project, which holds copper,
nickel/cobalt, and PGM deposits in north-eastern Minnesota, United
States (US). The planned project is over a portion of the total
resource and envisages mining and processing 18,000 tonnes of ore
per day for 25 years to produce three separate concentrates -
copper, nickel/cobalt and PGM. However, further development of the
current project, as configured, is on hold whilst litigation takes
place to challenge several actions taken by the US federal
government to deter its development.
In 2022, Twin Metals filed a
lawsuit in the US District Court for the District of Columbia
(District Court) challenging the administrative actions resulting
in the rejection of Twin Metals' preference right lease
applications (PRLAs), the cancellation of its federal mining leases
1352 and 1353, the rejection of its Mine Plan of Operation (MPO),
and the dismissal of the administrative appeal of the MPO
rejection. Twin Metals claimed that the government's actions were
arbitrary and capricious, contrary to the law, and in violation of
its rights. In September 2023, the District Court dismissed Twin
Metals' suit on motion by the government. In November 2023, Twin
Metals appealed the District Court's order to the US Court of
Appeals for the District of Columbia Circuit ("D.C. Circuit
Court"). In January 2025, oral arguments were held before the D.C.
Circuit Court. This action is pending.
FINANCIAL REVIEW FOR THE YEAR ENDED 31 DECEMBER
2024
|
|
|
|
Year ended
31.12.2024
(Unaudited)
|
|
|
Year
ended
31.12.2023
(Audited)
|
|
|
Before exceptional
items
|
Exceptional
items
|
Total
|
Before
exceptional items
|
Exceptional
Items
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Revenue
|
6,613.4
|
-
|
6,613.4
|
6,324.5
|
-
|
6,324.5
|
|
EBITDA (including share of EBITDA
from associates and joint ventures)[11]
|
3,426.8
|
-
|
3,426.8
|
3,087.2
|
-
|
3,087.2
|
|
Total operating costs
|
(4,976.1)
|
371.4
|
(4,604.7)
|
(4,541.7)
|
-
|
(4,541.7)
|
|
Operating profit from subsidiaries
|
1,637.3
|
371.4
|
2,008.7
|
1,782.8
|
-
|
1,782.8
|
|
Net share of results from associates
and joint ventures
|
76.2
|
-
|
76.2
|
(13.5)
|
-
|
(13.5)
|
|
Operating profit from subsidiaries, and share of total
results from associates and joint ventures
|
1,713.5
|
371.4
|
2,084.9
|
1,769.3
|
-
|
1,769.3
|
|
Net finance (expense) /
income
|
(64.8)
|
51.0
|
(13.8)
|
29.1
|
167.1
|
196.2
|
|
Profit before tax
|
1,648.7
|
422.4
|
2,071.1
|
1,798.4
|
167.1
|
1,965.5
|
|
Income tax expense
|
(628.4)
|
(126.7)
|
(755.1)
|
(624.3)
|
(41.8)
|
(666.1)
|
|
Profit from continuing operations
|
1,020.3
|
295.7
|
1,316.0
|
1,174.1
|
125.3
|
1,299.4
|
|
Profit for the year
|
1,020.3
|
295.7
|
1,316.0
|
1,174.1
|
125.3
|
1,299.4
|
|
Attributable to:
|
|
|
|
|
|
|
|
Non-controlling interests
|
400.8
|
85.8
|
486.6
|
464.3
|
-
|
464.3
|
|
Profit attributable to the owners of the
parent
|
619.5
|
209.9
|
829.4
|
709.8
|
125.3
|
835.1
|
|
|
|
|
|
|
|
|
|
Basic earnings per share
|
Cents
|
Cents
|
Cents
|
Cents
|
cents
|
Cents
|
|
From continuing
operations
|
62.8
|
21.3
|
84.1
|
72.0
|
12.7
|
84.7
|
The profit for the financial year
attributable to the owners of the parent (including exceptional
items) decreased from $835.1 million in 2023 to $829.4 million in
the current year. Excluding exceptional items, the profit
attributable to the owners of the parent decreased by $90.3 million
to $619.5 million.
The full reconciliation
of the profit attributable to the owners of the
parent between 2023 and 2024, including
exceptional items, is as follows:
|
|
$m
|
|
|
|
|
Profit attributable to the owners of the parent in
2023
|
835.1
|
|
Less: exceptional items -
2023
|
(125.3)
|
|
Profit attributable to the owners of the parent in 2023
(excluding exceptional items)
|
709.8
|
|
|
|
|
Increase in revenue
|
288.9
|
|
Increase in total operating costs
(excluding exceptional items)
|
(434.4)
|
|
Increase in net share of
results from associates and joint ventures
(excluding exceptional items)
|
89.7
|
|
Increase in net finance expenses
(excluding exceptional items)
|
(93.9)
|
|
Increase in income tax expense
(excluding exceptional items)
|
(4.1)
|
|
Decrease in non-controlling
interests (excluding exceptional items)
|
63.5
|
|
|
(90.3)
|
|
|
|
|
Profit attributable to the owners of the parent in 2024
(excluding exceptional items)
|
619.5
|
|
Exceptional items - 2024 (post
tax)
|
209.9
|
|
Profit attributable to the owners of the parent in
2024
|
829.4
|
Revenue
The $288.9 million increase in
revenue from $6,324.5 million in 2023 to $6,613.4 million in the
current year reflected the following factors:
|
|
$m
|
|
|
|
|
Revenue in 2023
|
6,324.5
|
|
|
|
|
Increase in realised copper
price
|
386.2
|
|
Increase in treatment and refining
charges
|
28.3
|
|
Decrease in copper sales
volumes
|
(156.6)
|
|
Increase in gold revenue
|
39.9
|
|
Decrease in molybdenum
revenue
|
(16.0)
|
|
Increase in silver
revenue
|
8.1
|
|
Decrease in Transport division
revenue
|
(1.0)
|
|
|
288.9
|
|
|
|
|
Revenue in 2024
|
6,613.4
|
Revenue from the Mining division
Revenue from the Mining division
increased by $289.9 million, or 4.7%, to $6,418.5 million, compared
with $6,128.6 million in 2023. The increase reflected a $257.9
million increase in copper sales and a $32.0 million increase in
by-product revenue.
Revenue from copper sales
Revenue from copper concentrate and
copper cathode sales increased by $257.9 million, or 5.0%, to
$5,405.3 million, compared with $5,147.4 million in 2023. The
increase reflected the impact of $386.2 million from higher
realised prices and a $28.3 million increase in revenue from lower
treatment and refining charges, partly offset by a $156.6 million
reduction due to lower sales volumes.
(i)
Realised copper price
The average realised copper price
increased by 7.4% to $4.18/lb in 2024 (2023 - $3.89/lb), resulting
in a $386.2 million increase in revenue. This was mainly due to the
higher LME average market price, which
increased by 7.8% to $4.15/lb in 2024
(2023 - $3.85/lb). The realised price was
marginally higher than the LME average
market price due to the impact of the
timing of sales during the year and provisional pricing
adjustments.
Realised copper prices are
determined by comparing revenue (after adding back treatment and
refining charges for concentrate sales) with sales volumes in the
period. Realised copper prices differ from market prices mainly
because, in line with industry practice, concentrate and cathode
sales agreements generally provide for provisional pricing at the
time of shipment with final pricing based on the average market
price in future periods (normally around one month after delivery
to the customer in the case of cathode sales and four months after
delivery to the customer in the case of concentrate
sales).
Further details of provisional
pricing adjustments are given in Note 6 to the Full-year results
announcement.
(ii) Treatment and refining charges
Treatment and refining charges
(TC/RCs) for copper concentrate decreased by $28.3 million to
$185.3 million in 2024, compared with $213.6 million in 2023
reflecting lower average TC/RC rates and to a lesser extent the
decrease in concentrate sales volumes, due to lower grades at
Centinela Concentrates.
With sales of concentrates at Los
Pelambres and Centinela, which are sold to smelters and roasting
plants for further processing into fully refined metal, the price
of the concentrate invoiced to the customer reflects the market
value of the fully refined metal less a "treatment and refining
charge" deduction, to reflect the lower value of this partially
processed material compared with the fully refined metal. For
accounting purposes, the revenue amount reflects the invoiced price
(which reflects the net of the market value of fully refined metal
less the treatment and refining charges). However, under the
standard industry definition of unit cash costs, treatment and
refining charges are regarded as part of cash costs.
Accordingly, the decrease in these
charges has had a positive impact on revenue in the
year.
(iii) Copper volumes
Copper sales volumes reflected
within revenue decreased by 2.9% from 625,300 tonnes in 2023 to
607,100 tonnes in 2024, decreasing revenue by $156.6
million. This decrease was mainly due to
lower sales volumes at Centinela (35,400 tonne decrease), as a
result of lower grades at Centinela
Concentrates and temporary shipment delays at the year-end due to
bad weather conditions at the port.
Revenue from molybdenum, gold and other by-product
sales
Revenue from by-product sales (net
of tolling charges) at Los Pelambres and Centinela relate mainly to
molybdenum and gold and, to a lesser extent, silver. Revenue from
by-products increased by $32.0 million or 3.3% to $1,013.2 million
in 2024, compared with $981.2 million in 2023. This increase was mainly due to the higher gold realised
price, partly offset by a decrease in gold and molybdenum sales
volumes.
Revenue from gold sales (net of
treatment and refining charges) was $446.8 million (2023 - $406.9
million), an increase of $39.9 million which reflected a higher
realised price, partly offset by lower sales volumes. The realised
gold price was $2,528.3/oz in 2024 compared with $1,989.5/oz in
2023, reflecting the average market price for 2024 of $2,387.1/oz
(2023 - $1,943.1/oz) and a positive provisional pricing adjustment
of $11.3 million. Gold sales volumes decreased by 13.6% from
204,900 ounces in 2023 to 177,000 ounces in 2024, reflecting lower
grades at Centinela.
Revenue from molybdenum sales (net
of treatment and refining charges) was $488.2 million (2023 -
$504.2 million), a decrease of $16.0 million. The decrease was
mainly due to the lower sales volumes of 10,900 tonnes (2023 -
11,100 tonnes) reflecting the lower production volumes mainly at
Centinela.
Revenue from silver sales increased
by $8.1 million to $78.2 million (2023 - $70.1
million). The increase was due to a 25.0%
higher realised silver price of $30.0/oz (2023 - $24.0/oz), partly offset by
a lower sales volume of 2.6 million ounces (2023 - 3.0 million ounces).
Revenue from the Transport division
Revenue from the Transport division
(FCAB) decreased by $1.0 million or 0.5% to $194.9 million (2023 -
$195.9 million), mainly due to foreign
exchange differences and lower truck transport volumes.
Total operating
costs
The $434.4 million increase in total
operating costs from $4,541.7 million in 2023 to $4,976.1 million
in the current year reflected the following factors:
|
|
$m
|
|
|
|
|
Total operating costs in 2023 (excluding exceptional
items)
|
4,541.7
|
|
|
|
|
Increase in mine-site operating
costs
|
67.6
|
|
Increase in closure provision and
other mining expenses
|
8.8
|
|
Mining royalty ad-valorem
element
|
28.7
|
|
Decrease in exploration and
evaluation costs
|
(12.2)
|
|
Decrease in corporate
costs
|
(25.9)
|
|
Increase in Transport division
operating costs
|
4.9
|
|
Increase in depreciation,
amortisation and loss on disposals
|
362.5
|
|
|
434.4
|
|
|
|
|
Total operating costs in 2024 (excluding exceptional
items)
|
4,976.1
|
Operating costs (excluding depreciation, amortisation and
disposals) at the Mining division
Operating costs (excluding
depreciation, amortisation, loss on disposals and impairments) at
the Mining division increased by $67.0 million to $3,276.7 million
in 2024, an increase of 2.1%.
Of this increase, $67.6 million was
attributable to higher mine-site operating costs. This increase in
mine-site costs reflected higher unit costs mainly due to lower
copper grades at Los Pelambres and Centinela Concentrates and a
lower mine development credit at Centinela, partially offset
by cost savings from the Group's Cost and
Competitiveness Programme, lower key input
prices and depreciation of the Chilean
peso.
On a unit cost basis, weighted
average cash costs excluding treatment and refining charges and
by-product revenues increased from $2.14/lb in 2023 to $2.21/lb in
2024. As detailed in the alternative performance measures section
on page 63 of the Full-year results announcement, for accounting
purposes by-product credits and treatment and refining charges both
impact revenue and do not therefore affect operating
expenses.
The Competitiveness Programme was
implemented to reinforce the operational improvement and reduce the
Group's cost base, improving its competitiveness within the
industry. During 2024, the programme achieved benefits of $247.6
million in the Mining division, of which $210.5 million reflected
cost savings and $37.1 million reflected the value of productivity
improvements. Of the $210.5 million of cost savings, $176.0 million
related to Los Pelambres, Centinela and Antucoya, and therefore
impacted the Group's operating costs, and $34.5 million related to
Zaldívar (on a 100% basis) and therefore impacted the share of
results from associates and joint ventures.
Closure provisions and other mining
expenses increased by $8.8 million, mainly reflecting increased
medium and long-term drilling costs and evaluation expenses at Los
Pelambres and Centinela.
In the current period,
operating costs at the Mining
division include for the first time the
"ad valorem" element of the new mining royalty at Los Pelambres,
with an impact of $28.7 million. As the ad valorem element is based
on revenue rather than profit, it does not meet the IAS 12
Income Taxes definition of
a tax expense, and is therefore recorded as an operating
expense.
Exploration and evaluation costs
decreased by $12.2 million to $52.7 million (2023 - $64.9 million),
reflecting decreased exploration and evaluation expenditure
principally in respect of Chilean exploration.
Operating costs (excluding depreciation, amortisation and
loss on disposals) at the Transport division
Operating costs (excluding
depreciation, amortisation and loss on disposals) at the Transport
division increased by $4.9 million to $125.6 million (2023 - $120.7
million), mainly due to higher maintenance costs of rolling stock
compensated by favourable foreign exchange differences.
Depreciation, amortisation and disposals (excluding
exceptional items)
The expense for depreciation,
amortisation and loss on disposals increased by $362.5 million from
$1,211.3 million in 2023 to $1,573.8 million. This increase was
mainly due to higher increased IFRIC 20 amortisation at Centinela
and the start of depreciation of the Los Pelambres Phase 1
Expansion Project, as well as depreciation of new assets at Los
Pelambres and Centinela, partially offset by an increased amount of
depreciation capitalised to inventory.
Operating profit from subsidiaries
As a result of the above factors,
operating profit from subsidiaries decreased by $145.5 million or
8.2% in 2024 to $1,637.3 million (2023 - $1,782.8
million).
Share of results from associates and joint ventures
(excluding exceptional items)
The Group's share of results from
associates and joint ventures (excluding exceptional items)
increased by $89.7 million to a gain of $76.2 million
in 2024, compared with a loss of $13.5 million in
2023. This reflected the contribution from Compañía de Minas
Buenaventura S.A.A., which has been accounted for as an associate
from March 2024 onwards, and also higher earnings from
Zaldívar.
EBITDA
EBITDA (earnings before interest,
tax, depreciation and amortisation, and impairments) increased by
$339.6 million or 11.0% to $3,426.8 million (2023 - $3,087.2
million). EBITDA includes the Group's proportional share of EBITDA
from associates and joint ventures.
EBITDA from the Mining division
increased by $345.2 million or 11.5% from $3,005.7 million in 2023
to $3,350.9 million this year. This reflected the higher revenue,
mainly due to increased realised price, as well as higher EBITDA
from associates and joint ventures, partially offset by the higher
mine-site costs and lower sales volumes.
EBITDA at the Transport division
decreased by $5.6 million to $75.9 million in 2024 ($81.5 million -
2023), due to higher operational costs and
lower performance of the truck transport business.
Commodity price and exchange rate
sensitivities
The following sensitivities show the
estimated approximate impact on EBITDA for 2024 of a 10% movement
in the average copper, molybdenum and gold prices and a 10%
movement in the average US dollar / Chilean peso exchange
rate.
The impact of the movement in the
average commodity prices reflects the estimated impact on the
relevant revenues during 2024, and the impact of the movement in
the average exchange rate reflects the estimated impact on Chilean
peso denominated operating costs during the year. These estimates
do not reflect any impact in respect of provisional pricing or
hedging instruments, any potential inter-relationship between
commodity price and exchange rate movements, or any impact from the
retranslation or changes in valuations of assets or liabilities
held on the balance sheet at the year-end.
|
|
Average
market commodity price / average exchange rate during the year
ended 31.12.24
|
Impact
of a 10% movement in the commodity price / exchange rate on EBITDA
for the year ended 31.12.24
|
|
|
|
$m
|
|
|
|
|
|
Copper price
|
$4.15/lb
|
590
|
|
Molybdenum price
|
$21.3/lb
|
51
|
|
Gold price
|
$2,387/oz
|
42
|
|
US dollar / Chilean peso exchange
rate
|
944
|
157
|
Net
finance income / (expense) (excluding exceptional
items)
Net finance expense (excluding
exceptional items) of $64.9 million reflected a variance of $93.9
million compared with the $29.1 million income in 2023.
|
|
Year
ended 31.12.24
$m
|
Year
ended 31.12.23
$m
|
|
Investment income
|
184.2
|
138.1
|
|
Interest expense
|
(312.2)
|
(105.6)
|
|
Other finance items
|
63.2
|
(3.4)
|
|
Net finance
(expense)/income
|
(64.8)
|
29.1
|
Interest income increased from
$138.1 million in 2023 to $184.2 million in 2024, mainly due to
higher average cash and liquid investment
balances.
Interest expense increased from
$105.6 million in 2023 to $312.2 million in 2024, primarily due to
higher borrowings and the cessation of the capitalisation of
interest on borrowings relating to Los Pelambres' Phase 1 Expansion
Project following the completion of the project construction, the
interest expense relating to Centinela's water transportation
agreement, and interest relating to the issue of the Group's $750
million bond in May 2024.
Other finance items were a net gain
of $63.2 million, compared with a net loss of $3.4 million in 2023,
a variance of $66.6 million. This was
mainly due to the foreign exchange impact of the retranslation of
Chilean peso denominated assets and liabilities, which resulted in
a $82.1 million gain in 2024 compared with a $12.5 million gain in
2023. In
addition, there was an expense of $18.8 million in respect of the
unwinding of the discounting of provisions (2023 - expense of $15.8
million).
Profit before tax (excluding exceptional
items)
As a result of the factors set out
above, profit before tax (excluding exceptional items) decreased by
8.3% to $1,648.7 million (2023 - $1,798.4 million).
Income tax expense
The tax charge for 2024 excluding
exceptional items increased by $4.1 million to $628.4 million (2023
- $624.3 million) and the effective tax rate for the year was 38.1%
(2023 - 34.7%). Including exceptional items, the tax charge for
2024 was $755.1 million and the effective tax rate was
36.5%.
|
|
|
Year ended
Excluding exceptional
items
31.12.2024
|
|
Year ended
Including exceptional
items
31.12.2024
|
|
Year
ended
Excluding exceptional items
31.12.2023
|
Year
ended
Including exceptional items
31.12.2023
|
|
|
|
$m
|
%
|
|
$m
|
%
|
|
$m
|
%
|
$m
|
%
|
|
Profit before tax
|
|
1,648.7
|
|
|
2,071.1
|
|
|
1,798.4
|
|
1,965.5
|
|
|
Profit before tax multiplied by
Chilean corporate tax rate of 27%
|
|
(445.1)
|
27.0
|
|
(559.2)
|
27.0
|
|
(485.6)
|
27.0
|
(530.7)
|
27.0
|
|
Mining Tax (royalty)
|
|
(216.5)
|
13.1
|
|
(216.5)
|
10.5
|
|
(109.7)
|
6.1
|
(109.7)
|
5.6
|
|
Deduction of mining royalty as an
allowable expense in determination of first category tax
|
|
55.8
|
(3.4)
|
|
55.8
|
(2.7)
|
|
29.5
|
(1.6)
|
29.5
|
(1.5)
|
|
Adjustment to deferred tax in
respect of mining royalty
|
|
67.1
|
(4.1)
|
|
67.1
|
(3.2)
|
|
(34.3)
|
1.9
|
(34.3)
|
1.7
|
|
Items not deductible from first
category tax
|
|
(3.9)
|
0.2
|
|
(3.9)
|
0.2
|
|
(21.4)
|
1.2
|
(21.4)
|
1.1
|
|
Adjustment in respect of prior
years
|
|
1.7
|
(0.1)
|
|
1.7
|
(0.1)
|
|
4.5
|
(0.3)
|
4.5
|
(0.2)
|
|
Withholding tax
|
|
(29.7)
|
1.8
|
|
(29.7)
|
1.4
|
|
(1.4)
|
0.1
|
(1.4)
|
0.1
|
|
Tax effect of (loss)/ profit of
associates and joint ventures
|
|
20.0
|
(1.1)
|
|
20.0
|
(1.0)
|
|
(3.6)
|
0.2
|
(3.6)
|
0.2
|
|
Impact of unrecognised tax
losses
|
|
(77.8)
|
4.7
|
|
(77.8)
|
3.8
|
|
(2.3)
|
0.1
|
(2.3)
|
0.1
|
|
Reversal of the provision against
carrying value of assets (exceptional items)
|
|
-
|
-
|
|
(13.7)
|
0.7
|
|
-
|
-
|
-
|
-
|
|
Difference in overseas tax
rate
|
|
-
|
-
|
|
1.1
|
(0.1)
|
|
-
|
-
|
3.3
|
(0.2)
|
|
Tax expense and effective tax rate for the Year
ended
|
|
(628.4)
|
38.1
|
|
(755.1)
|
36.5
|
|
(624.3)
|
34.7
|
(666.1)
|
33.9
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
The effective tax rate excluding
exceptional items for the period was 38.1%, which compares with
34.7% in 2023. The complete reconciliation between the effective
tax rate and the statutory tax rate reflects the following
points:
The effective tax rate (excluding
exceptional items) of 38.1% varied from the statutory rate
principally due to:
·
The mining tax (royalty) (net impact of $160.7
million / 9.7% including the deduction of the mining tax (royalty)
as an allowable expense in the determination of first category
tax);
·
The impact of unrecognised tax losses (impact of
$77.8 million / 4.7%);
·
The withholding tax relating to the remittance of
profits from Chile (impact of $29.7 million / 1.8%);
·
Adjustments to deferred tax in respect of the
mining royalty (impact of $67.1 million / 4.1%);
·
Items not deductible for Chilean corporate tax
purposes, principally the funding of expenses outside of Chile
(impact of $3.9 million / 0.2%);
·
An offsetting impact of the recognition of the
Group's share of results from associates and joint ventures, which
are included in the Group's profit before tax net of their
respective tax charges (impact of $20.0 million / 1.1%);
·
Adjustments in respect of prior years (impact of
$1.7 million / 0.1%).
The new Chilean mining royalty has
taken effect from 1 January 2024. The new royalty terms include a
royalty ranging from 8% to 26% applied to the ''Mining Operating
Margin'', depending on each mining operation's level of
profitability, as well as a 1% ad valorem royalty on copper sales.
As the ad valorem element is based on revenue rather than profit it
does not meet the IAS 12 Income
Taxes definition of a tax expense, and is therefore recorded
as an operating expense. The new royalty terms have a cap,
establishing that total taxation, which includes corporate income
tax, the two components of the new mining royalty, and theoretical
tax on dividends, should not exceed a rate of 46.5% on Mining
Operating Margin less the royalty ad-valorem expense.
Los Pelambres has been subject to
the new royalty since 1 January 2024. The impact of the new royalty
for Los Pelambres in 2024 included the recognition of a $28.7
million expense within operating expenses in respect of the ad
valorem element. Zaldívar (which as a joint venture is equity
accounted for, and so its tax expense is not consolidated within
the above Group tax expense line) was also subjected to the new
royalty from 1 January 2024. Centinela and Antucoya have tax
stability agreements in place, thus the new royalty rates will only
impact their royalty payments from 2030 onwards. Until then, they
continue to be subject to the previous royalty system, applying a
rate from 5% to 14% of taxable operating profit, depending on the
level of operating profit margin.
Exceptional items
Exceptional items are material items
of income and expense which result from one-off transactions or
transactions outside the ordinary course of business of the Group.
These are typically non-cash, including impairments and profits or
losses on disposals. The classification of these types of items as
exceptional is considered to be useful as it provides an indication
of the earnings generated by the ongoing businesses of the
Group.
Antucoya
impairment reversal
An exceptional pre-tax gain of
$371.4 million (post-tax impact of $257.4 million) has been
recognised in respect of the reversal of previous impairments
recognised at Antucoya. Antucoya recognised impairments totalling
$716 million in 2012 and 2016. Of the original impairment amounts,
$371.4 million remained in effect unamortised as at 31 December
2024. It has been determined that there were indicators of a
potential reversal of this remaining impairment as at 31 December
2024. Accordingly, an estimate of the recoverable amount of the
Antucoya operation has been performed. The recoverable amount
indicated by this assessment was $2,013 million, which was $583
million above the carrying value of Antucoya's relevant assets of
$1,431 million. The predominant driver behind this positive
headroom has been the increasingly positive copper price outlook.
Given the level of headroom indicated by this valuation process it
is appropriate to fully reverse the remaining $371.4 million
element of the original impairments, resulting in an exceptional
pre-tax gain of $371.4 million. A deferred tax expense of $114.0
million has been recognised in respect of this reversal, result in
a post-tax impact of $257.4 million.
Compañía de Minas
Buenaventura S.A.A.
During 2023, the Group entered into
an agreement to acquire up to an additional 30 million shares in
Compañía de Minas Buenaventura S.A.A. An exceptional fair value
gain of $51.0 million (2023 - $167.1 million) was recognised during
2024 in respect of this agreement. A deferred tax expense of $12.7
million (2023 - $41.8 million) has been recognised in respect of
this gain, resulting in a post-tax impact of $38.3 million (2023 -
$125.3 million).
Non-controlling interests
Profit for 2024 attributable to
non-controlling interests (excluding exceptional items) was $400.8
million, compared with $464.3 million in 2023, a decrease of $63.5
million. This reflected the decrease in earnings analysed
above.
Earnings per share
|
|
|
Year ended
31.12.24
|
Year
ended
31.12.23
|
|
|
|
$ cents
|
$
cents
|
|
Underlying earnings per share
(excluding exceptional items)
|
|
62.8
|
72.0
|
|
Earnings per share (exceptional
items)
|
|
21.3
|
12.7
|
|
Earnings per share (including
exceptional items)
|
|
84.1
|
84.7
|
Earnings per share calculations are
based on 985,856,695 ordinary shares.
As a result of the factors set out
above, the underlying profit attributable to equity shareholders of
the Company (excluding exceptional items) was $619.5 million
compared with $709.8 million in 2023, giving underlying earnings
per share of 62.8 cents per share (2023 - 72.0 cents per share).
The profit attributable to equity shareholders (including
exceptional items) was $829.4 million (2023 - $835.1 million),
resulting in earnings per share of 84.1 cents per share (2023 -
84.7 cents per share).
Dividends
Dividends per share proposed in
relation to the period are as follows:
|
|
|
Year ended
31.12.24
|
Year
ended
31.12.23
|
|
|
|
$ cents
|
$
cents
|
|
Ordinary dividends:
|
|
|
|
|
Interim
|
|
7.9
|
11.7
|
|
Final
|
|
23.5
|
24.3
|
|
Total dividends to ordinary
shareholders
|
|
31.4
|
36.0
|
The Board determines the appropriate
dividend each year based on consideration of the Group's cash
balance, the level of free cash flow and underlying earnings
generated during the year and significant known or expected funding
commitments. It is expected that the total annual dividend for each
year would represent a payout ratio based on underlying net
earnings for that year of at least 35%.
The Board has recommended a final
dividend for 2024 of 23.5 cents per ordinary share, which amounts
to $231.7 million and will be paid on 12 May 2025 to shareholders
on the share register at the close of business on 22 April
2025.
The Board declared an interim
dividend for the first half of 2024 of 7.9 cents per ordinary
share, which amounted to $77.9 million.
This gives total dividends proposed
in relation to 2024 (including the interim dividend) of 31.4 cents
per share or $309.6 million (2023 - 36.0 cents per ordinary share
or $354.9 million in total) equivalent to a payout ratio of 50% of
underlying earnings.
Capital expenditure
Capital expenditure increased by
$285.7 million from $2,129.2 million in 2023 to $2,414.9 million in
the current year, mainly due to the start of the Centinela Second
Concentrator project and the completion of the Los Pelambres Phase
1 Expansion project, and higher sustaining capex at Los Pelambres,
partly offset by decreased IFRIC 20
mine development at Centinela and Los
Pelambres.
Capital expenditure figures quoted
in this report are on a cash flow basis, unless stated
otherwise.
Derivative financial instruments
The Group periodically uses
derivative financial instruments to reduce its exposure to
commodity price, foreign exchange and interest rate movements. The
Group does not use such derivative instruments for speculative
trading purposes. At 31 December 2024, there were foreign exchange
derivative financial instruments in place in respect of the
Centinela Second Concentrator project capital expenditure, with a
negative fair value at that point of $25.5 million (2023 -
nil).
Cash flows
The key features of the cash flow
statement are summarised in the following table.
|
|
|
Year
ended 31.12.24
|
Year
ended 31.12.23
|
|
|
|
$m
|
$m
|
|
Cash flows from continuing operations
|
|
3,276.2
|
3,027.1
|
|
Income tax paid
|
|
(666.8)
|
(528.1)
|
|
Net interest paid
|
|
(143.1)
|
(48.8)
|
|
Purchases of property, plant and
equipment
|
|
(2,414.9)
|
(2,129.2)
|
|
Dividends paid to equity holders of
the Company
|
|
(317.4)
|
(613.2)
|
|
Dividends paid to non-controlling
interests
|
|
(240.0)
|
(388.0)
|
|
Capital increase from
non-controlling interest
|
|
156.7
|
-
|
|
Dividends from associates and joint
ventures
|
|
3.5
|
-
|
|
Disposal of JV
|
|
-
|
944.7
|
|
Investment in other financial
assets
|
|
-
|
(290.1)
|
|
Acquisition of equity
investments
|
|
-
|
(60.7)
|
|
Other items
|
|
0.2
|
(0.8)
|
|
Changes in net debt relating to cash
flows
|
|
(345.6)
|
(87.1)
|
|
Other non-cash movements
|
|
(141.6)
|
(187.6)
|
|
Effects of changes in foreign
exchange rates
|
|
17.9
|
0.7
|
|
Movement in net debt in the
period
|
|
(469.3)
|
(274.0)
|
|
(Net debt)/net cash at the beginning
of the year
|
|
(1,159.8)
|
(885.8)
|
|
Net
debt at the end of the year
|
|
(1,629.1)
|
(1,159.8)
|
Cash flows from continuing
operations were $3,276.2 million in 2024 compared with $3,027.1
million in 2023. This reflected EBITDA from subsidiaries for
the year of $3,211.1 million (2023 - $2,994.1 million)
adjusted for the positive impact of a net working
capital decrease of $65.9 million (2023 -
positive impact of $47.5 million from a
net working capital decrease),
partly offset by a non-cash decrease in
provisions of $0.8 million (2023 -
negative impact of a decrease in
provisions of $14.5 million).
The $65.9 million working capital
decrease of 2024 reflected a decrease in receivables, predominantly
due to lower sales volumes in December 2024 compared with December
2023 (largely due to temporary shipment delays at Centinela at the
2024 year-end due to bad weather conditions at the port), offset by
an increase of work in progress inventories at Centinela and a
decrease in accounts payables.
The net cash outflow in respect of
tax in 2024 was $666.8 million (2023 - $528.1 million). This amount
differs from the current tax charge in the consolidated income
statement (including exceptional items) of $662.9 million (2023 -
$586.8 million) as the cash tax payments reflect payments on
account for the current year based on prior periods' profit levels
of $567.8 million (2023 - $544.3 million), the settlement of
outstanding balances in respect of the previous year's tax charge
of $49.2 million (2023 - $14.7 million) and withholding tax
payments of $71.1 million (2023 - $2.1 million), partly
offset by the recovery of $21.3 million relating to prior years
(2023 - $33.0 million).
Capital expenditure in 2024 was
$2,414.9 million compared with $2,129.2 million in 2023. This
included expenditure of $1,414.0 million at Centinela (2023 -
$1,044.6 million), $833.0 million at Los Pelambres (2023 - $897.1
million), $123.4 million at Antucoya (2023 - $121.6 million), $7.1
million at the corporate centre (2023 - $15.5 million) and $37.4
million at the Transport division (2023 - $50.4 million).
The increase in capital expenditure reflects the
start of the Centinela Second Concentrator project, the completion
of the Los Pelambres Phase 1 Expansion project, and increased
sustaining capex at Los Pelambres, partly offset by decreased IFRIC
20 mine development at Centinela and Los Pelambres.
Dividends paid to equity holders of
the Company were $317.4 million (2023 - $613.2 million) of which
$239.6 million related to the payment of the previous year's final
dividend and $77.9 million to the interim dividend declared in
respect of the current year.
Dividends paid by subsidiaries to
non-controlling shareholders were $240.0 million (2023 - $388.0
million).
A capital contribution of $156.7
million was received from Marubeni, the minority partner at
Centinela, in respect of financing for the Centinela Second
Concentrator project.
Dividends received from associates
and joint ventures were $3.5 million for 2024 (2023 - nil)
related to a dividend received from Compañía de
Minas Buenaventura S.A.A.
In 2023, there was a $944.7 million
cash inflow in respect of the Group's disposal of its 50% interest
in the Tethyan joint venture.
In 2023, there was a $290.1 million
cash outflow in respect of investment in other financial assets,
related to the agreement to acquire up to 30 million shares in
Compañía de Minas Buenaventura S.A.A.
(''Buenaventura'').
Acquisitions of equity investments
were nil in 2024 (2023 - $60.7 million).
Financial position
|
|
|
|
At
31.12.24
|
At
31.12.23
|
|
|
|
|
$m
|
$m
|
|
Cash, cash equivalents and liquid
investments
|
|
|
4,316.3
|
2,919.4
|
|
Total borrowings and other financial
liabilities
|
|
|
(5,945.4)
|
(4,079.2)
|
|
Net debt at the end of the
period
|
|
|
(1,629.1)
|
(1,159.8)
|
At 31 December 2024, the Group had
combined cash, cash equivalents and liquid investments of $4,316.3
million (31 December 2023 - $2,919.4 million). Excluding the
non-controlling interest share in each partly-owned operation, the
Group's attributable share of cash, cash equivalents and liquid
investments was $3,513.5 million (31 December 2023 - $2,490.5
million).
Total Group borrowings and other
financial liabilities at 31 December 2024
were $5,945.4 million, an increase of $1,866.2 million on the prior year
(at 31 December 2023 - $4,079.2 million). The increase was
mainly due to $741.7 million from the issue of the new corporate
bond, $670.0 million in respect of short-term loans at Los
Pelambres ($475.0 million) and Centinela ($195.0 million), $600.0
million from the other financial liability in respect of the water
transportation agreement at Centinela, $536.1 million in respect of
the project financing at Centinela, $182.2 million in respect of a
senior loan at Los Pelambres, partly offset by a $559.0 million
repayment of the senior loans at Los Pelambres ($370.7 million),
Centinela ($133.3 million), Antucoya ($50.0 million) and the
Transport division ($5.0 million), as well as a $265.0 million
repayment of the short-term loan at Centinela and a $4.6 million
repayment of the other financial liability at Centinela.
In June 2024, Centinela entered into
a water transportation agreement, involving its existing water
supply and future water supply to the Centinela Second Concentrator
Project. Under the terms of the agreement, Centinela's existing
water transportation assets and rights have been legally
transferred to an international consortium for net cash proceeds of
$600 million. For accounting purposes, the existing assets remain
in the Group's balance sheet, with the cash receipt resulting in
the recognition of the corresponding other financial liability
balance.
Excluding the non-controlling
interest share in each partly-owned operation, the Group's
attributable share of the borrowings was $4,447.0 million (31
December 2023 - $2,948.3 million).
These movements resulted in net
debt at 31 December 2024 of $1,629.1 million (31 December 2023 -
net debt $1,159.8 million). Excluding the non-controlling interest
share in each partly-owned operation, the Group had an attributable
net debt position of $933.5 million (31 December 2023 - net debt
$457.8 million).
Going concern
The consolidated financial
information contained in this unaudited Full-year results
announcement has been prepared on the going concern basis. Details
of the factors which have been taken into account in assessing the
Group's going concern status are set out in Note 1 to the
Full-year results announcement.
Cautionary statement about forward-looking
statements
This Full-year results announcement
contains certain forward-looking statements. All statements other
than historical facts are forward-looking statements. Examples of
forward-looking statements include those regarding the Group's
strategy, plans, objectives or future operating or financial
performance, reserve and resource estimates, commodity demand and
trends in commodity prices, growth opportunities, and any
assumptions underlying or relating to any of the foregoing. Words
such as "intend", "aim", "project", "anticipate", "estimate",
"plan", "believe", "expect", "may", "should", "will", "continue"
and similar expressions identify 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, which apply only as at the date of this
report. Important factors that could cause actual results to differ
from those in the forward-looking statements include: global
economic conditions, demand, supply and prices for copper and other
long-term commodity price assumptions (as they materially affect
the timing and feasibility of future projects and developments),
trends in the copper mining industry and conditions of the
international copper markets, the effect of currency exchange rates
on commodity prices and operating costs, the availability and costs
associated with mining inputs and labour, operating or technical
difficulties in connection with mining or development activities,
employee relations, litigation, and actions and activities of
governmental authorities, including changes in laws, regulations or
taxation. Except as required by applicable law, rule or regulation,
the Group does not undertake any obligation to publicly update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
Past performance cannot be relied
on as a guide to future performance.
Consolidated Income Statement
|
|
|
|
|
Year ended 31.12.2024
(Unaudited)
|
|
|
Year
ended 31.12.2023 (Audited)
|
|
|
|
Excluding exceptional
items
|
Exceptional items
note 3
|
Total
|
Excluding exceptional items
|
Exceptional items
note 3
|
Total
|
|
|
Notes
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Revenue
|
5,6
|
6,613.4
|
-
|
6,613.4
|
6,324.5
|
-
|
6,324.5
|
|
Total operating costs
|
2,3
|
(4,976.1)
|
371.4
|
(4,604.7)
|
(4,541.7)
|
-
|
(4,541.7)
|
|
Operating profit from subsidiaries
|
2,5
|
1,637.3
|
371.4
|
2,008.7
|
1,782.8
|
-
|
1,782.8
|
|
Net share of results from associates
and joint ventures
|
2,5
|
76.2
|
-
|
76.2
|
(13.5)
|
-
|
(13.5)
|
|
Operating profit from subsidiaries, and share of results from
associates and joint ventures
|
|
1,713.5
|
371.4
|
2,084.9
|
1,769.3
|
-
|
1,769.3
|
|
Investment income
|
8
|
184.2
|
-
|
184.2
|
138.1
|
-
|
138.1
|
|
Interest expense
|
8
|
(312.2)
|
-
|
(312.2)
|
(105.6)
|
-
|
(105.6)
|
|
Other finance items
|
3
|
63.2
|
51.0
|
114.2
|
(3.4)
|
167.1
|
163.7
|
|
Net
finance (expense)/income
|
8
|
(64.8)
|
51.0
|
(13.8)
|
29.1
|
167.1
|
196.2
|
|
Profit before tax
|
|
1,648.7
|
422.4
|
2,071.1
|
1,798.4
|
167.1
|
1,965.5
|
|
Income tax expense
|
9
|
(628.4)
|
(126.7)
|
(755.1)
|
(624.3)
|
(41.8)
|
(666.1)
|
|
Profit for the year
|
|
1,020.3
|
295.7
|
1,316.0
|
1,174.1
|
125.3
|
1,299.4
|
|
Attributable to:
|
|
|
|
|
|
|
|
|
Non-controlling interests
|
|
400.8
|
85.8
|
486.6
|
464.3
|
-
|
464.3
|
|
Owners of the parent
|
|
619.5
|
209.9
|
829.4
|
709.8
|
125.3
|
835.1
|
|
|
|
|
|
|
|
|
|
|
|
|
US
cents
|
US
cents
|
US
cents
|
US
cents
|
US
cents
|
US
cents
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted EPS
|
10
|
62.8
|
21.3
|
84.1
|
72.0
|
12.7
|
84.7
|
All earnings in all the periods
presented are from continuing operations.
Consolidated Statement of Comprehensive
Income
|
|
Notes
|
Year ended 31.12.2024
(Unaudited)
|
Year
ended 31.12.2023 (Audited)
|
|
|
|
|
|
|
|
|
$m
|
$m
|
|
Profit for the year
|
5
|
1,316.0
|
1,299.4
|
|
Items that may be or were subsequently reclassified to profit
or loss:
|
|
|
|
|
Losses on cash flow hedging (cost of
hedging)
|
7
|
(25.5)
|
-
|
|
Tax effects arising on cash flow
hedges
|
|
6.9
|
-
|
|
Currency translation
adjustment
|
|
(1.2)
|
(0.5)
|
|
Total items that may be or were subsequently reclassified to
profit or loss
|
|
(19.8)
|
(0.5)
|
|
|
|
|
|
|
Items that will not be subsequently reclassified to profit or
loss:
|
|
|
|
|
Actuarial (losses)/gains on defined
benefit plans
|
18
|
(12.2)
|
10.7
|
|
Gains on fair value of equity
investments
|
15
|
29.7
|
137.0
|
|
Tax on items recognised directly in
other comprehensive income
|
20
|
(5.9)
|
(40.8)
|
|
Share of other comprehensive losses
of associates and joint ventures, net of tax
|
|
(1.4)
|
(0.6)
|
|
Total items that will not be subsequently reclassified to
profit or loss
|
|
10.2
|
106.3
|
|
|
|
|
|
|
Total other comprehensive (expense)/ income
|
|
(9.6)
|
105.8
|
|
|
|
|
|
|
Total comprehensive income for the year
|
|
1,306.4
|
1,405.2
|
|
Attributable to:
|
|
|
|
|
Non-controlling interests
|
|
478.7
|
467.6
|
|
Owners of the parent
|
|
827.7
|
937.6
|
Consolidated Statement of Changes in Equity
For
the year ended 31.12.2024 (Unaudited)
|
|
Share capital
|
Share
premium
|
Other
reserves (Note 22)
|
Retained
earnings (Note 22)
|
Equity attributable to
owners of the parent
|
Non-
controlling interests
|
Total
equity
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Balance at 1 January
2024
|
89.8
|
199.2
|
104.5
|
8,558.4
|
8,951.9
|
3,096.5
|
12,048.4
|
|
Profit for the year
|
-
|
-
|
-
|
829.4
|
829.4
|
486.6
|
1,316.0
|
|
Other comprehensive
income/(expense) for the year
|
-
|
-
|
7.7
|
(9.4)
|
(1.7)
|
(7.9)
|
(9.6)
|
|
Total comprehensive income for the year
|
-
|
-
|
7.7
|
820.0
|
827.7
|
478.7
|
1,306.4
|
|
Reclassification1
|
-
|
-
|
(130.4)
|
130.4
|
-
|
-
|
-
|
|
Capital
increase2
|
-
|
-
|
-
|
-
|
-
|
156.8
|
156.8
|
|
Dividends
|
-
|
-
|
-
|
(317.4)
|
(317.4)
|
(240.0)
|
(557.4)
|
|
Balance at 31 December 2024
|
89.8
|
199.2
|
(18.2)
|
9,191.4
|
9,462.2
|
3,492.0
|
12,954.2
|
1Relates to the reclassification of the fair value gain
relating to the equity investment in Buenaventura from the Equity
investment revaluation reserve to Retained earnings, following the
completion of the transaction detailed in Notes 14 and 15 in March
2024, which resulted in the derecognition of the equity investment
and the Group's interest in Buenaventura being accounted for as an
investment in associate from that point.
2 Related to Marubeni's capital contribution of $156.8
million in Centinela and Barrick's capital contribution declared in
the previous year and recognised in this year by $0.1 million In
Encierro.
For
the year ended 31.12.2023 (Audited)
|
|
Share
capital
|
Share
premium
|
Other
reserves (Note 22)
|
Retained
earnings (Note 22)
|
Equity attributable to
equity owners of the parent
|
Non-
controlling interests
|
Total
equity
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Balance at 1 January
2023
|
89.8
|
199.2
|
5.0
|
8,333.5
|
8,627.5
|
3,016.9
|
11,644.4
|
|
Profit for the year
|
-
|
-
|
-
|
835.1
|
835.1
|
464.3
|
1,299.4
|
|
Other comprehensive
income/(expense) for the year
|
-
|
-
|
99.5
|
3.0
|
102.5
|
3.3
|
105.8
|
|
Total comprehensive income for the year
|
-
|
-
|
99.5
|
838.1
|
937.6
|
467.6
|
1,405.2
|
|
Dividends
|
-
|
-
|
-
|
(613.2)
|
(613.2)
|
(388.0)
|
(1,001.2)
|
|
Balance at 31 December 2023
|
89.8
|
199.2
|
104.5
|
8,558.4
|
8,951.9
|
3,096.5
|
12,048.4
|
Consolidated Balance Sheet
|
|
|
|
At 31.12.2024
(Unaudited)
|
At
31.12.2023 (Audited)
|
|
|
|
|
|
|
|
Non-current assets
|
Notes
|
|
$m
|
$m
|
|
Property, plant and
equipment
|
12
|
|
13,917.0
|
12,678.7
|
|
Inventories
|
16
|
|
707.8
|
457.0
|
|
Investments in associates and joint
ventures
|
14
|
|
1,776.1
|
891.1
|
|
Trade and other
receivables
|
7
|
|
54.4
|
68.5
|
|
Equity investments
|
15
|
|
11.6
|
288.6
|
|
Deferred tax assets
|
20
|
|
9.7
|
72.0
|
|
|
|
|
16,476.6
|
14,455.9
|
|
Current assets
|
|
|
|
|
|
Inventories
|
16
|
|
925.1
|
671.0
|
|
Trade and other
receivables
|
7
|
|
899.5
|
1,117.8
|
|
Other financial assets
|
14
|
|
-
|
457.2
|
|
Current tax assets
|
|
|
17.4
|
25.9
|
|
Liquid investments
|
24
|
|
2,127.1
|
2,274.7
|
|
Cash and cash equivalents
|
24
|
|
2,189.2
|
644.7
|
|
|
|
|
6,158.3
|
5,191.3
|
|
|
|
|
|
|
|
Total assets
|
|
|
22,634.9
|
19,647.2
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
Short-term borrowings and other
financial liabilities
|
17
|
|
(1,322.5)
|
(901.9)
|
|
Trade and other payables
|
7
|
|
(1,320.3)
|
(1,171.5)
|
|
Derivative financial
instruments
|
7
|
|
(20.4)
|
-
|
|
Short-term decommissioning and
restoration provisions
|
19
|
|
(5.9)
|
(15.2)
|
|
Current tax liabilities
|
|
|
(106.4)
|
(100.7)
|
|
|
|
|
(2,775.5)
|
(2,189.3)
|
|
Non-current liabilities
|
|
|
|
|
|
Medium and long-term borrowings and
other financial liabilities
|
17
|
|
(4,622.9)
|
(3,177.3)
|
|
Trade and other payables
|
7
|
|
(10.2)
|
(9.8)
|
|
Derivative financial
instruments
|
7
|
|
(5.1)
|
-
|
|
Long - term post-employment benefit
obligations
|
18
|
|
(152.2)
|
(139.9)
|
|
Decommissioning and restoration
provisions
|
19
|
|
(422.1)
|
(425.9)
|
|
Deferred tax liabilities
|
20
|
|
(1,692.7)
|
(1,656.6)
|
|
|
|
|
(6,905.2)
|
(5,409.5)
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
(9,680.7)
|
(7,598.8)
|
|
|
|
|
|
|
|
Net
assets
|
|
|
12,954.2
|
12,048.4
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
Share capital
|
21
|
|
89.8
|
89.8
|
|
Share premium
|
21
|
|
199.2
|
199.2
|
|
Other reserves
|
22
|
|
(18.2)
|
104.5
|
|
Retained earnings
|
22
|
|
9,191.4
|
8,558.4
|
|
Equity attributable to owners of the parent
|
|
|
9,462.2
|
8,951.9
|
|
Non-controlling interests
|
|
|
3,492.0
|
3,096.5
|
|
Total equity
|
|
|
12,954.2
|
12,048.4
|
The consolidated financial
statements were approved by the Board of Directors on 17 February
2025
Consolidated Cash Flow
Statement
|
|
|
|
At 31.12.2024
(Unaudited)
|
At
31.12.2023
(Audited)
|
|
|
Notes
|
|
$m
|
$m
|
|
|
|
|
|
|
|
Cash flows from operations
|
23
|
|
3,276.2
|
3,027.1
|
|
Interest paid
|
|
|
(324.1)
|
(166.0)
|
|
Income tax paid
|
|
|
(666.8)
|
(528.1)
|
|
Net
cash from operating activities
|
|
|
2,285.3
|
2,333.0
|
|
|
|
|
|
|
|
Investing activities
|
|
|
|
|
|
Capital contributions to associates
and joint ventures
|
|
|
-
|
(0.6)
|
|
Dividends from associates and joint
ventures
|
25
|
|
3.5
|
-
|
|
Investments in other financial
assets
|
|
|
-
|
(290.1)
|
|
Acquisition of equity
investments
|
15
|
|
-
|
(60.7)
|
|
Proceeds from disposal of investment
in joint venture
|
13
|
|
-
|
944.7
|
|
Proceeds from sale of property plant
and equipment
|
|
|
0.3
|
-
|
|
Purchases of property, plant and
equipment
|
|
|
(2,414.9)
|
(2,129.2)
|
|
Net decrease/ (increase) in liquid
investments
|
24
|
|
148.5
|
(674.2)
|
|
Interest received
|
|
|
181.0
|
117.1
|
|
Net
cash used in investing activities
|
|
|
(2,081.6)
|
(2,093.0)
|
|
|
|
|
|
|
|
Financing activities
|
|
|
|
|
|
Dividends paid to owners of the
parent
|
|
|
(317.4)
|
(613.2)
|
|
Dividends paid to preference
shareholders of the Company
|
|
|
(0.1)
|
(0.1)
|
|
Capital increase from
non-controlling interest1
|
|
|
156.7
|
-
|
|
Dividends paid to non-controlling
interests
|
|
|
(240.0)
|
(388.0)
|
|
Proceeds from other financial
liabilities
|
24
|
|
598.6
|
-
|
|
Proceeds from issue of new
borrowings
|
24
|
|
2,222.9
|
1,062.2
|
|
Repayment of borrowings
|
24
|
|
(917.0)
|
(381.7)
|
|
Principal elements of lease
payments
|
24
|
|
(152.7)
|
(81.2)
|
|
Repayment of other financial
liabilities
|
24
|
|
(4.6)
|
|
|
Net
cash from/(used in) financing activities
|
|
|
1,346.4
|
(402.0)
|
|
|
|
|
|
|
|
Net increase/(decrease) in cash and
cash equivalents
|
24
|
|
1,550.1
|
(162.0)
|
|
|
|
|
|
|
|
Cash and cash equivalents at
beginning of the year
|
|
|
644.7
|
810.4
|
|
Net
increase/(decrease) in cash and cash equivalents
|
24
|
|
1,550.1
|
(162.0)
|
|
Effect of foreign exchange rate
changes
|
24
|
|
(5.6)
|
(3.7)
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of the
year
|
24
|
|
2,189.2
|
644.7
|
1 Related to Marubeni's capital contribution of $156.7 million
in Centinela.
Notes
1. General information and accounting policies
a) General
information
While the financial information
included in this preliminary announcement has been prepared in
accordance with the recognition and measurement criteria of
International Financial Reporting Standards, this announcement does
not itself contain sufficient information to comply with those
standards. The Group expects to publish full financial statements
that comply with International Financial Reporting Standards in
March 2025.
The consolidated financial
information has been prepared under the accounting policies as set
out in the statutory accounts for the year ended 31 December 2023,
subject to the new accounting standards as detailed in note 1(b)
below (which as noted had no material impact on the amounts
reported in this financial information).
The consolidated financial
information has been prepared on the going concern
basis.
The financial information set out
above does not constitute the Group's statutory accounts for the
years ended 31 December 2024 or 2023 but is derived from those
accounts. Statutory accounts for 2023 have been delivered to the
Registrar of Companies and those for 2024 will be delivered
following the Company's annual general meeting. The auditors have
reported on those accounts: their reports were unqualified, did not
draw attention to any matters by way of emphasis and did not
contain statements under s498(2) or (3) of the
Companies Act 2006.
The information contained in the
Alternative performance measures and the Production and sales
statistics sections of this consolidated financial information is
not derived from the statutory accounts for the years ended 31
December 2024 and 2023 and is accordingly not covered and will not
be covered by the auditors' reports.
Going concern
The Directors have assessed the
going concern status of the Group, considering a period of at least
12 months from the expected date of approval of the 31 December
2024 Annual Report and Accounts.
The Group's business activities,
together with those factors likely to affect its future
performance, are set out in the Financial and Operating Review.
Details of the cash flows of the Group during the period, along
with its financial position at the period-end, are set out in the
Financial Review. The consolidated financial statements include
details of the Group's cash, cash equivalents and liquid investment
balances in Note 24, and details of borrowings are set out in Note
17.
When assessing the going concern
status of the Group, the Directors have considered in particular
its financial position, including its significant balance of cash,
cash equivalents and liquid investments and the terms and remaining
durations of the borrowing facilities in place. The Group had a
strong financial position as at 31 December 2024, with combined
cash, cash equivalents and liquid investments of $4,316.3 million.
Total liabilities from financing activities were $5,945.4 million,
resulting in a net debt position of $1,629.1 million. Of the total
borrowings, only 22% is repayable within one year, and an
additional 11% repayable between one and two years. In addition,
the Group has an undrawn revolving credit facility ("RCF") of $500
million which expires in December 2028 and therefore covers all of
the going concern review period, which could provide additional
liquidity if required.
When assessing the prospects of
the Group, the Directors have considered the Group's copper price
forecasts, the Group's expected production levels, operating cost
profile and capital expenditure. These forecasts are based on the
Group's budgets and life-of-mine models, which are also used when
assessing relevant accounting estimates, including depreciation, deferred stripping and closure
provisions, and accounting judgements including potential
indicators of impairment. This analysis has focused on the existing
asset base of the Group, without factoring in potential development
projects, which is considered appropriate for an assessment of the
Group's ability to manage the impact of a depressed economic
environment. The analysis has only included the drawdown of
existing committed borrowing facilities and has not assumed that
any new borrowing facilities will be put in place. The Directors
have assessed the key risks which could impact the prospects of the
Group over the going concern period and consider the most relevant
to be risks to the copper price outlook, as this is the factor most
likely to result in significant volatility in earnings and cash
generation. Accordingly, a robust downside sensitivity analysis has
been performed, assessing the impact of a significant deterioration
in the future copper price forecasts by an average of 10%
throughout the going concern period combined with the impact of a
shutdown of any one of the Group's operations for a period of one
month. This downside analysis included the impacts of conservative
assumptions in respect of possible deferrals to planned and
committed capital expenditure which could be implemented in such a
scenario.
The stability of tailings storage
facilities represents a potentially significant operational risk
for mining operations globally. The
Group's tailings storage facilities
are designed to international standards, constructed using
downstream methods, subject to rigorous monitoring and reporting,
and reviewed regularly by an international panel of independent
experts. Given these standards of design, development, operations
and review, the impact of a potential tailings dam failure has not
been included in the sensitivity analysis.
We have considered the risk of
capital expenditure overruns in respect of the Second Concentrator
Project at Centinela and the Desalination Plant Expansion and
Concentrate pipeline and El Mauro enclosures Project at Los
Pelambres and concluded that this is not likely to result in a
significant impact during the going concern review
period.
Based on their assessment of the
Group's prospects and viability, the Directors have formed a
judgement that there are no material uncertainties that the
Directors are aware of that cast doubt on the Group's going concern
status and that there is a reasonable expectation that the Group
has adequate resources to continue in operational existence for a
period of at least 12 months from the expected date of approval of
the 31 December 2024 Annual Report and Accounts. The Directors
therefore consider it appropriate to adopt the going concern basis
of accounting in preparing the consolidated financial
statements.
b)
Adoption of new accounting
standards
The following accounting
standards, amendments and interpretations became effective in the
current reporting period but the application of these standards and
interpretations had no material impact on the amounts reported in
these consolidated financial statements:
|
Amendments
|
Effective
date
|
|
Classification of Liabilities as
Current or Non-Current (Amendments to IAS 1)
|
Annual periods beginning on or
after 1 January 2024.
|
|
Lease Liability in a Sale and
Leaseback (Amendments to IFRS 16)
|
Annual periods beginning on or
after 1 January 2024.
|
|
Non-current Liabilities with
Covenants (Amendments to IAS 1)
|
Annual periods beginning on or
after 1 January 2024.
|
|
Supplier Finance Arrangements
(Amendments to IAS 7 and IFRS 7)
|
Annual periods beginning on or
after 1 January 2024.
|
c)
Accounting standards issued but not yet effective
At the date of authorisation of
these financial statements, the following standards and
interpretations, which have not been applied in these financial
statements, were in issue but not yet effective. It is expected
that where applicable, these standards and amendments will be
adopted on each respective effective date. None of these standards
are expected to have a significant impact on the Group, except IFRS
18 for which is expected to introduce changes in the presentation
structure of the statement of comprehensive income, by clearly
separating operating, investing and financing
activities.
IFRS 18 introduces new
requirements to:
· present specified categories and defined subtotals in the
statement of profit or loss
· provide disclosures on management-defined performance
measures (MPMs) in the notes to the financial statements
· improve aggregation and disaggregation.
|
Standards
|
Effective
date
|
|
IFRS S1 General Requirements for
Disclosure of Sustainability-related Financial
Information
|
No earlier than 1 January
2026.
|
|
IFRS S2 Climate-related
Disclosures
|
No earlier than 1 January
2026.
|
|
IFRS 18 Presentation and
Disclosures in Financial Statements 1
|
Annual periods beginning on or
after 1 January 2027.
|
|
IFRS 19 Subsidiaries without
Public Accountability: Disclosures 1
|
Annual periods beginning on or
after 1 January 2027.
|
|
Amendments to IFRS
|
Effective
date
|
|
Lack of Exchangeability
(Amendments to IAS 21)1
|
Annual periods beginning on or
after 1 January 2025.
|
|
Amendments to the Classification
and Measurement of Financial Instruments (Amendments to IFRS 9 and
IFRS 7)1
|
Annual periods beginning on or
after 1 January 2026.
|
|
Contracts Referencing
Nature-dependent Electricity (Amendments to IFRS 9 and IFRS
7)1
|
Annual periods beginning on or
after 1 January 2026.
|
1 These amendments are still subject to UK
endorsement.
d)
Critical accounting judgements and key sources of estimation
uncertainty
The critical accounting judgements
and key estimates applied in this announcement are set out
below.
Judgements
· Non-financial assets impairment indicators and reversal of
impairment: The Group reviews the carrying value of its intangible
assets and property, plant and equipment, as well as the assets of
its associates and joint ventures, to determine whether there is an
indication that those assets are impaired, or an indication that
there has been a reversal of previous impairments. As at 31
December 2024 the following assessments have been
performed.
Antucoya: It has been determined
that, as of 31 December 2024, there were indicators of a potential
reversal of previous impairments. Accordingly, as detailed in Note
3, an estimate of the recoverable amount of the Antucoya operation
has been performed.
Buenaventura: It has been
determined that, as of 31 December 2024, there were indicators of a
potential impairment in relation to the Group's investment in
associate balance in respect of Compañía de Minas Buenaventura
S.A.A. (''Buenaventura''). Accordingly, as detailed in Note 14, an
estimate of the recoverable amount of the Buenaventura investment
in associate balance has been performed.
Other operations: As detailed in
Note 4, there were no indicators of potential impairment for the
Group's other mining operations (i.e. Los Pelambres, Centinela and
Zaldívar) as at 31 December 2024. However, whether or not an
impairment indicator exists is considered a critical judgement at
31 December 2024 for Zaldívar, given the ongoing permitting process
and the other factors set out in Note 4.
· Accounting for investment in Buenaventura: As detailed in
Note 14, taking into account relevant factors including the Group's
approximately 19% interest in Buenaventura's issued share capital
and the Group's representation on Buenaventura's Board, the Group
is considered to have significant influence (in accordance with the
IAS 28 Investments in Associates and Joint Ventures definition)
over Buenaventura from March 2024 onwards. Accordingly, the Group's
interest in Buenaventura has been accounted for as an investment in
associate from that point.
Estimates
The Group makes estimates and
assumptions concerning the future. The resulting accounting
estimates will, by definition, seldom equal the related actual
results. The Group has not identified estimates and assumptions
which are considered to have a significant risk of causing a
material adjustment to the carrying amounts of assets and
liabilities within the next financial year.
2. Operating profit from subsidiaries, and share
of profit from associates and joint ventures
|
|
|
Year ended 31.12.2024
(Unaudited)
|
Year
ended 31.12.2023 (Audited)
|
|
|
|
|
|
|
|
|
$m
|
$m
|
|
Revenue
|
|
6,613.4
|
6,324.5
|
|
Cost of sales
|
|
(4,109.0)
|
(3,666.4)
|
|
Gross profit
|
|
2,504.4
|
2,658.1
|
|
Administrative and distribution
expenses
|
|
(581.3)
|
(618.5)
|
|
Other operating income
|
|
48.2
|
50.8
|
|
Other operating expenses
1
|
|
(334.0)
|
(307.6)
|
|
Operating profit from subsidiaries
|
|
1,637.3
|
1,782.8
|
|
Net share of results from associates
and joint ventures
|
|
76.2
|
(13.5)
|
|
Total operating profit from subsidiaries, and share of profit
from associates and joint ventures
|
|
1,713.5
|
1,769.3
|
1 Other operating expenses comprise $52.7 million of
exploration and evaluation expenditure (year ended 31 December 2023 - $64.9
million), $25.4 million in respect of the employee severance
provision (year ended 31 December 2023 - $25.7 million), $0.8
million in respect of the closure provision (year ended 31 December
2023 - $12.8 million), and $255.1 million of other expenses
(including Medium-term and long-term drilling costs &
evaluation of $98.9 million (year ended 31 December 2023 - $76.2
million), costs of community programmes of $44.9 million (year
ended 31 December 2023 - $44.6 million), the "ad valorem"
element of the new mining royalty of $28.7 million (year ended 31
December 2023 - nil), and other expenses of $82.6 million (year
ended 31 December 2023 - $83.4 million).
3. Exceptional items
Exceptional items are material items
of income and expense which result from one-off transactions or
transactions outside the ordinary course of business of the Group.
These are typically non-cash, including impairments and profits or
losses on disposals. The classification of these types of items as
exceptional is considered to be useful as it provides an indication
of the earnings generated by the ongoing businesses of the
Group.
Reversal of Antucoya
impairment
An exceptional pre-tax gain of
$371.4 million (post-tax impact of $257.4 million) has been
recognised in respect of the reversal of previous impairments
recognised in respect of the Antucoya operation.
Antucoya recognised impairments
totalling $716 million in 2012 and 2016. Of the original impairment
amounts, $371.4 million remained in effect unamortised as at 31
December 2024.
It has been determined that there
were indicators of a potential reversal of this remaining
impairment as at 31 December 2024, with a quantitative analysis based on Antucoya's life-of-mine
model indicating that the headroom exceeded the valuation benefit
arising from the passage of time since the impairment. Accordingly,
an estimate of the recoverable amount of the Antucoya operation has
been performed. This estimate has been based on the fair value less
costs of disposal for the operation, reflecting the net amount the
Group would expect to receive from the sale of the operation in an
orderly transaction between market participants.
This value has been estimated
based on a discounted cash flow model, based on Antucoya's
life-of-mine model. This reflects a Level 3 fair value measurement
per the IFRS 13 fair value hierarchy. The key assumptions used in
this estimation are listed below.
•
The copper price forecasts (representing the Group's estimates of
the assumptions that would be used by independent market
participants in valuing the assets) are based on consensus analyst
forecasts. A long-term copper price of $4.15/lb (reflecting 2024
real terms) has been used in the model.
•
Assumptions in respect of future production levels, operating costs
and sustaining and development capital expenditure are consistent
with the Group's internal life-of-mine model for
Antucoya.
• A
long-term exchange rate of Ch$850/$1 has been used in the
model.
• A
real post-tax discount rate of 8%, calculated using relevant market
data, has been used in the model.
•
Within the Annual Report, the Group discloses in line with the
recommendations of the Task Force on Climate-related Financial
Disclosures ("TCFD"). This process includes scenario analyses
assessing the potential future impact of transition and physical
risks. The results of this scenario analysis have been considered
as part of this valuation assessment.
The recoverable amount indicated
by this assessment was $2,013 million, which was $583 million above
the carrying value of Antucoya's relevant assets of $1,431 million.
The predominant driver behind this positive headroom has been the
increasingly positive copper price outlook.
Given the level of headroom
indicated by this valuation process, it is appropriate to fully
reverse the remaining $371.4 million element of the original
impairments, resulting in an exceptional pre-tax gain of $371.4
million. A deferred tax expense of $114.0 million has been
recognised in respect of this reversal, resulting in a post-tax
impact of $257.4 million.
The assumption to which the
estimation of the recoverable amount is most sensitive is the
future long-term copper price. A down-side sensitivity was
performed with a long-term copper price of $3.74/lb, reflecting a
10% reduction in the long-term price forecast. This sensitivity
indicated a recoverable amount which was above the carrying value
of Antucoya's relevant assets, after reflecting the impact of the
impairment reversal.
Compañía de Minas Buenaventura
S.A.A
During 2023, the Group entered
into an agreement to acquire up to an additional 30 million shares
in Compañía de Minas Buenaventura S.A.A. An exceptional fair value
gain of $51.0 million (2023 - $167.1 million) was recognised during
2024 in respect of this agreement. A deferred tax expense of $12.7
million (2023 - $41.8 million) has been recognised in respect of
this gain (see Note 8), resulting in a post-tax impact of $38.3
million (2023 - $125.3 million).
4. Asset
sensitivities
As explained in Note 3, indicators
of a potential reversal of the previous impairments at Antucoya
were identified as at 31 December 2024. Accordingly, an estimate of
the recoverable amount of the Antucoya operation has been
performed, which has resulted in the full reversal of remaining
element of the original impairments.
There were no indicators of
potential impairment, or reversal of previous impairments, for the
Group's non-current assets associated with its other mining
operations (Los Pelambres, Centinela, and Zaldivar), as at 31
December 2024, and accordingly no impairment tests have been
performed. The impairment indicator assessment included
consideration of the potential indicators set out in IAS 36
Impairment of Assets,
which included quantitative analysis based on the operations'
life-of-mine models as adjusted for certain assumptions (including
potential future development opportunities) ("the models"). These
models provide indicative valuations and do not represent, or
comply with, a formal impairment assessment prepared in accordance
with IAS 36.
As noted above, no qualitative
indicators of potential impairment were identified. Similarly, no
quantitative indicators of impairment were identified, with the
models used within the impairment indicator assessment continuing
to indicate positive headroom for the operations, with the
indicated value of the assets in excess of their carrying
value.
Relevant aspects of this process are detailed below.
Copper price outlook
The assumption to which the value
of the assets is most sensitive is the future long-term copper
price. The copper price forecasts (representing the Group's
estimates of the assumptions that would be used by independent
market participants in valuing the assets) are based on consensus
analyst forecasts. A long-term copper price of $4.15/lb (reflecting
2024 real terms) has been used in the models considered as part of
the impairment indicator assessment, which has increased from
$3.70/lb (reflecting 2023 real terms) at the prior year-end. As an
additional down-side sensitivity, an indicative valuation (based on
the models) was performed with a long-term copper price of
$3.74/lb, reflecting a 10% reduction in the long-term price
forecast. Los Pelambres and Centinela still showed positive
headroom in their models in this alternative down-side scenario.
However, the Zaldívar valuation indicated a potential deficit of
$40.0 million (on a 50% basis) (2023 - potential deficit of $60
million). This was a simple sensitivity exercise, looking at an
illustrative change in the forecast long-term copper price in
isolation. A deterioration in the long-term copper price
environment is likely to result in corresponding improvements in a
range of input cost factors. In particular, given that copper
exports account for over 50% of Chile's exports, historically there
has often been a correlation between movements in the copper price
and the US dollar/Chilean peso exchange rate, and a decrease in the
copper price may therefore result in a weakening of the Chilean
peso, with a resulting reduction in the Group's operating costs and
capital expenditure in US$ terms. These likely cost reductions, as
well as potential operational changes which could be made in a
weaker copper price environment, could partly mitigate the impact
of the lower copper price modelled in these estimated potential
sensitivities.
The US dollar/Chilean peso exchange rate
The value of the assets is also
sensitive to movements in the US dollar/Chilean peso exchange rate.
A long-term exchange rate of Ch$850/$1 has been used in the models
considered as part of the impairment indicator assessment. This
compares with the long-term exchange rate of CH$785/$1 used in
2023. As noted above, historically there has often been a
correlation between movements in the copper price and the US
dollar/Chilean peso exchange rate, and so a strengthening of the
Chilean peso may often reflect a stronger copper price environment,
which could mitigate the impact of a stronger exchange
rate.
Discount rate
A real post-tax discount rate of 8%
(31 December 2023 - 8%), calculated using relevant market data, has
been used in the impairment indicator assessment.
Climate risks
The assessments reflect the Group's
estimates of potential future climate-related impacts. Within the
Annual Report, the Group provides disclosures in line with the
recommendations of the Task Force on Climate-related Financial
Disclosures ("TCFD"). This process includes scenario analyses
assessing the potential future impact of transition and physical
risks. The results of this scenario analysis have been considered
as part of these assessments.
Other relevant assumptions
In addition to the impact of the
future copper price, the US dollar/Chilean peso exchange rate, the
discount rate and climate-related impacts, the models used in the
impairment indicator assessment are sensitive to the assumptions in
respect of future production levels, operating costs and sustaining
and development capital expenditure.
In the case of Zaldívar, in addition
to the assumptions made in respect of the factors outlined above,
the conclusion that there are no impairment indicators reflects
certain operational assumptions to which the model is sensitive, as
noted below.
· Currently, Zaldívar is permitted to extract water and mine
until May 2025. The mine life after May 2025 is subject to an EIA
application which was filed in June 2023 to extend the mining and
water environmental permits to 2051. The EIA application includes a
proposal to develop the primary sulphide ore deposit, extending the
current life of mine, which requires estimated investments over the
mine life of $1.2 billion, and to convert the water source for
Zaldívar to either seawater or water from third parties, following
a transition period during which the current continental water
extraction permit is extended from 2025 to 2028. The impairment
indicator assessment assumes that the EIA will be
granted, reflecting the positive progress to
date, to, to enable the continued operation of the mine without
interruption. However, if this is not the case, this is likely to
be considered an indicator of a potential impairment, requiring an
IAS 36 impairment assessment at that point.
· Zaldívar's final pit phase, which represents approximately
20% of current ore reserves, impacts a portion of Minera
Escondida's mine property, as well as infrastructure owned by third
parties. Mining of the phase will be subject to agreements or
easements to access these areas and relocate the infrastructure, as
well as related permits. During 2023, Zaldívar reached an
agreement with Escondida with respect to mining matters and certain
cost sharing arrangements. The impairment indicator assessment
assumes that the remaining necessary agreements, easements and
permits will be obtained to allow the mining of the final pit
phase.
The carrying value of the Group's
investment in Zaldívar as at 31 December 2024 was $895.1 million.
(31 December 2023 − $881.3 million). Down-side sensitivities were
performed in respect of the above factors, which indicated
recoverable amounts which were above this carrying
value.
5. Segmental
analysis
The Group's reportable segments,
which are the same as its operating segments, are as
follows:
●
Los Pelambres
●
Centinela
●
Antucoya
●
Zaldívar
●
Exploration and evaluation
●
Corporate and other items
●
Transport division
For management purposes, the Group
is organised into two business divisions based on their products -
Mining and Transport. The mining division is split further for
management reporting purposes to show results by mine and
exploration activity. Los Pelambres produces primarily copper
concentrate and molybdenum as a by-product. Centinela produces
copper concentrate containing gold as a by-product, copper cathodes
and molybdenum concentrates. Antucoya and Zaldívar produce copper
cathodes. The transport division provides rail and road cargo
transport together with a number of ancillary services. All the
operations are based in Chile. The Exploration and evaluation
segment incurs exploration and evaluation expenses. "Corporate and
other items" comprises costs incurred by the Company, Antofagasta
Minerals S.A., the Group's mining corporate centre and other
entities, that are not allocated to any individual business
segment. Consistent with its internal management reporting, the
Group's corporate and other items are included within the mining
division.
The Chief Operating decision-maker
(the Group's Chief Executive Officer) monitors the operating
results of the business segments separately for the purpose of
making decisions about resources to be allocated and assessing
performance. Segment performance is evaluated based on the
operating profit of each of the segments.
a) Segment revenues and results
For the year ended 31-12-2024 (Unaudited)
|
|
Los
Pelambres
|
Centinela
|
Antucoya
|
Zaldívar
|
Exploration and evaluation2
|
Corporate and other items
|
Total
Mining
|
Transport
division
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
3,326.7
|
2,359.2
|
732.6
|
-
|
-
|
-
|
6,418.5
|
194.9
|
6,613.4
|
|
Operating costs excluding
depreciation and loss on disposals2
|
(1,465.5)
|
(1,228.9)
|
(456.8)
|
-
|
(52.7)
|
(72.8)
|
(3,276.7)
|
(125.6)
|
(3,402.3)
|
|
Depreciation
|
(544.1)
|
(854.9)
|
(117.7)
|
-
|
-
|
(10.2)
|
(1,526.9)
|
(41.3)
|
(1,568.2)
|
|
Loss on disposals
|
(3.6)
|
(1.9)
|
-
|
-
|
-
|
(0.1)
|
(5.6)
|
-
|
(5.6)
|
|
Reversal of the provision against
carrying value of assets (exceptional items)
|
-
|
-
|
371.4
|
-
|
-
|
-
|
371.4
|
-
|
371.4
|
|
Operating profit/(loss)
|
1,313.5
|
273.5
|
529.5
|
-
|
(52.7)
|
(83.1)
|
1,980.7
|
28.0
|
2,008.7
|
|
Net share of results from associates
and joint ventures
|
-
|
-
|
-
|
15.1
|
-
|
61.4
|
76.5
|
(0.3)
|
76.2
|
|
Total operating profit from subsidiaries, and share of total
results from associates and joint ventures
|
1,313.5
|
273.5
|
529.5
|
15.1
|
(52.7)
|
(21.7)
|
2,057.2
|
27.7
|
2,084.9
|
|
Investment income
|
46.7
|
40.1
|
11.0
|
-
|
-
|
85.3
|
183.1
|
1.1
|
184.2
|
|
Interest expense
|
(138.0)
|
(75.0)
|
(30.3)
|
-
|
-
|
(68.4)
|
(311.7)
|
(0.5)
|
(312.2)
|
|
Other finance items (Excluding
exceptional items)
|
23.5
|
30.2
|
7.9
|
-
|
-
|
4.2
|
65.8
|
(2.6)
|
63.2
|
|
Fair value gain on other financial
assets - exceptional items 3
|
-
|
-
|
-
|
-
|
-
|
51.0
|
51.0
|
-
|
51.0
|
|
Profit/(loss) before tax
|
1,245.7
|
268.8
|
518.1
|
15.1
|
(52.7)
|
50.4
|
2,045.4
|
25.7
|
2,071.1
|
|
Tax
|
(432.0)
|
(67.1)
|
(30.9)
|
-
|
-
|
(91.8)
|
(621.8)
|
(6.6)
|
(628.4)
|
|
Tax - exceptional items
|
-
|
-
|
(114.0)
|
-
|
-
|
(12.7)
|
(126.7)
|
-
|
(126.7)
|
|
Profit/(loss) for the year
|
813.7
|
201.7
|
373.2
|
15.1
|
(52.7)
|
(54.1)
|
1,296.9
|
19.1
|
1,316.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling interests
|
327.8
|
52.1
|
108.0
|
-
|
-
|
(1.3)
|
486.6
|
-
|
486.6
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(losses) attributable to the owners of the
parent
|
485.9
|
149.6
|
265.2
|
15.1
|
(52.7)
|
(52.8)
|
810.3
|
19.1
|
829.4
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA1
|
1,861.2
|
1,130.3
|
275.8
|
99.9
|
(52.7)
|
36.4
|
3,350.9
|
75.9
|
3,426.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Expenditure (cash
basis)4
|
833.0
|
1,414.0
|
123.4
|
-
|
-
|
7.1
|
2,377.5
|
37.4
|
2,414.9
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment assets and
liabilities
|
|
|
|
|
|
|
|
|
|
|
Segment assets
|
7,886.3
|
8,145.7
|
2,281.2
|
-
|
-
|
2,110.5
|
20,423.7
|
435.1
|
20,858.8
|
|
Investments in associates and joint
ventures
|
-
|
-
|
-
|
895.1
|
-
|
872.0
|
1,767.1
|
9.0
|
1,776.1
|
|
Segment liabilities
|
(4,076.8)
|
(2,877.1)
|
(591.9)
|
-
|
-
|
(2,064.3)
|
(9,610.1)
|
(70.6)
|
(9,680.7)
|
1 EBITDA refers to Earnings Before Interest, Tax, Depreciation
and Amortisation. EBITDA is calculated by adding
back depreciation, amortisation, profit or loss
on disposal and impairment charges and reversals to operating
profit. This comprises 100% of the EBITDA from the Group´s
subsidiaries, and the Group´s proportional share of the EBITDA of
its associates and joint ventures.
2 Operating cash outflow in the exploration and evaluation
segment was $51.3 million.
In order to better reflect the
Group's internal reporting, the Group has changed the
classification of certain evaluation costs incurred by the
individual mining operations, which were previously included in the
Exploration and evaluation segment and are now included within the
individual mine segments.
3 An exceptional fair value gain of $51.0 million has been
recognised in respect of an agreement under which the Group has now
acquired 30 million shares in Compañia de Minas Buenaventura S.A.A.
(see Note 14).
4 In order to better reflect the Group's internal reporting,
the Group has changed the basis of its capital expenditure segment
measure to be on a cash basis rather than an accruals
basis.
For the year ended 31.12.2023 (Audited)
|
|
Los
Pelambres
|
Centinela
|
Antucoya
|
Zaldívar
|
Exploration and evaluation2
|
Corporate and other items
|
Total
Mining
|
Transport
division
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
2,923.8
|
2,532.5
|
672.3
|
-
|
-
|
-
|
6,128.6
|
195.9
|
6,324.5
|
|
Operating costs excluding
depreciation2
|
(1,231.8)
|
(1,348.9)
|
(465.4)
|
-
|
(64.9)
|
(98.7)
|
(3,209.7)
|
(120.7)
|
(3,330.4)
|
|
Depreciation
|
(318.6)
|
(727.3)
|
(109.4)
|
-
|
-
|
(24.3)
|
(1,179.6)
|
(31.7)
|
(1,211.3)
|
|
Operating profit/(loss)
|
1,373.4
|
456.3
|
97.5
|
-
|
(64.9)
|
(123.0)
|
1,739.3
|
43.5
|
1,782.8
|
|
Net share of results from associates
and joint ventures
|
-
|
-
|
-
|
(15.4)
|
-
|
-
|
(15.4)
|
1.9
|
(13.5)
|
|
Total operating profit from subsidiaries, and share of total
results from associates and joint ventures.
|
1,373.4
|
456.3
|
97.5
|
(15.4)
|
(64.9)
|
(123.0)
|
1,723.9
|
45.4
|
1,769.3
|
|
Investment income
|
38.0
|
20.3
|
6.8
|
-
|
-
|
72.2
|
137.3
|
0.8
|
138.1
|
|
Interest expense
|
(4.3)
|
(20.3)
|
(30.7)
|
-
|
-
|
(49.2)
|
(104.5)
|
(1.1)
|
(105.6)
|
|
Other finance items (Excluding
exceptional items)
|
(0.2)
|
(0.2)
|
(0.4)
|
-
|
-
|
(1.9)
|
(2.7)
|
(0.7)
|
(3.4)
|
|
Fair value gain on other financial
assets - exceptional items 3
|
-
|
-
|
-
|
-
|
-
|
167.1
|
167.1
|
-
|
167.1
|
|
Profit/(loss) before tax
|
1,406.9
|
456.1
|
73.2
|
(15.4)
|
(64.9)
|
65.2
|
1,921.1
|
44.4
|
1,965.5
|
|
Tax
|
(465.2)
|
(143.1)
|
(14.6)
|
-
|
-
|
13.7
|
(609.2)
|
(15.1)
|
(624.3)
|
|
Tax - exceptional items
|
-
|
-
|
-
|
-
|
-
|
(41.8)
|
(41.8)
|
-
|
(41.8)
|
|
Profit/(loss) for the year
|
941.7
|
313.0
|
58.6
|
(15.4)
|
(64.9)
|
37.1
|
1,270.1
|
29.3
|
1,299.4
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling interests
|
372.5
|
89.5
|
5.5
|
-
|
-
|
(3.2)
|
464.3
|
-
|
464.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss) attributable to the owners of the
parent
|
569.2
|
223.5
|
53.1
|
(15.4)
|
(64.9)
|
40.3
|
805.8
|
29.3
|
835.1
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA1
|
1,692.0
|
1,183.6
|
206.9
|
86.8
|
(64.9)
|
(98.7)
|
3,005.7
|
81.5
|
3,087.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Expenditure (cash
basis)4
|
897.1
|
1,044.6
|
121.6
|
-
|
-
|
15.5
|
2,078.8
|
50.4
|
2,129.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment assets and
liabilities
|
|
|
|
|
|
|
|
|
|
|
Segment assets
|
7,414.0
|
6,533.6
|
1,732.7
|
-
|
-
|
2,657.6
|
18,337.9
|
418.2
|
18,756.1
|
|
Investments in associates and joint
ventures
|
-
|
-
|
-
|
881.3
|
-
|
-
|
881.3
|
9.8
|
891.1
|
|
Segment liabilities
|
(3,829.1)
|
(1,857.0)
|
(535.2)
|
-
|
-
|
(1,304.7)
|
(7,526.0)
|
(72.8)
|
(7,598.8)
|
1 EBITDA refers to Earnings Before Interest, Tax, Depreciation
and Amortisation. EBITDA is calculated by adding back depreciation,
amortisation, profit or loss on disposals and impairment charges
and reversals to operating profit. This comprises 100% of the
EBITDA from the Group´s subsidiaries, and the Group´s proportional
share of the EBITDA of its associates and joint
ventures.
2 Operating cash outflow in the exploration and evaluation
segment was $61.8 million.
In order to better reflect the
Group's internal reporting, the Group has changed the
classification of certain evaluation costs incurred by the
individual mining operations of $76.2 million, which were
previously included in the Exploration and evaluation segment and
are now included within the individual mine segments as follow: Los
Pelambres $32.6 million, Centinela $35.4 million and Antucoya $8.2
million.
3 An exceptional fair value gain of $167.1 million has been
recognised in respect of an agreement under which the Group has now
acquired 30 million shares in Compañia de Minas Buenaventura S.A.A.
(see Note 14).
4 In order to better reflect the Group's internal reporting,
the Group has changed the basis of its capital expenditure segment
measure to be on a cash basis rather than an accruals basis, The
restated amount changed from $2,307.9 million to $2,129.2 million,
reflecting a decrease of $178.7 million as follow: Los Pelambres
$17.2 million, Centinela $137.8 million, Antucoya $19.1 million,
Corporate $3.5 million and Transport division $1.1
million.
b) Group wide disclosures
Revenue by product
|
|
Year ended
31.12.2024
|
Year
ended 31.12.2023
|
|
|
$m
|
$m
|
|
Copper
|
|
|
|
- Los
Pelambres
|
2,710.0
|
2,381.1
|
|
- Centinela
concentrates
|
970.5
|
1,309.8
|
|
- Centinela
cathodes
|
896.1
|
692.6
|
|
- Antucoya
|
726.0
|
666.1
|
|
Provision of shipping services
|
|
|
|
- Los
Pelambres
|
64.4
|
50.3
|
|
- Centinela
concentrates
|
24.3
|
35.3
|
|
- Centinela
cathodes
|
7.4
|
6.0
|
|
- Antucoya
|
6.6
|
6.2
|
|
Gold
|
|
|
|
- Los
Pelambres
|
110.3
|
83.5
|
|
- Centinela
concentrates
|
336.5
|
323.4
|
|
Molybdenum
|
|
|
|
- Los Pelambres
|
387.4
|
373.2
|
|
- Centinela
concentrates
|
100.8
|
131.0
|
|
Silver
|
|
|
|
- Los
Pelambres
|
54.6
|
35.7
|
|
- Centinela
concentrates
|
23.6
|
34.4
|
|
|
|
|
|
Total Mining
|
6,418.5
|
6,128.6
|
|
Transport division
|
194.9
|
195.9
|
|
|
6,613.4
|
6,324.5
|
Revenue by location of customer
|
|
Year ended
31.12.2024
|
Year
ended 31.12.2023
|
|
|
$m
|
$m
|
|
Europe
|
|
|
|
- United
Kingdom
|
23.8
|
22.8
|
|
- Switzerland
|
367.8
|
386.5
|
|
- Spain
|
82.9
|
-
|
|
- Germany
|
160.8
|
200.0
|
|
- Rest of
Europe
|
170.7
|
89.9
|
|
Latin America
|
|
|
|
- Chile
|
366.9
|
399.5
|
|
- Rest of Latin
America
|
289.7
|
133.0
|
|
North America
|
|
|
|
- United
States
|
470.1
|
441.7
|
|
Asia Pacific
|
|
|
|
- Japan
|
1,961.4
|
1,989.6
|
|
- China
|
1,292.2
|
1,417.3
|
|
- Singapore
|
336.2
|
450.2
|
|
- South Korea
|
436.7
|
391.1
|
|
- Hong Kong
|
236.2
|
204.7
|
|
- Rest of
Asia
|
418.0
|
198.2
|
|
|
6,613.4
|
6,324.5
|
Information about major customers
In the year ended 31 December
2024, the Group´s mining revenue included $860.5 million related to
one large customer that individually accounted for more than 10% of
the Group's revenue (year ended 31 December 2023 - one large
customer representing $1,081.0 million).
6.
Revenue
Copper and molybdenum concentrate
sale contracts and copper cathode sale contracts generally provide
for provisional pricing of sales at the time of shipment, with
final pricing being based on the monthly average London Metal
Exchange copper price or monthly average molybdenum price for
specified future periods. This normally ranges from one to four
months after shipment to the customer. For sales contracts which
contain provisional pricing mechanisms, the total receivable
balance is measured at fair value through profit or loss. Gains and
losses from the mark-to-market of open sales are recognised through
adjustments to revenue in the income statement and to trade
receivables in the balance sheet. The Group determines
mark-to-market prices using forward prices at each period-end for
copper concentrate and cathode sales, and period-end month average
prices for molybdenum concentrate sales due to the limited futures
market for that commodity.
With sales of concentrates, which
are sold to smelters and roasting plants for further processing
into fully refined metal, the price of the concentrate (which is
the amount recorded as revenue) reflects the market value of the
fully refined metal less a "treatment and refining charge"
deduction, to reflect the lower value of this partially processed
material compared with the fully refined metal.
The Group sells a significant
proportion of its products on Cost, Insurance & Freight (CIF)
Incoterms, which means that the Group is responsible for shipping
the product to a destination port specified by the customer. The
shipping service represents a separate performance obligation and
is recognised separately from the sale of the material over time as
the shipping service is provided.
The total revenue from contracts
with customers and the impact of provisional pricing adjustments in
respect of concentrate and cathode sales is as follows:
|
|
Year ended
31.12.2024
|
Year
ended
31.12.2023
|
|
|
$m
|
$m
|
|
Revenue from contracts with
customers
|
|
|
|
Sale of products
|
6,306.4
|
6,016.2
|
|
Provision of shipping services
associated with the sale of products
|
102.7
|
97.8
|
|
Transport division
1
|
194.9
|
195.9
|
|
|
|
|
|
Provisional pricing adjustments in
respect of copper, gold and molybdenum
|
9.4
|
14.6
|
|
|
|
|
|
Total revenue
|
6,613.4
|
6,324.5
|
1The transport division provides rail and road cargo transport
together with a number of ancillary services.
The categories of revenue which
are principally affected by different economic factors are the
individual product types. A summary of revenue by product is set
out in Note 5(b).
The following tables set out the
impact of provisional pricing adjustments, and treatment and
refining charges for the more significant products. The revenue
from these products, which includes, for the sale of copper,
revenue associated with the provision of shipping services,
is reconciled to total revenue in Note
5(b).
For the year ended 31 December 2024
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
|
Los
Pelambres
|
Centinela
|
Centinela
|
Antucoya
|
Los
Pelambres
|
Centinela
|
Los
Pelambres
|
Centinela
|
Los
Pelambres
|
Centinela
|
Total
|
|
|
Copper
concentrate
|
Copper
concentrate
|
Copper
cathodes
|
Copper
cathodes
|
Gold in
concentrate
|
Gold in
concentrate
|
Molybdenum
concentrate
|
Molybdenum
concentrate
|
Silver
concentrate
|
Silver
concentrate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provisionally priced sales of products
|
2,851.1
|
1,023.1
|
899.7
|
725.9
|
106.3
|
330.0
|
408.8
|
104.0
|
54.7
|
23.4
|
6,527.0
|
|
Revenue from freight services
|
64.4
|
24.3
|
7.4
|
6.6
|
-
|
-
|
-
|
-
|
-
|
-
|
102.7
|
|
|
2,915.5
|
1,047.4
|
907.1
|
732.5
|
106.3
|
330.0
|
408.8
|
104.0
|
54.7
|
23.4
|
6,629.7
|
|
Effects of pricing adjustments to previous year
invoices
|
|
|
|
|
|
|
|
|
|
|
|
|
Reversal of mark-to-market
adjustments at the end of the previous year
|
(45.1)
|
(16.2)
|
(0.3)
|
(0.2)
|
-
|
(2.6)
|
1.0
|
0.4
|
-
|
-
|
(63.0)
|
|
Settlement of sales invoiced in the
previous year
|
62.5
|
27.0
|
(1.0)
|
(0.9)
|
(0.3)
|
1.6
|
3.4
|
0.7
|
(0.6)
|
-
|
92.4
|
|
Total effect of adjustments to previous year invoices in the
current year
|
17.4
|
10.8
|
(1.3)
|
(1.1)
|
(0.3)
|
(1.0)
|
4.4
|
1.1
|
(0.6)
|
-
|
29.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effects of pricing adjustments to current year
invoices
|
|
|
|
|
|
|
|
|
|
|
|
|
Settlement of sales invoiced in the
current year
|
10.8
|
14.7
|
(0.9)
|
2.6
|
4.5
|
8.5
|
2.8
|
5.1
|
1.1
|
0.6
|
49.8
|
|
Mark-to-market adjustments at the
end of the current year
|
(40.1)
|
(22.0)
|
(1.4)
|
(1.4)
|
-
|
(0.4)
|
(4.0)
|
(0.5)
|
-
|
-
|
(69.8)
|
|
Total effect of adjustments to current year
invoices
|
(29.3)
|
(7.3)
|
(2.3)
|
1.2
|
4.5
|
8.1
|
(1.2)
|
4.6
|
1.1
|
0.6
|
(20.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total pricing adjustments
|
(11.9)
|
3.5
|
(3.6)
|
0.1
|
4.2
|
7.1
|
3.2
|
5.7
|
0.5
|
0.6
|
9.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue before deducting treatment & refining
charges
|
2,903.6
|
1,050.9
|
903.5
|
732.6
|
110.5
|
337.1
|
412.0
|
109.7
|
55.2
|
24.0
|
6,639.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Treatment and refining charges
|
(129.2)
|
(56.1)
|
-
|
-
|
(0.2)
|
(0.6)
|
(24.6)
|
(8.9)
|
(0.6)
|
(0.4)
|
(220.6)
|
|
Revenue net of tolling charges
|
|
|
|
|
|
|
|
|
|
|
|
|
2,774.4
|
994.8
|
903.5
|
732.6
|
110.3
|
336.5
|
387.4
|
100.8
|
54.6
|
23.6
|
6,418.5
|
For
the year ended 31 December 2023
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
|
Los
Pelambres
|
Centinela
|
Centinela
|
Antucoya
|
Los
Pelambres
|
Centinela
|
Los
Pelambres
|
Centinela
|
Los
Pelambres
|
Centinela
|
Total
|
|
|
Copper
concentrate
|
Copper
concentrate
|
Copper
cathodes
|
Copper
cathodes
|
Gold in
concentrate
|
Gold in
concentrate
|
Molybdenum
concentrate
|
Molybdenum
concentrate
|
Silver
concentrate
|
Silver
concentrate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provisionally priced sales of products
|
2,465.4
|
1,363.1
|
689.5
|
663.9
|
79.2
|
319.3
|
455.4
|
161.1
|
35.6
|
34.3
|
6,266.8
|
|
Revenue from freight services
|
50.3
|
35.3
|
6.0
|
6.2
|
-
|
-
|
-
|
-
|
-
|
-
|
97.8
|
|
|
2,515.7
|
1,398.4
|
695.5
|
670.1
|
79.2
|
319.3
|
455.4
|
161.1
|
35.6
|
34.3
|
6,364.6
|
|
Effects of pricing adjustments to previous year
invoices
|
|
|
|
|
|
|
|
|
|
|
|
|
Reversal of mark-to-market
adjustments at the end of the previous year
|
(38.0)
|
(19.9)
|
(0.8)
|
(0.8)
|
-
|
(2.7)
|
(12.6)
|
(7.6)
|
-
|
-
|
(82.4)
|
|
Settlement of sales invoiced in the
previous year
|
90.9
|
52.9
|
10.3
|
7.7
|
2.9
|
1.0
|
40.0
|
15.9
|
0.3
|
0.4
|
222.3
|
|
Total effect of adjustments to previous year invoices in the
current year
|
52.9
|
33.0
|
9.5
|
6.9
|
2.9
|
(1.7)
|
27.4
|
8.3
|
0.3
|
0.4
|
139.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effects of pricing adjustments to current year
invoices
|
|
|
|
|
|
|
|
|
|
|
|
|
Settlement of sales invoiced in the
current year
|
(52.2)
|
(19.0)
|
(6.7)
|
(4.9)
|
1.5
|
3.9
|
(84.1)
|
(27.3)
|
0.3
|
0.2
|
(188.3)
|
|
Mark-to-market adjustments at the
end of the current year
|
45.1
|
16.2
|
0.3
|
0.2
|
-
|
2.6
|
(1.0)
|
(0.4)
|
-
|
-
|
63.0
|
|
Total effect of adjustments to current year
invoices
|
(7.1)
|
(2.8)
|
(6.4)
|
(4.7)
|
1.5
|
6.5
|
(85.1)
|
(27.7)
|
0.3
|
0.2
|
(125.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total pricing adjustments
|
45.8
|
30.2
|
3.1
|
2.2
|
4.4
|
4.8
|
(57.7)
|
(19.4)
|
0.6
|
0.6
|
14.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue before deducting treatment & refining
charges
|
2,561.5
|
1,428.6
|
698.6
|
672.3
|
83.6
|
324.1
|
397.7
|
141.7
|
36.2
|
34.9
|
6,379.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Treatment and refining charges
|
(130.1)
|
(83.5)
|
-
|
-
|
(0.1)
|
(0.7)
|
(24.5)
|
(10.7)
|
(0.5)
|
(0.5)
|
(250.6)
|
|
Revenue net of tolling charges
|
|
|
|
|
|
|
|
|
|
|
|
|
2,431.4
|
1,345.1
|
698.6
|
672.3
|
83.5
|
323.4
|
373.2
|
131.0
|
35.7
|
34.4
|
6,128.6
|
(i)
Copper concentrate
The typical period for which sales
of copper concentrate remain open until settlement occurs is a
range of approximately three to four months from shipment
date.
|
|
|
At
31.12.2024
|
At
31.12.2023
|
|
Sales provisionally priced at the
balance sheet date
|
Tonnes
|
157,300
|
181,400
|
|
Average mark-to-market
price
|
$/lb
|
3.96
|
3.87
|
|
Average provisional invoice
price
|
$/lb
|
4.14
|
3.72
|
(ii)
Copper cathodes
The typical period for which sales
of copper cathodes remain open until settlement occurs is
approximately one month from shipment date.
|
|
|
At
31.12.2024
|
At
31.12.2023
|
|
Sales provisionally priced at the
balance sheet date
|
Tonnes
|
11,600
|
16,400
|
|
Average mark-to-market
price
|
$/lb
|
3.94
|
3.85
|
|
Average provisional invoice
price
|
$/lb
|
4.05
|
3.84
|
(iii) Gold
in concentrate
The typical period for which sales
of gold in concentrate remain open until settlement is
approximately one month from shipment date.
|
|
|
At
31.12.2024
|
At
31.12.2023
|
|
Sales provisionally priced at the
balance sheet date
|
Ounces
|
25,400
|
32,400
|
|
Average mark-to-market
price
|
$/oz
|
2,634
|
2,072
|
|
Average provisional invoice
price
|
$/oz
|
2,650
|
1,992
|
(iv)
Molybdenum concentrate
The typical period for which sales
of molybdenum remain open until settlement is approximately two
months from shipment date.
|
|
|
At
31.12.2024
|
At
31.12.2023
|
|
Sales provisionally priced at the
balance sheet date
|
Tonnes
|
2,700
|
2,600
|
|
Average mark-to-market
price
|
$/lb
|
21.40
|
18.50
|
|
Average provisional invoice
price
|
$/lb
|
22.00
|
18.80
|
As detailed above, the effects of
gains and losses from the marking-to-market of open sales are
recognised through adjustments to revenue in the income statement
and to trade receivables in the balance sheet. The effect of
mark-to-market adjustments on the balance sheet at the end of each
period are as follows.
|
|
|
Effect on debtors of year
end
mark-to-market
adjustments
|
|
|
|
Year
ended
31.12.2024
|
Year
Ended
31.12.2023
|
|
|
|
$m
|
$m
|
|
Los Pelambres - copper
concentrate
|
|
(40.1)
|
45.1
|
|
Los Pelambres - molybdenum
concentrate
|
|
(4.0)
|
(1.0)
|
|
Centinela - copper
concentrate
|
|
(22.0)
|
16.2
|
|
Centinela - molybdenum
concentrate
|
|
(0.5)
|
(0.4)
|
|
Centinela - gold in
concentrate
|
|
(0.4)
|
2.6
|
|
Centinela - copper
cathodes
|
|
(1.4)
|
0.3
|
|
Antucoya - copper
cathodes
|
|
(1.4)
|
0.2
|
|
|
|
(69.8)
|
63.0
|
7. Financial instruments
and financial risk management
a) Categories
of financial instruments
The carrying value of financial
assets and financial liabilities is shown below:
|
|
|
For the year ended
31.12.2024
|
|
|
At fair
value through profit and loss
|
At fair
value through other comprehensive income
|
Derivative instruments at fair value, designated as
hedges
|
Held at
amortised cost
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Financial assets
|
|
|
|
|
|
|
Equity investments
|
-
|
11.6
|
-
|
-
|
11.6
|
|
Trade and other
receivables
|
669.1
|
-
|
-
|
129.3
|
798.4
|
|
Cash and cash equivalents
|
124.3
|
-
|
-
|
2,064.9
|
2,189.2
|
|
Liquid investments
|
2,127.1
|
-
|
-
|
-
|
2,127.1
|
|
|
2,920.5
|
11.6
|
-
|
2,194.2
|
5,126.3
|
|
Financial liabilities
|
|
|
|
|
|
|
Derivative financial
instruments
|
-
|
-
|
(25.5)
|
-
|
(25.5)
|
|
Trade and other payables
|
-
|
-
|
-
|
(1,293.6)
|
(1,293.6)
|
|
Other financial
liabilities
|
-
|
-
|
-
|
(594.0)
|
(594.0)
|
|
Borrowings
|
-
|
-
|
-
|
(5,351.4)
|
(5,351.4)
|
|
|
-
|
-
|
(25.5)
|
(7,239.0)
|
(7,264.5)
|
|
|
|
|
|
|
|
For the year ended
31.12.2023
|
|
|
At fair
value through profit and loss
|
At fair
value through other comprehensive income
|
Derivative instruments at fair value, designated as
hedges
|
Held at
amortised cost
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Financial assets
|
|
|
|
|
|
|
Equity investments
|
-
|
288.6
|
-
|
-
|
288.6
|
|
Trade and other
receivables
|
916.5
|
-
|
-
|
157.1
|
1,073.6
|
|
Other financial assets
|
457.2
|
-
|
-
|
-
|
457.2
|
|
Cash and cash equivalents
|
1.1
|
-
|
-
|
643.6
|
644.7
|
|
Liquid investments
|
2,274.7
|
-
|
-
|
-
|
2,274.7
|
|
|
3,649.5
|
288.6
|
-
|
800.7
|
4,738.8
|
|
|
|
|
|
|
|
|
Financial liabilities
|
|
|
|
|
|
|
Trade and other payables
|
-
|
-
|
-
|
(1,154.3)
|
(1,154.3)
|
|
Borrowings
|
-
|
-
|
-
|
(4,079.2)
|
(4,079.2)
|
|
|
-
|
-
|
-
|
(5,233.5)
|
(5,233.5)
|
The fair value of the fixed rate
bonds included within the "Borrowings" category was $1,630.5
million at 31 December 2024 compared with their carrying value of
$1,729.0 million (year ended 31 December 2023 - fair value of
$908.3 million compared with their carrying value of $986.8
million), this fair value was calculated using market rates at the
period end. These are level 2 inputs as described below. The fair
value of all other financial assets and financial liabilities
carried at amortised cost approximates the carrying value presented
above.
The fair value of the fixed rate
borrowings included within the "Other loans" category was $700.5
million at 31 December 2024 compared with their carrying value of
$670.0 million; this fair value was calculated using market rates
at the period end.
The fair value of the fixed rate
other financial liabilities balance was $756.9 million at 31
December 2024 compared with its carrying value of $594.0 million;
this fair value was calculated using market rates at the period
end.
The following tables reconcile
between the total trade and other receivables and trade and other
payables balances on the balance sheet with the financial
instrument amounts included in this note.
|
|
Year ended
31.12.2024
|
Year
ended
31.12.2023
|
|
Financial assets
|
|
|
|
Trade and other receivables
(non-current) per balance sheet
|
54.4
|
68.5
|
|
Trade and other receivables
(current) per balance sheet
|
899.5
|
1,117.8
|
|
Total trade and other receivables
per balance sheet
|
953.9
|
1,186.3
|
|
Less: non-financial assets
(including prepayments and VAT receivables)
|
(155.5)
|
(112.7)
|
|
Total trade and other receivables
|
798.4
|
1,073.6
|
|
|
|
|
|
Financial liabilities
|
|
|
|
Trade and other payables (current)
per balance sheet
|
(1,320.3)
|
(1,171.5)
|
|
Trade and other payables
(non-current) per balance sheet
|
(10.2)
|
(9.8)
|
|
Total trade and other payables per
balance sheet
|
(1,330.5)
|
(1,181.3)
|
|
Less: non-financial liabilities
(including VAT payables)
|
36.9
|
27.0
|
|
Total trade and other payables
|
(1,293.6)
|
(1,154.3)
|
Fair value of financial instruments
An analysis of financial assets
and financial liabilities measured at fair value is presented
below:
|
|
For the year ended
31.12.2024
|
|
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
|
Financial assets
|
|
|
|
|
|
Equity investments (a)
|
11.6
|
-
|
-
|
11.6
|
|
Trade and other receivables
(b)
|
-
|
669.1
|
-
|
669.1
|
|
Cash and cash equivalents
(d)
|
124.3
|
-
|
-
|
124.3
|
|
Liquid investments (e)
|
-
|
2,127.1
|
-
|
2,127.1
|
|
|
135.9
|
2,796.2
|
-
|
2,932.1
|
|
|
|
|
|
|
|
Financial liabilities
|
|
|
|
|
|
Derivatives financial instruments
(f)
|
-
|
(25.5)
|
-
|
(25.5)
|
|
|
-
|
(25.5)
|
-
|
(25.5)
|
|
|
For the year ended
31.12.2023
|
|
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
|
Financial assets
|
|
|
|
|
|
Equity investments (a)
|
288.6
|
-
|
-
|
288.6
|
|
Trade and other receivables
(b)
|
-
|
916.5
|
-
|
916.5
|
|
Other financial assets
(c)
|
-
|
457.2
|
-
|
457.2
|
|
Cash and cash equivalents
(d)
|
1.1
|
-
|
-
|
1.1
|
|
Liquid investments (e)
|
-
|
2,274.7
|
-
|
2,274.7
|
|
|
289.7
|
3,648.4
|
-
|
3,938.1
|
Recurring fair value measurements
are those that are required in the balance sheet at the end of each
reporting period.
a) Equity investments are investments in shares on active
markets and are valued using unadjusted quoted market values of the
shares at the financial reporting date. These are level 1 inputs as
described below.
b) Provisionally priced metal sales for the period are
marked-to-market at the end of the period. Gains and losses from
the marking-to-market of open sales are recognised through
adjustments to revenue in the income statement and trade
receivables in the balance sheet. Forward prices at the end of the
period are used for copper sales while period-end average prices
are used for molybdenum concentrate sales. These are level 2 inputs
as described below.
c) The other financial asset related to the agreement the Group
entered into during 2023 to acquire up to 30 million shares in
Compañía de Minas Buenaventura S.A.A. (''Buenaventura'') (as
detailed in Note 14). The fair value of the other financial assets
was calculated using observable market data. These were level 2
inputs.
d) The element of cash and cash equivalents measured at fair
value relates to money market funds, which are valued reflecting
market prices at the period end. These are level 1 inputs as
described below.
e) Liquid investments are highly liquid current asset
investments that are valued reflecting market prices at the period
end. These are level 2 inputs as described below.
f) Derivatives are valued using a discounted cash flow analysis
valuation model, which includes observable credit spreads and using
the applicable yield curve for the duration of the instruments for
non-optional derivatives, and option pricing models for optional
derivatives. These are level 2 inputs as described below. As at 31
December 2024, derivatives relate to foreign exchange option
contracts.
The inputs to the valuation
techniques described above are categorised into three levels,
giving the highest priority to unadjusted quoted prices in active
markets (level 1) and the lowest priority to unobservable inputs
(level 3 inputs):
· Level 1 fair value measurement inputs are unadjusted quoted
prices in active markets for identical assets or
liabilities,
· Level 2 fair value measurement inputs are derived from inputs
other than quoted market prices included in level 1 that are
observable for the asset or liability, either directly or
indirectly, and
· Level 3 fair value measurement inputs are unobservable inputs
for the asset or liability.
The degree to which inputs into the
valuation techniques used to measure the financial assets and
liabilities are observable and the significance of these inputs in
the valuation are considered in determining whether any transfers
between levels have occurred. In the year ended 31 December 2024
and 31 December 2023, there were no transfers between levels in the
hierarchy.
b) Derivative
financial instruments
The Group periodically uses derivative financial instruments to
reduce exposure to foreign exchange, interest rate and commodity
price movements. The Group does not use such derivative instruments
for trading purposes. The Group has applied the hedge accounting
provisions of IFRS 9 Financial Instruments. The effective portion
of changes in the fair value of derivative financial instruments
that are designated and qualify as hedges of future cash flows have
been recognised directly in equity, with such amounts subsequently
recognised in profit or loss in the period when the hedged item
affects profit or loss. For non-financial hedged items, the amount
is removed directly from equity and included as an adjustment to
the initial cost of the hedged item. Any ineffective portion is
recognised immediately in profit or loss. The time value element of
changes in the fair value of derivative options is recognised
within other comprehensive income. For non-financial hedged items,
on initial recognition of the hedged item, the time value is
removed from equity and included as an adjustment to the initial
cost of the hedged item.
|
|
Nominal
|
Carrying
amount
|
|
Line item in the statement
of financial position where the hedging instrument is
included
|
Change in the value of
hedging instrument recognised in OCI
|
Costs of hedging recognised
in OCI
|
Amount removed from hedging
reserve to initial cost of hedged item
|
Amount removed from cost of
hedging reserve to initial cost of hedged item
|
Line item in balance sheet
affected by the removal
|
|
|
Amount
|
Assets
|
Liabilities
|
|
|
|
|
|
|
|
|
$m
|
$m
|
$m
|
|
$m
|
$m
|
$m
|
$m
|
|
|
Foreign currency risk
|
|
|
|
|
|
|
|
|
|
|
Forward exchange option
contract
|
847.0
|
-
|
(25.5)
|
Derivative financial
Instruments (liabilities)
|
-
|
25.5
|
-
|
-
|
Property, plant and
equipment
|
This relates to hedging of costs
associated with the Nueva Centinela project, which relates to the
construction of new property, plant and equipment for a period up
to June 2026, with an average put rate of Ch$850.0/$1 and an
average call rate of Ch$1,017.4/$1.
No hedge ineffectiveness was
recognised.
8. Net finance
(expense)/income
|
|
Year ended
31.12.2024
|
Year
ended
31.12.2023
|
|
|
$m
|
$m
|
|
Investment income
|
|
|
|
Interest income
|
73.0
|
43.1
|
|
Gains on liquid investments held at
fair value through profit or loss
|
111.2
|
95.0
|
|
|
184.2
|
138.1
|
|
|
|
|
|
Interest expense
|
|
|
|
Interest expense
|
(312.2)
|
(105.6)
|
|
|
(312.2)
|
(105.6)
|
|
|
|
|
|
Other finance items
|
|
|
|
Unwinding of discount on provisions
and adjustment to provision discount rates
|
(18.8)
|
(15.8)
|
|
Exceptional fair value gains (see
note 3)
|
51.0
|
167.1
|
|
Effects of changes in foreign
exchange rates
|
82.1
|
12.5
|
|
Preference dividends
|
(0.1)
|
(0.1)
|
|
|
114.2
|
163.7
|
|
Net
finance (expense)/income
|
(13.8)
|
196.2
|
In the year ended 31 December
2024, amounts capitalised and consequently not included within the
above table were as follows: $30.2 million at Los Pelambres (year
ended 31 December 2023 - $104.2 million) and $36.9 million at
Centinela (year ended 31 December 2023 -
$7.9 million). The average interest
rate for the interest capitalised was 6.42% (2023 -
6.0%).
The interest expense shown above
includes $17.1million in respect of leases (year ended 31 December
2023 - $10.5 million) and $41.6 million (year ended 31 December
2023 - nil) of interest expense in respect of the other financial
liability balance relating to the Centinela water transportation
agreement, as detailed in Note 17.
9.
Taxation
The tax charge for the period
comprised the following:
|
|
Year ended
31.12.2024
|
Year
ended
31.12.2023
|
|
|
$m
|
$m
|
|
Current tax charge
|
|
|
|
Corporate tax (principally first
category tax in Chile)
|
(385.8)
|
(472.8)
|
|
Mining tax (royalty)
|
(206.0)
|
(109.3)
|
|
Withholding tax
|
(71.1)
|
(4.5)
|
|
Exchange rate
|
-
|
(0.2)
|
|
|
(662.9)
|
(586.8)
|
|
|
|
|
|
Deferred tax
|
|
|
|
Corporate tax (principally first
category tax in Chile)
|
(83.3)
|
(3.7)
|
|
Mining tax (royalty)
|
76.4
|
(2.7)
|
|
Adjustment to deferred tax
attributable to changes in tax rates
|
-
|
(34.3)
|
|
Exceptional items
|
(126.7)
|
(41.8)
|
|
Withholding tax
|
41.4
|
3.2
|
|
|
(92.2)
|
(79.3)
|
|
|
|
|
|
Total tax charge
|
(755.1)
|
(666.1)
|
The rate of first category (i.e.
corporate) tax in Chile is 27.0% (2023 - 27.0%).
In addition to first category tax,
the Group incurs withholding taxes on any remittance of profits
from Chile. Withholding tax is levied on remittances of profits
from Chile at 35% less first category (i.e. corporation) tax
already paid in respect of the profits to which the remittances
relate.
The Group's mining operations are
also subject to a mining tax (royalty).
The new Chilean mining royalty has
taken effect from 1 January 2024. The new royalty terms include a
royalty ranging from 8% to 26% applied to the ''Mining Operating
Margin'', depending on each mining operation's level of
profitability, as well as a 1% ad valorem royalty on copper sales.
As the ad valorem element is based on revenue rather than profit it
does not meet the IAS 12 Income
Taxes definition of a tax expense and is therefore recorded
as an operating expense. The new royalty terms have a cap,
establishing that total taxation, which includes corporate income
tax, the two components of the new mining royalty, and theoretical
tax on dividends, should not exceed a rate of 46.5% on Mining
Operating Margin less the royalty ad-valorem expense.
Los Pelambres has been subject to
the new royalty from 1 January 2024. The impact of the new royalty
for Los Pelambres in 2024 included the recognition of a $28.7
million (see note 2) expense within operating expenses in respect
of the ad valorem element. Zaldívar (which as a joint venture is
equity accounted for, and so its tax expense is not consolidated
within the above Group tax expense line) was also subjected to the
new royalty from 1 January 2024. Centinela and Antucoya have tax
stability agreements in place, and so the new royalty rates will
only impact their royalty payments from 2030 onwards. Until then,
they continue to be subject to the previous royalty system,
applying a rate of between from 5% to 14% of taxable operating
profit, depending on the level of operating profit
margin.
The following table provides a
numerical reconciliation between the accounting profit before tax
multiplied by the applicable statutory tax rate and the total tax
expense (including both current and deferred tax).
|
|
|
Year ended
Excluding exceptional
items
31.12.2024
|
|
Year ended
Including exceptional
items
31.12.2024
|
|
Year
ended
Excluding exceptional items
31.12.2023
|
|
Year
ended
Including exceptional items
31.12.2023
|
|
|
|
$m
|
%
|
|
$m
|
%
|
|
$m
|
%
|
|
$m
|
%
|
|
Profit before tax
|
|
1,648.7
|
|
|
2,071.1
|
|
|
1,798.4
|
|
|
1,965.5
|
|
|
Profit before tax multiplied by
Chilean corporate tax rate of 27%
|
|
(445.1)
|
27.0
|
|
(559.2)
|
27.0
|
|
(485.6)
|
27.0
|
|
(530.7)
|
27.0
|
|
Mining Tax (royalty)
|
|
(216.5)
|
13.1
|
|
(216.5)
|
10.5
|
|
(109.7)
|
6.1
|
|
(109.7)
|
5.6
|
|
Deduction of mining (royalty) as
an allowable expense in determination of first category
tax
|
|
55.8
|
(3.4)
|
|
55.8
|
(2.7)
|
|
29.5
|
(1.6)
|
|
29.5
|
(1.5)
|
|
Items not deductible from first
category tax
|
|
(3.9)
|
0.2
|
|
(3.9)
|
0.2
|
|
(21.4)
|
1.2
|
|
(21.4)
|
1.1
|
|
Adjustment in respect of prior
years
|
|
1.7
|
(0.1)
|
|
1.7
|
(0.1)
|
|
4.5
|
(0.3)
|
|
4.5
|
(0.2)
|
|
Adjustment to deferred tax in
respect of mining royalty
|
|
67.1
|
(4.1)
|
|
67.1
|
(3.2)
|
|
(34.3)
|
1.9
|
|
(34.3)
|
1.7
|
|
Withholding tax
|
|
(29.7)
|
1.8
|
|
(29.7)
|
1.4
|
|
(1.4)
|
0.1
|
|
(1.4)
|
0.1
|
|
Tax effect of (loss)/ profit of
associates and joint ventures
|
|
20.0
|
(1.1)
|
|
20.0
|
(1.0)
|
|
(3.6)
|
0.2
|
|
(3.6)
|
0.2
|
|
Impact of unrecognised tax
losses
|
|
(77.8)
|
4.7
|
|
(77.8)
|
3.8
|
|
(2.3)
|
0.1
|
|
(2.3)
|
0.1
|
|
Reversal of the provision against
carrying value of assets (exceptional items)
|
|
-
|
-
|
|
(13.7)
|
0.7
|
|
-
|
-
|
|
-
|
-
|
|
Difference in overseas tax
rates
|
|
-
|
-
|
|
1.1
|
(0.1)
|
|
-
|
-
|
|
3.3
|
(0.2)
|
|
Tax expense and effective tax rate for the Year
ended
|
|
(628.4)
|
38.1
|
|
(755.1)
|
36.5
|
|
(624.3)
|
34.7
|
|
(666.1)
|
33.9
|
The effective tax rate (excluding
exceptional items) of 38.1% varied from the statutory rate
principally due to:
· The
mining tax (royalty) (net impact of $160.7 million /9.7% including
the deduction of the mining tax (royalty) as an allowable expense
in the determination of first category tax);
· The
withholding tax relating to the remittance of profits from Chile
(impact of $29.7 million / 1.8%);
· Adjustments to deferred tax in respect of the mining royalty
(impact of $67.1 million / 4.1%);
· Items not deductible for Chilean corporate tax purposes,
principally the funding of expenses outside of Chile (impact of
$3.9 million / 0.2%);
· Adjustments in respect of prior years (impact of $1.7 million
/ 0.1%);
· The
impact of unrecognised tax losses (impact of $77.8 million / 4.7%);
and
· An
offsetting impact of the recognition of the Group's share of
results from associates and joint ventures, which are included in
the Group's profit before tax net of their respective tax charges
(impact of $20.0 million / 1.1%).
The effective tax rate (including
exceptional items) of 36.5% varied from the statutory rate due to
the factors outlined above, and due to the impact of the difference
in the overseas tax rate which applied to the exceptional item (tax
effect of 25% in the UK versus the 27% Chilean rate).
The main factors which could
impact the sustainability of the Group's existing effective tax
rate are:
· The
level of future distributions made by the Group's Chilean
subsidiaries out of Chile, which could result in increased
withholding tax charges. When determining whether it is likely that
distributions will be made in the foreseeable future, and what is
the appropriate foreseeable future period for this purpose, the
Group considers factors such as the predictability of the likely
future Group dividends, taking into account the Group's dividend
policy and the level of potential volatility of the Group's future
earnings, as well as the current level of distributable reserves at
the Antofagasta plc entity level.
· The
impact of expenses which are not deductible for Chilean first
category tax. Some of these expenses are fixed costs, and so the
relative impact of these expenses on the Group's effective tax rate
will vary depending on the Group's total profit before tax in a
particular year.
· The
potential applicability of the mining royalty cap, as described
above.
OECD Pillar two model rules
The Group falls within the scope
of the OECD Pillar two model rules, which introduces a minimum
effective tax rate of 15% for multinational companies.
The rules were substantively
enacted in the UK in 2023 and became effective from 1 January 2024.
Currently, the Antofagasta Group operates in Chile and is subject
to the Chilean first category (corporate) tax rate of 27%, plus
withholding taxes on any profits distributed from Chile.
The Group has evaluated the impact
of these rules on its tax expense, which has indicated no effect on
the Group's 2024 tax expense.
The Group applied the mandatory
exception to recognising and disclosing information about the
deferred tax assets and liabilities related to Pillar 2 income
taxes in accordance with the amendments to IAS 12 adopted by the UK
Endorsement Board on 19 July 2023.
In relation to the analysis of the
controlling interest and identification of the Group's Ultimate
Parent Entity ("UPE") for Pillar 2 purposes, management conducted
several analyses and confirmed that the 'deemed' consolidation rule
in section (b) of the controlling interest definition should apply
to the E Abaroa Foundation. This would recognize the E Abaroa
Foundation as holding a controlling interest in both Metalinvest
and Antofagasta plc. Consequently, the E Abaroa Foundation should
be considered the UPE of the Multinational Enterprise ("MNE") Group
for Pillar Two purposes.
Additionally, based on 2023 data
and adjustments for material changes in 2024, the Group is
confident that all jurisdictions within the Antofagasta plc Group
will meet at least one of the Transitional Country-by-Country
Reporting Safe Harbour tests ("TCSH") and, as such, will qualify
for TCSH.
Minera Centinela tax claims and queries
In the context of an
administrative review, the Chilean Internal Revenue Service (IRS)
has raised claims and queries with Minera Centinela in respect of
approximately $85 million of tax deductions recognised in relation
to the amortisation of start-up costs relating to the Encuentro
pit. The Group considers the tax treatment adopted by Minera
Centinela to be correct and appropriate, has robust arguments to
support its position, and expects its position to be upheld by the
review processes. If the Group is unsuccessful in supporting its
position, this amount (plus potential interest and penalties) would
fall due.
10. Earnings per
share
|
|
|
Year ended
31.12.2024
|
Year
ended
31.12.2023
|
|
|
|
$m
|
$m
|
|
Profit for the year attributable
to owners of the parent (excluding exceptional items)
|
|
619.5
|
709.8
|
|
Exceptional Items
|
|
209.9
|
125.3
|
|
Profit for the year attributable
to owners of the parent (including exceptional items) from
operations
|
|
829.4
|
835.1
|
|
|
|
|
|
|
|
|
Number
|
Number
|
|
Ordinary shares in issue
throughout each year
|
|
985,856,695
|
985,856,695
|
|
|
|
|
|
|
|
|
Year ended
31.12.2024
|
Year
ended 31.12.2023
|
|
|
|
US cent
|
US
cent
|
|
Basic earnings per share
(excluding exceptional items) from operations
|
|
62.8
|
72.0
|
|
Basic earnings per share
(exceptional items) from operations
|
|
21.3
|
12.7
|
|
Basic earnings per share
(including exceptional items) from operations
|
|
84.1
|
84.7
|
Basic earnings per share are
calculated as profit after tax and non-controlling interests, based
on 985,856,695 (2023: 985,856,695) ordinary shares.
There was no potential dilution of
earnings per share in either year set out above, and therefore
diluted earnings per share did not differ from basic earnings per
share as disclosed above.
11. Dividends
The Board has recommended a final dividend of 23.5 cents per ordinary
share or $231.7 million in total (2023 - 24.3 cents per ordinary
share or $239.6 million in total). The interim dividend of 7.9
cents per ordinary share or $77.9 million in total was paid on 30
September 2024 (2023 interim dividend of 11.7 cents per ordinary
share or $115.3 million in total). This gives total dividends
proposed in relation to 2024 (including the interim dividend) of
31.4 cents per share or $309.6 million in total (2023 - 36.0 cents
per share or $354.9 million in total).
Dividends per share actually paid
in the year and recognised as a deduction from net equity under
IFRS were 32.2 cents per ordinary share or $317.4 million in total
(2023 - 62.2 cents per ordinary share or $613.2 million in total)
being the interim dividend for the year and the final dividend
proposed in respect of the previous year.
Further details of the currency
election timing and process (including the default currency of
payment) are available on the Antofagasta plc website
(www.antofagasta.co.uk) or from the Company's registrar,
Computershare Investor Services PLC on +44 370 702 0159.
12. Property, plant and
equipment
|
|
Mining
|
Railway and other
transport
|
At
31.12.2024
|
At
31.12.2023
|
|
|
$m
|
$m
|
$m
|
$m
|
|
|
|
|
|
|
|
Balance at the beginning of the
year
|
12,363.5
|
315.2
|
12,678.7
|
11,543.5
|
|
Additions
|
2,682.2
|
43.9
|
2,726.1
|
2,307.9
|
|
Additions - depreciation
capitalised1
|
87.9
|
-
|
87.9
|
90.3
|
|
Reclassifications
|
0.8
|
(1.8)
|
(1.0)
|
(0.4)
|
|
Capitalisation of
interest
|
67.1
|
-
|
67.1
|
112.1
|
|
Adjustment to capitalised
decommissioning provisions
|
(13.0)
|
-
|
(13.0)
|
(31.9)
|
|
Depreciation expensed in the
period
|
(1,526.9)
|
(41.3)
|
(1,568.2)
|
(1,211.3)
|
|
Depreciation capitalised in PP&E
1
|
(87.9)
|
-
|
(87.9)
|
(90.3)
|
|
Depreciation capitalised in
inventories
|
(338.5)
|
-
|
(338.5)
|
(41.2)
|
|
Write off
|
(5.5)
|
-
|
(5.5)
|
-
|
|
Asset disposals
|
-
|
(0.1)
|
(0.1)
|
-
|
|
Reversal of the provision against
carrying value of assets (exceptional items)
|
371.4
|
-
|
371.4
|
-
|
|
Balance at the end of the period
|
13,601.1
|
315.9
|
13,917.0
|
12,678.7
|
1 Depreciation capitalised in property, plant and equipment of
$87.9 million related to the depreciation of assets used in mine
development (capitalised as stripping costs) at Centinela, Los
Pelambres and Antucoya (year ended 31 December 2023 - $90.3
million).
During the year ended 31 December
2024, the total effect of depreciation capitalised within Property,
plant and equipment or inventories in respect of assets relating to
Los Pelambres, Centinela and Antucoya is $426.4 million (year ended
31 December 2023 - $131.5 million), and has accordingly been
excluded from the depreciation charge recorded in the income
statement as shown in Note 5.
On 31 December 2024, the Group had
entered into contractual commitments for the acquisition of
property, plant and equipment amounting to $3,773.3 million (31
December 2023 - $978.3 million).
13. Disposal of investment in Tethyan
joint venture
In May 2023 the Group received the
$944.7 million cash proceeds associated with its agreement to exit
its 50% interest in the Tethyan joint venture, which was a joint
venture with Barrick Gold Corporation ("Barrick") in respect of the
Reko Diq project in Pakistan.
14. Investments in associates and
joint ventures
The investments which are included
in the $1,776.1 million balances at 31 December 2024 are set out
below:
|
|
At
31.12.2024
|
At
31.12.2023
|
|
|
$m
|
$m
|
|
|
|
|
|
Buenaventura
|
872.0
|
-
|
|
Zaldívar
|
895.1
|
881.3
|
|
ATI
|
9.0
|
9.8
|
|
Total
|
1,776.1
|
891.1
|
Investments in associates
● Buenaventura - The Group has an 18.9% interest in
Buenaventura. Buenaventura is Peru's largest, publicly traded
precious and base metals company and a major holder of mining
rights in Peru. During 2023, the Group entered into an agreement to
acquire up to 30 million shares in Buenaventura, representing
approximately 12% of Buenaventura's issued share capital. In
addition, the Group held as of 31 December 2023 an existing holding
of approximately 18.1 million shares in Buenaventura, representing
approximately 7% of Buenaventura's issued share capital (see note
15). As at 31 December 2023, an "other financial asset" balance was
recognised on the balance sheet in respect of the agreement, at its
fair value of $457.2 million. A fair value gain of $167.1 million
was recognised during 2023 in respect of this asset (see Note 3).
In March 2024, the transaction pursuant to the agreement completed,
resulting in the Group holding approximately 48.1 million shares in
Buenaventura, representing approximately 19% of Buenaventura's
issued share capital. Iván Arriagada and Andrónico Luksic Lederer
were elected to Buenaventura's Board in March 2024. Taking into
account relevant factors including the Group's approximately 19%
interest in Buenaventura's issued share capital and the associated
rights to propose directors for election to Buenaventura's Board
and to vote in favour of the election of those individuals
accordingly, the Group is considered for accounting purposes to
have significant influence (in accordance with the IAS 28
Investments in Associates and Joint Ventures definition) over
Buenaventura from March 2024 onwards. Accordingly, the Group's
interest in Buenaventura has been accounted for as an investment in
associate from that point (see Note 1).
Immediately prior to the
transaction completing in March 2024, the Group's existing 7%
equity interest was carried at a fair value of $305.9m and the
financial asset relating to the agreement to acquire the 12%
interest was carried at a fair value of $508.2m, with both
valuations being based on the quoted share price of Buenaventura on
that date. On completion, these two assets were de-recognised and
the investments in associate was initially recognised at an
equivalent value of $814.1m with no gain or loss
arising.
A fair value gain of $51.0 million
in respect of the "other financial asset" balance recognised in
respect of the transaction was recognised between 1 January 2024
and the completion of the agreement in March 2024.
The Group has undertaken an
exercise to recognise the identifiable assets and liabilities
effectively included within the investments in associate balance at
their acquisition-date fair values. No goodwill or gain on bargain
purchase has been recognised as a result of this
exercise.
Impairment review
An impairment review has been
performed as at 31 December 2024 in respect of the carrying value
of the investment in associate balance relating to Buenaventura.
This review concluded that the recoverable amount of the investment
balance is above its carrying value, and accordingly no impairment
is required or appropriate.
As explained above, the initial
carrying value of the investment in associate balance was recorded
in March 2024 at a value equivalent to the fair value of the
shares, reflecting their market value at that date. Between that
date and 31 December 2024, the Buenaventura share price decreased
by approximately 30%. This has been assessed as an indicator of a
potential impairment of the investment in associate balance, and
accordingly an impairment review has been performed as at 31
December 2024.
This review has been based on the
fair value less costs of disposal for the investment balance,
reflecting the net amount the Group would expect to receive from
the sale of the operation in an orderly transaction between market
participants. This value has been estimated based on a discounted
cash flow model in respect of Buenaventura's directly and
indirectly held operations, investments and projects, as well as
the valuation of additional mineral resources based on resource
multiples. This reflects a Level 3 fair value measurement per the
IFRS 13 fair vale hierarchy. The key assumptions used in this
estimation are listed below.
•
The forecasts of future metal prices (representing the Group's
estimates of the assumptions that would be used by independent
market participants in valuing the assets) are based on consensus
analyst forecasts. A long-term copper price of $4.15/lb and a
long-term gold price of $2,056/oz (both reflecting 2024 real terms)
have been used in the model; however, no assurances can be given
that these prices will be maintained in 2025 or future
years.
•
Assumptions in respect of future production levels, operating costs
and sustaining and development capital expenditure are generally
based on publicly available results, forecasts and technical
reports in respect of Buenaventura's directly and indirectly held
operations, minority interest investments and projects.
•
Discount rates calculated using relevant market data have been used
in the model.
The recoverable amount indicated
by this assessment was above the carrying value of the investment
in associate balance, and accordingly no impairment is required or
appropriate as at 31 December 2024.
The assumptions to which the
estimation of the recoverable amount is most sensitive are the
future metal prices. Down-side sensitivities were performed with a
long-term copper price of $3.74/lb and a long-term gold price of
$1,850/oz, each reflecting a 10% reduction in the long-term price
forecast. These sensitivities each continued to indicate a
recoverable amount above the carrying value of the investment in
associate balance.
· ATI
-
The Group has a 30% interest in Antofagasta
Terminal Internacional ("ATI"), which operates a concession to
manage installations in the port of Antofagasta.
Investments in joint ventures
· Zaldívar
- The Group has a 50% interest in
Minera Zaldívar SpA ("Zaldívar"). Zaldívar is an open-pit,
heap-leach copper mine which produces copper cathodes using the
solvent extraction and electrowinning (SX-EW) process. The mine is
3,000 metres above sea level, approximately 1,400 km north of
Santiago and 175 km south-east of the city of
Antofagasta.
Summarised financial information
for the joint ventures at December 2024 is as follows:
|
|
Minera
Zaldívar
|
Minera
Zaldívar
|
|
|
31.12.2024
|
31.12.2023
|
|
|
$m
|
$m
|
|
Revenue
|
719.9
|
718.6
|
|
Depreciation and
amortisation
|
(181.3)
|
(164.4)
|
|
Other operating costs
|
(518.8)
|
(550.3)
|
|
Operating profit
|
19.8
|
3.9
|
|
Finance expense
|
5.1
|
(6.2)
|
|
Income tax
|
(0.1)
|
(28.4)
|
|
Profit after tax
|
24.8
|
(30.7)
|
|
Other comprehensive
(expense)/income
|
(3.7)
|
(1.2)
|
|
Total comprehensive income
|
21.1
|
(31.9)
|
|
Non-current assets
|
1,418.9
|
1,595.9
|
|
Current
assets1
|
779.2
|
664.5
|
|
Current liabilities
|
(189.3)
|
(229.1)
|
|
Non-current liabilities
|
(218.6)
|
(268.7)
|
|
Net assets
|
1,790.2
|
1,762.6
|
|
Assets and liabilities above
include:
|
|
|
|
Cash and cash
equivalents
|
96.7
|
38.4
|
|
Current financial
liabilities
|
(189.3)
|
(57.8)
|
|
Non-current financial
liabilities
|
(218.6)
|
(38.1)
|
1 The current assets includes cash and cash
equivalents.
The above summarised financial
information is based on the amounts included in the IFRS financial
statements of the joint venture (100% of the results or balances of
the joint venture, rather than the Group's proportionate share),
after the Group's fair value adjustments and applying the Group's
accounting policies.
15. Equity
investments
|
|
At
31.12.2024
|
At
31.12.2023
|
|
|
$m
|
$m
|
|
Balance at the beginning of the
year
|
288.6
|
90.5
|
|
Acquisition
|
-
|
60.7
|
|
Movements in fair
value1
|
29.7
|
137.0
|
|
Reallocation to
associates
|
(305.9)
|
-
|
|
Foreign currency exchange
difference
|
(0.8)
|
0.4
|
|
Balance at the end of the year
|
11.6
|
288.6
|
1 A deferred tax expense of $7.7 million has been recognised in
respect of the movements in the fair value of equity investments
(pre-tax gain of $29.7 million), resulting in a post-tax gain of
$22.0 million (see Note 20).
Equity investments represent those
investments which are not subsidiaries, associates or joint
ventures and are not held for trading purposes. Because the Group
intends to hold these investments for long-term strategic purposes,
at initial recognition they were designated at Fair Value through
Other Comprehensive Income ("FVTOCI"). The fair value of all equity
investments is based on quoted market prices.
Of the total equity investment
balance on 31 December 2023, $275.2 million related to a holding of
approximately 18.1 million shares in Compañia de Minas Buenaventura
S.A.A. ("Buenaventura"), representing approximately 7% of
Buenaventura's issued share capital. As detailed in Note 14, during
2023 the Group entered into an agreement to acquire an additional
holding of up to 30 million shares in Buenaventura, representing
approximately 12% of Buenaventura's issued share capital. In March
2024, the transaction pursuant to the agreement completed and the
Group's interest in Buenaventura has been accounted for as an
investment in associate from that date, resulting in the
derecognition of the equity investment with the fair value of these
shares at that time forming part of the initial investment in
associate balance.
At the date of the reallocation of
the equity investment in Buenaventura into the investment in
associates balance, the fair value of the equity investment balance
was $305.9 million and the accumulated gain on revaluation of this
investment within equity was $130.4 million. This amount was
transferred from the equity investment revaluation reserve to
retained earnings. A fair value gain of $30.7 million was
recognised between 1 January 2024 and reallocation to the
investment in associates balance in March 2024.
16. Inventories
|
|
|
|
At
31.12.2024
|
At
31.12.2023
|
|
|
|
|
$m
|
$m
|
|
Current:
|
|
|
|
|
|
Raw materials and
consumables
|
|
|
266.6
|
231.0
|
|
Work in progress
|
|
|
499.7
|
375.4
|
|
Finished goods
|
|
|
158.8
|
64.6
|
|
|
|
|
925.1
|
671.0
|
|
|
|
|
|
|
|
Non-current:
|
|
|
|
|
|
Work in progress
|
|
|
707.8
|
457.0
|
|
|
|
|
|
|
|
Total current and non-current
inventories
|
|
|
1,632.9
|
1,128.0
|
During 2024, there were no net
realisable value ("NRV") adjustments (2023 - $6.0 million).
Non-current work-in-progress represents inventory expected to be
processed more than 12 months after the balance sheet
date.
17. Borrowings and other financial
liabilities
|
|
|
At
|
At
|
|
|
31.12.2024
|
31.12.2023
|
|
|
|
$m
|
$m
|
|
Borrowings
|
|
|
|
|
Los Pelambres
|
|
|
|
|
- Senior loan
|
(i)
|
(1,887.6)
|
(2,067.2)
|
|
- Other
loans
|
(ii)
|
(475.0)
|
-
|
|
Centinela
|
|
|
|
|
- Senior loan
|
(iii)
|
(572.6)
|
(166.3)
|
|
- Other loans
|
(iv)
|
(195.0)
|
(265.0)
|
|
Antucoya
|
|
|
|
|
- Senior loan
|
(v)
|
(124.6)
|
(174.1)
|
|
- Subordinated debt
|
(vi)
|
(205.5)
|
(187.6)
|
|
Railway and other transport
services
|
|
|
|
|
- Senior loan
|
|
-
|
(5.0)
|
|
|
|
(3,460.3)
|
(2,865.2)
|
|
|
|
|
|
|
Bonds
|
|
|
|
|
Corporate and other
items
|
(vii)
|
(1,729.0)
|
(986.8)
|
|
|
|
(1,729.0)
|
(986.8)
|
|
|
|
|
|
|
Other financial
liabilities
|
|
|
|
|
Centinela
|
(xiv)
|
(594.0)
|
-
|
|
|
|
(594.0)
|
-
|
|
Leases
|
|
|
|
|
Los Pelambres
|
(viii)
|
(19.2)
|
(45.2)
|
|
Centinela
|
(ix)
|
(114.1)
|
(142.8)
|
|
Antucoya
|
(x)
|
(13.4)
|
(17.4)
|
|
Corporate and other
items
|
(xi)
|
(12.1)
|
(18.4)
|
|
Railway and other transport
services
|
(xii)
|
(0.9)
|
(0.9)
|
|
|
|
(159.7)
|
(224.7)
|
|
|
|
|
|
|
Preference
shares
|
|
|
|
|
Corporate and other
items
|
(xiii)
|
(2.4)
|
(2.5)
|
|
|
|
(2.4)
|
(2.5)
|
|
|
|
|
|
|
Total
|
|
(5,945.4)
|
(4,079.2)
|
At 31 December 2024, $3,155.1
million (December 2023 - $1,219.0 million) of the borrowings and
other financial liabilities has fixed rate interest and $2,790.3
million (December 2023 - $2,860.2 million) has floating rate
interest.
|
|
|
|
|
(i)
|
The senior loans at Los Pelambres
represent:
|
|
|
|
|
|
|
·
|
An initial $910 million US dollar
denominated syndicated loan divided in three tranches. The first
tranche has a remaining duration of 1 year and has an interest rate
of Term SOFR six-month rate plus an all-in margin of 1.48%. The
second tranche has a remaining duration of 4 years and has an
interest rate of Term SOFR six-month rate plus an all-in margin of
1.28%. The third tranche has a remaining duration of 3.5 years and
has an interest rate of Term SOFR six-month rate plus an all-in
margin of 1.53%. An additional $185 million US dollar denominated
bullet loan was issued in September 2024, with a 3 year remaining
duration and an interest rate of Term SOFR six-month rate + 1.40%.
The loans are subject to financial covenants requiring the
maintenance of specified net debt to EBITDA and EBITDA to finance
expense ratios, which have been met. The outstanding amount at the
end of the period is $1,077.6 million.
|
|
|
|
|
|
|
·
|
three US dollar denominated senior
loans issued in December 2023 for a total amount of $810 million.
The first loan is a $200 million bullet with a remaining duration
of 2 years and an interest rate of Term SOFR six-month rate plus
1.60%. The second loan is a $200 million bullet with a remaining
duration of 4 years and an interest rate of Term SOFR six-month
rate plus 1.69%. The third loan is a $410 million amortising
balance with a remaining duration of 4 years and an interest rate
of Term SOFR six-month rate plus 1.70%. The amount outstanding at
the end of the period is $810.0 million.
|
|
|
|
|
|
(ii)
|
In April 2024, Los Pelambres issued
two short-term loans for a total amount of $185 million, with a
remaining duration of less than1 year. In May 2024, Los Pelambres
issued three short-term loans for a total amount of $290 million,
with a remaining duration of less than 1 year.
|
|
|
|
|
|
(iii)
|
The senior loans at Centinela
represent:
|
|
|
|
|
|
|
·
|
Centinela has a US dollar
denominated senior loan with an amount outstanding of $33 million
with a duration of less than 1 year and an interest rate of Term
SOFR six-month rate plus an all-in margin of 1.38%. The loans are
subject to financial covenants requiring the maintenance of
specified net debt to EBITDA and EBITDA to finance expense ratios,
which have been met.
|
|
|
|
|
|
|
·
|
Centinela's project finance in
respect of the Second Concentrator Project, which has a committed
amount of $2.5 billion. During 2024 there were three debt
disbursements totalling $619.5 million. The borrowing has a
remaining 11-year duration and is divided in six different tranches
with interest rates of Term SOFR six-month rate plus margins of
between 0.85% and 1.90%.
|
|
|
|
|
|
(iv)
|
|
In March 2024, Centinela issued a
short-term loan for a total amount of $45 million and a remaining
duration of less than 1 year. In July 2024, Centinela issued a
short-term loan for a total amount of $150 million. This loan has a
remaining term of less than 1 year.
|
|
|
|
|
|
(v)
|
|
The senior loan at Antucoya
represents a US dollar denominated syndicated loan with an amount
outstanding of $125 million. This loan has a remaining duration of
2.5 years and has an interest rate of Term SOFR six-month rate plus
1.40%. The loan is subject to financial covenants requiring the
maintenance of specified net debt to EBITDA and EBITDA to finance
expense ratios, which have been met.
|
|
|
|
|
|
(vi)
|
|
Subordinated debt at Antucoya is US
dollar denominated, provided to Antucoya by Marubeni Corporation
with a remaining duration of 2.5 years and an interest rate of Term
SOFR six-month rate plus an all-in margin of 4.08%. The outstanding
amount at the end of the period is $206 million. Subordinated debt
provided by Group companies to Antucoya has been eliminated on
consolidation.
|
|
|
|
|
|
(vii)
|
|
Antofagasta plc in October 2020
issued a corporate bond for $500 million with a 10-year tenor with
a coupon rate of 2.375%. In May 2022, Antofagasta plc issued a new
corporate bond for $500 million with a 10-year tenor with a coupon
rate of 5.625%. In May 2024, Antofagasta plc issued a new corporate
bond for $750 million with a 10-year tenor with a coupon rate of
6.250%.
|
|
|
|
|
|
(viii)
|
|
Los Pelambres: equipment leases
embedded within wider service contracts, denominated in UF (Unidad
de Fomento - i.e. inflation-linked Chilean pesos), Chilean pesos
and dollars.
|
|
|
|
|
|
(ix)
|
|
Centinela: equipment leases embedded
within wider service contracts, denominated in UF (Unidad de
Fomento - i.e. inflation-linked Chilean pesos), Chilean pesos and
dollars.
|
|
|
|
|
|
(x)
|
|
Antucoya: equipment leases embedded
within wider service contracts, denominated in UF (Unidad de
Fomento - i.e. inflation-linked Chilean pesos), Chilean pesos and
dollars.
|
|
|
|
|
|
(xi)
|
|
Financial Leases at Corporate and
other items which are denominated in Unidades de Fomento (i.e.
inflation-linked Chilean pesos) and have a remaining duration of
2.0 years and are at fixed rates with an average interest rate of
5.2%; and property lease agreements and equipment leases embedded
within wider service contracts at Corporate and other items, which
are denominated in different currencies
|
|
|
|
|
|
(xii)
|
|
Transport division: equipment leases
embedded within wider service contracts, denominated in UF (Unidad
de Fomento - i.e. inflation-linked Chilean pesos) and Chilean
pesos.
|
|
|
|
|
|
(xiii)
|
|
The preference shares are
Sterling-denominated and issued by Antofagasta plc. There are 2
million shares of £1 each authorised, issued and fully paid. The
preference shares are non-redeemable and are entitled to a fixed
cumulative dividend of 5% per annum. On winding up they are
entitled to repayment and any arrears of dividend in priority to
ordinary shareholders but are not entitled to participate further
in any surplus. Each preference share carries 100 votes in any
general meeting of the Company.
|
|
|
|
|
|
(xiv)
|
|
In June 2024 Centinela entered into
an 18-year water transportation agreement, involving its existing
water supply and future water supply to the Centinela Second
Concentrator Project. Under the terms of the agreement, Centinela's
existing water transportation assets have been legally transferred
to an international consortium for net cash proceeds of $598.6
million. For accounting purposes, it has been determined that
Centinela continues to control the assets, as it will continue to
obtain substantially all the remaining benefits from the assets.
Accordingly, the existing assets remain in Centinela's balance
sheet, with the cash receipt resulting in the recognition of the
corresponding other financial liability balance, which will be
repaid over the 18-year agreement term.
|
|
|
|
|
|
|
At
31.12.2024
|
At
31.12.2023
|
|
|
$m
|
$m
|
|
Short-term borrowings
|
(1,322.5)
|
(901.9)
|
|
Medium and long-term
borrowings
|
(4,622.9)
|
(3,177.3)
|
|
Total
|
(5,945.4)
|
(4,079.2)
|
On 30 December 2022, Antofagasta plc
agreed a revolving credit facility "RCF" of $500 million with a
group of six banks and where the Canadian Imperial Bank of Commerce
"CIBC" has the role of Administrative Agent. This revolving credit
facility has a term of three years, which expires on 30 December
2025. Subsequent to 31 December 2024, the RCF was extended for a
further three years, and now expires on 30 December
2028.
|
|
Facility
available
|
|
Drawn
|
|
Undrawn
|
|
|
31
December
2024
|
31
December
2023
|
|
31
December
2024
|
31
December
2023
|
|
31
December
2024
|
31
December
2023
|
|
|
$m
|
$m
|
|
$m
|
$m
|
|
$m
|
$m
|
|
Revolving credit facility
|
500.0
|
500.0
|
|
-
|
-
|
|
500.0
|
500.0
|
The
maturity profile of the Group's borrowings is as
follows:
|
At 31 December
2024
|
Within 1
year
|
Between 1-2
years
|
Between 2-5
years
|
After 5
years
|
2024
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Senior loans
|
(549.9)
|
(596.9)
|
(908.1)
|
(529.9)
|
(2,584.8)
|
|
Bond
|
-
|
-
|
-
|
(1,729.0)
|
(1,729.0)
|
|
Other loans
|
(670.0)
|
-
|
(205.5)
|
-
|
(875.5)
|
|
Other financial
liabilities
|
(6.1)
|
(12.2)
|
(47.3)
|
(528.4)
|
(594.0)
|
|
Leases
|
(96.6)
|
(28.4)
|
(34.5)
|
(0.2)
|
(159.7)
|
|
Preference shares
|
-
|
-
|
-
|
(2.4)
|
(2.4)
|
|
|
|
|
|
|
|
|
|
(1,322.6)
|
(637.5)
|
(1,195.4)
|
(2,789.9)
|
(5,945.4)
|
|
At 31 December
2023
|
Within 1
year
|
Between
1-2 years
|
Between
2-5 years
|
After 5
years
|
2023
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Senior loans
|
(529.1)
|
(570.9)
|
(1,287.6)
|
(25.0)
|
(2,412.6)
|
|
Bond
|
-
|
-
|
-
|
(986.8)
|
(986.8)
|
|
Other loans
|
(265.0)
|
-
|
(187.6)
|
-
|
(452.6)
|
|
Leases
|
(107.8)
|
(73.0)
|
(42.6)
|
(1.3)
|
(224.7)
|
|
Preference shares
|
-
|
-
|
-
|
(2.5)
|
(2.5)
|
|
|
|
|
|
|
|
|
|
(901.9)
|
(643.9)
|
(1,517.8)
|
(1,015.6)
|
(4,079.2)
|
18. Post-employment benefit
obligations
|
|
|
|
At
31.12.2024
|
At
31.12.2023
|
|
|
|
|
$m
|
$m
|
|
Balance at the beginning of the
year
|
|
|
(139.9)
|
(137.3)
|
|
Current service cost
|
|
|
(25.4)
|
(25.7)
|
|
Unwinding of discount on
provisions
|
|
|
(8.1)
|
(7.2)
|
|
Actuarial (losses)/gains
|
|
|
(12.2)
|
10.7
|
|
Paid in the year
|
|
|
16.3
|
16.0
|
|
Foreign currency exchange
difference
|
|
|
17.1
|
3.6
|
|
Balance at the end of the year
|
|
|
(152.2)
|
(139.9)
|
The post-employment benefit
obligation relates to the provision for severance indemnities which
are payable when an employment contract comes to an end, in
accordance with normal employment practice in Chile and other
countries in which the Group operates. The severance
indemnity obligation is treated as an unfunded defined benefit
plan, and the calculation is based on valuations performed by an
independent actuary.
19. Decommissioning and restoration
provisions
|
|
|
|
At
31.12.2024
|
At
31.12.2023
|
|
|
|
|
$m
|
$m
|
|
Balance at the beginning of the
year
|
|
|
(441.1)
|
(488.2)
|
|
Charge to operating profit in the
year
|
|
|
(0.8)
|
(12.8)
|
|
Unwinding of discount to net
interest in the year
|
|
|
(10.8)
|
(10.2)
|
|
Adjustment to provision discount
rates
|
|
|
0.1
|
1.6
|
|
Capitalised adjustment to
provision
|
|
|
13.0
|
31.9
|
|
Utilised in the year
|
|
|
10.7
|
36.8
|
|
Foreign currency exchange
difference
|
|
|
0.9
|
(0.2)
|
|
Balance at the end of the year
|
|
|
(428.0)
|
(441.1)
|
|
|
|
|
At
31.12.2024
|
At
31.12.2023
|
|
|
|
|
$m
|
$m
|
|
Short-term provisions
|
|
|
(5.9)
|
(15.2)
|
|
Long-term provisions
|
|
|
(422.1)
|
(425.9)
|
|
Total
|
|
|
(428.0)
|
(441.1)
|
Decommissioning and restoration
costs relate to the Group's mining operations. Costs are estimated
on the basis of a formal closure plan and are subject to regular
independent formal review by Sernageomin, the Chilean government
agency which regulates the mining industry in Chile. During 2023,
the Centinela provisions were updated to reflect new plans approved
by Sernageomin during the year. The provision balance
reflects the present value of the forecast future cash flows
expected to be incurred in line with the closure plans, discounted
using Chilean real interest rates with durations corresponding with
the timings of the closure activities. At 31 December 2024, the
real discount rates ranged from 2.43% to 2.58% (31 December 2023:
2.29% to 2.41%). It is estimated that the provision will be
utilised from 2025 until 2058 based on current mine plans, with
approximately 15% of the total provision balance expected to be
utilised between 2025 and 2034, approximately 55% between 2035 and
2044, approximately 30% between 2045 and 2054 and approximately 1%
between 2054 and 2058.
Given the long-term nature of these
balances, it is possible that future climate risks could impact the
appropriate amount of these provisions, both in terms of the nature
of the decommissioning and site rehabilitation activities that are
required, or the costs of undertaking those activities. In its
Annual Report and Accounts, the Group
discloses in line with the recommendations of the Task Force on
Climate-related Financial Disclosures ("TCFD"). This process
included scenario analyses assessing the impact of transition and
physical risks. As a simple high-level sensitivity, we have
considered whether the level of estimated costs relating to the
potential future risks identified under the scenario analysis could
indicate a general level of future cost increases as a consequence
of climate risks which could indicate a significant potential
impact on these provision balances. This analysis did not indicate
a significant potential impact on the decommissioning and
restoration provision balances. However, more detailed specific
analysis of the potential impacts of climate risks in future
periods could result in adjustments to these provision balances.
When future updates to the closure plans are prepared and submitted
to Sernageomin for review and approval, it is possible that
additional consideration of potential climate risk impacts may need
to be incorporated into the plan assumptions. In addition,
Sernageomin may introduce new regulations or guidance in respect of
climate risks which may need to be addressed in future updates to
the Group's closure plans.
20. Deferred tax assets and
liabilities
|
|
|
|
At
31.12.2024
|
At
31.12.2023
|
|
|
|
|
$m
|
$m
|
|
Net deferred tax position at the
beginning of the year
|
|
(1,584.6)
|
(1,464.8)
|
|
Charge to tax on profit in
year
|
|
|
(79.5)
|
(2.9)
|
|
Deferred tax recognised directly in
equity1
|
|
|
(5.9)
|
(40.8)
|
|
Tax on exceptional items
2
|
|
|
(12.7)
|
(41.8)
|
|
Exchange differences
|
|
|
(0.3)
|
-
|
|
Adjustment due to introduction of
new royalty
|
|
|
-
|
(34.3)
|
|
Net deferred tax position at the end
of the year
|
|
|
(1,683.0)
|
(1,584.6)
|
|
|
|
|
|
|
|
Analysed between:
|
|
|
|
|
|
Net deferred tax assets
|
|
|
9.7
|
72.0
|
|
Net deferred tax
liabilities
|
|
|
(1,692.7)
|
(1,656.6)
|
|
Net deferred tax position
|
|
|
(1,683.0)
|
(1,584.6)
|
1 The $5.9 million of deferred tax recognised directly in
equity relates to a $(7.7) million deferred tax expense in respect
of the movements in the fair value of equity investments (see Note
15) and a $1.8 million deferred tax expense in respect of actuarial
gains on defined benefit plans.
2 A deferred tax expense of $12.7
million has been recognised in respect of the exceptional fair
value gain of $51.0 million in respect of the agreement under which
the Group acquired an additional 30 million shares in Compañia de
Minas Buenaventura S.A.A. (see Note 3).
At 31 December 2024, the Group had unused tax losses of $661.4
million in respect of which no deferred tax asset has been
recognised, as the relevant entities are currently loss-making,
$141.1 million (2023 - $24.8 million) of these tax losses relate to
Chilean entities where the tax losses can be carried forward
indefinitely. $520.3 million (2023 - $496.8 million) relate to
entities outside of Chile, predominantly in respect of the Twin
Metals project. A portion of the Twin Metals tax losses expire in
the period from 2030 - 2037, and the remainder can be carried
forward indefinitely.
The value of the undistributed
earnings of subsidiaries for which deferred tax liabilities have
not been recognised, because the Group is in a position to control
the timing of the distributions and it is likely that distributions
will not be made in the foreseeable future, was $7,317.6 million
(31 December 2023 - $7,101.1 million).
At 31 December 2024, the Group has
recognised a $99.2 million deferred tax liability in respect of
fair value gains in relation to the Group's interests in
Buenaventura, prior to the Group accounting for its interest in
Buenaventura as an investment in associate from March 2024 onwards.
In March 2025, if the Group maintains its existing interest in
Buenaventura, it will qualify for the UK Substantial Shareholding
Exemption in respect of its holding in Buenaventura, as it will
have held an interest of more than 10% in Buenaventura for a period
of 12 months, exempting the Group from UK capital gains tax in
respect of its investment. Accordingly, it is expected that in
March 2025 the Group will de-recognise its existing deferred tax
liability.
Temporary differences arising in
connection with interests in associates are
insignificant.
The deferred tax balance of
$1,683.0 million (2023 - $1,584.6 million) includes $1,680.2
million (2023 - $1,567.2 million) due in more than one year. All
amounts are shown as non-current on the face of the balance sheet
as required by IAS 12 Income Taxes.
21. Share capital and share
premium
There was no change in share
capital or share premium in the year ended 2024 or 2023. Details
are shown in the Consolidated Statement of Changes in
Equity.
22. Other reserves and retained
earnings
|
|
At
31.12.2024
|
At
31.12.2023
|
|
|
$m
|
$m
|
|
Share premium
|
|
|
|
At
1 January and 31 December
|
199.2
|
199.2
|
|
Hedging reserve - cost of hedging
|
|
|
|
Net cost of hedging
1
|
(17.9)
|
-
|
|
Tax on the above
|
4.8
|
-
|
|
|
(13.1)
|
-
|
|
Equity investment revaluation reserve
(2)
|
|
|
|
At 1 January
|
108.4
|
8.4
|
|
Gains on equity
investment
|
22.0
|
100.0
|
|
Reclassification(5)
|
(130.4)
|
-
|
|
At
31 December
|
-
|
108.4
|
|
Foreign currency translation reserve
(3)
|
|
|
|
At 1 January
|
(3.9)
|
(3.4)
|
|
Currency translation
adjustment
|
(1.2)
|
(0.5)
|
|
At
31 December
|
(5.1)
|
(3.9)
|
|
Total other reserves per balance sheet
|
(18.2)
|
104.5
|
|
|
|
|
|
Retained earnings
|
|
|
|
At
1 January
|
8,558.4
|
8,333.5
|
|
Parent and subsidiaries' profit for
the year
|
753.2
|
848.6
|
|
Equity accounted units'
(loss)/profit after tax for the year
|
76.2
|
(13.5)
|
|
Actuarial (losses)/gains
(4)
|
(9.4)
|
3.0
|
|
Reclassification(5)
|
130.4
|
-
|
|
Total comprehensive income for the year
|
950.4
|
838.1
|
|
Dividends paid
|
(317.4)
|
(613.2)
|
|
At
31 December
|
9,191.4
|
8,558.4
|
(1) Hedging reserve - cost of
hedging is net of the non-controlling
interest impacts of $7.6 million.
(2) The equity investment
revaluation reserves record fair value gains or losses relating to
equity investments, as described in Note 16.
(3) Exchange differences arising
on the translation of the Group's net investment in
foreign-controlled companies are taken to the foreign currency
translation reserve.
(4) Actuarial gains or losses relate to long-term employee
benefits, as described in Note 18 and these figures are net of the
non-controlling interest impacts.
(5) Corresponds to the reclassification of the fair value gain
relating to the Buenaventura shares from the "Equity investment
revaluation reserve" to Retained earnings, as explained in note
15.
23. Reconciliation of profit before
tax to net cash flow from operating activities
|
|
At
31.12.2024
|
At
31.12.2023
|
|
|
$m
|
$m
|
|
|
|
|
|
Profit before tax
|
2,071.1
|
1,965.5
|
|
Depreciation and
amortisation
|
1,568.2
|
1,211.3
|
|
Net gain on disposals
|
5.6
|
-
|
|
Net finance expense/(income) -
excluding exceptional items
|
64.8
|
(29.1)
|
|
Net share of (profit) /loss of
associates and joint ventures
|
(76.2)
|
13.5
|
|
Exceptional items
|
(422.4)
|
(167.1)
|
|
(Increase) in inventories
|
(166.5)
|
(31.6)
|
|
Decrease/(increase) in
debtors
|
243.1
|
(57.9)
|
|
Increase/(decrease) in
creditors
|
(10.7)
|
137.0
|
|
(Decrease)/increase in
provisions
|
(0.8)
|
(14.5)
|
|
Cash flow generated from operations
|
3,276.2
|
(3,027.1)
|
24. Analysis of changes in net
debt
For the period ended 31 December 2024
|
|
At
31.12.2023
|
Cash
flows
|
Fair
value gain
|
New
leases
|
Amortisation of finance costs
|
Capitalisation of interest
|
Reclassification
|
Exchange
|
At
31.12.2024
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
644.7
|
1,550.1
|
-
|
-
|
-
|
-
|
-
|
(5.6)
|
2,189.2
|
|
Liquid investments
|
2,274.7
|
(148.5)
|
0.9
|
-
|
-
|
-
|
-
|
-
|
2,127.1
|
|
Total cash and cash equivalents and
liquid investments
|
2,919.4
|
1,401.6
|
0.9
|
-
|
-
|
-
|
-
|
(5.6)
|
4,316.3
|
|
Borrowings due within one
year
|
(794.1)
|
154.0
|
-
|
-
|
-
|
-
|
(579.8)
|
-
|
(1,219.9)
|
|
Borrowings due after one
year
|
(3,057.9)
|
(1,459.9)
|
-
|
-
|
(13.5)
|
(17.9)
|
579.8
|
-
|
(3,969.4)
|
|
Other financial liabilities due
within one year
|
-
|
4.6
|
-
|
-
|
-
|
-
|
(10.7)
|
-
|
(6.1)
|
|
Other financial liabilities due
after one year
|
-
|
(598.6)
|
-
|
-
|
-
|
-
|
10.7
|
-
|
(587.9)
|
|
Leases due within one
year
|
(107.8)
|
152.7
|
-
|
-
|
-
|
-
|
(141.4)
|
-
|
(96.5)
|
|
Leases due after one year
|
(116.9)
|
-
|
-
|
(111.1)
|
-
|
-
|
141.4
|
23.4
|
(63.2)
|
|
Preference shares
|
(2.5)
|
-
|
-
|
-
|
-
|
-
|
-
|
0.1
|
(2.4)
|
|
Total liabilities from financing
activities
|
(4,079.2)
|
(1,747.2)
|
-
|
(111.1)
|
(13.5)
|
(17.9)
|
-
|
23.5
|
(5,945.4)
|
|
Net
debt
|
(1,159.8)
|
(345.6)
|
0.9
|
(111.1)
|
(13.5)
|
(17.9)
|
-
|
17.9
|
(1,629.1)
|
For the period ended 31 December 2023
|
|
At
31.12.2022
|
Cash
flows
|
Fair
value gains
|
New
leases
|
Amortisation of finance costs
|
Capitalisation of interest
|
Other
|
Reclassification
|
Foreign
exchange
|
At
31.12.2023
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
810.4
|
(162.0)
|
-
|
-
|
-
|
-
|
-
|
-
|
(3.7)
|
644.7
|
|
Liquid investments
|
1,580.8
|
674.2
|
19.7
|
-
|
-
|
-
|
-
|
-
|
-
|
2,274.7
|
|
Total cash and cash equivalents and liquid investments
|
2,391.2
|
512.2
|
19.7
|
-
|
-
|
-
|
-
|
-
|
(3.7)
|
2,919.4
|
|
Borrowings due within one
year
|
(377.4)
|
116.7
|
-
|
-
|
-
|
-
|
-
|
(533.4)
|
-
|
(794.1)
|
|
Borrowings due after one
year
|
(2,765.4)
|
(797.2)
|
-
|
-
|
(12.7)
|
(16.0)
|
-
|
533.4
|
-
|
(3,057.9)
|
|
Leases due within one
year
|
(55.1)
|
81.2
|
-
|
-
|
-
|
-
|
-
|
(133.9)
|
-
|
(107.8)
|
|
Leases due after one year
|
(76.6)
|
-
|
-
|
(178.6)
|
-
|
-
|
-
|
133.9
|
4.4
|
(116.9)
|
|
Preference shares
|
(2.5)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(2.5)
|
|
Total liabilities from financing
activities
|
(3,277.0)
|
(599.3)
|
-
|
(178.6)
|
(12.7)
|
(16.0)
|
-
|
-
|
4.4
|
(4,079.2)
|
|
Net debt
|
(885.8)
|
(87.1)
|
19.7
|
(178.6)
|
(12.7)
|
(16.0)
|
-
|
-
|
0.7
|
(1,159.8)
|
Net
debt
Net debt at the end of each period
was as follows.
|
|
At
31.12.2024
|
At
31.12.2023
|
|
|
$m
|
$m
|
|
|
|
|
|
Cash, cash equivalents and liquid
investments
|
4,316.3
|
2,919.4
|
|
Total liabilities from financing
activities
|
(5,945.4)
|
(4,079.2)
|
|
Net
debt
|
(1,629.1)
|
(1,159.8)
|
25. Related party
transactions
Transactions between the Company
and its subsidiaries, which are related parties, have been
eliminated on consolidation and are not disclosed in this note.
Transactions between the Group and its associates and joint
ventures are disclosed below.
The transactions entered into with
related parties who are not members of the Group are set out below.
There are no guarantees given or received and no provisions for
doubtful debts related to the amount of outstanding
balances.
a) Quiñenco
SA
Quiñenco SA ("Quiñenco") is a
Chilean financial and industrial conglomerate, the shares of which
are traded on the Santiago Stock Exchange. The Group and Quiñenco
are both under the control of the Luksic family, and two Directors
of the Company, Jean-Paul Luksic and Andronico Luksic, who are also
directors of Quiñenco. The following transactions took place
between the Group and the Quiñenco group of companies, all of which
were on normal commercial terms at market rates.
- The
Group earned interest income of $1.0 million (2023 - $0.9 million)
during the year on investments with BanChile AGF, a subsidiary of
Quiñenco. Investment balances at the end of the year were $30.5
million (2023: nil).
- The
Group made purchases of fuel from ENEX SA, a subsidiary of
Quiñenco, of $318.4 million (2023 - $337.8 million). The balance
due to ENEX SA at the end of the year was $17.9 million (2023 -
$13.3 million).
- The
Group purchased shipping services from Hapag Lloyd, an associate of
Quiñenco, for $13.2 million (2023 - $9.0 million). The balance due
to Hapag Lloyd at the end of the year was nil (2023
-nil).
- The
Group made purchases of technology services from ARTIKOS CHILE SA,
a subsidiary of Quiñenco, of $0.3 million (2023 - $0.2 million).
The balance due to ARTIKOS CHILE SA at the end of the year was nil
(2023: nil).
b)
Compañía de Inversiones Adriático SA
In 2024, the Group leased office
space on normal commercial terms from Compañía de Inversiones
Adriático SA, a company in which members of the Luksic family have
an interest, at a cost of $0.6 million (2023 - $0.8
million)
c)
Associates
The Group has a 18.9% interest in
Compañía de Minas Buenaventura S.A.A, which is an associate. During
the year ended 31 December 2024, the Group has received dividends
from Buenaventura of $3.5 million.
d)
Other related parties
The immediate parent company of
the Group is Metalinvest Establishment and the ultimate parent
company is the E. Abaroa Foundation, in which members of the Luksic
family are interested. The Group's subsidiaries, in the ordinary
course of business, enter into various sale and purchase
transactions with companies also controlled by members of the
Luksic family, including Banco de Chile S.A., BanChile Corredores
de Bolsa S.A., ENEX S.A. and Compañía de Inversiones Adriático S.A.
These transactions were all on normal commercial terms.
The Group holds a 51% interest in
Antomin 2 Limited ("Antomin 2") and Antomin Investors Limited
("Antomin Investors"), which own a number of copper exploration
properties. The Group originally acquired its 51% interest in these
properties for a nominal consideration from Mineralinvest
Establishment ("Mineralinvest"), a company controlled by the Luksic
family, which continues to hold the remaining 49% of Antomin 2 and
Antomin Investors. The Group is responsible for any exploration
costs relating to the properties held by these entities. During the
year ended 31 December 2024, the Group incurred $0.1 million (31
December 2023 - $0.1 million) of exploration costs at these
properties (see note 27). As detailed in
Note 27, subsequent to the year end, in January 2025 the Group
entered into an agreement with Mineralinvest to acquire its 49%
interest in Antomin Investors.
e)
Compañía Minera Zaldívar SpA
The Group has a 50% interest in
Zaldívar, which is a joint venture with Barrick Gold Corporation.
Antofagasta is the operator of Zaldívar. The balance due from
Zaldívar to Group companies at the end of the year was $2.2 million
(2023 - $6.7 million). During 2024, Zaldívar declared dividends of
nil to the Group (2023 - nil).
26. Litigation and contingent
liabilities
The Group is subject from time to
time to legal proceedings, claims, complaints and investigations
arising out of the ordinary course of business. The Group cannot
predict the outcome of individual legal actions or claims or
complaints or investigations. As a result, the Group may become
subject to liabilities that could affect the Group's business,
financial position and reputation. Litigation is inherently
unpredictable, and large judgments may at times occur. The Group
may incur, in the future, judgments or enter into settlements of
claims that could lead to material cash outflows. The Group does
not expect a material loss from the legal proceedings, claims,
complaints and investigations that the Group is currently subject
to. A provision is recognized for legal claims where the Group has
a present obligation as a result of past events, it is probable
that an outflow of resources embodying economic benefits will be
required to settle the obligation, and a reliable estimate can be
made of the amount of the obligation.
Any relevant potential tax
contingencies, including litigation, are detailed in Note
9.
27. Post Balance Sheet
Events
Antomin Investors Limited
As detailed in Note 25, the Group
holds a 51% interest in Antomin Investors, which owns a number of
copper exploration properties. The Group originally acquired its
51% interest in these properties for a nominal consideration from
Mineralinvest, a company in which members of the Luksic family are
interested, which continues to hold the remaining 49% of Antomin
Investors. In January 2025, the Group entered into an agreement
with Mineralinvest to acquire its 49% interest in Antomin
Investors' copper exploration properties in the Centinela District
for $80 million. Properties currently held by Antomin Investors
that are outside the Centinela District will be demerged into a new
entity, held 51% by the Group and 49% by Mineralinvest. The
acquisition of Antomin Investors is expected to complete later in
2025, following that demerger. This transaction further
consolidates the Group's mining property interests in the Centinela
District providing flexibility for future growth options. This
transaction was overseen and approved by a committee of independent
Directors who sought and received confirmation from a financial
adviser, a major international investment bank with extensive
experience in advising UK issuers on such matters, that the terms
of the transaction were fair and reasonable as far as the
shareholders of the companies were concerned.
28. Currency
translation
Assets and liabilities denominated
in foreign currencies are translated into US dollars and sterling
at the year-end rates of exchange. Results denominated in foreign
currencies have been translated into US dollars at the average rate
for each year.
|
|
2024
|
2023
|
|
Year-end
rate
|
$1
$1.254=£1; $1 = Ch$996.57
|
$1
$1.275=£1; $1 = Ch$877.17
|
|
Average
rates
|
h$7$1.277=£1; $1 = Ch$944.18
|
h$7$1.244=£1; $1 = Ch$839.28
|
29. Distribution
The
Annual Report and Financial Statements for the year ended 31
December 2024, once finalised, together with the Notice of the 2025
Annual General Meeting, will be posted to all shareholders in April
2025.
Alternative performance measures (not subject to audit or
review)
This consolidated financial
information includes a number of alternative performance measures,
in addition to amounts in accordance with UK-adopted International
Accounting Standards. These measures are included because they are
considered to provide relevant and useful additional information to
users of the accounts. Set out below are definitions of these
alternative performance measures, explanations as to why they are
considered to be relevant and useful, and reconciliations to the
IFRS figures.
a) Underlying earnings per share
Underlying earnings per share is
earnings per share from continuing operations, excluding
exceptional items. This measure is reconciled to earnings per share
from continuing and discontinued operations (including exceptional
items) on the face of the income statement. This measure is
considered to be useful as it provides an indication of the
earnings generated by the ongoing businesses of the Group,
excluding the impact of exceptional items which are one-off
transactions or transactions outside the ordinary course of
business of the Group.
EBITDA
EBITDA is calculated by adding
back depreciation, amortisation, profit or loss on disposals and
impairment charges or reversals to operating profit. This comprises
100% of the EBITDA from the Group´s subsidiaries, and the Group´s
proportional share of the EBITDA of its associates and joint
ventures.
EBITDA is considered to provide a
useful and comparable indication of the current operational
earnings performance of the business, excluding the impact of the
historical cost of property, plant & equipment or the
particular financing structure adopted by the business.
For the year ended 31 December 2024
|
|
Los
Pelambres
|
Centinela
|
Antucoya
|
Zaldívar
|
Exploration and evaluation
|
Corporate and other items
|
Mining
|
Railway and other transport
services
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit/(loss)
|
1,313.5
|
273.5
|
529.5
|
-
|
(52.7)
|
(83.1)
|
1,980.7
|
28.0
|
2,008.7
|
|
Depreciation and
amortisation
|
544.1
|
854.9
|
117.7
|
-
|
-
|
10.2
|
1,526.9
|
41.3
|
1,568.2
|
|
Loss on disposals
|
3.6
|
1.9
|
-
|
-
|
-
|
0.1
|
5.6
|
-
|
5.6
|
|
Reversal of impairment
|
-
|
-
|
(371.4)
|
-
|
-
|
-
|
(371.4)
|
-
|
(371.4)
|
|
EBITDA from subsidiaries
|
1,861.2
|
1,130.3
|
275.8
|
-
|
(52.7)
|
(72.8)
|
3,141.8
|
69.3
|
3,211.1
|
|
Proportional share of the EBITDA
from associates and JVs
|
-
|
-
|
-
|
99.9
|
-
|
109.2
|
209.1
|
6.6
|
215.7
|
|
Total EBITDA
|
1,861.2
|
1,130.3
|
275.8
|
99.9
|
(52.7)
|
36.4
|
3,350.9
|
75.9
|
3,426.8
|
For the year ended 31 December 2023
|
|
Los
Pelambres
|
Centinela
|
Antucoya
|
Zaldívar
|
Exploration and evaluation1
|
Corporate and other items
|
Mining
|
Railway and other transport
services
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit/(loss)
|
1,373.4
|
456.3
|
97.5
|
-
|
(64.9)
|
(123.0)
|
1,739.3
|
43.5
|
1,782.8
|
|
Depreciation and
amortisation
|
318.6
|
727.3
|
109.4
|
-
|
-
|
24.3
|
1,179.6
|
31.7
|
1,211.3
|
|
EBITDA from subsidiaries
|
1,692.0
|
1,183.6
|
206.9
|
-
|
(64.9)
|
(98.7)
|
2,918.9
|
75.2
|
2,994.1
|
|
Proportional share of the EBITDA
from associates and JVs
|
-
|
-
|
-
|
86.8
|
-
|
-
|
86.8
|
6.3
|
93.1
|
|
Total EBITDA
|
1,692.0
|
1,183.6
|
206.9
|
86.8
|
(64.9)
|
(98.7)
|
3,005.7
|
81.5
|
3,087.2
|
1In order to better reflect the Group's internal reporting,
the Group has changed the classification of certain evaluation
costs incurred by the individual mining operations in $76.2
million, which were previously included in the Exploration and
evaluation segment and are now included within the individual mine
segments.
b) Cash costs
Cash costs are a measure of the
cost of operational production expressed in terms of cents per
pound of payable copper produced.
This is considered to be a useful
and relevant measure as it is a standard industry measure applied
by most major copper mining companies which reflects the direct
costs involved in producing each pound of copper. It therefore
allows a straightforward comparison of the unit production cost of
different mines and allows an assessment of the position of a mine
on the industry cost curve. It also provides a simple indication of
the profitability of a mine when compared against the price of
copper (per lb).
With sales of concentrates at Los
Pelambres and Centinela, which are sold to smelters and roasting
plants for further processing into fully refined metal, the price
of the concentrate invoiced to the customer reflects the market
value of the fully refined metal less a "treatment and refining
charge" deduction, to reflect the lower value of this partially
processed material compared with the fully refined metal. For
accounting purposes, the revenue amount reflects the invoiced price
(the net of the market value of fully refined metal less the
treatment and refining charges). Under the standard industry
definition of cash costs, treatment and refining charges are
regarded as part of the total cash cost figure.
|
|
At
31.12.2024
|
At
31.12.2023
|
|
|
|
|
|
Reconciliation of cash costs excluding treatment &
refining charges and by-product revenue:
|
|
|
|
|
|
|
|
Total Group operating costs (Note 5)
($m)
|
4,976.1
|
4,541.7
|
|
Zaldívar operating costs
(attributable basis - 50%)
|
267.6
|
263.1
|
|
Less:
|
|
|
|
Depreciation and amortisation (Note
5) ($m)
|
(1,568.2)
|
(1,211.3)
|
|
Loss on disposal (Note 5)
($m)
|
(5.6)
|
-
|
|
Corporate and other items - Total
operating cost (excluding depreciation) (Note 5) ($m)
|
(72.8)
|
(98.7)
|
|
Exploration and evaluation - Total
operating cost (excluding depreciation) (Note 5)
($m)2
|
(52.7)
|
(64.9)
|
|
Transport division - Total operating
cost (excluding depreciation) (Note 5) ($m)
|
(125.6)
|
(120.7)
|
|
Closure provision and other expenses
not included within cash costs ($m)
|
(117.5)
|
(102.7)
|
|
Inventories variation
|
39.9
|
(13.6)
|
|
Medium and long-term drilling costs
& evaluation2
|
(98.9)
|
(76.2)
|
|
Total cost relevant to the mining
operations' cash costs ($m)
|
3,242.3
|
3,116.7
|
|
|
|
|
|
Copper production volumes
(tonnes)1
|
663,950
|
660,600
|
|
|
|
|
|
Cash costs excluding treatment &
refining charges and by-product revenue ($/tonne)
|
4,883
|
4,718
|
|
|
|
|
|
Cash costs excluding treatment &
refining charges and by-product revenue ($/lb)
|
2.21
|
2.14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of cash costs before deducting by-products
revenue:
|
|
|
|
|
|
|
|
Treatment & refining charges -
copper and by-products - Los Pelambres ($m)
|
154.7
|
155.3
|
|
Treatment & refining charges -
copper and by-products - Centinela ($m)
|
65.9
|
95.4
|
|
Treatment & refining charges -
copper - total ($m)
|
220.6
|
250.7
|
|
|
|
|
|
Copper production volumes
(tonnes)1
|
663,950
|
660,600
|
|
|
|
|
|
Treatment & refining charges
($/tonne)
|
332.2
|
379.4
|
|
Treatment & refining charges
($/lb)
|
0.16
|
0.17
|
|
|
|
|
|
Cash costs excluding treatment &
refining charges and by-product revenue ($/lb)
|
2.21
|
2.14
|
|
Treatment & refining charges
($/lb)
|
0.16
|
0.17
|
|
Cash costs before deducting
by-product revenue (S/lb)
|
2.37
|
2.31
|
1The 663,950 tonnes includes 40,100
tonnes of production at Zaldívar on a 50% attributable
basis.
2 In order to better reflect the Group's internal reporting,
the Group has changed the classification of certain evaluation
costs incurred by the individual mining operations, which were
previously included in the Exploration and evaluation segment and
are now included within the individual mine segments.
|
|
At
31.12.2024
|
At
31.12.2023
|
|
|
|
|
|
Reconciliation of cash costs (net of by-product
revenue):
|
|
|
|
|
|
|
|
Gold revenue - Los Pelambres
($m)
|
110.5
|
83.6
|
|
Gold revenue - Centinela
($m)
|
337.1
|
324.2
|
|
Molybdenum revenue - Los Pelambres
($m)
|
412.0
|
397.6
|
|
Molybdenum revenue - Centinela
($m)
|
109.7
|
141.7
|
|
Silver revenue - Los Pelambres
($m)
|
55.2
|
36.2
|
|
Silver revenue - Centinela
($m)
|
23.9
|
34.9
|
|
Total by-product revenue
($m)
|
1,048.4
|
1,018.2
|
|
|
|
|
|
Copper production volumes
(tonnes)2
|
663,950
|
660,600
|
|
|
|
|
|
By-product revenue
($/tonne)
|
1,579.2
|
1,541.3
|
|
By-product revenue ($/lb)
|
0.73
|
0.70
|
|
|
|
|
|
Cash costs before deducting
by-product revenue (S/lb)
|
2.37
|
2.31
|
|
By-product revenue ($/lb)
|
(0.73)
|
(0.70)
|
|
Cash costs (net of by-product
revenue) ($/lb)
|
1.64
|
1.61
|
2The 663,950 tonnes includes 40,100
tonnes of production at Zaldívar on a 50% attributable
basis.
The totals in the tables above may
include some small apparent differences as the specific individual
figures have not been rounded.
c) Attributable cash, cash
equivalents & liquid investments, borrowings and net
debt
Attributable cash, cash
equivalents & liquid investments, borrowings and net debt
reflects the proportion of those balances which are attributable to
the equity holders of the Company, after deducting the proportion
attributable to the non-controlling interests in the Group's
subsidiaries.
This is considered to be a useful
and relevant measure as the majority of the Group's cash tends to
be held at the corporate level and therefore 100% attributable to
the equity holders of the Company, whereas the majority of the
Group's borrowings tend to be at the level of the individual
operations, and hence only a proportion is attributable to the
equity holders of the Company.
|
|
|
December
2024
|
|
|
|
December
2023
|
|
|
|
Total
amount
|
Attributable
share
|
Attributable
amount
|
|
Total
amount
|
Attributable share
|
Attributable
amount
|
|
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
Cash, cash equivalents and liquid
investments:
|
|
|
|
|
|
|
|
Los Pelambres
|
887.2
|
60%
|
532.3
|
|
587.0
|
60%
|
352.2
|
|
Centinela
|
1,148.1
|
70%
|
803.7
|
|
516.9
|
70%
|
361.8
|
|
Antucoya
|
345.0
|
70%
|
241.5
|
|
129.9
|
70%
|
90.9
|
|
Corporate
|
1,895.0
|
100%
|
1,895.0
|
|
1,668.3
|
100%
|
1,668.3
|
|
Transport division
|
41.0
|
100%
|
41.0
|
|
17.3
|
100%
|
17.3
|
|
Total
|
4,316.3
|
|
3,513.5
|
|
2,919.4
|
|
2,490.5
|
|
|
|
|
|
|
|
|
|
|
Borrowings:
|
|
|
|
|
|
|
|
|
Los Pelambres (Note 17)
|
(2,381.8)
|
60%
|
(1,429.1)
|
|
(2,112.4)
|
60%
|
(1,267.4)
|
|
Centinela (Note 17)
|
(1,475.7)
|
70%
|
(1,033.0)
|
|
(574.1)
|
70%
|
(401.9)
|
|
Antucoya (Note 17)
|
(343.5)
|
70%
|
(240.5)
|
|
(379.1)
|
70%
|
(265.4)
|
|
Corporate (Note 17)
|
(1,743.5)
|
100%
|
(1,743.5)
|
|
(1,007.7)
|
100%
|
(1,007.7)
|
|
Transport division (Note
17)
|
(0.9)
|
100%
|
(0.9)
|
|
(5.9)
|
100%
|
(5.9)
|
|
Total (Note 17)
|
(5,945.4)
|
|
(4,447.0)
|
|
(4,079.2)
|
|
(2,948.3)
|
|
|
|
|
|
|
|
|
|
|
Net
debt
|
(1,629.1)
|
|
(933.5)
|
|
(1,159.8)
|
|
(457.8)
|
Production and Sales Statistics (not subject to audit or
review)
a) Production and sales volumes for copper, gold
and molybdenum
|
|
Production
|
|
Sales
|
|
|
|
|
|
|
|
|
|
Year ended
31.12.2024
|
Year
ended
31.12.2023
|
|
Year ended
31.12.2024
|
Year
ended
31.12.2023
|
|
|
|
|
|
|
|
|
Copper
|
000 tonnes
|
000
tonnes
|
|
000 tonnes
|
000
tonnes
|
|
Los Pelambres
|
319.6
|
300.3
|
|
315.4
|
299.0
|
|
Centinela
|
223.8
|
242.0
|
|
212.5
|
247.9
|
|
Antucoya
|
80.5
|
77.8
|
|
79.1
|
78.4
|
|
Zaldívar (attributable basis -
50%)
|
40.1
|
40.5
|
|
38.5
|
41.9
|
|
Group total
|
664.0
|
660.6
|
|
645.5
|
667.2
|
|
|
|
|
|
|
|
|
Gold
|
000 ounces
|
000
ounces
|
|
000 ounces
|
000
ounces
|
|
Los Pelambres
|
46.6
|
43.3
|
|
43.8
|
42.1
|
|
Centinela
|
140.3
|
165.8
|
|
133.2
|
162.8
|
|
Group total
|
186.9
|
209.1
|
|
177.0
|
204.9
|
|
|
|
|
|
|
|
|
Molybdenum
|
000 tonnes
|
000
tonnes
|
|
000 tonnes
|
000
tonnes
|
|
Los Pelambres
|
8.3
|
8.1
|
|
8.6
|
8.1
|
|
Centinela
|
2.4
|
2.9
|
|
2.3
|
3.0
|
|
Group total
|
10.7
|
11.0
|
|
10.9
|
11.1
|
|
|
|
|
|
|
|
|
Silver
|
000 ounces
|
000
ounces
|
|
000 ounces
|
000
ounces
|
|
Los Pelambres
|
1,970.3
|
1,613.5
|
|
1,847.8
|
1,509.2
|
|
Centinela
|
853.5
|
1,461.0
|
|
791.1
|
1,469.9
|
|
Group total
|
2,823.8
|
3,074.5
|
|
2,638.9
|
2,979.1
|
b) Cash costs per pound of
copper produced and realised prices per pound of copper and
molybdenum sold
|
|
Net Cash
costs
|
Realised
prices
|
|
|
Year ended
31.12.2024
|
Year
ended 31.12.2023
|
Year ended
31.12.2024
|
Year
ended 31.12.2023
|
|
|
$/lb
|
$/lb
|
$/lb
|
$/lb
|
|
Copper
|
|
|
|
|
|
Los Pelambres
|
1.26
|
1.14
|
4.18
|
3.89
|
|
Centinela
|
1.60
|
1.63
|
4.17
|
3.89
|
|
Antucoya
|
2.53
|
2.63
|
4.19
|
3.89
|
|
Zaldívar (attributable basis -
50%)
|
3.02
|
2.95
|
|
-
|
|
Group weighted average (net of by-products)
|
1.64
|
1.61
|
4.18
|
3.89
|
|
|
|
|
|
|
|
Group weighted average (before deducting
by-products)
|
2.37
|
2.31
|
|
|
|
|
|
|
|
|
|
Group weighted average (before deducting by-products and
excluding treatment & refining charges from
concentrate)
|
2.22
|
2.14
|
|
|
|
|
|
|
|
|
|
Cash costs at Los Pelambres comprise:
|
|
|
|
|
|
On-site and shipping
costs
|
1.87
|
1.69
|
|
|
|
Treatment & refining charges for
concentrates
|
0.22
|
0.23
|
|
|
|
Cash costs before deducting by-product
credits
|
2.09
|
1.92
|
|
|
|
By-product credits (principally
molybdenum)
|
(0.83)
|
(0.78)
|
|
|
|
Cash costs (net of by-product credits)
|
1.26
|
1.14
|
|
|
|
|
|
|
|
|
|
Cash costs at Centinela comprise:
|
|
|
|
|
|
On-site and shipping
costs
|
2.46
|
2.40
|
|
|
|
Treatment & refining charges for
concentrates
|
0.14
|
0.17
|
|
|
|
Cash costs before deducting by-product
credits
|
2.60
|
2.57
|
|
|
|
By-product credits (principally
gold)
|
(1.00)
|
(0.94)
|
|
|
|
Cash costs (net of by-product credits)
|
1.60
|
1.63
|
|
|
|
|
|
|
|
|
|
LME
average copper price
|
|
|
4.15
|
3.85
|
|
|
|
|
|
|
|
Gold
|
|
|
$/oz
|
$/oz
|
|
|
|
|
|
|
|
Los Pelambres
|
|
|
2,523
|
1,983
|
|
Centinela
|
|
|
2,530
|
1,991
|
|
Group weighted average
|
|
|
2,528
|
1,990
|
|
|
|
|
|
|
|
Market average price
|
|
|
2,387
|
1,943
|
|
|
|
|
|
|
|
Molybdenum
|
|
|
|
$/lb
|
|
|
|
|
|
|
|
Los Pelambres
|
|
|
21.8
|
22.0
|
|
Centinela
|
|
|
21.7
|
21.7
|
|
Group weighted average
|
|
|
21.8
|
22.0
|
|
|
|
|
|
|
|
Market average price
|
|
|
21.3
|
24.1
|
|
|
|
|
|
|
|
Silver
|
|
|
$/oz
|
$/oz
|
|
|
|
|
|
|
|
Los Pelambres
|
|
|
29.8
|
24.1
|
|
Centinela
|
|
|
30.3
|
23.8
|
|
Group weighted average
|
|
|
30.0
|
24.0
|
|
|
|
|
|
|
|
Market average price
|
|
|
28.2
|
23.4
|
Notes to the production and sales
statistics
(i)
For the Group's subsidiaries, the production and sales figures
reflect the total amounts produced and sold by the mine, not the
Group's share of each mine. The Group owns 60% of Los Pelambres,
70% of Centinela and 70% of Antucoya. For the Zaldívar joint
venture, the production and sales figures reflect the Group's
proportional 50% share. The figures in the tables above do not
include Compañía de Minas Buenaventura S.A.A.
(ii)
Los Pelambres produces copper and molybdenum concentrates,
Centinela produces copper concentrate, copper cathodes and
molybdenum concentrate, and Antucoya and Zaldívar produce copper
cathodes. The figures for Los Pelambres and Centinela are expressed
in terms of payable metal contained in concentrate and in cathodes.
Los Pelambres and Centinela are also credited for the gold and
silver contained in the copper concentrate sold. Antucoya and
Zaldívar produce cathodes with no by-products.
(iii)
Cash costs are a measure of the cost of operational production
expressed in terms of cents per pound of payable copper produced.
Cash costs are stated net of by-product credits. Cash costs exclude
depreciation, financial income and expenses, hedging gains and
losses, exchange gains and losses and corporate tax for all four
operations. With sales of concentrates at Los Pelambres and
Centinela, which are sold to smelters and roasting plants for
further processing into fully refined metal, the price of the
concentrate invoiced to the customer reflects the market value of
the fully refined metal less a "treatment and refining charge"
(TC/RC) deduction, to reflect the lower value of this partially
processed material compared with the fully refined metal.
For accounting purposes, the
revenue amount reflects the invoiced price (the net of the market
value of fully refined metal less the treatment and refining
charges). However, under the standard industry definition of unit
cash costs, treatment and refining charges are regarded as an
expense and part of cash costs.
(iv)
Realised copper prices are determined by comparing revenue from
copper sales (after adding back treatment and refining charges for
concentrates) with sales volumes for each mine in the period.
Realised molybdenum and gold prices are calculated on a similar
basis. Realised prices reflect mark-to-market adjustments for sales
contracts which contain provisional pricing mechanisms and gains
and losses on commodity derivatives, which are included within
revenue.
(v)
The totals in the tables above may include some small apparent
differences as the specific individual figures have not been
rounded.
The production information and the
cash cost information are derived from the Group's production
report for the fourth quarter of 2024, published on 16 January
2025.
