"Our operations continued with a strong performance in the third quarter. As a result, we are increasing our production guidance for Caserones and Eagle. The acquisition of Caserones enabled us to achieve a new record in quarterly consolidated copper production, and we also achieved a record in quarterly zinc production. This led the Company to an adjusted EBITDA of
Third Quarter Highlights
- Copper Production: The Company achieved consolidated production of 89,942 tonnes of copper, a new quarterly record.
- Other Production: During the quarter a total of 49,774 tonnes of zinc, 4,290 tonnes of nickel and approximately 35,000 ounces of gold were produced. A quarterly zinc production record was achieved as the zinc expansion project ("ZEP") at Neves-Corvo ramps up and a full quarter of operation from the sequential flotation project at Zinkgruvan was realized.
- Revenue:
$992.2 million in the quarter. - Adjusted Earnings: Net loss attributable to shareholders of the Company was
$3.0 million ($0.00 per share). Adjusted earnings attributable to shareholders of the Company1 was$85.6 million ($0.11 per share). - Adjusted EBITDA: Adjusted earnings before interest, taxes, depreciation and amortization1 ("EBITDA") of
$415.1 million in the third quarter. - Cash Generation: Cash provided by operating activities was
$303.8 million and cash and cash equivalents atSeptember 30, 2023 was$357.3 million . Adjusted operating cash flow1 was$316.5 million ($0.41 per share), after removing the impact of working capital. Free cash flow1 was$71.1 million . - Caserones Acquisition: Completed the acquisition of 51% of the Caserones copper-molybdeum mine on
July 13, 2023 , adding another long-life asset in a tier one jurisdiction. The Company anticipates initial annual synergies from supply chain and service contracts between Caserones and Candelaria to be$20 million to$30 million per year. - Term Loan: To fund the Caserones acquisition, the Company obtained a term loan in
July 2023 of a principal amount of$800.0 million with an additional$400.0 million accordion option maturing inJuly 2026 . As atSeptember 30, 2023 , the Company had a net debt1 balance of$1,158.9 million . - CEO Succession:
Peter Rockandel , the current Chief Executive Officer announced that he will be stepping down from the role of CEO and from the Board of Directors as ofDecember 31, 2023 . Those responsibilities will be assumed byJack Lundin , current President, and former Director of the Company. - Outlook: Revised annual production guidance, including an increase in copper production from 296,000 - 325,000 tonnes to 305,000 - 325,000 tonnes. Cash cost guidance was lowered at Caserones and Eagle and increased at Candelaria. Annual capital expenditure guidance is lower by
$30 million .
__________________________________ |
1 These are non-GAAP measures. Please refer to the Company's discussion of non-GAAP and other performance measures in its Management's Discussion and Analysis for the three and nine months ended |
Summary Financial Results
Three months ended | Nine months ended | ||||
US$ Millions (except per share amounts) | 2023 | 2022 | 2023 | 2022 | |
Revenue | 992.2 | 648.5 | 2,332.1 | 2,229.8 | |
Gross profit | 197.3 | 82.5 | 463.5 | 607.3 | |
Attributable net earnings (loss)2 | (3.0) | (11.2) | 202.8 | 281.3 | |
Net earnings (loss) | 21.9 | (11.2) | 248.5 | 318.2 | |
Adjusted earnings 1,2,3 | 85.6 | 30.9 | 256.9 | 288.9 | |
Adjusted EBITDA1,3 | 415.1 | 202.4 | 943.8 | 938.8 | |
Basic and diluted earnings per share ("EPS")2 | — | (0.01) | 0.26 | 0.37 | |
Adjusted EPS1,2,3 | 0.11 | 0.04 | 0.33 | 0.38 | |
Cash provided by operating activities | 303.8 | 36.3 | 710.5 | 720.0 | |
Adjusted operating cash flow1 | 316.5 | 181.3 | 662.2 | 703.9 | |
Adjusted operating cash flow per share1 | 0.41 | 0.23 | 0.86 | 0.93 | |
Free cash flow from (used in) operations1 | 136.5 | (43.9) | 228.3 | 417.1 | |
Free cash flow1 | 71.1 | (163.2) | (47.7) | 158.3 | |
Cash and cash equivalents | 357.3 | 226.9 | 357.3 | 226.9 | |
Net debt1 | (1,158.9) | 177.6 | (1,158.9) | 177.6 |
1 These are non-GAAP measures. Please refer to the Company's discussion of non-GAAP and other performance measures in its Management's Discussion and Analysis for the three and nine months ended | |||||
2 Attributable to shareholders of | |||||
3 Q2 2023 amounts have been adjusted from those presented in the Company's MD&A for the three and six months ended |
Quarter Ended
- The Company generated revenue of
$992.2 million , gross profit of$197.3 million and adjusted EBITDA of$415.1 million (Q3 2022 -$202.4 million ). - Net loss attributable to shareholders of the Company was
$3.0 million ($0.00 per share) in the third quarter, impacted by higher interest expense, non-cash unrealized losses on derivative contracts and increased deferred tax expense as a result of the enactment of the mining royalty law inChile 4. - Adjusted earnings attributable to shareholders of the Company for the quarter of
$85.6 million ($0.11 per share attributable to shareholders of the Company) were$49.5 million higher than the prior year quarter after adjusting for the non-cash revaluation of derivative contracts, fair value adjustments relating to the Caserones acquisition and deferred tax relating to the mining royalty rate change4, among other things. - Cash and cash equivalents as at
September 30, 2023 were$357.3 million . Cash generated from operations of$303.8 million during the quarter was used to fund investing activities of$908.8 million . Investing activities in the third quarter included$648.6 million net cash paid at closing for the acquisition of Caserones, consisting of$796.6 million upfront cash consideration after adjustments, net of$148 million cash and cash equivalents held by SCM Minera Lumina Copper Chile at closing on a 100% basis. - Free cash flow of
$71.1 million was$234.3 million higher than the prior year comparable period and benefited from the inclusion of production from Caserones, combined with higher realized copper prices and higher overall changes in working capital. - As at
November 1, 2023 , the Company had cash and net debt balances of approximately$368.6 million and$1,137.6 million , respectively.
4 Refer to Management's Discussion and Analysis for the three and nine months ended |
Corporate Highlights
- Candelaria EIA: A new Environmental Impact Assessment ("EIA") was granted at Candelaria for the extension of operations from 2030 to 2040.
- Exploration: Exploration programs continue at our existing assets while new exploration drilling campaigns are underway at Caserones and Josemaria. Drilling at Caserones will be the largest exploration program since the mine began operation in 2013. The initial phase of the drill program is expected to be over 10,000 meters and results are expected in H1 2024.
- Copper Mark: Caserones has achieved the Copper Mark at its operations, a designation that highlights the Company's commitment to sustainable mining practices.
Josemaria Project : The Company continues to derisk and advance the Josemaria project through optimization and trade off studies. These studies will continue into 2024.- Senior Leadership Appointments: The corporate office move to
Vancouver has been completed. The Company is pleased to announce the following executive appointments,Peter Brady has been hired as General Counsel,Ricardo Checura as Vice President, Health and Safety andNathan Monash as Vice President, Sustainability.
Outlook
Production and cash cost guidance for 2023 is updated from that disclosed in the Company's Management's Discussion and Analysis for the three and six months ended
Most production guidance ranges are tightening and improving, with the lower end of the range increasing for copper, nickel and gold. Cash cost guidance is lower for Caserones and Eagle driven by higher production volumes and by-product credits, and increasing for Candelaria, reflecting higher operating costs. Production continues to be weighted to the second half of the year, notably at Chapada due to the first half seasonal operating conditions and forecast grade and recovery profiles.
2023 Production and Cash Cost Guidance
Previous Guidancea | Revised Guidance | |||||
(contained metal) | Production | Cash Cost ($/lb)f | Production | Cash Cost ($/lb)b,f | ||
Copper (t) | Candelaria (100%) | 145,000 - 155,000 | 1.80 – 1.95c | 147,000 - 153,000 | 2.00 – 2.20c | |
Caserones (100%)e | 60,000 - 65,000 | 2.30 – 2.45 | 65,000 - 69,000 | 2.00 – 2.20 | ||
Chapada | 43,000 - 48,000 | 2.35 – 2.55d | 45,000 - 48,000 | 2.35 – 2.55d | ||
Eagle | 12,000 - 15,000 | 12,000 - 15,000 | ||||
Neves-Corvo | 33,000 - 38,000 | 2.10 – 2.30c | 33,000 - 36,000 | 2.10 – 2.30c | ||
Zinkgruvan | 3,000 - 4,000 | 3,000 - 4,000 | ||||
Total | 296,000 - 325,000 | 305,000 - 325,000 | ||||
Zinc (t) | Neves-Corvo | 100,000 - 110,000 | 103,000 - 110,000 | |||
Zinkgruvan | 80,000 - 85,000 | 0.45 – 0.50c | 78,000 - 82,000 | 0.45 – 0.50c | ||
Total | 180,000 - 195,000 | 181,000 - 192,000 | ||||
Molybdenum (t) | Caserones (100%)e | 1,500 - 2,000 | 1,500 - 2,000 | |||
Gold (koz) | Candelaria (100%) | 85 - 90 | 87 - 92 | |||
Chapada | 55 - 60 | 55 - 60 | ||||
Total | 140 - 150 | 142 - 152 | ||||
Nickel (t) | Eagle | 13,000 - 16,000 | 2.30 – 2.45 | 15,000 - 17,000 | 2.00 – 2.20 |
a. Guidance as outlined in the MD&A for the three and six months ended | ||||||
b. Cash costs are based on various assumptions and estimates, including but not limited to: production volumes, commodity prices (Cu: | ||||||
c. 68% of Candelaria's total gold and silver production are subject to a streaming agreement and silver production at Zinkgruvan and Neves-Corvo are also subject to streaming agreements. Cash costs are calculated based on receipt of approximately | ||||||
d. Chapada's cash cost is calculated on a by-product basis and does not include the effects of its copper stream agreements. Effects of the copper stream agreements are reflected in copper revenue and will impact realized price per pound. | ||||||
e. Caserones guidance is for the second half of 2023. | ||||||
f. These are non-GAAP measures. Please refer to the Company's discussion of non-GAAP and other performance measures in its Management's Discussion and Analysis for the three and nine months ended |
As a result of re-phasing several projects at Neves-Corvo and Zinkgruvan, capital expenditure guidance is lower by an additional
2023 Capital Expenditure
($ millions) | Previous Guidancea | Revisions | Revised Guidance | |
Candelaria (100% basis) | 375 | — | 375 | |
Caserones (100% basis)c | 110 | — | 110 | |
Chapada | 70 | — | 70 | |
Eagle | 20 | — | 20 | |
Neves-Corvo | 130 | (25) | 105 | |
Zinkgruvan | 70 | (5) | 65 | |
Other | 10 | — | 10 | |
Total Sustaining | 785 | (30) | 755 | |
Josemaria | 350 | — | 350 | |
Total Capital Expenditures | 1,135 | (30) | 1,105 |
a. Guidance as outlined in the MD&A for the three and six months ended | ||||
b. Sustaining capital expenditure is a supplementary financial measure and expansionary capital expenditure is a non-GAAP measure - see the Company's Management Discussion and Analysis for the three and six months ended | ||||
c. Caserones guidance is for the second half of 2023. |
2023 Exploration Investment Guidance
Total exploration expenditures are on target to be
Operational Performance
Total Production
(contained metal)a | 2023 | 2022 | |||||||
YTD | Q3 | Q2 | Q1 | Total | Q4 | Q3 | Q2 | Q1 | |
Copper (t)b | 211,461 | 89,942 | 60,057 | 61,462 | 249,659 | 56,552 | 63,930 | 64,096 | 65,081 |
Zinc (t) | 134,442 | 49,774 | 36,115 | 48,553 | 158,938 | 44,308 | 40,327 | 41,912 | 32,391 |
Molybdenum (t)b | 1,096 | 1,096 | — | ||||||
Gold (koz)b | 105 | 35 | 34 | 36 | 154 | 36 | 45 | 39 | 34 |
Nickel (t) | 12,700 | 4,290 | 4,686 | 3,724 | 17,475 | 4,096 | 4,379 | 4,719 | 4,281 |
a. Tonnes (t) and thousands of ounces (koz) | |||||||||
b. Candelaria and Caserones production is on a 100% basis. Caserones results are from |
Candelaria (80% owned): Candelaria produced 34,275 tonnes of copper and approximately 20,000 ounces of gold in concentrate on a 100% basis in the quarter. Copper production was lower than the prior year quarter primarily due to lower grades partially offset by higher throughput. Gold production was lower than the prior year quarter due to lower grades and recoveries. Current quarter production costs and copper cash cost of
Caserones (51% owned): In the three months ended
Chapada (100% owned): Chapada produced 12,286 tonnes of copper and approximately 15,000 ounces of gold in concentrate in the quarter. Copper and gold production was lower than the prior year quarter primarily due to lower throughput and grades. Production costs were lower than the prior year quarter due to lower sales volumes. Copper cash cost of
Eagle (100% owned): During the quarter Eagle produced 4,290 tonnes of nickel and 3,245 tonnes of copper which were lower than the prior year quarter due to lower planned grades. Production costs were higher than the comparable prior year quarter due to inflationary contractual cost increases. Nickel cash cost in the quarter of
Neves-Corvo (100% owned): Neves-Corvo produced 9,016 tonnes of copper and 25,807 tonnes of zinc in the quarter. Copper production was higher than in the prior year quarter due to higher throughput, grades and recoveries. Zinc production was higher than in the prior year quarter primarily due to increased grades and recoveries driven by the
Zinkgruvan (100% owned): Zinc production of 23,967 tonnes and lead production of 8,643 tonnes were higher than the prior year quarter primarily due to higher throughput and grades. Copper production of 1,299 tonnes was lower than the prior year quarter due to lower throughput. Production costs were higher than the prior year quarter primarily due to higher sales volumes. Zinc cash cost per pound of
Senior Leadership Appointments
The Company is pleased to announce the executive appointments of
General Counsel
Ricardo Checura
Vice President Health and Safety
Mr. Checura was previously at
Vice President, Sustainability
About
The information in this release is subject to the disclosure requirements of
Technical Information
The scientific and technical information in this press release has been prepared in accordance with the disclosure standards of National Instrument 43-101 ("NI 43-101") and has been reviewed by
For further Technical Information on the Company's material properties, refer to the following technical reports, each of which is available on the Company's SEDAR profile at www.sedarplus.ca: Candelaria: technical report entitled Technical Report for the
Reconciliation of Non-GAAP Measures
The Company uses certain performance measures in its analysis. These performance measures have no standardized meaning within generally accepted accounting principles under International Financial Reporting Standards and, therefore, amounts presented may not be comparable to similar data presented by other mining companies. For additional details please refer to the Company's discussion of non-GAAP and other performance measures in its Management's Discussion and Analysis for the three and nine months ended
Net (debt) cash can be reconciled as follows:
($thousands) | |||
Debt and lease liabilities | (1,130,754) | (27,179) | |
Current portion of total debt and lease liabilities | (380,645) | (170,149) | |
Less deferred financing fees (netted in above) | (4,810) | (4,926) | |
(1,516,209) | (202,254) | ||
Cash and cash equivalents | 357,337 | 191,387 | |
Net debt | (1,158,872) | (10,867) | |
Adjusted operating cash flow and adjusted operating cash flow per share can be reconciled to cash provided by operating activities as follows:
Three months ended | Nine months ended | ||||
($thousands, except share and per share amounts) | 2023 | 2022 | 2023 | 2022 | |
Cash provided by operating activities | 303,812 | 36,331 | 710,531 | 719,999 | |
Changes in non-cash working capital items | 12,655 | 145,006 | (48,360) | (16,111) | |
Adjusted operating cash flow | 316,467 | 181,337 | 662,171 | 703,888 | |
Basic weighted average number of shares outstanding | 773,147,920 | 775,563,527 | 772,214,160 | 759,726,506 | |
Adjusted operating cash flow per share | $ 0.41 | 0.23 | 0.86 | 0.93 |
Free cash flow from operations can be reconciled to cash provided by operating activities as follows:
Three months ended | Nine months ended | ||||
($thousands) | 2023 | 2022 | 2023 | 2022 | |
Cash provided by operating activities | 303,812 | 36,331 | 710,531 | 719,999 | |
General exploration and business development | 12,734 | 72,446 | 41,192 | 132,259 | |
Sustaining capital expenditures | (180,013) | (152,722) | (523,397) | (435,145) | |
Free cash flow from operations | 136,533 | (43,945) | 228,326 | 417,113 | |
General exploration and business development | (12,734) | (72,446) | (41,192) | (132,259) | |
Expansionary capital expenditures | (52,662) | (46,766) | (234,831) | (126,523) | |
Free cash flow | 71,137 | (163,157) | (47,697) | 158,331 |
Adjusted EBITDA can be reconciled to the Company's Consolidated Statement of Earnings as follows:
Three months ended | Nine months ended | ||||
($thousands) | 2023 | 2022 | 2023 | 2022 | |
Net earnings (loss) | 21,883 | (11,245) | 248,496 | 318,238 | |
Add back: | |||||
Depreciation, depletion and amortization | 179,788 | 140,161 | 430,540 | 412,040 | |
Finance income and costs | 36,212 | 15,240 | 67,808 | 47,521 | |
Income taxes | 84,891 | 10,766 | 113,983 | 136,975 | |
322,774 | 154,922 | 860,827 | 914,774 | ||
Unrealized foreign exchange | 9,096 | 14,426 | (1,545) | 25,000 | |
Revaluation loss on derivatives1 | 47,874 | — | 43,407 | — | |
Sinkhole costs | (1,247) | 7,789 | 15,235 | 7,789 | |
Revaluation loss (gain) on marketable securities | 3,449 | (554) | (453) | 1,712 | |
Caserones inventory fair value adjustment | 32,185 | — | 32,185 | — | |
Unrealized foreign exchange and trading loss on equity | — | 18,848 | — | — | |
Write-down of fixed assets | — | 3,617 | — | 3,619 | |
Gain on disposal of subsidiary | — | — | (5,718) | (16,828) | |
Other | 990 | 3,325 | (120) | 2,724 | |
Total adjustments - EBITDA | 92,347 | 47,451 | 82,991 | 24,016 | |
Adjusted EBITDA1 | 415,121 | 202,373 | 943,818 | 938,790 | |
1 Q2 2023 amounts have been adjusted from those presented in the Company's MD&A for the three and six months ended |
Adjusted earnings and adjusted earnings per share can be reconciled to the Company's Consolidated Statement of Earnings as follows:
Three months ended | Nine months ended | ||||
($thousands, except share and per share amounts) | 2023 | 2022 | 2023 | 2022 | |
Net earnings (loss) attributable to | (2,964) | (11,212) | 202,765 | 281,289 | |
Add back: | |||||
Total adjustments - EBITDA | 92,347 | 47,451 | 82,991 | 24,016 | |
Tax effect on adjustments | (20,114) | (12,012) | (23,295) | (11,323) | |
Deferred tax expense due to change in tax rate | 25,700 | — | 25,700 | — | |
Deferred tax arising from foreign exchange translation | 9,669 | 5,599 | (12,327) | (6,264) | |
Non-controlling interest on adjustments | (19,049) | 1,070 | (18,980) | 1,197 | |
Total adjustments | 88,552 | 42,108 | 54,089 | 7,626 | |
Adjusted earnings1 | 85,588 | 30,896 | 256,854 | 288,915 | |
Basic weighted average number of shares outstanding | 773,147,920 | 775,563,527 | 772,214,160 | 759,726,506 | |
Net (loss) earnings attributable to shareholders | — | (0.01) | 0.26 | 0.37 | |
Total adjustments | 0.11 | 0.05 | 0.07 | 0.01 | |
Adjusted earnings per share1 | 0.11 | 0.04 | 0.33 | 0.38 |
1 Q2 2023 amounts have been adjusted from those presented in the Company's MD&A for the three and six months ended |
Cash and All-in Sustaining Costs can be reconciled to the Company's operating costs as follows:
Three months ended | |||||||
Operations | Candelaria | Caserones | Chapada | Eagle | Neves-Corvo | Zinkgruvan | |
($000s, unless | (Cu) | (Cu) | (Cu) | (Ni) | (Cu) | (Zn) | Total |
Sales volumes | |||||||
Tonnes | 33,668 | 30,385 | 11,445 | 3,640 | 8,799 | 22,042 | |
Pounds (000s) | 74,225 | 66,987 | 25,232 | 8,025 | 19,398 | 48,594 | |
Production costs | 615,109 | ||||||
Less: Royalties and | (21,662) | ||||||
Inventory fair value | (32,185) | ||||||
561,262 | |||||||
Deduct: By-product | (216,150) | ||||||
Add: Treatment and | 56,261 | ||||||
Cash cost | 162,672 | 106,866 | 57,501 | 16,598 | 44,043 | 13,693 | 401,373 |
Cash cost per pound | 2.19 | 1.60 | 2.28 | 2.07 | 2.27 | 0.28 | |
Add: Sustaining capital | 86,693 | 28,849 | 16,716 | 4,989 | 27,357 | 12,350 | |
Royalties | — | 7,550 | 2,142 | 7,385 | 1,055 | — | |
Reclamation and | 2,349 | 1,133 | 2,141 | 2,742 | 1,462 | 1,011 | |
Leases & other | 2,841 | 11,531 | 865 | 797 | 131 | 86 | |
All-in sustaining cost | 254,555 | 155,929 | 79,365 | 32,511 | 74,048 | 27,140 | |
AISC per pound ($/lb) | 3.43 | 2.33 | 3.15 | 4.05 | 3.82 | 0.56 |
Three months ended | |||||||
Operations | Candelaria | Caserones | Chapada | Eagle | Neves-Corvo | Zinkgruvan | |
($000s, unless otherwise noted) | (Cu) | (Cu) | (Cu) | (Ni) | (Cu) | (Zn) | Total |
Sales volumes (Contained metal): | |||||||
Tonnes | 35,587 | — | 12,817 | 3,715 | 8,574 | 13,722 | |
Pounds (000s) | 78,456 | — | 28,257 | 8,190 | 18,903 | 30,252 | |
Production costs | 425,814 | ||||||
Less: Royalties and | (8,593) | ||||||
417,221 | |||||||
Deduct: By-product | (172,179) | ||||||
Add: Treatment and | 28,829 | ||||||
Cash cost | 154,633 | — | 54,147 | 8,637 | 50,888 | 5,566 | 273,871 |
Cash cost per pound | 1.97 | — | 1.92 | 1.05 | 2.69 | 0.18 | |
Add: Sustaining capital | 103,486 | — | 19,197 | 3,062 | 15,860 | 8,415 | |
Royalties | — | — | 3,055 | 5,705 | (1,213) | — | |
Reclamation and | 1,951 | — | 1,784 | 4,809 | 630 | 962 | |
Leases & other | 2,327 | — | 1,017 | 484 | 173 | 149 | |
All-in sustaining cost | 262,397 | — | 79,201 | 22,697 | 66,338 | 15,092 | |
AISC per pound ($/lb) | 3.34 | — | 2.80 | 2.77 | 3.51 | 0.50 |
Nine months ended | |||||||
Operations | Candelaria | Caserones | Chapada | Eagle | Neves-Corvo | Zinkgruvan | |
($000s, unless otherwise noted) | (Cu) | (Cu) | (Cu) | (Ni) | (Cu) | (Zn) | Total |
Sales volumes (Contained metal): | |||||||
Tonnes | 105,585 | 30,385 | 30,681 | 10,234 | 23,000 | 48,028 | |
Pounds (000s) | 232,775 | 66,987 | 67,640 | 22,562 | 50,706 | 105,883 | |
Production costs | 1,438,071 | ||||||
Less: Royalties and other | (41,717) | ||||||
Inventory fair value adjustment | (32,185) | ||||||
1,364,169 | |||||||
Deduct: By-product credits | (495,751) | ||||||
Add: Treatment and | 125,390 | ||||||
Cash cost | 507,884 | 106,866 | 165,170 | 47,228 | 128,206 | 38,454 | 993,808 |
Cash cost per pound ($/lb) | 2.18 | 1.60 | 2.44 | 2.09 | 2.53 | 0.36 | |
Add: Sustaining capital | 300,796 | 28,849 | 52,433 | 15,653 | 74,551 | 42,812 | |
Royalties | — | 7,550 | 6,394 | 17,991 | 2,868 | — | |
Reclamation and | 7,100 | 1,133 | 5,789 | 8,711 | 4,082 | 2,811 | |
Leases & other | 9,638 | 11,531 | 3,002 | 2,441 | 437 | 288 | |
All-in sustaining cost | 825,418 | 155,929 | 232,788 | 92,024 | 210,144 | 84,365 | |
AISC per pound ($/lb) | 3.55 | 2.33 | 3.44 | 4.08 | 4.14 | 0.80 | |
Nine months ended | |||||||
Operations | Candelaria | Caserones | Chapada | Eagle | Neves-Corvo | Zinkgruvan | |
($000s, unless otherwise noted) | (Cu) | (Cu) | (Cu) | (Ni) | (Cu) | (Zn) | Total |
Sales volumes (Contained metal): | |||||||
Tonnes | 113,690 | — | 33,526 | 11,188 | 25,241 | 48,049 | |
Pounds (000s) | 250,643 | — | 73,912 | 24,665 | 55,647 | 105,930 | |
Production costs | 1,210,431 | ||||||
Less: Royalties and other | (38,121) | ||||||
1,172,310 | |||||||
Deduct: By-product | (487,914) | ||||||
Add: Treatment and | 90,944 | ||||||
Cash cost | 450,858 | — | 157,456 | 7,999 | 125,889 | 33,138 | 775,340 |
Cash cost per pound | 1.80 | — | 2.13 | 0.32 | 2.26 | 0.31 | |
Add: Sustaining capital | 272,557 | — | 63,412 | 10,445 | 49,136 | 31,537 | |
Royalties | — | — | 9,161 | 24,129 | 984 | — | |
Reclamation and | 6,002 | — | 5,533 | 14,109 | 1,081 | 3,035 | |
Leases & other | 6,953 | — | 3,056 | 1,766 | 569 | 547 | |
All-in sustaining cost | 736,370 | — | 238,618 | 58,448 | 177,659 | 68,257 | |
AISC per pound ($/lb) | 2.94 | — | 3.23 | 2.37 | 3.19 | 0.64 |
Cautionary Statement on Forward-Looking Information
Certain of the statements made and information contained herein is "forward-looking information" within the meaning of applicable Canadian securities laws. All statements other than statements of historical facts included in this document constitute forward-looking information, including but not limited to statements regarding the Company's plans, prospects and business strategies; the Company's guidance on the timing and amount of future production and its expectations regarding the results of operations; expected costs; permitting requirements and timelines; timing and possible outcome of pending litigation; the results of any Preliminary Economic Assessment, Feasibility Study, or Mineral Resource and Mineral Reserve estimations, life of mine estimates, and mine and mine closure plans; anticipated market prices of metals, currency exchange rates, and interest rates; the development and implementation of the Company's Responsible Mining Management System; the Company's ability to comply with contractual and permitting or other regulatory requirements; anticipated exploration and development activities at the Company's projects; the Company's integration of acquisitions and any anticipated benefits thereof, including the Caserones transaction; and expectations for other economic, business, and/or competitive factors. Words such as "believe", "expect", "anticipate", "contemplate", "target", "plan", "goal", "aim", "intend", "continue", "budget", "estimate", "may", "will", "can", "could", "should", "schedule" and similar expressions identify forward-looking statements.
Forward-looking information is necessarily based upon various estimates and assumptions including, without limitation, the expectations and beliefs of management, including that the Company can access financing, appropriate equipment and sufficient labour; assumed and future price of copper, nickel, zinc, gold and other metals; anticipated costs; ability to achieve goals; the prompt and effective integration of acquisitions; that the political environment in which the Company operates will continue to support the development and operation of mining projects; and assumptions related to the factors set forth below. While these factors and assumptions are considered reasonable by
All of the forward-looking statements made in this document are qualified by these cautionary statements. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated, forecast or intended and readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking information. Accordingly, there can be no assurance that forward-looking information will prove to be accurate and forward-looking information is not a guarantee of future performance. Readers are advised not to place undue reliance on forward-looking information. The forward-looking information contained herein speaks only as of the date of this document. The Company disclaims any intention or obligation to update or revise forward‐looking information or to explain any material difference between such and subsequent actual events, except as required by applicable law.
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