Annual Report 2003 - Antofagasta plc

Notes to the Financial Statements2 Segmental Information (continued)b) Turnover by operation (continued)Notes to turnover by operationi) Inter-segmental salesTurnover from Railway and other transport services is stated after eliminating inter-segmental sales to the mining divisionof US$5.2 million (2002 – US$4.9 million).ii) Los Pelambres turnover by type of metalLos Pelambres produces and sells molybdenum concentrate. It is also credited for the gold and silver content in the copperconcentrate it sells. Turnover by type of metal at Los Pelambres is analysed below. El Tesoro and Michilla do not haveby-products from their copper cathode operations.2003 2002US$m US$mCopper 620.5 499.3Molybdenum 105.4 65.3Gold and silver 11.3 12.1737.2 576.7iii) Water concession (acquisition)Turnover from the water concession represents three days of operations from 29 December to 31 December 2003(see Note 23).iv) Provisional pricingCopper concentrate agreements generally provide for provisional pricing at the time of shipment with final pricingsettlement based on the average LME copper price for specified future periods. Copper revenues on provisionally pricedtonnages are adjusted monthly until final settlement. Sales volumes are also adjusted on the final metallurgical contentof the concentrate.ANTOFAGASTA PLC Annual Report and Financial Statements 2003Revenues in the year to 31 December 2003 included positive adjustments to sales of concentrates open at 31 December2002 totalling US$8.8 million. Revenues in the year to 31 December 2002 included positive adjustments to sales ofconcentrates open at 31 December 2001 totalling US$10.5 million.At 31 December 2003, copper sales totalling 80,900 tonnes remained to be finally priced, and were recorded at that dateat an average price of 91.6 cents. At 31 December 2002, copper sales totalling 87,800 tonnes remained to be finally priced,and were recorded at that date at an average price of 70.5 cents.v) Commodity hedgingDetails of commodity hedging and the impact on turnover are given in Note 18(c).58