2012 Half Year Results Presentation - Antofagasta plc

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Copper concentrates market• The projected deficit in the concentrates market has beenexacerbated during the year, mainly supported by productionproblems and disruptions which continue to impact theavailability of concentrates. This deficit trend is expected toextend until 2015.Market balance and terms• In this environment the spot market has remained tight andfavourable to producers with TC & RCs in the range of 20-30US$/DMT and 2-3 US¢/lb for clean quality concentrates.• Market fundamentals are expected to remain strong, supportedby projected increases in smelting capacity in Asia that willabsorb next year’s growth in concentrates production.• Annual negotiations between smelters and miners were settledat different T/C & R/C’s depending on the contractualconditions, the geographic area and the quality of theconcentrates. Most of the agreements were between 57-60US$/DMT and 6/6.35 US¢/lb.• Mid-year negotiations are reported to be agreed at similarlevels to that of the annual contracts.44
Molybdenum marketMolybdenum price and market balance• Estimates are for a market surplus of 5 to 10 millionpounds in <strong>2012</strong>.o Demand growing only at 0.6% y/y worldwideaffected by the world economic slowdown.o Supply is performing well with increasedproduction from both by-product and primarymines.• Molybdenum price started strongly during the first twomonths of the year (around 14 US$/lb) and from thenuntil August there has been a steady decline to levelsbelow 12 US$/lb in line with demand construction in theEurozone and an overstock in China.• The price correction is putting pressure on small anduncompetitive mines in China and also on the highercost mines in the western world.• Market consensus is that price will remain trading in the9 – 13 US$/lb range for the balance of <strong>2012</strong>.45
Page 1: 2012 Half Year Results Presentation
Page 4 and 5: Operational Results
Page 6 and 7: Esperanza• H1 2012 production of
Page 8 and 9: Pricing environment and outlook500L
Page 10 and 11: Financial highlights2012 H1 2011 H1
Page 12 and 13: Net income reconciliationNet income
Page 14 and 15: Consistently strong capitalreturnsD
Page 16 and 17: Growth opportunitiesGroup explorati
Page 18 and 19: Centinela Mining District(formerlyS
Page 20 and 21: Los Pelambres• Total mineral reso
Page 22 and 23: Conclusion• Strong operational pe
Page 24 and 25: Brief History1888Antofagasta Railwa
Page 26 and 27: Our business and strategy3. Growth
Page 28 and 29: Chile: OperationsGeographical locat
Page 30 and 31: Debt analysis (US$mUS$m)2,366492965
Page 32 and 33: Production and realisedprices analy
Page 34 and 35: Purchased ore2%Spare parts5%Sulphur
Page 36 and 37: Cash cost analysis2011 H1 vs. 2012
Page 38 and 39: Realised pricesand mark-toto-market
Page 40 and 41: Operations and projectsLos Pelambre
Page 42 and 43: Chile’s Antofagasta RegionTranspo
Page 46 and 47: Reserves and resources(at 31 Decemb
Page 48 and 49: Antofagasta contactsLondon(Antofaga

2012 Half Year Results Presentation - Antofagasta plc

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