Antofagasta PLC
Antofagasta has announced today its half year results for the six months ended 30 June 2012.

Please click on the following link to access the announcement.

http://press.antofagasta.co.uk/press/Aplc2012Halfyearlyreport20120829.pdf This press release will be available for download from this link for 3 days and will permanently be available on the companys website http://www.antofagasta.co.uk from today. A summary of the release is set out below.


SIX MONTHS TO 30 JUNE 2012 2011 % Change
Group revenue US$’m 3,160.8 3,054.3 3.5%
EBITDA US$’m 1,841.4 1,946.7 (5.4%)
Earnings per share cents 65.5 70.6 (7.2%)
Net cash at period end (1) US$’m 1,344.8 686.7 95.8%
Dividend per share cents 8.5 8.0 6.3%
Average LME copper price (per pound) cents 367.3 426.3 (13.8%)
Group copper production ‘000 tonnes
336.0
288.5 16.5%
Group copper sales volumes ‘000 tonnes
322.2
289.5 11.3%
Group weighted average cash costs - net of by-product credits (2) cents
98.9
105.6 (6.3%)
Group weighted average cash costs - excluding by-product credits (2) cents
160.8
157.8 1.9%
Group gold production ‘000 ounces
136.1
70.7 92.5%
Group molybdenum production ‘000 tonnes
6.5
4.8 35.4% (1) Cash refers to the total of cash, cash equivalents and liquid investments, as analysed in Note 23 to the half yearly financial report. (2) Cash cost is a method used by the mining industry to express the cost of production in cents per pound of copper, and is further explained in Note 30(b(iii)) to the half yearly financial report.
* Copper production up by 16.5% to 336,000 tonnes, predominantly due to increased production from Esperanza, which had commenced operation at the start of 2011, as well as increases at Los Pelambres and El Tesoro.

Gold production almost doubled to 136,100 ounces, again due to the increase in Esperanza production. * Group forecast production for the full year remains at approximately 700,000 tonnes of copper, as well as 280,000 ounces of gold and 11,000 tonnes of molybdenum. * Revenue increased by 3.5% to US$3,160.8 million, with the increased production volumes able to offset the decrease in average market copper prices. * Group net cash costs down 6.3% to 98.9 cents per pound, mainly due to the increased level of low net cash cost production from Esperanza.

Significant gold by-product credits resulted in net cash costs of 60.1 cents per pound in H1 2012 at Esperanza, making it the lowest cost operation of the Group.

Group cash costs before by-product credits remained relatively stable at 160.8 cents per pound. * Interim ordinary dividend of 8.5 cents, representing a 6.3% increase on 2011.

This reflects the Group’s policy of paying ordinary dividends which can be maintained or progressively increased through the economic cycle.

As in previous years, the appropriate overall payout level for the year, including any special dividends, will be determined at the year-end.

* Continued progress in optimising the reliability and performance of Esperanza, with two main areas of focus – the tailings thickeners and the capacity of the grinding line.

Esperanza now represents 20% of Group copper production and 27% of net income, compared with 10% and 7% respectively in the first half of 2011. * Antucoya project development continues, with all of the main EPC (Engineering, procurement and construction) contracts having now been executed and Marubeni Corporation now a 30% partner in the project following the closing of that transaction on 31 July 2012.

* Centinela Mining District feasibility study progressing.

The feasibility study now envisages a phasing of the development of the District, with an initial focus on the Esperanza Sur (formerly known as Telégrafo) sulphide and Encuentro (formerly known as Caracoles) oxide projects to be followed by the Encuentro sulphide project.

This is supported by a significant exploration and drilling programme in this highly prospective mining district to further increase minerals resources and identify additional oxide and sulphide prospects. * Pre-feasibility studies for the Los Pelambres development project and the Twin Metals project continue to advance.

With world class mineral resources underpinning both projects, the long-term growth potential from both remains excellent.


Diego Hernandez, Chief Executive Officer of Antofagasta Minerals S.A.

commented: “The Group’s performance in the first half of 2012 has underlined the quality of the Group’s asset base.

We have continued to deliver strong volume growth, with copper production increasing by 16.5% to 336,000 tonnes, and gold production almost doubling to 136,100 ounces.

These increases are primarily due to increased production from Esperanza, which had been ramping-up during the first half of 2011, along with continued strong performance from our other existing operations.

This has allowed us to generate increased revenues of US$3,160.8 million, despite a decrease in average copper market prices.

This increase in low-cost production from Esperanza has also allowed us to maintain a relatively stable cash cost position, within the context of an industry environment which remains tight.

We have also continued to make good progress with our strong organic pipeline, predominantly within Chile, which has the potential to significantly increase the scale of the Group over the course of this decade. I am delighted to have taken on the role of Chief Executive Officer of Antofagasta Minerals S.A.

from 1 August 2012.

I am looking forward to helping the Group to realise the great potential from its current operations and strong pipeline of growth projects.”
Enquiries
London
Investor relations - Antofagasta plc Tel: +44 20 7808 0988 www.antofagasta.co.uk
Hussein Barma - Philip Holden - Media enquiries - Bankside Consultants Tel: +44 20 7367 8871
Simon Rothschild – Santiago Antofagasta Minerals S.A. Tel: +562 798 7145 Alejandro Rivera - Eduardo Tagle -
Unsubscribe from this newsletter