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All dollar amounts expressed in this news release are in Canadian
dollars unless otherwise noted.
Teck Resources Limited (TSX: TCK.A and TCK.B, NYSE: TCK) announced
adjusted earnings of $1.5 billion, or $2.62 per share for 2010, up 36%
from $1.1 billion in 2009. Fourth quarter adjusted earnings increased
76% to $548 million or $0.93 per share compared to $312 million in
2009. EBITDA was $4.3 billion for the year and $1.0 billion in the
fourth quarter.
Don Lindsay, President and CEO said, "2010 was a strong year. We
are reporting record revenues, record annual operating profits and an
increase in both copper and coal production. There is further growth
ahead of us as each of Teck Coal, Andacollo, Antamina and Highland
Valley Copper increase production. Our balance sheet was significantly
strengthened as a result of a further $3.1 billion reduction in our
debt and through our refinancing we significantly reduced our interest
costs."
Highlights and Significant Items
-- We recorded record annual and record quarterly revenues of $9.3 billion and $2.8 billion, respectively. Operating profit for the year was a record $3.6 billion and cash flow from operating activities was $2.7 billion. -- Operating profit, before depreciation, for the year was $4.5 billion compared with $3.7 billion last year. Operating profit in the fourth quarter, before depreciation, was $1.4 billion compared with $1.0 billion in 2009. -- EBITDA was $4.3 billion for the year and $1.0 billion in the fourth quarter. -- Net earnings for the year were $1.9 billion compared with $1.8 billion a year ago. Net earnings in the fourth quarter were $361 million after refinancing charges compared with $411 million in 2009. -- In November we declared a 50% increase in our semi-annual dividend on our Class A common and Class B subordinate voting shares to $0.30 per share, which was paid on January 4, 2011. -- During the year our outstanding debt was reduced by $3.1 billion, which will result in annual interest savings of $225 million. -- Teck Copper: -- our copper production in 2010 rose to 313,000 tonnes from 308,000 tonnes in 2009, -- we achieved commercial production at Carmen de Andacollo's copper concentrator in October, marking the completion of project development, commissioning and operational ramp-up of the new facility. The concentrator produced 20,700 tonnes of copper in the ramp-up period from February to September, and contributed 14,100 tonnes to our copper production in the fourth quarter of 2010, and -- we commenced a feasibility study by a major international engineering company for Quebrada Blanca Phase 2, the development of a copper concentrator at this mine, with a provisional annual production capacity of 200,000 tonnes of copper. -- Teck Coal: -- our coal production in 2010 rose 22% to 23.1 million tonnes compared to 2009, -- we entered into a 10-year agreement with Canadian Pacific Railway Limited ("CP") to transport coal from our five mines in southeast British Columbia to Vancouver area ports. The commercial terms of the agreement are confidential, but include commitments by CP to provide capacity necessary for us to realize our coal growth strategy and to deliver increased production on a timely basis to our key markets, -- we obtained agreement on prices with the majority of our coal customers for the first quarter of 2011 with pricing at or above US$225 per tonne for our highest quality products. We expect our weighted average selling prices for coal in the first quarter of 2011 to be in the range of US$206 to US$211 per tonne, and -- we announced that first quarter coal sales are expected to be in the range of 5.0 to 5.5 million tonnes and planned sales for calendar 2011 to be in the range of 24.5 to 25.5 million tonnes assuming no interruption in production due to labour disturbances and expected levels of service from our rail and port service providers. On January 31, the unionized workers at the Elkview mine went on strike. We do not expect that the strike will affect our guidance for the first quarter as product inventory levels at the minesites should be sufficient to meet that target, but it is likely to affect guidance for the full year. -- Teck Zinc: -- Red Dog commenced mining the Aqqaluk deposit, completed a successful shipping season and recorded an operating profit before depreciation, amortization and price adjustments of $548 million in 2010 (compared with $402 million in 2009). -- Teck Energy: -- In December, Suncor announced an updated development schedule, subject to partner approval, for the Fort Hills oil sands projects (Teck 20%). Based on that schedule, bitumen production from the first phase of the project is expected to commence in 2016.
This news release is dated
as at February 8, 2011. Unless the context otherwise dictates, a
reference to "Teck", "the company", "us",
"we", or "our" refers to Teck and its subsidiaries.
Additional information, including our annual information form and
management's discussion and analysis for the year ended December 31,
2009, is available on SEDAR at www.sedar.com.
This document contains forward-looking statements. Please refer to the
cautionary language under the heading "CAUTIONARY STATEMENT ON
FORWARD-LOOKING INFORMATION" below.
Earnings, Adjusted Earnings and Comparative Earnings(i)
Adjusted earnings, which exclude the effect of certain transactions
described in the table below, were $548 million, or $0.93 per share, in
the fourth quarter of 2010 compared with $312 million, or $0.53 per
share last year. The higher adjusted earnings were primarily due to significantly
higher coal and copper prices and increased coal sales volumes.
Earnings attributable to our shareholders were $361 million, or $0.61
per share, in the fourth quarter compared with $411 million or $0.70
per share in the same period last year. Our fourth quarter earnings
included a $289 million after-tax charge related to the refinancing of
a portion of our debt.
Three months ended Year ended December 31 December 31 ($ in millions) 2010 2009 2010 2009 --------------------------------------------------------------------------- Earnings attributable to shareholders as reported (note 1) $ 361 $ 411 $ 1,860 $ 1,831 Add (deduct): Asset and investment sale gains (2) (137) (768) (320) Foreign exchange gains on net debt (25) (35) (65) (561) Derivative (gains) losses (86) (4) (153) 36 Refinancing costs 289 4 658 117 Asset impairment included in equity losses - 48 - 119 Asset impairment - 20 - 20 Tax items 11 - 11 (30) Loss (earnings) from discontinued operations - 5 - (81) ------------------------------- Adjusted earnings 548 312 1,543 1,131 Pricing adjustments (note 2) (38) (58) (53) (207) ------------------------------- Comparative net earnings $ 510 $ 254 $ 1,490 $ 924 ------------------------------- (1) Earnings attributable to shareholders are earning less minority interests in earnings. (2) See FINANCIAL INSTRUMENTS AND DERIVATIVES section for further information.
Our EBITDA was $1.0 billion
for the quarter and $4.3 billion for the year. After adjusting for the
amounts disclosed in the table above, adjusted EBTIDA was $1.2 billion
for the quarter and $4.0 billion for the year.
Business Unit Results
Our business unit results are presented in the tables below.
Three months ended December 31 Operating profit before depreciation and pricing Operating ($ in millions) Revenues adjustments profit --------------------------------------------------------------------------- 2010 2009 2010 2009 2010 2009 --------------------------------------------------------------------------- Copper $ 852 $ 664 $ 453 $ 368 $ 456 $ 363 Coal 1,215 810 679 372 544 219 Zinc 742 693 242 205 204 195 --------------------------------------------------------------------------- Total $ 2,809 $ 2,167 $ 1,374 $ 945 $ 1,204 $ 777 --------------------------------------------------------------------------- Year ended December 31 Operating profit before depreciation and pricing Operating ($ in millions) Revenues adjustments profit --------------------------------------------------------------------------- 2010 2009 2010 2009 2010 2009 --------------------------------------------------------------------------- Copper $ 2,610 $ 2,161 $ 1,470 $ 1,031 $ 1,289 $ 1,002 Coal 4,351 3,507 2,248 1,795 1,690 1,278 Zinc 2,378 2,006 691 511 576 454 --------------------------------------------------------------------------- Total $ 9,339 $ 7,674 $ 4,409 $ 3,337 $ 3,555 $ 2,734 ---------------------------------------------------------------------------
Revenues
Revenues from operations were a record $2.8 billion in the fourth
quarter compared with $2.2 billion a year ago. Revenues from our copper
business unit increased by $188 million, primarily as a result of
copper prices averaging 30% higher than the same period a year ago.
Coal revenues rose by $405 million to $1.2 billion in the fourth
quarter, which reflected significantly higher coal prices and an 11%
increase in sales volumes. Revenues from our zinc business unit in the
fourth quarter increased by $49 million compared with a year ago as a
result of slightly higher zinc sales volumes and additional silver
by-product revenues. The effect of the weaker US dollar partly offset
the impact of higher commodity prices in each of our business units.
Copper Business Unit
Operating profit from our copper business unit was $456 million in the
fourth quarter compared with $363 million in 2009. Copper prices rose
strongly in the quarter and closed the year at US$4.40 per pound. As a
result of the rising copper prices, pre-tax positive price adjustments
were $75 million in the fourth quarter compared with $62 million in
2009. Operating profit, before depreciation and pricing adjustments,
was $453 million in the fourth quarter compared with $368 million a
year ago primarily as a result of the significantly higher average
copper prices. Carmen de Andacollo achieved commercial production from
its new copper concentrate plant on October 1, and for the year
contributed a total of 34,800 tonnes of copper, consisting of 20,700
tonnes produced in the pre-commercial start-up phase and 14,100 tonnes
of new copper production in the fourth quarter. This additional new
production was partially offset by lower production from Highland
Valley Copper due to lower ore grades.
Coal Business Unit
Operating profit from our coal business unit was $544 million in the
fourth quarter compared with $219 million last year primarily due to
significantly higher coal prices and increased sales volumes. This was
partially offset by the effect of a weaker US dollar and higher
operating expenses. Coal prices averaged US$200 (C$204) per tonne in
the quarter compared with US$139 (C$151) per tonne in the same period a
year ago. Demand from our customers was strong during the fourth
quarter and sales volumes increased by 11% compared with the fourth
quarter of 2009, reflecting our expanded production levels. However,
sales in the quarter were lower than expected due to extremely cold
weather during the month of November, which disrupted coal handling at
the Vancouver ports as well as at our Greenhills mine. Unit cost of
product sold, before transportation and depreciation charges, was $54
per tonne compared with $52 per tonne in the same quarter a year ago
due primarily to higher strip ratios, increased diesel costs, and
higher external contractor costs for initiatives undertaken to maximize
production. Transportation costs were also higher due to a customer
sales mix that included a higher proportion of sales inclusive of ocean
freight. In addition, rail surcharges increased due to higher diesel
prices and rail detention charges as a result of the coal handling
problems in November.
Zinc Business Unit
Operating profit from our zinc business unit was $204 million in the
fourth quarter, similar to $195 million in the same period a year ago.
We recorded positive price adjustments of $12 million at Red Dog in the
fourth quarter compared with positive pricing adjustments of $28
million in the same period a year ago. Operating profit, before
depreciation and pricing adjustments, was $242 million in the fourth
quarter compared with $205 million a year ago. Slightly higher zinc
sales volumes and increased silver by-product revenues were partially
offset by a planned 32-day maintenance shutdown of Trail's Kivcet lead
smelter and a $7 million reduction in surplus power profits as a result
of the sale of a one-third interest in the Waneta Dam in the first
quarter of 2010. The Kivcet shutdown was completed on time and on
budget, incurring repair and maintenance costs of $23 million and
capital expenditures of $21 million.
Average Prices and Exchange Rates(i)
Three months ended Year ended December 31 December 31 2010 2009% Change 2010 2009% Change --------------------------------------------------------------------------- Copper (LME Cash - US$/pound) 3.92 3.01 +30% 3.42 2.34 +46% Coal (realized - US$/tonne) 200 139 +44% 181 157 +15% Zinc (LME Cash - US$/pound) 1.05 1.00 +5% 0.98 0.75 +31% Silver (LME PM fix - US$/ounce) 27 18 +50% 20 15 +33% Molybdenum (published price - US$/pound) 16 12 +33% 16 11 +45% Lead (LME Cash - US$/pound) 1.08 1.04 +4% 0.97 0.78 +24% Cdn/U.S. exchange rate (Bank of Canada) 1.01 1.06 -5% 1.03 1.14 -10% (i) Except for coal prices, the average commodity prices disclosed above are based on published benchmark prices and are provided for information only. Our actual revenues are determined using commodity prices and other terms and conditions specified in our various sales contracts with our customers. The molybdenum price is the price published in Platts Metals Week.
Sales of metals in
concentrate are recognized in revenue on a provisional pricing basis
when title transfers and the rights and obligations of ownership pass
to the customer, which usually occurs upon shipment. However, final
pricing is typically not determined until a subsequent date, usually in
the following quarter. Accordingly, revenue in a quarter is based on
actual prices for sales settled in the quarter and ongoing pricing
adjustments from sales that are still subject to final pricing. These
pricing adjustments result in additional revenues in a rising price
environment and reductions to revenue in a declining price environment.
The extent of the pricing adjustments also takes into account the
actual price participation terms as provided in certain concentrate
sales agreements. In the fourth quarter of 2010, we had positive
pricing adjustments of $64 million ($38 million after non-controlling
interests and taxes) compared with $90 million ($58 million after
non-controlling interests and taxes) in the fourth quarter last year.
This amount consists of $37 million ($23 million after-tax) on sales
from the previous quarter and $27 million ($15 million after-tax) on
sales that were initially recorded at the average price for the month
of shipment and subsequently revalued at quarter end forward prices.
The table below outlines our outstanding concentrate receivable
positions, which were provisionally valued at September 30, 2010, the
pounds of metal included in the September 30 receivables and settled in
the fourth quarter, and our receivable positions provisionally valued
at December 31, 2010.
Outstanding at Settled during Outstanding at September 30, the fourth December 31, 2010 quarter 2010 ------------------------------------------------- (pounds in millions) Pounds US$/lb Pounds US$/lb Pounds US$/lb --------------------------------------------------------------------------- Copper 93 3.65 81 3.90 98 4.39 Zinc 145 0.99 136 1.06 140 1.11 Lead 72 0.92 72 1.08 2 1.17 ---------------------------------------------------------------------------
Cash Flow from Operations
Cash flow from operations, before changes in non-cash working capital
items, was $900 million in the fourth quarter compared with $673 million
a year ago. The increase in cash flow from a year ago was due to strong
operating cash flow from our copper and coal business units, as a
result of significantly higher copper and coal prices.
Changes in non-cash working capital items provided a source of cash of
$59 million in the fourth quarter compared with $24 million in the same
period a year ago. During the fourth quarter of 2010, we sold a portion
of our coal receivables, which reduced our working capital by
approximately $150 million at the end of the year.
BUSINESS UNIT RESULTS
The table below shows our share of production and sales of our major
commodities.
Units (000's) Production Sales --------------------------------------------------------------------------- Fourth Year-to- Fourth Year-to- Quarter date Quarter date --------------------------------------------------- 2010 2009 2010 2009 2010 2009 2010 2009 --------------------------------------------------------------------------- Principal products Copper (notes 1 & 2) Contained in concentrate tonnes 60 53 216 203 55 50 209 205 Cathode tonnes 25 26 97 105 26 27 101 100 --------------------------------------------------- 85 79 313 308 81 77 310 305 --------------------------------------------------- Coal tonnes 6,028 5,354 23,109 18,930 5,950 5,368 23,167 19,767 Zinc Contained in concentrate tonnes 153 189 645 711 241 242 696 681 Refined tonnes 70 66 278 240 68 64 274 243 Other products Lead Contained in concentrate tonnes 17 36 110 132 41 46 130 119 Refined tonnes 13 16 72 73 13 17 70 73 Molybdenum Contained in concentrate pounds 2,665 2,204 8,557 7,798 2,264 2,261 8,060 7,979 --------------------------------------------------------------------------- (1) We include 100% of production and sales from our Highland Valley Copper, Quebrada Blanca and Carmen de Andacollo mines in our production and sales volumes, even though we own 97.5%, 76.5% and 90%, respectively, of these operations, because we fully consolidate their results in our financial statements. We include 22.5% of production and sales from Antamina, representing our proportionate equity interest in Antamina. (2) Includes pre-commercial production and sales volumes from Carmen de Andacollo prior to September 30, 2010. Production of copper contained in concentrate during the pre-commercial start-up period was 20,700 tonnes. Pre-commercial sales volumes of copper contained in concentrate were 16,600 tonnes. The proceeds from these sales were not recognized in revenue, but were netted against capital costs, less related production costs.
REVENUES AND OPERATING
PROFIT QUARTER ENDED DECEMBER 31
Our revenue, operating profit before depreciation and pricing
adjustments and operating profit by business unit for the quarter ended
December 31 are summarized in the table below:
Operating profit before depreciation, amortization Operating and pricing profit ($ in millions) Revenues adjustments (note 1) --------------------------------------------------------------------------- 2010 2009 2010 2009 2010 2009 --------------------------------------------------------------------------- Copper Highland Valley Copper $ 249 $ 239 $ 126 $ 124 $ 144 $ 138 Antamina 198 204 130 127 149 149 Quebrada Blanca 196 166 108 97 73 66 Carmen de Andacollo 166 30 66 10 70 1 Duck Pond 43 25 23 10 20 9 --------------------------------------------------------------------------- 852 664 453 368 456 363 Coal (note 2) 1,215 810 679 372 544 219 Zinc Red Dog 450 434 215 196 212 200 Trail 356 319 31 16 19 3 Other 13 11 2 3 2 2 Inter-segment sales (77) (71) (6) (10) (29) (10) --------------------------------------------------------------------------- 742 693 242 205 204 195 --------------------------------------------------------------------------- TOTAL $ 2,809 $ 2,167 $ 1,374 $ 945 $ 1,204 $ 777 --------------------------------------------------------------------------- (1) After depreciation, amortization and pricing adjustments. (2) Our coal business unit represents our interest in six operating mines. We wholly own the Fording River, Coal Mountain, Line Creek and Cardinal River mines, have a 95% partnership interest in the Elkview mine and an 80% joint venture interest in the Greenhills mine.
REVENUES AND OPERATING
PROFIT TWELVE MONTHS ENDED DECEMBER 31
Our revenue, operating profit before depreciation and pricing
adjustments and operating profit by business unit are summarized in the
table below:
Operating profit before depreciation, amortization Operating and pricing profit ($ in millions) Revenues adjustments (note 1) --------------------------------------------------------------------------- 2010 2009 2010 2009 2010 2009 --------------------------------------------------------------------------- Copper Highland Valley Copper $ 872 $ 838 $ 480 $ 338 $ 442 $ 408 Antamina 674 634 435 353 443 427 Quebrada Blanca 697 484 406 259 285 135 Carmen de Andacollo 228 101 91 46 79 5 Duck Pond 139 104 58 35 40 27 --------------------------------------------------------------------------- 2,610 2,161 1,470 1,031 1,289 1,002 Coal (note 2) 4,351 3,507 2,248 1,795 1,690 1,278 Zinc Red Dog 1,121 986 548 402 505 399 Trail 1,447 1,190 134 122 85 70 Other 40 50 7 6 7 4 Inter-segment sales (230) (220) 2 (19) (21) (19) --------------------------------------------------------------------------- 2,378 2,006 691 511 576 454 --------------------------------------------------------------------------- TOTAL $ 9,339 $ 7,674 $ 4,409 $ 3,337 $ 3,555 $ 2,734 --------------------------------------------------------------------------- (1) After depreciation, amortization and pricing adjustments. (2) Our coal business unit represents our interest in six operating mines. We wholly own the Fording River, Coal Mountain, Line Creek and Cardinal River mines, have a 95% partnership interest in the Elkview mine and an 80% joint venture interest in the Greenhills mine.
COPPER
Highland Valley Copper (97.5%)
Operating results at the 100% level are summarized in the following
table:
Three months ended Year ended December 31 December 31 2010 2009 2010 2009 --------------------------------------------------------------------------- Tonnes milled (000's) 11,112 10,243 42,488 42,888 Copper Grade (%) 0.25 0.34 0.27 0.32 Recovery (%) 84.5 89.2 86.3 87.1 Production (000's tonnes) 23.9 30.6 98.5 118.2 Sales (000's tonnes) 23.0 28.6 97.8 118.2 Molybdenum Production (million pounds) 2.0 2.1 6.9 6.6 Sales (million pounds) 1.8 2.1 6.7 6.6 Cost of sales ($ millions) Operating costs $ 86 $ 79 $ 315 $ 334 Distribution costs $ 9 $ 8 $ 33 $ 31 Depreciation and amortization $ 10 $ 14 $ 82 $ 65 Operating profit summary ($ millions) Before depreciation, amortization and price adjustments $ 126 $ 124 $ 480 $ 338 Price adjustments - positive (negative) 28 28 44 135 Depreciation and amortization (10) (14) (82) (65) --------------------------------------------------------------------------- After depreciation, amortization and price adjustments $ 144 $ 138 $ 442 $ 408 ---------------------------------------------------------------------------
Highland Valley Copper's
fourth quarter operating profit, before depreciation and pricing
adjustments of $126 million was similar to last year. Copper sales
volumes in the fourth quarter were 20% lower than the same period a
year ago, as a result of lower production levels as further described
below. The lower copper sales were partially offset by significantly
higher copper prices in the period compared with the fourth quarter of
2009.
Copper production of 23,900 tonnes was 22% lower than the same period
last year primarily due to geotechnical constraints in the Valley pit
and lower grade ore sources available. Highland Valley Copper is
continuing to execute push backs of both the east and west walls of the
Valley pit to access additional ore sources. The east wall
stabilization project will be completed in 2011 at an estimated capital
cost of $48 million. This includes amounts for remaining waste
stripping of the weak clay layers, placement of a stabilization
buttress and completion of a comprehensive dewatering system.
A new life of mine plan was developed, incorporating a major pushback
and extension of the Lornex pit and an extension of the lower grade
Highmont pit. The new plan adds approximately 200 million tonnes of ore
reserves and five years to the production plan. The expected mine life
of Highland Valley now extends into 2025, assuming additional permit
amendments are approved. Lornex has slightly lower copper grades than
the remaining reserves in the Valley pit, and is anticipated to provide
30% of the feed to the mill after pre-stripping is complete in 2013.
Overall annual production is expected to range from 90,000 tonnes to
135,000 tonnes of contained copper for an average of 115,000 tonnes a
year during the remaining mine life, driven primarily by the available
grades of copper ore. Further engineering studies have commenced to
consider possible recovery and throughput improvements in the mill
through modernization, debottlenecking and other enhancements.
Highland Valley's copper production in 2011 is anticipated to be
similar to 2010. Molybdenum production is expected to increase to 9
million pounds as a result of higher grades in the feed to the mill.
Antamina (22.5%)
Operating results at the 100% level are summarized in the following
table:
Three months ended Year ended December 31 December 31 2010 2009 2010 2009 --------------------------------------------------------------------------- Tonnes milled (000's) Copper-only ore 5,895 3,612 18,996 15,632 Copper-zinc ore 3,452 5,351 17,511 17,942 --------------------------------------------------------------------------- 9,347 8,963 36,507 33,574 Copper (note 1) Grade (%) 1.06 1.15 1.00 1.16 Recovery (%) 85.3 79.6 82.2 81.2 Production (000's tonnes) 83.7 81.6 301.5 316.1 Sales (000's tonnes) 66.9 81.9 289.4 323.5 Zinc (note 1) Grade (%) 2.59 3.17 2.62 3.00 Recovery (%) 85.5 86.3 84.8 84.4 Production (000's tonnes) 77.4 145.7 386.2 456.3 Sales (000's tonnes) 87.5 141.2 409.4 436.2 Molybdenum Production (million pounds) 3.2 0.8 7.5 5.5 Sales (million pounds) 1.9 0.7 6.1 6.0 Cost of sales (US$ millions) Operating costs $ 119 $ 120 $ 521 $ 431 Distribution costs $ 23 $ 31 $ 98 $ 104 Royalties and other costs (note 2) $ 18 $ 30 $ 184 $ 141 Depreciation and amortization $ 31 $ 25 $ 100 $ 99 Operating profit summary (our 22.5% share) ($ millions) Before depreciation, amortization and price adjustments $ 130 $ 127 $ 435 $ 353 Price adjustments - positive (negative) 24 28 29 97 Depreciation and amortization (5) (6) (21) (23) --------------------------------------------------------------------------- After depreciation, amortization and price adjustments $ 149 $ 149 $ 443 $ 427 --------------------------------------------------------------------------- (1) Copper ore grades and recoveries apply to all of the processed ores. Zinc ore grades and recoveries apply to copper-zinc ores only. (2) In addition to royalties paid by Antamina, we also pay a royalty in connection with the acquisition of our interest in Antamina equivalent to 7.4% of our share of cash flow distributed by the mine.
Our 22.5% share of
Antamina's operating profit, before depreciation and pricing
adjustments, of $130 million in the fourth quarter was similar to a
year ago. Significantly higher copper prices and an increased
contribution from molybdenum and silver revenues offset the lower sales
volumes of copper and zinc, which declined 18% and 38% respectively,
compared with the same period a year ago. This decline is due to the
complex nature of the ore body, which contains a variety of ore types.
Tonnes milled in the fourth quarter increased by 4% compared with a
year ago. The mix of mill feed in the fourth quarter was 63%
copper-only ore and 37% copper-zinc ore compared with 40% and 60%,
respectively, in the same period a year ago. Copper production of
83,700 tonnes was similar to a year ago. Zinc production declined by
approximately 50% to 77,400 tonnes, due principally to lower specific
zinc ore grades and a reduction of copper-zinc ores processed in the
quarter.
The forecast cost of the Antamina expansion project remains at US$1.3
billion. The project is more than 40% complete and is expected to
increase ore throughput to 130,000 tonnes per day. The expansion is
expected to increase both copper and zinc annual production by 30%,
with increased mill throughput starting in the first quarter of 2012.
Antamina's production in 2011 is anticipated to be approximately
350,000 tonnes of copper and 200,000 tonnes of zinc, as more
copper-only ores and less copper-zinc ores are mined and processed.
Quebrada Blanca (76.5%)
Operating results at the 100% level are summarized in the following
table:
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