Codelco Financial Results 2013 · 2014. 3. 31. · Claudio Olguín, General Manager at Ministro...
Transcript of Codelco Financial Results 2013 · 2014. 3. 31. · Claudio Olguín, General Manager at Ministro...
Codelco Financial Results20132013Thomas Keller L. CEO
Iván Arriagada H.Vice-President, Administration & Finance
Press ConferencePress Conference 28 March 2014
Accident Rate 2013
A id t F R t E l & C t t E l & C F li i
7
8
12
Accident Frequency Rate – Employees & Contractors (Lost Time Incidents / Million hours worked)
Employee & Contractor Fatalities(Fatal Accidents)
5
6
7
8
10
2
3
4
4
6
1,35 1,26
0
1
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
0
2
000
001
002
003
004
005
006
007
008
009
010
011
012
013
2 2 2 2 2 2 2 2 2 2 2 2 2 2 20 20 20 20 20 20 20 20 20 20 20 20 20 20
• Accident Frequency rate during this period was 1.26.U f t t l th 4 f t liti 3 t t d 1 l• Unfortunately, there were 4 fatalities, 3 contractors and 1 employee.
• In December the Health and Safety Structural Project implementation was completed. A corporate audit was conducted which showed an average92 per cent compliance in each key point.
• For 2014, key points shall be the implementation of critical risk controls identified at Codelco, in addition to work in Contractor and Subcontractorcompanies, through Occupational Health and Safety Standards.
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Highlights 2013
• New Division: On 1st January Minera Gaby subsidiary became the new Gabriela Mistral Division.
• Change of Executives: In April new managers assumed positions at three North District divisions: Juan Medel, General Manager at Radomiro Tomic;Claudio Olguín General Manager at Ministro Hales and Óscar Jiménez General Manager at Gabriela Mistral In December two new vice presidentsClaudio Olguín, General Manager at Ministro Hales, and Óscar Jiménez, General Manager at Gabriela Mistral. In December two new vice-presidentsassumed positions: Jaime Pérez de Arce, Human Resources and Marcelo Villouta, North Operations, replacing Sebastián Conde and Julio Aranis,respectively.
• Employee Strike: There was a 7-day strike at Radomiro Tomic Division at the end of March; on 9 April another 24-hour strike hit all Codelco operations. InSeptember, after a 14-day legal strike at Salvador Division, a collective agreement was signed that benefits 1,122 employees.
• Production: During the first quarter, there was a 20-day port strike, delaying 60,000 tonnes of copper shipments, which were shipped over the followingmonths. During the second half of the year, Ministro Hales Division produced 30,000 tonnes of refined copper, which were processed at ChuquicamataDivision plants.
• Capitalisation: In July, the Government decided to raise capital charged to the 2012 retained earnings from Anglo American Sur: USD 1 billion and inD b th it li ti f USD 1 billi l th i dDecember another capitalisation for USD 1 billion was also authorized.
• Corporate Governance: In May, President Sebastián Piñera appointed Blas Tomic Errázuriz as a new Codelco director and reappointed Gerardo JofréMiranda for a new period; he was also ratified as Chairman of the Board. Both directors were appointed for a 4-year period until May 2017.
• International Bonds : In August, Codelco issued USD 750 million in 10-year bonds, with annual coupon of 4.5 % and annual yield of 4.517%. Subsequentlyin October the Company issued USD 950 million in 30 year bonds with annual coupon of 5 625 % and annual yield of 5 775%in October, the Company issued USD 950 million in 30-year bonds, with annual coupon of 5.625 % and annual yield of 5.775%.
• Energy: In April, Codelco and GNL Mejillones agreed on a contract to use the Natural Liquefied Gas Regasification Terminal at Mejillones.
In March, Codelco successfully completed its ERNC Credit Tender Process for the 2013-2017 period, fully complying with ERNC legal requirements. Thecontracts were awarded to Norvind and Arauco.
I A t th P El i S l th l t i l t t t d ti it id l t G b i l Mi t l Di i i f it l t i iIn August, the Pampa Elvira Solar thermoelectric plant started operations, it provides clean energy to Gabriela Mistral Division for its electrowinningprocesses.
In 2013, the Luz Minera gas plant began its Environmental Impact Assessment, project located in Mejillones.
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Key Events 2013 • Investments & Projects: Progress of structural growth projects in 2013 was as follows:
• Ministro Hales: successful start-up of mine and concentrator plant. The Roaster Plant started initial load operations at the end of 2013. Totalprogress was 99.9 %.
• New El Teniente Mine Level: Overall progress was 20.2% in its implementation phase, which consists of building the primary mine tunnels,ventilation adits, development of mine interior and Maitenes – Confluencia road.
• Chuquicamata Underground Mine: continued building main tunnels, and ventilations shafts, air extraction shafts and work inside mine, which arepart of permanent early works; total progress was 72.7 %.
• Andina Expansion 244: Environmental Impact Assessment is still being processed. On 16 December Codelco asked the Environmental AssessmentS i (SEA) t t d d i d t b it Add d til 31 J l 2014Service (SEA) to extended period to submit Addendum until 31 July 2014.
• RT Sulphide Expansion: Environmental Impact Assessment is still being processed; submitted to SEA in the II Region of Antofagasta.
• New uses for copper : In September, Codelco and the Ministry of Health delivered 70 complete modules equipped with antimicrobial copper at the intensivecare units at the former Santiago Posta Central. Also during this period the Intensive Care Unit at Roberto del Río Children’s Hospital was completed; 6 roomsand 2 ICU rooms were equipped with copper touch surfacesand 2 ICU rooms were equipped with copper touch surfaces.
In March, Codelco and Celulosa Arauco launched a new product that uses the antimicrobial properties of copper: Vesto melamine. In August, Codelco andTextil Monarch, launched launched antimicrobial copper clothes for Crystal Skin Children.
In October, antimicrobial copper was incorporated in one of the Valparaíso metro trains, which is a pilot plan to test this technology.
In December the Company announced an alliance with Mayo Clinic (USA) in order to conduct a study of orthopaedic implants treated with copper.
• Sustainability and CSR : Codelco announced it would invest more than USD 1 billion in its smelters, to adapt them to the new environmental regulations inthis zone.
Codelco promoted a new Children’s Symphony Orchestra in Diego de Almagro. This initiative is similar to those implemented in Los Andes, Mejillones and TilTilTil.
For the sixth consecutive year, Codelco awarded 2,150 higher education scholarships to the children of contractors.
In January, Codelco received the Sello Pro Pyme award, given by the Ministry of Economy to companies that have committed to pay its small and medium-sized enterprise suppliers within a period of 30 days. Codelco has more than 9,500 suppliers, 43% are SMEs.
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Performance2012 vs. 2013
2013 2012 Var Var (%)
Producción de cobre ‐ miles de tmf 1.792 1.758 34 2%Own Copper Production (1,000 tonnes)
Producción de cobre Divisiones ‐ miles de tmf 1.622 1.647 ‐25 ‐2%
Producción de molibdeno Divisiones ‐ miles de tmf 23 20 3 17%
Producción de ácido Fundiciones ‐ miles de ton 2.767 3.130 ‐363 ‐12%
Producción de plata (*) ton 290 284 6 2%
Own Copper Production - Divisions (1,000 tonnes)
Molybdenum Production (1,000 tonnes)Acid Production – Smelters (1,000 tonnes)Silver Production (*) (tonnes)Producción de plata (*) ‐ ton 290 284 6 2%
Producción de oro (*) ‐ ton 2,3 2,4 ‐0,1 ‐3%
Ventas de cobre (**) ‐ miles de tmf 1.723 1.740 ‐16 ‐1%
cobre de minerales propios 1.599 1.602 ‐3 0%
( ) ( )Gold Production (*) (tonnes)
Copper Sales (**) (1,000 tonnes)Own copper p p
cobre de minerales de terceros 124 137 ‐13 ‐9%
Ventas de molibdeno ‐ miles de tmf 22 19 3 14%
P i b BML ( l/lb) 332 1 360 6 28 5 8%
Third-party copper
Molybdenum Sales – (1,000 tonnes)
LME copper prices (cl/lb)Precio cobre BML (cl/lb) 332,1 360,6 ‐28,5 ‐8%
Precio molibdeno Metals Week (US$/kg) 22,7 28,1 ‐5,4 ‐19%
Precio Acido Sulfúrico (US$/ton) 92 147 ‐55 ‐38%Precio Oro (US$/oz) 1.410 1.668 ‐259 ‐16%
Precio Plata (US$/oz) 24 31 ‐7 ‐24%
LME copper prices (cl/lb)Metals Week molybdenum prices (US$/kg) Sulphuric acid prices (US$/ton)Gold prices (US$/oz) Silver prices (US$/oz) Exchange rate ( $/ )
Tipo de cambio 495 487 8 2%
IPC 109,9 108,0 1,9 2%
(*) Plata y Oro contenidos en barros anódicos, concentrados, ánodos y blister
(**) Incluye minerales de terceros
Exchange rateCPI
(*) Gold and silver contained in anode slimes, concentrates, anodes and blister(**) Includes third-party mineral ore
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Copper Price Chart (c/lb)2011-2013
500
399450
c/lb
361332
350
400
300
250
20132011 2012
200
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Molybdenum Price Chart (US$/Kg)2011-2013
45
3435
40
S$/k
g 2830
35
US
23
20
25
15
20
20132011 201210
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Codelco Financial Results
Copper Output
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Copper Output2012 - 2013
2.000
Total Output2013 1 792 000 Mt1 400
1.5001.6001.7001.8001.900
2013: 1,792,000 Mt2012: 1,758,000 Mt
000
Mt
9001.0001.1001.2001.3001.400
10
400500600700800
0100200300
2013
2012
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(*) Output reflects Codelco’s interest : El Abra 49%, Anglo American 20%
Press Conference | 28 March 2014
Copper Output (1,000 Mt refined copper) Last 5 years – 2009-2013 Period
1.9001 782 1 760 1.796 1.7921 758
1.702 1.689 1.735 1.647 1 622 0 83
0,88
1.500
1.7001.782 1.760 1.758
1.622
0 79
0,84
0,78
0,83
1 100
1.300
K to
nnes
%
0,790,80
0 73 0 730,73
700
900
1.100
0,73 0,73
0,68500
700
2009 2010 2011 2012 2013
Codelco El Abra AAS Ley de Mineral (*)
(*) Ore Grade at Codelco DivisionsCopyrights © 2012 CODELCO-CHILE. Todos los Derechos Reservados. | Copyrights © 2012 by CODELCO-CHILE. All Rights Reserved.
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( ) Ore Grade at Codelco Divisions
Financial Results
Costs
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CostsItems
Total Net Direct
Items included
Total Expenses Cathode
CostsC3
CashCosts C1
Operating Costs (*) Non‐Operating Costs -p gCorporate Office Expenses -Financial Expense -Depreciation & Amortisation -Depreciation & AmortisationTC/RC Cost - By‐product Credit -
(*) Applying IFRSs changes, from 2013 reporting period, Codelco has complied with IFRIC 20 to account for mine developments.
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Codelco Unit Costs - 2013 vs 2012(US c/lb of copper)
2013 (c/lb)
2012 (c/lb)
Var (%)
Var Mill. US$
Total costos y gastos 231 5 264 5 ‐12 5% ‐1 324Total ExpensesTotal costos y gastos 231,5 264,5 ‐12,5% ‐1.324
Costo Neto a Cátodos (C3) 217,0 241,7 ‐10,2%Net Cathode Cost (C3)
Costo C1 163,1 163,5 ‐0,3%Cost (C1)
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Codelco Total Expenses 2013 vs. 2012(US$ billions)
9.602
10.000
9.500
482
385
9.000- 1.324
$ bi
llion)
8.278385
132
159
166
8.500(US
7 500
8.000
7.500Total costos ygastos 2012
Reducción engastos deInsumos yServicios
Efecto T/C enPasivos en
Moneda Local
NormativaContable (IFRIC 20)
Menor Preciode Energía eInsumos
Otros Total costos ygastos 2013
Total Expenses Reduction in T/C Effect on Accounting Lower Energy Others Total Expenses2012 Supply & Liabilities in Standard & Supply 2013
Service expenses Local Currency (IFRIC 20) Costs
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Servicios
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C1 Cost Chart(US$ c/lb of copper)
190
200
177,3171,2
170
180
190
2013 163.1
147,7155,9
150
160
170
c/lb
130
140
110
120
100S1 2012 S2 2012 S1 2013 S2 20131H 2012 2H 2012 1H 2013 2H 2013
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Cost Positioning : Codelco & Industry Quartiles c/lb, currency each year
340 340
Net Cathode Cost
340
Total Cathode Cost Cash Cost (C1)
260280300320 Cut 3rd quartile
Cut 2ndquartile
260280300320
260280300320
180200220240 Cut 1st
quartile
180200220240
180200220240
100120140160
100120140160
100120140160
20406080
CODELCO 20406080
20406080
CODELCO CODELCO
0
2008
2009
2010
2011
2012
2013
0
2008
2009
2010
2011
2012
2013
0
2008
2009
2010
2011
2012
2013
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.Source: Wood Mackenzie & Codelco
Press Conference | 28 March 2014
Productivity & Costs 2013 - Examples
Rise in molybdenum output at El Teniente
Division
Molybdenum recovery rose from 60% to 69.5% in 2013
PerformanceOptimisation
More copper output at ElTeniente Division, up 9 000 Mt
More mineral ore extracted from underground and open-pit mine
Service Cost O ti i ti More than 250 contracts
Eliminated, renegotiated and merged contracts
9,000 Mt
Optimisation o e t a 50 co t actsnegotiated in 2013
O ti i ti fMore than USD 150
Optimisation of critical input use:• Reduced use of sulphuric acid• Reduced use of explosives• Reduced use of fuel
Optimisation of supplies and
materials
million saved in supplies and materials in 2013 with no impact
production
• Increased performance of tyres
Reduction of consulting
& support services
Optimised services & Consultancies; saved USD 20 million in 2013
Optimisation of activities and internal processes,simplification of activities
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Codelco Financial Results
Pre-Tax Profit and Net Profit
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Pre-Tax Profit 2012 vs. 2013, excl. AASUS$ millions
4.500
4.014 3.889832 4.000 -125
ions
)
65835
264 3.000
3.500
MU
SD (U
S$
mill
2.500
2.000Excedentes 2012
Sin AASPrecio cobre Menor Venta
CobrePrecio y CantidadSubproductos
Menores Costos,Gastos y Otros
Excedentes 2013
US$ millones 2012 2013 Var
Pre-tax Profit 2012 Copper Price Lower Copper By-product Lower Costs Pre-Tax ProfitsExcl. AAS Sales Prices & Quantity & Other Expenses 2013
US$ millionsUS$ millones 2012 2013 Var
EXCEDENTES SIN AAS 4.014 3.889 ‐125GANANCIA COMPARABLE SIN AAS (*) 2.915 3.009 94
(*) Equivalent to Codelco’s profit applying the same tax requirements as private-sector companies.
US$ millions
PRETAX PROFIT, excl. AASCOMPARABLE PROFT, excl. AAS (*)
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Income Statement 2012 vs. 2013(US$ millions)
2013 2012 Var
Ingresos por venta de cobre propio 12 021 12 792 771C lIngresos por venta de cobre propio 12.021 12.792 ‐771
Costos de venta de cobre propio ‐8.299 ‐8.235 ‐64
Ganancia bruta en venta de cobre 3 722 4 557 ‐835
Copper sales revenue
Copper sales cost
Gross profit – copper salesGanancia bruta en venta de cobre 3.722 4.557 ‐835
Ganancia bruta en ventas de subproductos y otros 433 696 ‐263
Gross profit – copper sales
Gross profit – by-product & other product sales
Ganancia Bruta 4.154 5.253 ‐1.099
Resultados No Operacional ‐265 2.552 ‐2.817
GROSS PROFIT
Non-operating income
Excedentes 3.889 7.805 ‐3.916
Excedentes sin AAS 3.889 4.014 ‐125
Ganancia Comparable sin AAS (*) 3 009 2 915 94
PRE-TAX PROFIT
Excluding Anglo American SurCOMPARABLE PROFIT excluding AAS (*)Ganancia Comparable sin AAS ( ) 3.009 2.915 94
(*) Equivalent to Codelco’s earnings, applying the same tax requirements as private-sector companies.(**) 2012 Financial Results are updated applying IFRIC 20 (accounting for mine developments), to compare to 2013 financial results.
g ( )
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( ) p pp y g ( g p ), p
Press Conference | 28 March 2014
Pre-Tax Profit Distribution 2012 vs. 2013(US$ millions)
2013 2012I t L R d Nº 13 196 1 157 1 270
( )
Reserve Tax Law No 13 196Impuesto Ley Reservada Nº 13.196 1.157 1.270
Impuestos a la Renta 1.486 2.304
Reserve Tax Law No.13.196
Income Tax
Impuesto específico a la minería 131 241
Ganancia 1.115 3.990
Specific Mining Tax
Net ProfitGanancia 1.115 3.990
TOTAL EXCEDENTE 3.889 7.805TOTAL PRE-TAX PROFIT
GANANCIA COMPARABLE (*) 3.009 5.947
(*) Equivale a la ganancia que obtendría Codelco aplicando igual tributo que la empresa privada (*) Equivalent to Codelco’s earnings applying the same tax requirements as private-sector companies.
COMPARABLE PROFIT (*)
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Codelco Financial Results
Investments
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Investments 2009-2013US$ billions
4.500
5.000
4.093 4.178
3 500
4.000
4.500
2.560 2.627 3.000
3.500
MU
SD
2.119 2.000
2.500
1.000
1.500
2009 2010 2011 2012 2013
Proyectos Aporte Sociedades Desarrollo MinasProjects Company Contributions
Mine Developments
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C d l Fi i l R ltCodelco Financial Results2013
Thomas Keller L. CEO
Iván Arriagada H.Vice-President, Administration & Finance
Press ConferencePress Conference28 March 2014