Peru

Cerro Corona

Gold production decreased by 4 per cent from 36,200 ounces in the December quarter to 34,800 ounces in the March quarter. Copper production increased by 8 per cent from 7,701 tonnes to 8,294 tonnes. Equivalent gold production increased by 2 per cent from 79,200 ounces in the December quarter to 80,500 ounces in the March quarter mainly due to an increase in copper head grades and an increase in ore treated. Gold head grade decreased from 1.04 grams per tonne to 0.96 grams per tonne and copper head grade increased from 0.56 per cent to 0.60 per cent. Gold recoveries decreased from 68.7 per cent to 68.1 per cent resulting from lower gold head grades. Copper recoveries decreased from 87.2 per cent to 84.7 per cent, resulting from ore treated containing secondary copper from supergene zone domains related to the enrichment zone of the orebody with different mineralogical specimens (calcosine and covelite) and different metallurgical behaviour. The reduction in head grade was expected and head grade achieved still compares favourably with reserve head grades.

In the March quarter, concentrate with a payable content of 28,501 ounces of gold was sold at an average price of US$1,281 per ounce and 6,083 tonnes of copper was sold at an average price of US$6,350 per tonne, net of treatment and refining charges. This compared with 36,546 ounces of gold sold at an average price of US$1,266 per ounce and 7,397 tonnes of copper sold at an average price of US$6,293 per tonne in the December quarter. Total equivalent gold sales decreased by 22 per cent from 77,900 ounces in the December quarter to 60,700 ounces in the March quarter due to delays in the shipment schedule.

Tonnes mined increased by 3 per cent from 3.37 million tonnes in the December quarter to 3.46 million tonnes in the March quarter. Ore mined increased marginally from 1.78 million tonnes to 1.79 million tonnes. The strip ratio increased from 0.89 to 0.93 in line with the mining sequence.

Ore processed increased by 4 per cent from 1.64 million tonnes in the December quarter to 1.71 million tonnes in the March quarter mainly due to an increase in plant throughput from 805 tonnes per hour in the December quarter to 814 tonnes per hour in the March quarter. Gold yield decreased from 0.72 grams per tonne to 0.66 grams per tonne and copper yield increased from 0.49 per cent to 0.50 per cent.

Net operating costs, including gold-in-process movements, decreased by 31 per cent from US$35 million in the December quarter to US$24 million in the March quarter. The lower cost was mainly due to a build-up of concentrate inventory at the end of March and savings in operating costs, mainly in processing due to lower consumption of reagents.

Operating profit decreased from US$55 million in the December quarter to US$51 million in the March quarter mainly due to lower revenue resulting from shipments deferred and lower metal prices received.

Capital expenditure decreased from US$14 million in the December quarter to US$7 million in the March quarter mainly due to timing on the construction of the tailings dam construction.

The all-in sustaining costs and total all-in cost per ounce decreased from US$207 per ounce in the December quarter to US$97 per ounce in the March quarter mainly due to the inventory build-up and the lower capital expenditure at the end of the March quarter.