South America region

PERU

Cerro Corona

		June 2015	March 2015
Gold produced	000’oz	43.9	34.2
Copper produced	tonnes	7,821	6,744
Total equivalent gold produced	000’ eqoz	83.6	66.6
Total equivalent gold sold	000’ eqoz	90.8	56.4
Yield – gold	g/t	0.87	0.69
– copper	per cent	0.50	0.44
– combined	g/t	1.59	1.30
All-in sustaining costs	US$/oz	381	493
Total all-in cost	US$/oz	381	493
AISC per equivalent ounce*	US$/oz	662	671
AIC per equivalent ounce*	US$/oz	662	671
Gold price**	US$/oz	1,194	1,219
Copper price**	US$/t	6,079	5,830

*	Refer to All-in-costs and All-in sustaining costs for calculations.
**	Average daily spot price for the period used to calculate total equivalent gold ounces produced.

Gold production increased by 28 per cent from 34,200 ounces in the March quarter to 43,900 ounces in the June quarter. Copper production increased by 16 per cent from 6,744 tonnes to 7,821 tonnes. Equivalent gold production increased by 26 per cent from 66,600 ounces to 83,600 ounces. Gold head grade increased from 0.97 grams per tonne to 1.21 grams per tonne and copper head grade increased from 0.51 per cent to 0.58 per cent. Gold recoveries increased from 71.3 per cent to 71.7 per cent and copper recoveries increased from 85.6 per cent to 86.4 per cent due to higher head grades. As a result, gold yield increased from 0.69 grams per tonne to 0.87 grams per tonne and copper yield increased from 0.44 per cent to 0.50 per cent.

In the June quarter, concentrate with a payable content of 47,627 ounces of gold was sold at an average price of US$1,186 per ounce and 8,470 tonnes of copper was sold at an average price of US$5,185 per tonne, net of treatment and refining charges. This compared with concentrate with a payable content of 29,093 ounces of gold sold at an average price of US$1,202 per ounce and 5,703 tonnes of copper sold at an average price of US$5,198 per tonne, net of treatment and refining charges, in the March quarter. Total equivalent gold sales increased by 61 per cent from 56,400 ounces in the March quarter to 90,800 ounces in the June quarter mainly due to higher production and a drawdown of concentrate inventory as a result of delays in the shipping schedule at the Salaverry port in the March quarter.

Total tonnes mined decreased by 5 per cent from 3.14 million tonnes in the March quarter to 2.98 million tonnes in the June quarter in line with the mine sequencing and the production schedule for the June quarter. Ore mined increased from 1.63 million tonnes to 1.73 million tonnes. The strip ratio decreased from 0.93 to 0.72 due to lower waste mined.

Ore processed increased by 2 per cent from 1.60 million tonnes in the March quarter to 1.63 million tonnes in the June quarter mainly due to an increase in plant throughput from 781 tonnes per hour in the March quarter to 801 tonnes per hour in the June quarter.

Net operating costs, including gold-in-process movements, increased from US$28 million in the March quarter to US$43 million in the June quarter. The higher cost was mainly due to higher production as well as a US$5 million drawdown of concentrate inventory in the June quarter compared with a US$5 million build-up of concentrate inventory at the end of the March quarter.

Operating profit increased from US$29 million in the March quarter to US$56 million in the June quarter due to higher equivalent gold sold, partially offset by higher net operating costs.

Capital expenditure increased from US$7 million to US$12 million mainly due to higher construction activities at the tailings dam, which was delayed as a result of the rainy season in the March quarter.

All-in sustaining costs and total all-in cost decreased from US$493 per ounce in the March quarter to US$381 per ounce in the June quarter mainly due to higher by-product credits and higher gold sold, partially offset by higher net operating costs and higher capital expenditure. All- in sustaining costs and total all-in costs per equivalent ounce decreased from US$671 per equivalent ounce to US$662 per equivalent ounce.