South America region

Peru

Cerro Corona

Gold production increased by 33 per cent from 60,800 ounces for the six months ended 30 June 2018 to 80,800 ounces for the six months ended 30 June 2019. Copper production increased by 10 per cent from 14,678 tonnes to 16,122 tonnes. Gold and copper production increased mainly due to mining of higher grade areas in line with the mining sequence. Equivalent gold production increased by 14 per cent from 137,600 ounces to 157,100 ounces.

Gold head grade increased from 0.85 grams per tonne to 1.18 grams per tonne and copper head grade increased from 0.52 per cent to 0.56 per cent. Gold recoveries decreased from 69.5 per cent to 66.5 per cent. Copper recoveries increased from 87.6 per cent to 89.3 per cent mainly due to higher head grade processed. As a result of the above, gold yield increased from 0.59 grams per tonne to 0.78 grams per tonne and copper yield increased from 0.46 per cent to 0.50 per cent.

For the six months ended 30 June 2019, concentrate with a payable content of 81,313 ounces of gold was sold at an average price of US$1,294 per ounce and 15,869 tonnes of copper was sold at an average price of US$5,444 per tonne, net of treatment and refining charges. This compared with 56,567 ounces of gold that was sold at an average price of US$1,310 per ounce and 14,181 tonnes of copper that was sold at an average price of US$6,217 per tonne, net of treatment and refining charges, for the six months ended 30 June 2018. Total equivalent gold sales increased by 19 per cent from 131,700 ounces for the six months ended 30 June 2018 to 156,400 ounces for the six months ended 30 June 2019 mainly due to higher gold sold resulting from higher gold production as explained above.

Total tonnes mined decreased by 2 per cent from 11.09 million tonnes for the six months ended 30 June 2018 to 10.82 million tonnes for the six months ended 30 June 2019 in line with the mine sequencing. Ore mined increased by 12 per cent from 3.29 million tonnes to 3.68 million tonnes. Waste tonnes mined decreased by 8 per cent from 7.80 million tonnes to 7.14 million tonnes mainly due to the new mine sequence resulting from the extension of the life of mine to 2030. The strip ratio decreased from 2.37 to 1.94 as a result of additional ore mined.

Ore processed increased by 1 per cent from 3.33 million tonnes for the six months ended 30 June 2018 to 3.35 million tonnes for the six months ended 30 June 2019 mainly due to higher plant throughput (820 tonnes per hour for the six months ended 30 June 2019 versus 799 tonnes per hour for the six months ended 30 June 2018) resulting from initiatives implemented in drilling and blasting activities to reduce the impact of ore hardness.

Cost of sales before amortisation and depreciation, increased by 4 per cent from US$78 million for the six months ended 30 June 2018 to US$81 million for the six months ended 30 June 2019. The higher cost was mainly due to higher workers participation resulting from higher revenues and profit for the six months ended 30 June 2019.

Capital expenditure increased by 60 per cent from US$10 million to US$16 million mainly due to increased expenditure on the TSF construction as well as the commencement of the infrastructure relocation activities related to the expansion of the life of mine until 2030. This included relocation of roads, mine offices and the explosive storage facility.

All-in sustaining costs and total all-in cost increased by 47 per cent from US$197 per ounce for the six months ended 30 June 2018 to US$290 per ounce for the six months ended 30 June 2019. This was mainly due to higher capital expenditure and higher cost of sales before amortisation and depreciation, partially offset by higher gold sold.

All-in sustaining costs and total all-in costs per equivalent ounce decreased by 5 per cent from US$737 per equivalent ounce to US$698 per equivalent ounce due to higher equivalent ounces sold, partially offset by higher capital expenditure and higher cost of sales before amortisation and depreciation.