The increase of US$1,121 million is mainly due to “the higher price of copper, lower operating costs, the variation in the exchange rate, the results of the subsidiaries and the better conditions of the minerals coming from third parties,” the company explained. state copper mine.
This Friday, the state mining company Codelco reported that it generated US$2,896 million of Ebitda (profits before taxes, interest, depreciation and amortization) during the first six months of 2024, 63% more than in the same period of 2023, when the figure reached US $1,775 million.
The increase of US$1,121 million is mainly due to “the higher price of copper, lower operating costs, the variation in the exchange rate, the results of the subsidiaries and the better conditions of minerals from third parties,” said the company. entity.
Through a statement, it stated that as of June 30, 2024, it generated a gross profit of US$2,079 million, US$555 million (36%) higher than the previous year, when it totaled US$1,524 million.
“This figure is explained, in part, by the higher revenues from the sale of own copper for US$ 261 million, the reduction in the costs of selling own copper for US$ 361 million, and despite a reduction of US$124 million in the gross profit from the sale of molybdenum, byproducts and services,” the copper company said.
Meanwhile, Codelco's consolidated profit for the first semester reached US$ 282 million which, compared to US$ -140 million in the same period of the previous year, reflects an increase of 301%.
Contributions to the State
Despite the company's better financial results this semester, contributions to the State reached US$655 million, a decrease of 15%.
This, Codelco stated, was mainly due to a lower payment for the Reserved Copper Law, “given the lower sales of copper and molybdenum in the calculation period for that tax, which includes December 2023 (until May 2024).”
However, the company "maintains its projection of increasing its contributions to the Treasury this year compared to the previous year."
Own production reached 579,785 tons, 8.4% less than during the first half of the previous year; Meanwhile, total production (which includes Codelco's participation in Anglo American Sur and El Abra) reached 628 thousand tons, 8.2% less than in 2023.
“The decline was partially offset by management efforts in all operations and intensive monitoring of production plans implemented this year,” the state company added.
And he pointed out that this allowed, for example, 22% greater operational continuity of the Andina concentrator plant, which had a positive impact on the amount of ore treated, going from 66 thousand tons per day (ktpd) during the first six months of 2023 to 80 ktpd this 2024; a greater contribution of 15% from the underground mine of the Chuquicamata Division, which reached 53 ktpd (against 46 ktpd in the same period of the previous year), added to the best ore grade of 6% in the Gabriela Mistral Division.
Growth projection
Rubén Alvarado, executive president of Codelco, commented that they plan to regain the ability to meet their goals “in a timely and efficient manner, and these good financial results encourage us to maintain the effort.”
“We have strengthened our plans for intensive monitoring of operations and critical support to meet our production goals. With these plans in operations, we are working so that from this second semester onwards, production begins its long-term growth rate, rising progressively until reaching the level of 1.7 million tons by 2030,” he stated.
Codelco had lower costs than in the first half of 2023: the direct cost (C1) decreased from 212.7 to 203.5 cents per pound (c/lb), which represents a drop of 4.3%; Meanwhile, the net cost to cathode (C3) fell from 360 to 334 c/lb, with a reduction of 7.2%.
The reasons behind this decrease in costs were the favorable effect of the exchange rate; the lower prices of inputs, especially electricity and fuels; in addition to the favorable impact on the cost of lower use of work-in-process inventories.
For the C3 cost, in addition to what was already mentioned, the variation of liabilities in pesos was influenced, positively impacted by the exchange rate.
