Codelco obtains pre-tax profit of $4.1 billion through June 30 2008
by Corporación Nacional del Cobre de Chile 09 Aug 20:07
Santiago, Aug 8 2008.- The Corporación Nacional del Cobre de Chile, Codelco, obtained a pre-tax profit of $4.108 billion in the first half of 2008, or $562 million less than it did in the same period in 2007. The shortfall came after a production fall of 89,000 tones of copper, due mainly to disruptions to operations caused by workers at subcontract companies in May.
Statement of Results
(According to non-consolidated financial results)
Sales from Codelco’s own copper production reached US$ 5.477 billion in the first half of 2008, slightly less than in the same period last year, when the company had sales of US$ 5.646 billion.
The average price of copper on the London Metals Exchange through to June 30 was 367.8 cents on the dollar per pound, or 60.8 c/lb more than in the same period a year ago, when it was 307.0 c/lb.
Copper shipments from Codelco production in the period were 723,000 tonnes, representing a fall of 16% versus the 861,000 tonnes from the first half in 2007.
Operating profit for the period fell as a consequence to US$ 4.062 billion, down US$ 578 million from the US$4.640 billion in the same period last year.
The Corporation had pre-tax profit of US$ 4.108 billion through June 2008. Income was distributed as follows:
Ley Reservada 13.196 Tax
Net income, which relates to surplus minus taxes (Law Decree 13,196, 57% income taxes and mining royalty) reached US$1.389 billion, less than the US$1.640 billion from the same period last year. Furthermore, comparable net income for Codelco for the period January –June, 2008, applying the same tax basis for private companies, totaled US$3.281 billion, less than the US$3.797 billion attained in the same period in 2007.
(On the basis of individual financial statements)
To June 30, 2008, EBITDA reached US$ 4.507 billion.
Output of copper produced by Codelco mines in the January-to-June period of 2008 was 675,000 tonnes, and 715,000 tonnes including the company’s 49 percent stake in the El Abra mine.
Direct cash costs (C1) at Codelco were 60.1 cents/lb in the Jan-June period of 2008. C1 is the cost category used in the mining industry to compare efficiency levels across different companies.
Net corporate cathode costs (C3) for 2008 year-to-date reached 108.5 c/lb versus los 66.3 cents/lb for 2007, showing a rise of 42.2 cents. Of this rise, 25.3 cents are as a result of external factors: higher prices for materials, a lower Exchange rate and changing electrical tariffs, and 20.5 cents/lb were due to lower grades of ore treated by Codelco.
Through the second quarter of 2008, the overall accident frequency rate that considers both Codelco’s own workforce and its contractors was 3.77. This figure was below the 3.78 rate achieved in the same period of 2007. There were three fatal accidents during the period.