Codelco generated an Ebitda of US$ 1,529 million in the first quarter of the year, surging by 34% compared to 2023

Divisional production reached 294,773 tons of fine copper, a decrease of 9.6% compared to the same period in 2023. Meanwhile, the direct cost (C1) decreased by 4.9%.

During the period from January to March, Codelco generated an Ebitda (earnings before taxes, interest and depreciation) of US$ 1,529 million, representing a 33.7% increase compared to the figure recorded in the first quarter of 2023, with a margin of 41% on sales. This improvement in Ebitda is primarily attributed to lower operational costs and fluctuations in the exchange rate.

Production in the first three months reached 294 thousand tons of copper, which is approximately 9.6% less (around 32 thousand tons) compared to the same period last year, but in line with the year's budget. The total production, adding the affiliates El Abra and Anglo American Sur, amounted to 319 thousand tons of copper.

This decrease can be attributed to a rock burst that occurred in El Teniente in 2023, resulting in a reduced area available for exploitation; an operational halt at Radomiro Tomic due to a fatal accident, resulting in a complete shutdown of the mine; operational restrictions at Ministerio Hales due to geotechnical events in previous years; and the delay in the commissioning of Rajo Inca at Salvador.

The aforementioned events were partially offset by increased operational continuity at the Andina concentrator plant and higher stockpiling and ore grade at Gabriela Mistral.

So far this year, the direct cost (C1) has decreased by 4.9% compared to the January-March 2023 period, to 193.9 cents per pound. Despite the lower copper production, C1 benefited from reduced operational costs and a favorable exchange rate, lower input prices (primarily energy and fuel), and the accumulation of inventories of products in process. The net cost to cathode (C3) decreased by 25.4% to 276.7 cents per pound, for similar reasons as C1, with the additional impact of favorable variations in liabilities in pesos due to the exchange rate.

Progress of structural projects

Regarding Codelco's structural projects, which underpin the future of the Corporation, the first phase of Chuquicamata Underground Level 1 infrastructure has reached 56.2% progress. The process of defining the mining design for the continuation of Level 1 is ongoing.

Meanwhile, Traspaso Andina has achieved a total progress of 99.8%. This project, which is already completed and under operation, was handed over to the Andina Division team by the Vice Presidency of Projects in April. Additionally, the ramp-up of its Line 2 began. Thanks to the Traspaso project, the operational lifespan of Andina, one of the largest copper deposits in the world, will be extended by at least 30 years.

In El Teniente Project Portfolio, Andes Norte is expected to commence production in December 2024, using a transitory mineral management system. The final system is scheduled to be under operation by 2028. Diamante has progressed 39.1%, and production is projected to begin in July 2026, while Andesita execution has reached 42.5% progress, with an estimated production start date of October 2024.

In Salvador Division, Rajo Inca has achieved a total progress of 76.1%. Development is currently ongoing to optimize the concentrator and hydrometallurgical plants, as well as the Pampa Austral tailing deposit.