•  Company’s pre-tax profits delivered to the State up 87% from prior year, due to higher prices, increased production and fall in operating costs.
• Comparable net profit exceeded US$ 1.8 billion, enabling the Corporation to once again have the highest profits than any other company operating in Chile.  

Corporación Nacional del Cobre de Chile, Codelco recorded a pre-tax profit of US$ 2.315 billion in the first quarter of 2011, up 87% from US$ 1.237 billion for the same period 2010.

This important increase is due to higher prices for copper and by-products sold by the company, higher production and a fall in operating costs. Furthermore, this higher pre-tax profit is also because Codelco sold its stake in E-CL (formerly Edelnor). This is equivalent to US$ 380 million. Comparable net profit (calculated by applying the same tax regime as private sector companies) totalled US$ 1.841 billion, which has enabled Codelco to once again have the highest profits than any other company operating in Chile.

RISE IN SALES AND PRODUCTION

During the first three months of 2011, Codelco sold 428,000 metric tonnes of fine copper (mtf); 371,000 mtf come from its own production and the rest from third parties. This means sales increased by 10,000 tonnes of copper compared to the prior year.

Codelco’s production in the first quarter totalled 414,000 mtf, up 31,000 mtf over 2010. This is the result of improved ore grades, higher mineral recovery and enhanced operating continuity at some of its divisions. Radomiro Tomic, Andina, Teniente and Salvador Divisions increased their production compared to 2010, which offset a lower production at Chuquicamata and Minera Gaby. Production rises to 425,000 tonnes of fine copper in the first quarter if Codelco’s stake in El Abra mine is included. Molybdenum production also increased in 2,000 mtf, although sales remained the same as in 2010: 5,000 mtf.

STRONG INCREASE IN GROSS PROFIT

Own copper sales revenue totalled US$ 3.58 billion in the first quarter of 2011, up from US$ 2.798 billion during the same period 2010.

The average LME copper price was US$437.5 per pound at 31 March of 2011. This represents a rise of US$108.9 per pound on the same period 2010, when it reached US$328.6 per pound.

Therefore, gross profit totalled US$ 1.962 billion during January-March 2011, compared to US$ 1.416 billion recorded during the same period 2010.

A further US$ 338 million have to be added to this gross profit for other revenues and expenses and $ 15 million for associated company results.

This implies that pre-tax profit Codelco delivered to the State rose to US$ 2.315 billion, US$ 1.078 million more than for the same period 2010.

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