Freeport Indonesia records jump in Q1 gold, copper production
Friday, April 18 2003 - 12:54 AM WIB
The company?s average copper selling price remain unchanged at US$ 0.73 per pound, while gold selling price increased from $ 289.51 per ounce to $341.55 per ounce.
FCX said PTFI the increase in production was due to the continued mining of higher-grade ore, which began late in the second quarter of 2002. First-quarter 2003 copper ore grades averaged 1.15 percent, compared with 0.90 percent in the first quarter of 2002. Copper recovery rates also improved to 88.4 percent for the first quarter of 2003, compared with 85.5 percent for the first quarter of 2002.
Gold production for the first quarter of 2003 also reflect higher ore grades and mill recovery rates over the year-ago period. In the first quarter of 2003, ore milled averaged 1.26 grams per metric ton (g/t), compared with 0.73 g/t in the first quarter of 2002. Gold recovery rates improved to 86.2 percent for the first quarter of 2003, compared with 85.5 percent for the first quarter of 2002.
PTFI completed its ramp-up of production at the Deep Ore Zone (DOZ) underground mine to 35,000 metric tons of ore per day during the quarter. New records were established in underground mining with average production totaling approximately 50,000 metric tons of ore per day from the Intermediate Ore Zone and DOZ mines, representing 21 percent of mill throughput.
Studies are ongoing to evaluate additional low-cost expansion options for the DOZ underground operation, said FCX.
PTFI expects its sales for 2003 to approximate 1.4 billion pounds of copper and 2.6 million ounces of gold, reflecting the expectation in 2003 of slightly lower copper ore grades and higher gold ore grades on an annual basis compared with 2002. PT-FI expects its sales for the second quarter of 2003 to approximate 360 million pounds of copper and 700,000 ounces of gold.
FCX said PT-FI remained the world?s lowest cost copper producer with average unit net cash production costs, including gold and silver credits, of $0.07 per pound of copper during the first quarter of 2003, compared with $0.30 per pound for the 2002 period. Unit production and delivery costs decreased because of improved ore grades for copper, while gold credits improved because of improved ore grades for gold and higher gold prices. Assuming current gold prices of $325 per ounce for the remainder of 2003 and gold sales of 2.6 million ounces for 2003, FCX expected to establish a new record low for unit annual net cash production costs of approximately zero cents per pound. Net unit cash costs would change approximately $0.04 per pound for each $25 per ounce change in the average price of gold for the remainder of the year.
PTFI, a 90.6 percent subsidiary of FCX, operates a huge copper and gold mine in Papua province. (alex)
