Guidance & Outlook
This page contains non-GAAP measures and forward-looking information about expected future events and financial and operating performance of the Company. All dollar amounts are expressed in U.S. dollars, unless otherwise noted.
2023 - 2025 Production Guidance & Outlook1
(metal contained in concentrate)
2023 Cash Cost Guidance2
Candelaria’s cash cost is expected to approximate $1.80/lb to $1.95/lb3 of copper, after by-product credits.
Caserones cash cost for the second half of 2023 is forecast to be $2.30/lb – $2.45/lb of copper, after by-product credits, assuming an average price of $20/lb molybdenum.
At Chapada, the cash cost has been improved to approximatly $2.35/lb to $2.55/lb4 of copper, after significant gold by-product credits. Effects of copper stream agreements are reflected in the realized copper revenue.
Eagle's cash cost is approximatly $2.30/lb to $2.45/lb of nickel, considering significant by-product copper credits.
At Neves-Corvo, the cash cost is to approximatly $2.10/lb to $2.30/lb5 of copper, after zinc and lead by-product credits.
Zinkgruvan’s cash cost has been improved to approximatly $0.45/lb to $0.50/lb5 of zinc after copper and lead by-product credits.
| 2023 | ||
| Cash Cost | Guidance | Revised Guidance |
| Candelaria | $1.80 - $1.95 | $1.80 - $1.95 |
| Caserones6 | $2.30 - $2.45 | $2.30 - $2.45 |
| Chapada | $2.55 - $2.75 | $2.35 - $2.55 |
| Neves-Corvo | $2.10 - $2.30 | $2.10 - $2.30 |
| Zinc | ||
| Zinkgruvan | $0.60 - $0.65 | $0.45 - $0.50 |
| Nickel | ||
| Eagle | $1.50 - $1.65 | $2.30 - $2.45 |
2023 Capital Expenditure Guidance
| Capital Expenditures ($M) | ||||
| Sustaining Capital | Guidance | Revisions | Revised Guidance | |
| Candelaria (100% basis) | 400 | (25) | 375 | |
| Caserones (100% basis)6 | 110 | - | 110 | |
| Chapada | 70 | - | 70 | |
| Eagle | 20 | - | 20 | |
| Neves-Corvo | 130 | - | 130 | |
| Zinkgruvan | 70 | - | 70 | |
| Other | 10 | - | 10 | |
| Total Sustaining Capital | 810 | (25) | 785 | |
| Josemaria Project | 400 | (50) | 350 | |
| Total Capital Expenditures | 1,210 | (75) | 1,135 |
2023 Exploration Expenditure Guidance
Exploration expenditures are planned to be $45 million in 2023 primarily for in-mine and near-mine targets at our operations. The largest portion of the planned expenditure is to be at Candelaria and Chapada with the remaining operations and new business development activities comprising the balance.
1. Production guidance is based on certain estimates and assumptions, including but not limited to: Mineral Resources and Mineral Reserves, geological formations, grade and continuity of deposits and metallurgical characteristics.
2. Cash costs are a non-GAAP measure. Please also see the Management’s Discussion and Analysis for the year ended December 31, 2021 and for the three and nine months ended September 30, 2022, for discussion of non-GAAP measures and other performance measures. 2023 cash costs are based on various assumptions and estimates, including, but not limited to: production volumes, commodity prices (2023 - Cu: $3.75/lb, Zn: $1.30/lb, Pb: $0.90/lb, Au: $1,750/oz: Ag: $22.00/oz) foreign currency exchange rates (2023- €/USD:1.00, USD/SEK:10.50, CLP/USD:850, USD/BRL:5.00) and operating costs.
3. 68% of Candelaria’s total gold and silver production are subject to a streaming agreement and as such cash costs are calculated based on receipt of $425/oz and $4.25/oz, respectively, on gold and silver sales in the year. No consideration has been made for the upfront payment received in the calculation of cash costs.
4. Chapada cash costs are calculated on a by-product basis and do not include the effects of copper stream agreements. Effects of copper stream agreements are reflected in copper revenue and will impact realized revenue per pound.
5. Silver production at Zinkgruvan and Neves-Corvo are also subject to streaming agreements.
6. Guidance for the second half of 2023.