We have seen a reversal so far in 2019, however, with the Brent oil price retreating by 7% compared with full year 2018. Oil prices recovered in 20, rising by 25% and 31%, respectively, year over year, feeding through to diesel prices and leading to higher fuel costs. Softening diesel prices to date in 2019 will result in a 6.7% year-over-year drop in fuel costs for the year. This has driven down some cost components, such as transportation however, the foreign exchange situation has been counteracted by inflation and other factors, such as droughts in Chile and Zambia, which continue to negatively impact the power supply in these countries, leading to an overall 3.0% rise in electricity costs. dollar-to-Chilean peso exchange rate year-to-date, with declines also seen in other major copper-producing countries' currencies. In 2019, U.S dollar strength has led to a 6.7% decline in the average U.S. In 2018, we saw the Chilean and Chinese currencies strengthening by 1.1% and 2.1%, respectively, year over year against the dollar, which pushed up costs at copper mining operations in these countries. dollar translates to higher costs in U.S. A strengthening local currency against the U.S. Chilean power generators have relied on imports of thermal coal to make up for limited hydroelectric supplies in their power market as the country suffers through a long period of drought.Ī major factor influencing costs at most mining operations is the local currency rate versus the U.S. Chile, which produced 28% of global mined copper in 2018, increased its local electricity price by 8.6% year over year in U.S. cents/lb on the back of higher electricity prices in major copper-producing countries.
also increased sustaining capex to US$320 million, up 10% from the previous year, with the biggest increase centered on the Sentinel mine, which saw its sustaining capex increase by 26% to US$130 million.Įlectricity cost increased by 10.3% year over year to 20 U.S. Glencore PLC increased its attributable capex on Antamina by 12% to US$201 million, on Collahuasi by 23% to US$263 million and on its African copper mines by 45% to US$510 million. In 2018, sustaining capex grew by 5.3% year over year, in line with higher capital spending among major copper-producing companies. We therefore estimate margins to decline by 23.2% year over year in 2019, followed by a 7.4% recovery in 2020.
This will be followed in 2020 by a 1.5% decline, driven by lower treatment and refining charges. In 2019, we expect AISC to rise by 1.2% year over year to average US$1.94 per pound, largely as a result of rising minesite costs. In 2018, copper all-in sustaining costs, or AISC, increased for the second consecutive year to US$1.92 per pound, up 2.1% year over year on the back of growth in electricity costs and sustaining capital spending, or capex.
0 kommentar(er)
