Huaxi: Chile's national copper industry total production in Q1 2025 increased by 1.6% year-on-year to 324,000 tons.

, Huaxi released a research report stating that in Q1 2025, the total copper production, including the shares of CODELCO in El Abra, Anglo American Sur, and Quebrada Blanca, increased by 1.6% compared to the same period in 2024, reaching 324,000 tons. Despite a nationwide power outage on February 25 and seasonal weather disruptions in the Andean highlands, the copper production still reached 324,000 tons, a decrease of 28.7% compared to the previous quarter. The company's net profit in Q1 2025 was $61.44 million, a 64.29% decrease compared to the previous year. The company's planned copper production from its own mines in 2025 is 1.37-1.4 million tons, with a unit cash cost guidance of 195-198 cents per pound. I. Production and Operations 1. Copper a) Total production In Q1 2025, the total copper production, including the shares of CODELCO in El Abra, Anglo American Sur, and Quebrada Blanca, increased by 1.6% compared to the same period in 2024, reaching 324,000 tons. The main reasons for the increase in production were the increase in production at Ministro Hales due to mine sorting improvements and operational flexibility, as well as the increase in production at Salvador reflecting the initial ramp-up of the Rajo Inca project. Additionally, the new contribution from Quebrada Blanca also supported the production growth. b) Total sales In Q1 2025, the company's copper sales were 350,100 tons, a 1.3% decrease compared to the previous year. c) Average realized price in Q1 2025 In Q1 2025, the average realized price of copper was $4.713 per pound, a 21.7% increase compared to the previous year. d) Costs in Q1 2025 In Q1 2025, the cash cost of copper was $2.098 per pound, an 8.4% increase compared to the previous year. The increase in costs was mainly due to rising operational costs, especially in equipment rentals, plant maintenance, and increased activities related to the Rajo Inca project. The increase in production and the decrease in energy prices partially offset this pressure. 2. Molybdenum In Q1 2025, the company produced 3,600 tons of molybdenum, a 7.7% decrease compared to the previous year. In Q1 2025, the company's molybdenum sales were 3,800 tons, an 11.8% increase compared to the previous year. The price of metallic molybdenum in Q1 2025 was $20.5 per pound, a 3.0% increase compared to the previous year. 3. Lithium On March 27, 2025, the European Commission approved the partnership between CODELCO and SQM in developing lithium mines in the Atacama salt flats. On April 22, the Chilean National Economic Prosecutor's Office also approved this partnership. These approvals, along with previous authorizations from Brazil, South Korea, Japan, and Saudi Arabia, paved the way for the completion of the agreement. Table 1: Summary of 2025Q1 financial and operational data II. Financial Performance 1. Revenue Total revenue in Q1 2025 was $4.228 billion, a 14.6% increase compared to the same period in 2024. This was mainly due to the actual price increase of copper by 21.7%, with an average price of $4.71 per pound in Q1 2025, higher than the $3.84 per pound in the same period in 2024. Copper sales volume decreased by 4.9%, mainly reflecting a decrease in third-party copper sales by 34.4%, partially offsetting the positive impact of the price increase. The revenue growth led to an increase in the gross profit margin, which rose from 23% in the same period of the previous year to 27%. 2. Comprehensive costs In Q1 2025, CODELCO's cash cost increased from $193.5 per pound in the same period of 2024 to $209.8 per pound. The cost increase was mainly due to rising operational costs, especially costs related to third-party services such as equipment rentals and plant maintenance, as well as the increase in activities related to the Rajo Inca project and a decrease in inventory fluctuations. The increase in production and the decrease in input prices (mainly energy inputs) partially mitigated these cost pressures. 3. Gross profit The company's gross profit in Q1 2025 reached $1.16 billion, a 36.6% increase compared to the previous year. 4. Adjusted EBITDA In Q1 2025, CODELCO's adjusted EBITDA decreased from $1.53 billion in the same period of 2024 to $1.35 billion in Q1 2025, a decrease of 11.8%. The main reason for the decrease was a decrease in profit in the period, influenced by the impact of foreign exchange losses included in the profit and loss statement. This loss was due to the appreciation of the Chilean peso from 992 pesos on December 31, 2024, to 946 pesos on March 31, 2025. The increase in the price of copper partially offset this decrease. 5. Profit before tax Profit before tax in Q1 2025 was $213 million, a significant decrease compared to $452 million in Q4 2024. This decrease was mainly due to foreign exchange losses resulting from the appreciation of the Chilean peso during the period from December 31, 2024, to March 31, 2025. 6. Net profit The company's net profit in Q1 2025 was $61.44 million, a 64.29% decrease compared to the previous year. 7. Cash flow In Q1 2025, the total net cash flow from operating activities amounted to $772 million, a 35.6% decrease compared to the same period in 2024. The main reasons for the decrease were an increase in payments to suppliers and employees and an increase in other cash flows used in operating activities, leading to an increase in cash outflows. 8. Debt On January 13, 2025, CODELCO successfully issued two bonds, raising a total of $1.5 billion. The bond issuance included two tranches of $750 million each: one tranche at 10The first term is for 20 years, with a yield of 6.335% (T+165bps); the second term is for 30 years, with a yield of 6.783% (T+185bps). This transaction has received strong investor demand, with a significant oversubscription totaling over $8.3 billion, reflecting market confidence in Codelco's financial stability and strategic direction.On March 28, 2025, Codelco signed a financing agreement of $466 million with the Japan Bank for International Cooperation (JBIC). As of March 31, 2025, the company had not yet used this funding. Similarly, on March 31, 2025, Codelco signed a financing agreement of $500 million with Banco Santander S.A., guaranteed by the Italian export credit agency SACE. As of that date, the company had not yet used this funding. As of March 31, 2025, Codelco's net financial debt had increased from $19.5 billion in the same period of 2024 to $23.1 billion. Capital Expenditure: Structural Projects Chuquicamata Underground Mine: Underground operations started on April 30, 2019, and have made significant progress. As of March 31, 2025, the Phase I construction of continuous infrastructure projects is 78% complete, with expansion plans for existing mining levels undergoing feasibility studies. In addition, pre-feasibility studies are being conducted to evaluate the development of potential new mining levels. Andina Transport System: The capacity expansion of the second crushing line of this project had been largely completed by March 31, 2025. It is expected to be completed in the first half of 2025. El Teniente New Mine Level (NML): The Diamante, Andesita, and Andes Norte projects (referred to as the new mining levels) aim to extend the operating life of the El Teniente mine by 50 years to enable operations in deeper mineral bodies. As of March 31, 2025, the Andes Norte project was 78% complete and is expected to finish its temporary ore transportation system in the third quarter of 2025. The Andesita project was 70% complete and planned to start operation in 2025Q2. The Diamante project was 43% complete. Salvador Rajo Inca Project: The Salvador operations achieved significant milestones in 2025, with continuous capacity enhancements in its beneficiation plant expected to reach design capacity in 2025Q3. As of March 31, 2025, the overall completion rate of this project had reached 91%. 2025 Guidance: Codelco's planned copper production from its own mines in 2025 is 1.37-1.4 million tons, with a unit cash cost guidance of 195-198 US cents/pound. Taking into account the progress of various projects, CODELCO has developed more detailed production, cost, and capital expenditure guidance for 2025. This reaffirmation demonstrates CODELCO's confidence in advancing its strategic goals while maintaining operational stability.