Adoption of Onsite Cost Control Measures

摘要

Copper prices have remained below US$3.00/lb following a precipitous drop in mid-January. According to AME data, 90% of mined copper producerswere operating at cash costs below US$2.50/lb in 2014; however, after factoring in depreciation charges, only 80% are above water. Over the shortterm, we expect cash costs to fall reflecting renewed cost control drives across the industry that include increases in throughput, improved labourproductivity, and the renegotiation of external service charges. AME expects to see cash costs ease in 2016 to US145?/lb—down from US147?/lb inin 2015. Over the longer term, greater efficiency will allow for further decreases in cut-off grades and increased mineable reserves.