Individual Q4 results for Minsur’s Peruvian operations have been released showing a 7% fall in tin production for the quarter, to 6,190 tonnes, compared with the final quarter of 2013, although total production for the year just exceeded that of 2013 at 24,223 tonnes.

The lower production was largely the result of a 7% drop in head grade at the San Rafael Mine, from 2.68% in 4Q2013 to 2.48% in 4Q2014. Despite the drop in head grade, a 6% increase in the volume of ore processed during 2014 enabled Minsur to marginally increase tin production from the previous year. Falling grades and the higher cost per unit of processing tin concentrate stocks resulted in cash costs 16% higher for the final quarter, at US$ 9,145, and 9% greater for the whole year, at US$ 8,459, compared to 2013.

Despite a 20% drop in revenue to $US 131.1 million for San Rafael in Q4, due to the lower production volume, annual revenue for the mine increased by 4% to US$ 621.4 million from 2013 as the higher cash costs and 12% drop in annual average tin price in 2014 were offset against a higher volume of tin sales due to a stock optimisation programme.

In the final quarter of 2014, capital expenditure for San Rafael was 48% higher than the same period of the previous year, at US$ 8.5 million, as the capacity of the tailings dam and waste dump were increased according to the mine plan.