Individual Q4 results for Minsur’s Peruvian operations, released yesterday, reveal refined tin production totalled 20,224 tonnes in 2015, 17% lower than 2014, meeting production guidance and helped by a 2% year-on-year increase in Q4 refined tin output to 6,300 tonnes.
Despite the slight increase in refined output during Q4, production from the San Rafael mine fell 18% year-on-year to 5,129 tonnes during the quarter, primarily due to a fall in head grades from 2.48% Sn in Q4 2014 to 1.97% Sn in Q4 2015. Refined tin production at the Pisco smelter rose due to the processing of tin concentrate stocks that had accumulated during a plant shutdown in September.
Overall in 2015, compared to the previous year, San Rafael mine production was down 16% to 19,511 tonnes, again due to lower average tin head grades of 2.05%, compared to 2.48% Sn in 2014, which more than offset a 1% increase in treated ore to 1,047,145 tonnes. However, the negative cost effect of lower tin grades was counterbalanced by the implementation of cost savings, contractor renegotiations, and increased operational efficiency. Therefore the cash cost remained broadly unchanged at $8,459 per tonne of tin produced.
ITRI View: Minsur’s refined tin output fell within the 20kt to 22kt range targeted in the company’s 2015 production guidance and despite the impact of falling tin grades, the cost of production at the San Rafael mine remains globally competitive. Current investment in an ore sorting plant for the mine for the processing of lower grade ore stockpiles should help maintain production levels and increase the longevity of the operation looking forward.
