2014 Highlights:

  • Exceeded the high-end of our annual production guidance for zinc and nickel while meeting our overall targets for copper and lead.
  • Eagle ramp-up performed ahead of schedule, with production exceeding annual guidance for both nickel and copper.
  • Ended 2014 with a net debt balance of $829.5 million. The Company does not have any amounts drawn on its $350 million revolving credit facility.

Paul Conibear, President and CEO commented, "We are very pleased to have met and in a number of cases excelled on production compared to annual production guidance. We are particularly proud of the continued ramp-up at the Eagle mine which had a very successful year in 2014, and is expected to generate significant cash flow for the Company going forward. For 2015, we anticipate another year of strong execution as we focus on cash generation and profit optimization at each of our operations. Of special note, I extend congratulations to our operating teams for achieving a new Company safety record performance, with improvements recorded across all operations."

Operational Commentary

  • Operations safety performance: was a company record during 2014, with a Total Recordable Injury Frequency Rate ("TRIFR") achieved of 1.6 (measured per 200,000 man hours worked). This was an improvement of 20% over 2013’s achievement of a TRIFR of 2.0. Improvements in safety performance at all operations were accomplished over the course of the year.
  • Environmental performance: met expectations with no Level 3 incidents experienced (2013 had one level 3 incident).
  • Neves-Corvo: Fourth quarter copper production achieved the highest quarterly rate of the year. Total annual copper production was in-line with expectations as high throughput levels largely offset lower than expected recovery rates.

Zinc production achieved an annual record as a result of an increased proportion of zinc ore being derived from the Lombador deposit. Over 50% of the zinc ore is now being sourced from this area as well as from other high grade zinc areas in the mine.

  • Zinkgruvan: Zinc, lead and copper production were all in line with annual production targets. Zinkgruvan again this year achieved a historic new milestone with record tonnage of ore mined and milled.
  • Aguablanca: The operation had another strong performance with nickel and copper production both higher than guidance, which itself was increased earlier in the year. Refined mine planning has enabled open pit mining to be extended well into the first quarter of 2015, 3 months longer than expected. Underground mining development is advancing as planned and is expected to ramp up in the second quarter of 2015.
  • Eagle: As previously announced, ramp up continued through the fourth quarter with commercial production being declared on November 24th, 2014. For the year, nickel and copper production exceeded guidance as throughput, grades and recoveries were all higher than expected.
  • Candelaria: The acquisition of Candelaria closed on November 3, 2014. For the period from November 3, 2014 to December 31, 2014, the Candelaria and Pedro Aguirre Cerde processing plants collectively produced, on a 100% basis, 28,590 tonnes of copper, 317,996 ounces of silver, and 16,247 ounces of gold in concentrates.