Can you provide an overview of Asarco’s production profile in the US during 2023 and 2024?

Asarco produces at our three mines in Arizona: Ray, Mission, and Silver Bell. The Hayden concentrator and the smelter in Arizona will remain inactive while we assess the situation to determine how to resume operations. Once the smelter is back online, the Amarillo refinery in Texas will also restart. This refinery supplies wire rod to the entire East Coast of the US.

Asarco's production in 2024 is seeing a small increase compared to 2023, thanks to an additional investment of around US$120 million. This boost is expected to benefit Asarco, despite challenges with staffing in the US mining sector. We have even brought in some personnel from Mexico to Arizona to support our operations. 

What are Asarco’s plans to restart operations at the Hayden complex and Amarillo refinery?

All of Asarco's facilities are operational, except for the smelter and the Hayden concentrator. We are currently evaluating these operations to see if they can be restarted to achieve additional production. The goal for the smelter is to produce copper anodes by processing concentrates from the Mission and Ray mines, as well as the Hayden concentrator. 

As we await the decision on reopening the smelter, we continue selling copper concentrates. Once the smelter reopens, we would produce a more finished product, the anode, which would be sent to the Amarillo refinery in Texas to manufacture wire rods. Selling copper anodes and rods from the Amarillo refinery yields higher revenue than the concentrates we currently sell. 

What investments is Asarco looking to make to improve operations?

The planned investment for this year across Mission, Ray, Hayden, and Silverbell is approximately US$120 million. Total investment in 2023, was around US$1 billion, and we see a similar budget for 2024, estimated at US$1.08 billion. In comparison, operations in Peru and Mexico also see substantial investments, with Peru receiving US$400 million and Mexico US$560 million.

How does Asarco use its proprietary Copper Basin Railway?

Currently, the Copper Basin Railway is being used to transport production concentrates. However, as the Hayden smelter is not operational, concentrates from Mission and Ray are being handled differently. Silverbell, with its leaching plant, produces copper cathodes. These concentrates are not being transported by rail due to the lack of a direct rail link from Arizona to the port of Guaymas. Instead, they are being trucked to Guaymas, where we take advantage of our storage facilities. 

What is Asarco’s relationship to the state of Arizona?

In Arizona, we face virtually no environmental issues, complying fully with all US mining regulations. We believe this will continue, and we aim to improve where possible. Hopefully, we can advance the restart of the smelter, refinery, and concentrator in Hayden, which would boost our concentrate production and increase Asarco's overall output for better revenue. We hope this will keep Asarco as one of the key operations in Arizona. However, there is another major company in the state, creating competition for skilled personnel, which makes it challenging to operate at maximum capacity.

How does Asarco plan to capitalize on copper’s high trading levels?

Hopefully, the current copper prices above US$4/lb will continue, as this benefits the entire copper mining sector, particularly for us at America's Mining Corporation, including Asarco, Mexico, and Peru. These high prices are due to scarcity and production challenges, such as the slight decrease in Chile's output. Consequently, the demand from Chinese smelters remains high, and sometimes we can't meet the full volume. This has driven up copper prices, which benefits us and the regions where copper is produced worldwide.

What are the firm’s goals to increase revenue?

Asarco is set to improve its production. Investments in 2023 hovered around US$1 billion, and the 2024 budget is slightly higher, nearing US$1.1 billion, a roughly 10% increase. We hope that increased production at Ray and Mission, whether through better ore grades or higher volumes, will boost our revenue. This would help recoup part of the US$1 billion investment. We expect Ray's production to increase slightly, while Mission's may not see as much growth. Silverbell will also contribute modestly with finished copper cathodes. Overall, these improvements should help Asarco increase its current income.