| Inventories |
8. Inventories | (a) | This caption is made up as follows: |
| | | | | | | 2024 | | 2023 | | | US$(000) | | US$(000) | | | | | | Finished goods, net | | 5,200 | | 1,154 | Products in process, net | | 14,334 | | 18,506 | Spare parts and supplies, net | | 60,060 | | 56,867 | | | 79,594 | | 76,527 |
See related accounting policies in Note 2.4(d). | (b) | The provision for impairment of inventory had the following movements: |
| | | | | | | | | 2024 | | 2023 | | 2022 | | | US$(000) | | US$(000) | | US$(000) | | | | | | | | Beginning balance | | 34,762 | | 29,842 | | 30,774 | Continuing operations: | | | | | | | Finished and in progress goods, note 21(a) - | | | | | | | Provision | | 4,049 | | 10,536 | | 7,243 | Reversal | | (10,536) | | (6,685) | | (8,314) | | | (6,487) | | 3,851 | | (1,071) | Spare parts and supplies, note 28(a) - | | | | | | | Provision | | 27,304 | | 20,478 | | 22,533 | Reversal | | (25,377) | | (19,409) | | (22,394) | | | 1,927 | | 1,069 | | 139 | Final balance | | 30,202 | | 34,762 | | 29,842 |
In the opinion of Group’s management, the provision for impairment of inventory adequately covers the risk of obsolescence and the net realizable test as of the date of the consolidated statements of financial position.
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| Inventories |
5. Inventories This item is made up as follows: | | | | | | | December 31,
2024 | | December 31,
2023 | | | US$(000) | | US$(000) | | | | | | Materials and supplies (a) | | 458,203 | | 449,168 | Work-in-process (WIP) (b) | | 159,354 | | 170,918 | Finished goods: | | | | | Copper concentrate | | 13,085 | | 16,059 | Copper cathode | | 4,043 | | 6,762 | Molybdenum concentrate | | 4,183 | | 600 | | | 638,868 | | 643,507 | Non-current | | | | | Work-in-process WIP (b) | | 264,004 | | 302,204 | | | | | | Total inventories | | 902,872 | | 945,711 |
| (a) | For the year ended December 31, 2024, 2023 and 2022 the Company recognized a net expense associated with materials and supplies obsolescence of US$6.9 million, US$12.5 million and US$4.1 million, respectively (see note 15). |
| (b) | WIP inventories represent mill and leach stockpiles that have been extracted from the open pit and are available for copper recovery. Based on the future mine plan production, the Company identifies the portion of inventory that is classified as current or non-current. For mill stockpiles, recovery is through milling and concentrating. For leach stockpiles, recovery is through exposure to acidic solutions that dissolve copper and deliver it in a solution to extraction processing facilities. For the year ended December 31, 2024, the Company did not record any metal inventory adjustment. For the year ended December 31, 2023 and 2022, the Company recorded metal inventory adjustment totaling US$1.5 million US$7.7 million respectively associated with the write-off of leach and certain long-term mill stockpiles (see note 15). |
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