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Key components of the change in gross sales: increasing sales volumes at Las Cruces, lower realized copper prices for the year
---------------------------------------------------------------------------- three months ended year ended(millions) December 31 December 31----------------------------------------------------------------------------Higher (lower) copper prices $1 ($35)Lower zinc prices - (7)Lower other metal prices (6) (9)Higher sales volumes at Las Cruces 35 221Higher (lower) copper sales volumes at Cayeli (14) 44Higher (lower) zinc sales volumes 3 (39)Higher other sales volumes 7 -Other - 1----------------------------------------------------------------------------Higher gross sales, compared to 2011 $26 $176----------------------------------------------------------------------------
We record sales that settle during the reporting period using the metal price on the day they settle. For sales that have not settled, we use an estimate based on the month we expect the sale to settle and the forward price of the metal at the end of the reporting period. We recognize the difference between our estimate and the final price by adjusting our gross sales in the period when we settle the sale (finalization adjustment).
This quarter, we recorded $5 million in negative finalization adjustments from third quarter shipments.
At the end of this quarter, the following sales had not been settled:
-- 20 million pounds of copper provisionally priced at US $3.59 per pound-- 19 million pounds of zinc provisionally priced at US $0.94 per pound.
The finalization adjustment we record for these sales will depend on the actual price we receive when they settle, which can be up to five months from the time we initially record the sales. We expect these sales to settle in the following months:
----------------------------------------------------------------------------(millions of pounds) copper zinc----------------------------------------------------------------------------January 2013 16 19February 2013 4 -----------------------------------------------------------------------------Unsettled sales at December 31, 2012 20 19----------------------------------------------------------------------------
Higher copper sales volumes, lower zinc sales volumes this year
Our sales volumes are directly affected by the amount of production from our mines and our ability to ship to our customers. This quarter, timing of shipments resulted in copper sales volumes lagging production volumes by a combined 1,900 tonnes as compared to 3,100 tonnes in the fourth quarter of 2011.
Sales volumes
---------------------------------------------------------------------------- three months ended December 31 2012 2011 change----------------------------------------------------------------------------Copper contained in concentrate 8,300 10,300 -19%Copper cathode (tonnes) 17,400 12,800 +36%----------------------------------------------------------------------------Total copper (tonnes) 25,700 23,100 +11%Zinc (tonnes) 19,000 17,300 +10%Pyrite (tonnes) 299,700 175,900 +70%-------------------------------------------------------------------------------------------------------------------------------------------------------- year ended December 31 2012 2011 change----------------------------------------------------------------------------Copper contained in concentrate 46,600 41,200 +13%Copper cathode (tonnes) 68,800 42,000 +64%----------------------------------------------------------------------------Total copper (tonnes) 115,400 83,200 +39%Zinc (tonnes) 65,100 84,400 -23%Pyrite (tonnes) 852,500 809,200 +5%----------------------------------------------------------------------------
