What do net cost and cash cost mean?
R: The net cost expresses the CIF cost of producing copper as grade A cathode, including as credit the sales of subproducts carried out. This unit cost links copper price in the metal exchanges with the real costs, and allows to see the actual contribution of the copper business to the results. Its determination involves adding the current costs and market tariffs that would be required to convert the company´s portfolio of copper products into grade A cathodes as only product. The direct or cash cost, widely used internationally, are used to compare the copper production costs between companies. They are determined from the net cost described above, from which the charges by depreciation and amortization are substracted as well as the expenses of the company´s headquarters.
