Pacheco visited the House of Commons and asserted that the problems faced by state-owned enterprises “do not correspond” to financing and revenue expenditure.
About a month ago, the Copper Mining Research Center (Sesco) warned that a continued increase in Codelco’s debt could push the state-owned company into bankruptcy.
Sesco claimed that the debt level of mining companies reached USD 18 billion in the first half of this year, an indicator that has been on an increasing trend since 2008.
He said that along these lines, the above will result in the company having a debt of USD 30 billion in 2027.
Máximo Pacheco, chairman of Codelco’s board of directors, countered that the warning appeared to be “a travesty.”
“Does anyone really believe that Codelco is on the verge of bankruptcy? “I would say that’s crazy to me,” he said during a visit to the House of Commons to meet with members of the Mining and Economics Committee. he said.
Along these lines, Pacheco stressed that the state-owned company is “strong and robust,” adding that it reports daily profits of $14 million.
He also asserted that their problems “do not correspond” to cash flow or revenue and expenditure.
The Committee provided that Pacheco would present Codelco’s balance sheet on a quarterly basis, with the aim of increasing certainty in the process.
Codelco’s profit plummets in the first half
In the first half of 2023, Codelco contributed USD 770 million to the Treasury, 6% more than its contribution to the Treasury, and reported a surplus of USD 329 million and EBITDA of USD 1.775 billion.
The situation indicates a collapse of the surplus, considering that the surplus amount in the same period last year was USD 2.377 billion, a decrease of 35.3% compared to the first half of 2021.
The mining company said its results over the past three months were “impacted by a 19% decline in realized copper prices compared to the first quarter and a 36% decline in molybdenum prices over the same period.” This was partially offset by an approximately 8% improvement in direct costs. ”