BALANCE SHEETS

2001

2000

Jan. - Sep

Jan. - Sep

TH.US$

TH.US$

ASSETS

Current Assets:

980,571

1,070,803

Cash

12,137

13,687

Time deposits and marketable securities

50,881

110,556

Trade accounts receivable

121,269

197,483

Other accounts receivable

246,299

187,333

Inventories

519,228

549,561

Prepaid expenses

30,357

11,098

Other current assets

400

1,085

Property, Plant and Equipment:

4,138,738

4,131,376

Land, infrastructure and equipment, net

3,203,553

3,366,646

Construction-in-progress

655,423

469,100

Mine development,net

279,762

295,630

Other Assets:

726,396

642,389

Other assets

396,260

304,904

Investments in other companies

229,449

240,366

Long-term accounts receivable

100,687

97,119

Total assets

5,845,705

5,844,568

BALANCE SHEETS

2001

2000

Jan. - Sep

Jan. - Sep

TH.US$

TH.US$

LIABILITIES AND EQUITY

Current Liabilities:

875,242

728,796

Bank debt

459,762

301,141

Accounts payable

207,288

189,817

Accrued liabilities and withholdings

201,563

221,565

Income taxes

0

11,710

Other current liabilities

6,629

4,563

Long-Term Liabilities:

2,240,222

2,367,837

Bank debt

650,000

800,000

Bonds

300,000

300,000

Provisions

512,231

628,827

Deferred taxes

769,067

630,227

Other long-term liabilities

8,924

8,783

Equity:

2,730,241

2,747,935

Paid-in capital

1,524,423

1,524,423

Other reserves

1,226,797

1,215,885

Net income of the period

55,874

137,356

(Less) Profit advances to the Chilean Treasury Department

-76,853

-129,729

Total liabilities and Equity

5,845,705

5,844,568

STATEMENT OF INCOME

2001

2000

Jan. - Sep

Jan. - Sep

TH.US$

TH.US$

Operating Income

Sales of copper

2,253,272

2,339,339

Sales of by-products

212,567

220,875

2,465,839

2,560,214

(Less): Cost of sales

-2,013,749

-1,842,903

Gross profit

452,090

717,311

Plus (Less):

Selling and administrative expenses

-50,102

-49,456

Other operating expenses

-48,532

-41,524

Exchange adjustments

26,123

6,011

Operating income

379,579

632,342

Non-Operating Income

Plus (Less):

Interest income

8,193

9,324

Other income

50,252

76,486

Interest expenses

-74,645

-82,406

Other expenses

-33,825

-101,351

Non-operating income

-50,025

-97,947

Income before taxes and contribution

329,554

534,395

Contribution Law N° 13196

-197,177

-204,380

Income taxes

-76,503

-192,659

Net income for the period

55,874

137,356

STATEMENT OF CASH FLOWS

2001

2000

Jan. - Sep

Jan. - Sep

TH.US$

TH.US$

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts from customers

2,503,763

2,615,581

Other receipts

52,903

43,249

Payments to supplier, salaries and other costs

-1,700,160

-1,725,757

V.A.T. paid

-262,223

-265,454

V.A.T. recovered

224,262

234,205

Interest received

4,013

4,172

Interest paid

-66,350

-61,073

Income taxes paid

-2,565

-96,229

Hedging operations

-5,716

-14,278

Dividends received

4,317

0

Net cash flows from operating activities

752,244

734,416

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from sale of fixed assets

0

768

Investments in related companies

-34,302

-3,832

Sale and liquidation of companies

24,073

0

Additions to property, plant, equipment and mine development

-444,645

-343,348

Collection of accounts receivable

48,987

25,614

Long-term loans

-40,839

-21,859

Net cash flows from investing activities

-446,726

-342,657

CASH FLOWS FROM FINANCING ACTIVITIES

Bank financing

335,000

230,000

Repayment of debt

-300,000

-265,000

Distribution advances from profits to the Chilean Treasury Department

-102,409

-197,953

Contribution under Law N° 13196

-193,606

-212,892

Rate hedging

-24,098

0

Net cash flows from financing activities

-285,113

-445,845

CHANGE IN CASH AND CASH EQUIVALENTS

20,405

-54,086

BEGINNING BALANCE OF CASH AND CASH EQUIVALENTS

42,613

173,858

ENDING BALANCE OF CASH AND CASH EQUIVALENTS

63,018

119,772

STATEMENT OF CASH FLOW (Continuation)
Reconciliation of Net Income to Cash Flows from Operating Activities

2001

2000

Jan. - Sep

Jan. - Sep

TH.US$

TH.US$

Net income for the period

55,874

137,356

Contribution Law N° 13196

193,606

212,892

Operating income

249,480

350,248

Charges (credits) to income not representing movements of cash or cash equivalents:

476,826

439,747

Depreciation and amortization

344,960

311,365

Write-off of fixed assets, net

2,900

1,130

Realized gain on invesments in other companies

-41,344

-32,374

Equity income of subsidiaries

22,135

-411

Increase in long-term provisions, including the impact of exchange rate variation

-37,392

41,953

Deferred income taxes, net

116,950

99,887

Accrual for financial transactions

51

14,761

Impact of exchange rate variation in other accounts

68,566

3,436

Decrease (increase) in current assets

24,793

-10,232

Trade accounts receivable

6,734

13,879

Other accounts receivable

-19,524

6,688

Inventories

62,150

-25,663

Prepaid expenses

-24,832

-4,339

Other current assets

265

-797

Increase (decrease) in current liabilities

1,145

-45,347

Accounts payable to suppliers

14,897

-4,694

Accrued liabilities and withholdings

-15,109

-34,946

Other current liabilities

4,472

1,894

Income taxes payable

-3,115

-7,601

Net cash flows from operating activities

752,244

734,416