Note 25 Gains (losses) from operating activities in the statement of income by function of expenses, included according to their nature

25.1

Revenue

	12/31/2017		12/31/2016		12/31/2015
	ThUS$		ThUS$		ThUS$
Products		2,151,715		1,933,828		1,721,064
Services		5,608		5,494		7,268
Total		2,157,323		1,939,322		1,728,332

25.2	Cost of sales

	12/31/2017		12/31/2016		12/31/2015
	ThUS$		ThUS$		ThUS$
Raw material and supplies		(413,283)		(335,192)		(309,103)
Types of employee benefits expenses
Personnel expenses		(172,159)		(162,335)		(127,556)
Depreciation expense		(232,365)		(271,239)		(305,091)
Amortization expense		(2,921)		(3,210)		(3,469)
Small deposit amortization expense		(5,440)		(9,498)		(2,287)
Inventory provision variation		(14,989)		(926)		2,597
Operating leases		(96,094)		(90,325)		(62,599)
Investment plan expenses		(13,956)		(16,624)		(17,574)
Maintenance and repair		(5,306)		(6,051)		(3,956)
Contractors,		(67,337)		(62,300)		(49,862)
Mining concessions		(7,802)		(7,313)		(12,888)
Operations transport		(54,057)		(45,864)		(37,809)
Freight and product transport costs		(131,729)		(132,260)		(96,295)
Packaging costs		(2,402)		(1,712)		(4,244)
Purchases from third parties		(113,898)		(125,456)		(120,040)
Insurance policies		(11,199)		(12,110)		(7,620)
CORFO right		(46,274)		(41,962)		(23,155)
Other expenses, by nature		(3,611)		(3,908)		(4,632)
Total		(1,394,822)		(1,328,285)		(1,185,583)

25.3	Other income

	12/31/2017		12/31/2016		12/31/2015
	ThUS$		ThUS$		ThUS$
Discounts obtained from suppliers		346		771		1,343
Indemnities received		2,813		205		39
Fines charged to suppliers		199		358		73
Taxes recovered		47		26		12
Amounts recovered from insurance		154		5,636		2,182
Overestimate of provisions for third-party obligations		587		573		1,039
Overestimate of doubtful accounts		3		56		115
Sale of property, plant and equipment		1,278		657		8
Sale of materials, spare parts and supplies		-		30		1,358
Sale of scrap materials		-		1		-
Options on mining claims		2,607		2,577		2,261
Interest charged to direct customers		317		-		-
Easements, pipelines and roads		4,656		219		1,980
Non-conventional renewable energy		-		639		344
Reimbursement mining licenses and notary expenses		1,197		1,300		1,025
Miscellaneous services		4		-		405
Shares obtained in junior mining companies		2,263		421		-
Reversal of allowance for inventories		-		815		-
Other operating income		1,356		918		3,159
Total		17,827		15,202		15,343

25.4	Administrative expenses

	12/31/2017		12/31/2016		12/31/2015
	ThUS$		ThUS$		ThUS$
Employee benefit expenses by nature
Remuneration and benefits to employees		(50,684)		(47,217)		(44,672)
Amortization expenses		(8)		(6)		(5)
Advisoty services		(804)		(1,322)		(744)
Audit fees		(1,823)		(1,768)		(415)
Marketing costs		(1,581)		(1,338)		(1,614)
Rent buildings and facilities		(878)		(494)		(417)
Advertising expenses		(54)		(173)		(230)
Other expenses, by nature		(45,339)		(36,118)		(38,733)
Total		(101,171)		(88,436)		(86,830)

25.5	Other expenses by function

	12/31//2017		12/31/2016		12/31/2015
	ThUS$		ThUS$		ThUS$
Classes of Employee Benefit Expenses
Depreciation and amortization expense
Depreciation of assets not in use		(90)		(111)		(316)
Sub total		(90)		(111)		(316)
Impairment losses (reversals of impairment losses) recognized in profit (loss) for the year
Impairment of doubtful accounts		(8,038)		(7,198)		(2,981)
Sub total		(8,038)		(7,198)		(2,981)
Other expenses, by nature
Legal expenses		(4,780)		(5,737)		(17,204)
CORFO right		(20,396)		-		-
Indemnities paid		-		-		(3,714)
Plant suspension expenses		-		(32,061)		(57,665)
VAT and other unrecoverable taxes		(1,295)		(1,015)		(1,146)
Fines, interest and VAT		(1,112)		(1,379)		(3,953)
SEC and Department of Justice fines (*)		-		(30,488)		-
Advisory services		(75)		(59)		(15)
Investment plan expenses		(10,006)		(6,657)		(16,246)
Donations not accepted as tax credit		(5,527)		(1,692)		(1,350)
Provision for inventory of materials, spare parts and supplies		-		(815)
Indemnities paid		(421)
Tax on rejected expenses		-		-		(1,653)
Restructuring of joint ventures		(6,000)		-		-
Other operating expenses		(3,898)		(2,519)		(172)
Sub total		(53,510)		(82,422)		(103,118)
Total		(61,638)		(89,731)		(106,415)

25.6	Other income (expenses)

	12/31/2017		12/31/2016		12/31/2015
	ThUS$		ThUS$		ThUS$
Adjustment of reversal of provision for staff severance indemnities		-		-		3,575
Adjust previous year application method of participation		501		(826)		-
Sale of investments in associates		-		7,636		-
Provision for staff severance indemnities		192		(6,300)		-
Other gains (losses)		(150)		169		185
Total		543		679		3,760

This table corresponds to the summary required by the Financial Markets Commission (formerly the Chilean Superintendence of Securities and Insurance (SVS)) and considers notes 25.2, 25.4 and 25.5.

25.7	Summary of expenses by nature

	January to December
	2017		2016		2015
	ThUS$		ThUS$		ThUS$

Raw materials and consumables		(413,283)		(335,192)		(309,103)
Classes of Employee Benefit Expenses
Personnel expenses		(222,843)		(209,552)		(172,228)
Depreciation and amortization expense
Depreciation expense		(232,455)		(271,350)		(305,407)
Amortization expense		(2,929)		(3,217)		(3,475)
Ground study amortization expense		(5,440)		(9,498)		(2,287)
Inventory provision variation		(14,989)		(926)		2,597
Impairment of doubtful accounts		(8,038)		(7,198)		(2,981)
Operating leases		(96,094)		(90,325)		(62,599)
Fines paid		(1,112)		(1,379)		(3,953)
Fines from SEC and the Justice department		-		(30,488)		-
Investment plan expenses		(23,962)		(23,281)		(33,820)
Maintenance and repair		(5,306)		(6,051)		(3,956)
Plant suspension expenses		-		(32,061)		(57,665)
Contractors		(67,337)		(62,300)		(49,862)
Mining concessions		(7,802)		(7,313)		(12,888)
Operations transport		(54,057)		(45,864)		(37,809)
Freight and product transport costs		(131,729)		(132,260)		(96,295)
Packaging costs		(2,402)		(1,712)		(4,244)
Sales cost of imported goods		(113,898)		(125,456)		(120,040)
Insurance		(11,199)		(12,110)		(7,620)
Port costs		-		-		-
CORFO rights		(46,274)		(41,962)		(23,155)
Advisory services		(804)		(1,322)		(744)
Auditors’ fees		(1,823)		(1,768)		(415)
Marketing costs		(1,581)		(1,338)		(1,614)
Lease of offices and facilities		(878)		(494)		(417)
Advertising costs		(54)		(173)		(230)
Other expenses, by nature		(91,342)		(51,862)		(68,618)
Other expenses by nature		(1,557,631)		(1,506,452)		1,378,828

25.8 Finance expenses

	January to December
	2017		2016		2015
	THUS$		THUS$		THUS$
Interest expense from bank borrowings and overdrafts		(1,308)		(854)		(932)
Interest expense from bonds		(49,373)		(57,409)		(66,456)
Interest expense from loans		(2,002)		(4,581)		(6,922)
Capitalized interest expenses		4,382		5,406		4,666
Other finance costs		(1,823)		(60)		(209)
Total		(50,124)		(57,498)		(69,853)