TOP NEWS: Antofagasta keeps guidance despite slip in copper production

(Alliance News) - Copper miner Antofagasta PLC on Wednesday said its full-year cost and ...

Alliance News 21 July, 2021 | 10:52AM
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(Alliance News) - Copper miner Antofagasta PLC on Wednesday said its full-year cost and production guidance remained unchanged despite a slight drop in copper output in the first half.

Shares in Antofagasta were trading up 3.2% to 1,407.50 pence each in London on Wednesday morning.

The Chile-focused miner said first half production and costs fell in line with prior guidance.

Antofagasta copper output dropped 2.7% to 361,500 tonnes in the six months to June 30 from 371,700 in the same period a year prior.

Net cash costs reached USD1.14 per pound in the first half, up 1.8% from USD1.12 the year before.

Second quarter copper production fell by 2.5% to 178,400 tonnes, from 183,000 tonnes in the first quarter.

Gold production reached 61,400 ounces in the second quarter, up 3.9% quarter-on-quarter from 59,100 ounces.

Meanwhile, second quarter molybdenum output was 2,800 tonnes, down 7.7% from 2,600 tonnes.

Overall, net cash costs for production were USD1.13 per pound in the second quarter, slightly below the first half overall and down 2.6% from USD1.16 in the first quarter.

The firm said its Los Pelambres and Centinela mines performed strongly in the first half of the year. However, the company said lower rainfall at Los Pelambres could affect full year production if precipitation levels do not recover.

Chief Executive Ivan Arriagada noted: "Copper, gold and molybdenum markets have been strong throughout the first half of the year, with copper trading two-thirds higher than last year at well over USD4.00 [per pound]. As vaccination levels increase around the world, the global economy is expected to continue to recover strongly from the pandemic providing further support for the copper market."

Antofagasta said it expects copper output of around 730,000 to 760,000 tonnes in the full year, with a net cash cost of USD1.25 per pound and capital expenditure of USD1.6 billion. For 2020, Antofagasta reported copper production of 733,900 tonnes.

By Scarlett Butler;

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Antofagasta PLC 1,356.50 GBX -6.45 -

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