TOP NEWS: Antofagasta down after guiding lower copper output next year

(Alliance News) - Chilean miner Antofagasta PLC on Wednesday backed its 2021 copper production ...

Alliance News 20 October, 2021 | 9:01AM
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(Alliance News) - Chilean miner Antofagasta PLC on Wednesday backed its 2021 copper production guidance, but moderated warned output is set to dip next year.

Shares in Antofagasta were trading down 4.5% at 1,410.00 pence each in London on Wednesday morning.

In the third quarter ended September 30, copper output reached 181,100 tonnes, up 1.5% from 178,400 tonnes in the previous quarter. Higher output reflected increased production at Centinela, offset by lower throughput at Los Pelambres, the company said.

Cash costs before by-product credits in the third quarter were USD1.79 per pound, being 2 cents higher than the second quarter as the energy crisis pushed up input prices.

Net cash costs, meanwhile, were USD1.16 per pound in the third quarter, 2.7% higher quarter-on-quarter from USD1.13 per pound. In the nine months to September 30, net cash costs averaged USD1.15 per pound, up 0.9% year-on-year from USD1.14 for each pound.

"Despite input cost pressures, our net cash costs are now expected to be lower than our original guidance of USD1.25 per pound [for the full-year]," the miner said.

Antofagasta maintained its full-year copper production guidance of 710,000 to 740,000 tonnes. For 2022, however, it now expects slightly lower output of between 660,000 and 690,000 tonnes.

"Since we last reported, there has been no material rainfall at our operations and as we head into the summer months, we do not expect any rain until the next rainy season, which begins in June next year," said Chief Executive Ivan Arriagada.

"The construction of the desalination plant at Los Pelambres is on track for completion in [the second half of] 2022 and we now anticipate group production in 2022 to be between 660,000 and 690,000 tonnes reflecting the previously advised production tonnes at risk at Los Pelambres due to the weather, and lower grades at Centinela concentrates."

By Scarlett Butler; scarlettbutler@alliancenews.com

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Securities Mentioned in Article

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

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