16th Apr 2025 11:28
(Alliance News) - Antofagasta PLC on Wednesday reported higher on-year production in the first quarter of its current financial year as a result of improved copper grades and throughput, though noted a decline in production from the prior quarter.
The London-based copper miner in Chile said copper production in the first quarter to March 31 was 154,700 tonnes, up 20% from 129,400 tonnes the year before but down 23% from 200,300 tonnes in the fourth quarter of 2024.
First-quarter copper sales rose 47% on-year to 170,200 tonnes from 115,700 tonnes, but declined 11% on-quarter from 191,800 tonnes.
Gold production for the first quarter totalled 42,900 ounces, 29% higher than 33,300 ounces a year prior and 37% lower than 68,200 tonnes in previous quarter.
Molybdenum production was higher on both counts, amounting to 3,100 tonnes in the first quarter of 2025. This was up 15% from 2,700 tonnes the year before and up 11% from 2,800 tonnes in the fourth quarter of 2024.
"Our portfolio delivered a solid quarter of operating performance and cash cost discipline, with copper production up 20% compared with the same period of last year, explained by consistent or higher throughput across our sites and improved copper grades at Centinela, and with the production of gold and molybdenum by-products also up by 29% and 15% respectively," said Chief Executive Officer Ivan Arriagada.
"The prior year period [first quarter of 2024] includes the effect of lower concentrate filtration at Los Pelambres, given the maintenance work undertaken on the concentrate pipeline, which has since performed reliably and in line with expectations."
Looking ahead, Antofagasta expects full-year copper production of between 660,000 and 700,000 tonnes, against 2024 production of 663,950 tonnes.
Capital expenditure for 2025 is anticipated at USD3.9 billion, while group-level cash cost is projected at USD2.25 to USD2.45 per pound before by-product credits, and at USD1.45 to USD1.65 per pound after by-product credits.
Cash costs for the first quarter of 2025 were USD2.37 per pound, 11% lower on-year and driven by higher production at Antofagasta's Los Pelambres and Centinela Concentrates.
CEO Arriagada continued: "With global markets experiencing significant volatility, our efforts remain centred on delivering robust operational performance, continued cost discipline and the timely execution of our growth projects. The medium-term outlook for copper remains strong given its fundamental role in energy security and electrification, positioning it as a metal of the future.
"We remain well-positioned to meet the rising demand through our pipeline of projects currently under construction."
Shares in Antofagasta were down 1.6% at 1,511.50 pence each in London on Wednesday morning. The stock is down 32% over the past year, giving it a market capitalisation of GBP14.77 billion.
By Emily Parsons, Alliance News reporter
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