22nd Jul 2020 09:27
(Alliance News) - Chilean miner Antofagasta PLC on Wednesday said second-quarter copper output was hampered by coronavirus-related work disruption, but annual production is still expected to be in line with management's estimates, albeit at the lower end of the guidance range.
Chief Executive Officer Ivan Arriagada said: "During the quarter, we have been running our operations with approximately two-thirds of our workforce on-site, with the remainder either quarantining or working at home."
The FTSE 100-listed company said copper production in the second-quarter ended June 30 was 177,700 tonnes, a decrease of 8.4% compared to the previous quarter, mainly because of expected lower ore grades at Centinela concentrates. First half copper production totalled 371,700 tonnes, in line with expectations and 4.0% lower than in the same period last year.
Gold production for the second quarter decreased by 29% to 46,000 ounces compared with the first-quarter, mainly due to lower grades at Centinela. First half gold output fell 26% to 111,100 ounces.
Net cash costs were USD1.13 per pound in the second-quarter and for the first half of the year were USD1.12. Costs in the second quarter were up 2.7% compared with the previous quarter, but costs for the first half were 5.9% lower than in the first half of 2019.
Antofagasta expects 2020 copper production to be at the lower end of the original 725,000 tonnes to 755,000 tonnes guidance range, on the basis that no Covid-19 related shutdowns are required during the rest of the year. Capital expenditure for 2020 is expected to be less than USD1.3 billion.
Shares in Antofagasta were up 0.2% at 1,039.50 pence each in London on Wednesday morning.
By Tapan Panchal; [email protected]
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