19th Jan 2022 09:17
(Alliance News) - Antofagasta PLC on Wednesday reported a mostly weaker production performance for 2021, with all segments except for gold showing a decline due to either lower grades or throughput.
For the year, the Chilean miner said copper production reached 721,500 tonnes, in line with company guidance of 710,000 to 740,000 tonnes, but down 1.7% from 733,900 tonnes in 2020, as a result of lower grades and throughput at Los Pelambres.
This also led to a 1.7% drop in sales to 725,600 tonnes from 738,500 tonnes.
Meanwhile, Molybdenum production fell 17% year-on-year to 10,500 tonnes from 12,600 tonnes, again due to lower grades at Los Pelmabres and Centinela Concentrates.
However, higher grades from Centinela allowed Antofagasta's gold output to increase 24% to 252,000 ounces from 204,100 ounces the prior year.
Looking ahead, for 2022, Antofagasta has guided for a drop in output across the board, with copper set to come between 660,000 to 690,000 tonnes, gold to drop to 170,000 to 190,000 ounces, and molybdenum to fall in a range of 8,500 and 10,000 tonnes.
The guidance reflects lower expected grades at Centinela. As well, at Los Pelambres, throughput has been reduced by the continued drought, with expectations of no precipitation until the rainy season. The guidance assumes the desalination plant at Pelambres will become operational in the second half of 2022.
"Despite external pressures, such as the ongoing drought in Chile, higher input costs and global supply chain challenges, the company has successfully achieved its production and cost guidance for the year with copper production at 721,500 tonnes and net cash costs of USD1.20 a pound," said Chief Executive Officer Ivan Arriagada.
"In 2022 we expect copper production to be 660,000 to 690,000 tonnes at a net cash cost of USD1.55 per pound as grades decrease at Centinela Concentrates and the drought continues to impact Los Pelambres," Arriagada added.
Shares in Antofagasta were down 0.8% at 1,427.00 pence on Wednesday in London.
By Dayo Laniyan; [email protected]
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