16th Oct 2024 09:22
(Alliance News) - Antofagasta PLC on Wednesday said annual copper production would be at the lower end of guidance, unchanged from before, and predicted little change in 2025.
The London-based miner focused on Chile said copper production rose 15% to 179,000 tonnes in the third quarter of 2024 from 155,300 tonnes in the second quarter. It was 3.4% higher from 173,600 tonnes a year ago.
Production was driven by a partial destocking of inventories at Los Pelambres and an increase in copper grades and recoveries at Centinela, the firm said.
Copper sales rose 9.3% to 176,500 tonnes from 161,500 in the second quarter and by 11% from 158,700 a year ago.
Gold production leapt 54% to 51,800 ounces from 33,600 ounces in the second quarter but fell 9.5% from 57,400 last year.
The higher production reflected higher gold grades at Centinela concentrates, Antofagasta noted.
Cash costs before by-product credits fell 11% to USD2.33 per pound from USD2.63 per pound in the prior quarter, but were 2.6% higher than USD2.27 per pound a year ago.
Looking ahead, the company left production guidance for 2024 unchanged. Full year output is expected to be at the lower end of the guidance range of 670,000 to 710,000 tonnes.
Cash cost guidance for 2024, both before and after by-product credits, is unchanged at USD2.40 per pound and USD1.70 per pound respectively.
Capital expenditure guidance for 2024 is unchanged at US2.7 billion.
In 2025, Antofagasta said copper production is expected to be between 660,000 and 700,000 tonnes, with an incremental gain in production at Centinela concentrates.
Antofagasta expects the Centinela second concentrator to deliver 170,000 tonnes per annum of additional copper-equivalent production, with construction expected to complete in 2027.
The company said construction work continues on schedule at two key projects that are intended to enable future growth at Los Pelambres.
Shares in Antofagasta rose 2.4% to 1,839.50 pence each in London on Wednesday.
By Jeremy Cutler, Alliance News reporter
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