23rd Oct 2019 07:53
(Alliance News) - Chile's Antofagasta PLC on Wednesday warned 2020 production is likely to fall year-on-year, though performance in the third quarter of 2019 was "strong".
The FTSE 100-listed copper miner sees 2019 production between 750,000 tonnes and 790,000 tonnes of copper, which has been reiterated. However, for 2020, Antofagasta has guided for production to be between 725,000 tonnes and 790,000 tonnes.
This is due to an expected decline in grades at the Centinela mine in Chile, but the firm does expect production to rise again in 2021.
For the third quarter of 2019, Antofagasta produced 197,000 tonnes of copper, 0.8% lower than the previous quarter. Year-to-date copper output was 584,200 tonnes, up 16% year-on-year due to higher throughput and grades.
Cash costs before by-product credits in the quarter were USD1.60 per pound of copper, and for the nine-month period USD1.64 per pound. Costs are improving, Antofagasta said, due to higher production, a weaker Chilean peso, and a cost savings programme.
Chief Executive Ivan Arriagada commented: "We delivered another quarter of strong production underpinned by a consistent operating performance, which together with higher grades at some of our operations, contributed to year to date copper volumes of 584,200 tonnes which are 16% higher than the same period in 2018.
"Costs continued to decrease over the quarter with net cash costs falling to USD1.12 per pound and USD1.17 per pound for the year to date. For the full year we expect to deliver production growth in line with our annual guidance."
However, the firm has warned recent civil unrest in Chile could disrupt the delivery of supplies and the transport of employees. It believes production will be hit by around 5,000 tonnes as a result.
Antofagasta is also in talks with unions at the Antucoya mine, with workers having gone on strike last week. Talks were successfully concluded with staff at the Zaldivar and Los Pelambres mines recently, the company added.
By George Collard; [email protected]
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