25th Apr 2018 08:33
LONDON (Alliance News) - Chilean miner Antofagasta PLC on Wednesday reported a drop in both gold and copper production for the first quarter of 2018, though the prior figure's drop was anticipated.
Blue-chip Antofagasta's first quarter copper output came in at 153,800 tonnes, 11% lower than the same period a year before, mainly due to anticipated lower grades.
Gold production was 32,300 ounces in the quarter, 39% down year-on-year and 20% lower than the last quarter of 2017. This, it said, was due to lower grades at its Centinela mine.
Antofagasta's net cash costs for the quarter increased to USD1.54 per pound from USD1.27 the same period a year earlier and USD1.36 in the last quarter of 2017, reflecting changes in cash costs before by-product credits.
Despite this lower production, the company said guidance for 2018 is unchanged. It is expecting copper production to be between 705,000 and 740,000 tonnes with production rising quarter by quarter as grades improve.
Antofagasta's net cash costs guidance of USD1.35 per pound was also kept, although this relies on no further strengthening in the Chilean peso.
Los Pelambres copper production was down 2.1% year-on-year to 81,100 tonnes with grades falling 0.6% as expected. Gold production rose, however, 8% to 14,900 ounces.
In February the mine completed labour negotiations with the plant union and a month later with the mine union, with signing bonuses increasing cash costs by 8 cents per pound.
At Centinela, copper production was down 15% year-on-year to 47,300 tonnes due to lower copper in concentrate production, which was down 35% year-on-year. Gold production fell 56% to 17,400 ounces for which Antofagasta blamed on "significantly" lower grades.
Antucoya copper production fell 28% to 14,600 tonnes, while Zaldivar copper output decreased 19% to 10,800 tonnes.
Shares were down 3.4% in early trading on Wednesday at 944.20 pence each.
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