23rd Jan 2019 08:52
LONDON (Alliance News) - Antofagasta PLC on Wednesday said it achieved record silver production in 2018, but gold output declined despite strong growth in the final quarter.
The FTSE 100-listed miner said copper production in the three months to the end of December 2018 was 220,000 tonnes, 17% higher compared to the third quarter of 2018.
For the full year, copper production was at the top end of revised guidance and a record for the company of 725,300 tonnes, up 3.0% on 2017 and driven by improved production at Los Pelambres and Centinela mines, both in Chile.
Gold production was 90,000 ounces in the final quarter of 2018, an 87% increase on the prior quarter, due to higher throughput, grades and recoveries at Centinela. Meanwhile, 2018 production was 210,100 ounces, the top end of guidance, but down from 212,400 ounces mined in 2017, due to lower grades and recoveries.
Looking ahead, Antofagasta said it expects 2019 to be a record year, with copper production in a range of 750,000 to 790,000 tonnes and gold output of between 240,000 and 260,000 ounces.
Capital expenditure in 2019 is expected to be USD1.2 billion, including the Los Pelambres expansion project, which is anticipated to add 60,000 tonnes of copper per annum.
"The group's operations have achieved an improved level of operating stability and we go into 2019 with real momentum for what we expect to be another record-setting year, with production increasing by up to 9%," said Chief Executive Ivan Arriagada.
Antofagasta shares were trading 0.6% lower on Wednesday at 808.80 pence each.
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