Antofagasta copper production down 2.8% in H1 2021, forecast unchanged
Uupdates with production details, analyst comments
LONDON, July 21 (Reuters) – Chilean miner Antofagasta ANTO.L said on Wednesday that copper production in the first half of 2021 fell 2.8% to 361,500 tonnes from the same period a year ago, due to recoveries and lower grades in some operations.
In the three months to June, copper production amounted to 178,400 tonnes, up from 183,000 tonnes in the previous quarter, he said.
The London-listed miner left its full-year forecast unchanged at 730,000 tonnes to 760,000 tonnes of copper at a net cash cost of $ 1.25 per pound and capital outlays of $ 1.6 billion, but warned that could be affected by the lack of rainfall, which makes 2021 the driest year in 12.
“Strict water management protocols are in place and various options are being assessed to mitigate the risk of the impact of reduced rainfall, should this situation continue,” he said. reported in its quarterly production results.
Antofagasta’s net cash costs were $ 1.14 per pound in the first half of the year, compared to $ 1.12 in the first half of 2020, he said, due to higher prices for diesel and gasoline. energy and reduced production.
“Unchanged cost forecast of $ 1.25 / lb imply revision potential … while production will increase in second half as weaker Chilean peso likely to be another tailwind,” Citi analysts said in a note.
Production of molybdenum, used in steel alloys, fell about 200 tonnes from the previous quarter to 2,800 tonnes, while gold production rose 3.9% to 61,400 ounces on the period.
The miner said major maintenance work at its largest mine, Los Pelambres, initially scheduled for the second quarter, has been postponed to the fourth quarter.
Antofagasta’s share price was up 3.1% at 08:15 GMT.
(Report by Clara Denina, edited by Louise Heavens)
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