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Antofagasta PLC on Wednesday said its first-quarter copper production for 2023 was in line with its prior guidance, at 145,900 tonnes, which was 5.1% higher than 138.800 tonnes a year before.
However, the London-based, Chile-focused mining group said copper production was 25% lower than the 195,700 tonnes produced in the fourth quarter of 2022.
This reflected the ‘expected temporary reduction in throughput at Los Pelambres on lower water availability, and expected lower grades and scheduled maintenance at Centinela’, the miner explained. It expects copper production to improve throughout the rest of 2023.
Gold production was up 9.9% year-on-year at 42,200 ounces from 38,400 ounces in 2022, but 25% lower than in the fourth quarter, when it amounted to 56,100 ounces. Antofagasta said this was due to the scheduled maintenance and expected lower grades at Centinela.
Chief Executive Officer Ivan Arriagada said: ‘The copper market has been strong throughout the quarter, and we expect this to continue as structural supply and demand dynamics support a tight physical market.’
The company said copper production costs in the first quarter were $2.49 per pound before by-product credits, up 6.4% due to ‘general inflation and higher input prices during the period, particularly for energy and sulphuric acid’.
Looking ahead, Antofagasta reiterated annual copper production guidance of 670,000 to 710,000 tonnes, and capital expenditure guidance of $1.9 billion. It expects copper production costs before by-product credits to be $2.20 per pound.
Shares were down 1.8% at 1,607.83 pence each on Wednesday morning in London
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