Antofagasta production edges up, cost guidance nudged down

Antofagasta increased copper production in the third quarter and cut its full year cash cost forecast.

For the three months to to the end of September the Chilean miner produced 180,200 tonnes of copper, 59,600 oz of gold and 2,700 tonnes of molybdenum.

Copper production at the Centinela and Antucoya mines was higher than the second quarter, while Los Pelambres enjoyed higher molybdenum grades grades.

Copper production was up from 174,400 tonnes in the second quarter and 171,900 in the first, while gold was flat on the second and up from the first, and moly up from 2,400 tonnes and 2,200 tonnes.

Despite the improved volumes, cash costs pre-credits rose 1.3% to $1.56 per pound due mainly to higher spare parts and maintenance costs as a result of scheduled major maintenance at Centinela.

Net cash cost post-credits improved to $1.18 per lb due to increased byproduct production and better realised prices, up from $1.20/lb in the second quarter and $1.27 in the first.

Antofagasta reiterated its full-year 2017 target of 685-720k tonnes of copper.

While pre-credit cash cost guidance was maintained at $1.55 per lb, net cash costs are now “expected to be lower” than the original US$1.30 target.