TOP NEWS: Antofagasta Third Quarter Production Rises, Costs Contained

LONDON (Alliance News) - Copper miner Antofagasta PLC said Wednesday its third quarter production improved markedly as it expects further output gains in the final quarter, meanwhile the firm continues to combat cost increases and expects a rise in full year production figures.

For the three months ended September, copper production increased 15% to 188,300 tonnes from 163,200 tonnes the quarter prior. Copper sales also rose 17% in the third quarter to 195,500 tonnes from 167,100 tonnes in the second quarter.

Gold production also rose 21% to 48,100 ounces from 39,700 ounces the quarter prior. Output of molybdenum increased 57% to 4,400 tonnes from 2,800 tonnes the quarter before.

For the nine months ended September, copper production dropped 4.0% to 505,500 tonnes from 526,500 tonnes the year prior. Copper sales also fell 4.4% in the third quarter to 499,300 tonnes from 522,400 tonnes the year before. Gold production also dropped 30% to 120,100 ounces from 171,800 ounces the year prior.

Output of molybdenum, however, increased 43% to 10,300 tonnes from 7,200 tonnes the year before.

"As expected, copper production increased 15% quarter-on-quarter, reaching 188,300 tonnes in the third quarter," Antofagasta Chief Executive Officer Ivan Arriagada said. "Production volumes will continue to grow, with the fourth quarter expected to be particularly strong."

"While we benefited from higher production in the quarter, our disciplined approach to costs has allowed us to combat inflationary pressures during the year which, combined with the strong molybdenum market, has contributed to a 15% fall in our net cash costs to USD1.27 per pound and for the full year guidance remains unchanged at USD1.35 per pound", Arriagada added.

Year-to-date, however, net cash costs stood at USD1.42 per pound of copper produced. This was 16% higher than the USD1.22 per pound reported the year prior. In the second quarter, costs stood at USD1.50 per pound.

"The physical copper market continues to look tight and the outlook for next year remains positive despite ongoing fears about disruptions to global trade," Arriagada continued. "We have narrowed our copper production guidance for the full year to 705,000 to 725,000 tonnes and looking ahead we expect production in 2019 to increase to 750,000 to 790,000 tonnes, driven by higher average grades at Centinela Concentrates and Zaldivar."

In 2017, copper production stood at 704,300 tonnes.