Antofagasta Reports Q2 Copper Production Increase Amid Mixed Results Across Operations

Mining company Antofagasta PLC reported a significant increase in copper production for the second quarter, with output reaching 155,300 tonnes, marking a 20% rise compared to the preceding first quarter. This increase was largely attributed to the improved performance at Los Pelambres following extensive maintenance and cleaning activities on the concentrate pipeline in February.

However, this gain was somewhat mitigated by lower grades and recoveries at Centinela's concentrator due to elevated levels of clay and fines in the ores processed.

Copper sales for the quarter surged by 39.6% sequentially, totaling 161,500 tonnes. Meanwhile, gold production saw a modest increase of 1%, reaching 33,600 ounces. Molybdenum production, on the other hand, decreased by 7% from the first quarter, totaling 2,500 tonnes, primarily due to lower molybdenum grades at Los Pelambres.

For the first half of the year, Antofagasta's copper production was 284,700 tonnes, a 4% decline from the previous year. Gold production also fell, decreasing by 22% to 66,900 ounces, reflecting lower gold grades at Centinela. Conversely, molybdenum production increased by 6% year-over-year to 5,200 tonnes, driven by higher ore processing rates at Los Pelambres.

Looking ahead, Antofagasta expects total copper production for fiscal 2024 to be at the lower end of its guidance range of 670,000 to 710,000 tonnes. The company has also revised its cash cost guidance, projecting costs of $2.40 per pound before by-product credits and $1.70 per pound after by-product credits.

The capital expenditure guidance for the year remains unchanged at $2.7 billion.