Antofagasta has announced its performance for the first quarter of 2024, stating production and cost levels met expectations despite certain operational challenges. Copper production totaled 129,400 tonnes, marking an 11% decrease compared to the same period last year, primarily due to lower ore grades and increased hardness at the Centinela mine. The company also faced delays in its Los Pelambres operations due to maintenance on the concentrate pipeline, affecting the transportation of copper concentrate to port facilities. This resulted in about 27,000 tonnes of copper being rescheduled for future production.
Gold and molybdenum productions also saw changes, with gold output dropping 21% to 33,300 tonnes and molybdenum production increasing by 8% to 2,700 tonnes. The variation in gold production was attributed to lower grades at Centinela, while the increase in molybdenum was unaffected by the pipeline maintenance, as it is transported by road.
Financially, the company faced a 7% increase in cash costs before by-product credits, reaching $2.67 per pound. This rise was primarily due to reduced production outputs, though it was partially offset by lower costs for consumables and the depreciation of the Chilean peso. Net cash costs increased by 25% to $1.93 per pound compared to the first quarter of the previous year.
On the development front, Antofagasta began construction on the Centinela Second Concentrator Project, aimed at boosting copper-equivalent production by 170,000 tonnes per year starting in 2027. This project entered full construction phase following finalized financing agreements totaling $2.5 billion. Moreover, the company is preparing to double the capacity of the existing desalination plant and construct a new concentrate pipeline at Los Pelambres, following environmental approval.
The company maintains its 2024 production and financial guidance unchanged, with anticipated full-year copper production between 670,000 and 710,000 tonnes and cash cost guidance at $2.25 per pound before by-product credits and $1.60 after.
Safety and sustainability also remain key focuses, with the company reporting a significant reduction in high-potential accident rates and publishing its annual Sustainability Report and Climate Action Plan.
In corporate updates, the company disclosed that it holds a 19% stake in Compañía de Minas Buenaventura, with two members joining Buenaventura’s board of directors. Additionally, Tracey Kerr joined Antofagasta’s board as an independent non-executive director earlier this year.
