Antofagasta records increased production at two largest copper mines

(Sharecast News) - Mining giant Antofagasta said on Wednesday that it had recorded increased production at its two largest copper mining districts, Los Pelambres and Centinela. On a quarter-on-quarter basis, group-level copper production increased by 3% and net cash costs fell by 27%, with costs benefiting from gold and molybdenum by-products, of which production was up 13% and 42%, respectively.

Antofagasta kept FY guidance unchanged, with copper production expected to be between 660,000 and 700,000 tonnes and net cash costs seen towards the lower end of its guidance range of $1.45 per pound to $1.65 per pound. Production was expected to increase quarter-on-quarter for the remainder of the year, following maintenance activities completed in H125.

The FTSE 100-listed firm also said its pipeline of copper growth and development projects at both Centinela and Los Pelambres continued to advance on time and on budget, with recent market movements in by-product pricing strengthening the investment case for these projects.

Chief executive Iván Arriagada said: "Our conviction in copper as the metal of the future remains, with a positive outlook for copper over the medium-term. We see continuing demand support in the form of rising uses from key strategic sectors, driven by accelerating structural trends, such as energy security and modern technologies needed for decarbonisation, AI and infrastructure, with a supply-side that is becoming increasingly constrained."

Reporting by Iain Gilbert at Sharecast.com