Antofagasta forecasts higher 2024 output after strong Q3

Chilean copper miner Antoagasta reported a 16% jump in copper output in the third quarter and said it expects to ramp up production next year as a result of progress made at its Los Pelambres in the Coquimbo Region.

Copper production totalled 173,600 tonnes in the three months to 30 September, up from 149,600 tonnes a year earlier. This has taken total output over the first nine months of the year to 469,100 tonnes, up 4.1% year-on-year.

Gold and melybdenum production over the first three quarters also rose 19% and 23%, respectively, with net cash costs falling by 6% year-on-year to $1.65 per pound.

Full-year guidance for copper production remains unchanged at 640,000 to 670,000 tonnes, though capital expenditure is now expected to be $2bn, up from previous guidance of $1.9bn, as a result of "the advancement of certain development projects".

Operations at Los Pelambres, which is 60% owned by Antofagasta, were helped by the desalination plant improving water availability, as it continues its Phase I expansion. Commissioning work at the Company's fourth concentrator line at Los Pelambres continues, with this project expected to deliver additional copper in 2024.

As a result of increased throughput rates and commissioning work at the fourth concentrator line expected to deliver additional copper, Antofagasta now estimates 2024 group copper production to be between 670,000 and 710,000 tonnes.

"Antofagasta represents a pure-play copper producer that understands the world's requirement for responsibly sourced copper to facilitate the energy transition," said chief executive Iván Arriagada.

"We are well-positioned to make our contribution, delivering our growth projects for the global decarbonisation journey that lies ahead."