Antofagasta Q2 copper production up 6% as cash costs fall

Antofagasta said second quarter copper production rose 6.1% to 163,200 tonnes compared with the previous three months and expected it to increase throughout the year as grades improve.

Production for the half year was down 8.5% to 317,000 tonnes compared with 2017 as the company maintained full year guidance of 705,000 - 40,000 tonnes and net cash cost guidance at $1.35/lb.

CEO, Iván Arriagada said production would also be boosted as 9,200 tonnes of copper in concentrates, stockpiled at the Los Pelambres plant on account of a pipeline blockage in April, is moved to port.

"We continue our disciplined approach to costs, but we have seen higher input prices and the impact of a stronger Chilean peso coupled with lower grades during the first half of the year. However, with grades and by-product volumes expected to increase in the second half, we expect a reduction in net cash costs,” he said.