Antofagasta shines with higher Q4 production

Antofagasta said fourth quarter copper production rose 16.8% to 220,000 tonnes as a result of higher production at all operations, particularly at Centinela Concentrates which increased production by 68.3%.

Full year production was at the top end of revised guidance, rising 3% to 725,300 tonnes due to higher production at Los Pelambres and Centinela.

Gold production was 90,000 ounces in the fourth quarter, an 87.1% increase on the third quarter due to higher throughput, grades and recoveries at Centinela. Full year production was 210,100 ounces, the top end of guidance.

The company said group production in 2019 was expected to be a record year with 750,000 - 790,000 tonnes of copper, 240,000 - 260,000 ounces of gold and 11,500-12,500 tonnes of molybdenum.

Group cash costs in 2019 before and after by-product credits were expected to be similar to 2018's at $1.70/lb and $1.30/lb respectively.

Capital expenditure in 2019 was expected to be $1.bn, including the Los Pelambres expansion project, which will add 60,000 tonnes of copper per annum. Sustaining capital expenditure and mine development will remain at similar levels as 2018.