Antofagasta copper production up 9.4%, reasserts FY guidance

Antofagasta reasserted its guidance for 2017 as it posted a 9.4% jump in first-quarter copper production.

Copper production rose to 171,900 compared with the same quarter last year, with higher output at Centinela, and Antucoya now operating at full production. Compared with the fourth quarter of 2016, however, copper production was down 16.4% due to expected lower grades at Los Pelambres and Centinela Concentrates.

Gold production fell 6% from the first quarter of last year to 53,300 ounces and was down 41.5% from the fourth quarter as grades declined at Centinela.

Meanwhile, molybdenum production at Los Pelambres increased 29.4% compared to the same period in 2016 as grades rose, and by 10% compared with the final quarter of last year as recoveries improved.

The Chilean miner said cash costs before by-product credits in the quarter improved by 7.6% compared to the first quarter of 2016 to $1.59/lb as a result of productivity gains and cost improvements on an increased production base.

Guidance was left unchanged, with group copper production for the full year expected to be 685-720,000 tonnes, with production higher in the second half of the year than in the first, and cash costs before by-product credits of $1.55/lb and net cash costs of $1.30/lb.

Chief executive officer Iván Arriagada said: "We have started the year with a continued focus on cost efficiency and productivity improvements. Production is in line with our expectations and is some 9% higher than in the same quarter of last year. When compared with the last quarter of 2016 the lower production reflects the expected grade decline at Los Pelambres and Centinela."