Antofagasta cuts production guidance again

Chilean copper producer Antofagasta has again cut its production target for this year as it reported fairly stable output for the third quarter compared with the second.

Copper production was 157,000 tonnes, in line with the previous quarter despite lower grades and recoveries at the Centinela mine, while group copper production for the first nine months of the year of 460,400 tonnes was 11% lower than in the same period last year.

Antofagasta said this was primarily due to lower production at Los Pelambres and Centinela.

Gold production was 158,200 ounces in the first nine months, down 16.1% on 2014 due to lower grades at Centinela.

Molybdenum production was unchanged in the third quarter compared with the second and 32.7% higher in the first nine months compared with the previous year.

The company cut its full-year guidance for the third time this year, to 635,000 tonnes of copper from 665,000 tonnes as a result of the delayed ramp-up at the Centinela concentrates operations and a minor pit-wall slide at the Centinela cathode operations.

Net cash cost guidance was unchanged at $1.47 per pound.

Antofagasta shares were down 2.9% to 529p at 0835 GMT on Wednesday.