Antofagasta reports 10% fall in 2022 production

Chilean copper miner Antofagasta said output fell 10.4% last year, mainly due to lower ore grades and a drought.

The company on Wednesday said production of the key metal came in at 646,200 tonnes in 2022, at the lower end of forecasts.

Antofagasta said it expected production in 2023 of 670,000 - 710,000 tonnes with net cash costs of $1.65/lb, up from $1.61 in 2022.

The miner sees unchanged capital expenditure of $1.9bn in 2023 as inflation and higher costs for its mine development and desalination expansion at Centinela and Los Palambres operations make an impact.

"The recent strength in the copper market is a positive start to the year, reflecting not just the relaxation of Covid restrictions in China and its expected stronger growth, but also the fundamental long-term importance of copper and the need for increased supply," said chief executive Ivan Arriagada.

Reporting by Frank Prenesti for Sharecast.com