Antofagasta Plc
Antofagasta Plc
Full text is available to Level 2 subscribers only
Subscribe to Mining Business Media
Full access to Mining Business Media's unique blend of global mining sector news and commentary is available by subscription only.
$A275.00 per year*
(*up to 10 users)
GST included in Australia
Direct debit/cheque/credit card:
Click here
Subscription inquiries, email subscribe@miningbusiness.net or call 61+413 772 044.
Related Content
The predicted fall in Chilean major Antofagasta’s Dec 2021 year (FY/CY 21) copper production has been confirmed with output down to 721,500t from the previous year’s 733,900t, fuelled by a combination of drought, higher input costs and global supply chain challenges.
On the bright side, the preliminary numbers show gold output up 23.6% to 252,200oz, but with molybdenum down to 10,500t from 12,600t and net cash costs up to $US1.20/lb from $1.14/lb.
Chilean major Antofagasta is predicting a significant fall in group production to 660,000-690,000t for FY2022 due to the worsening drought. CEO Iván Arriagada says no more rain is expected until June 2022, and the new desalination plant at Los Pelambres is not due for completion until the second half of the year.
An excellent June 2021 half year (H1 21), despite lower copper production, has seen 4 Chilean mines owner/operator Antofagasta’s after tax profit for the period jump to $US1,121.6M from H1 20’s $245.1M, with gold and molybdenum both up.
The result was on revenue up to $3,591M from $2,138.8M, as a result of higher realised copper prices, a record EBITDA up to $2,357.1M from $1,012.8M and cash flow from operations jumping to $2,460.5M from $906.9M.
4 Chilean mines owner/operator Antofagasta has had a mixed June 2121 qtr (Q2 21) with copper and molybdenum production down, but gold up.
Group copper production fell 2.5% on the previous qtr to 178,400t, mainly because of lower recoveries at Centinela Cathodes and expected lower grades at Zaldívar. Copper sales fell 10.6% to 163,400t.
Molybdenum production also fell some 200t to 2,800t.
However, gold output increased 3.9% to 61,400oz, mainly due to higher grades at Centinela.
Revenue up to $5,129.3M for the Dec 2020 year (FY/CY 20) from the previous year’s $US4,964.5M on increased copper/gold prices, partially offset by lower sales, have lifted Antofagasta’s net profit to $893.9M from $843.1M.
Chilean major Antofagasta has followed its Q2 20 output fall in the Sept 2020 qtr (Q3 20) with copper-gold production down and costs up, primarily on the continuing negative effects of the COVID-19 pandemic, albeit with the rate of infections in Chile falling.
Group Q3 20 copper production fell 4.6% on Q2 20 to 169,600t, with gold plunging 16.7% to 38,300oz, but molybdenum up 9.7% to 3,400t. Net cash costs jumped 5.3% to $US1.19/lb.
Chilean copper-gold miner Antofagasta is still feeling the fallout from COVID-19, with molybdenum holding out to lift Q3 20 production.
The effects of COVID-19 have been primarily responsible for Chilean copper major Antofagasta’s June 2020 qtr (Q2 20) copper-gold production falling from Q1 20, with just molybdenum showing any improvement.
The company’s growth projects at Los Pelambres, 70%-owned Centinela and Zaldívar have largely been suspended since Mar 2020, taking costs related to COVID-19 actions to $US38M.
Antofagasta Q2 20 copper production down 8.4%, gold down 29.3%, costs up 2.7%
Chilean copper major Antofagasta has so far dodged the global COVID-19 bullet, lifting Mar 2020 qtr (Q1 20) copper production to 194,000t, up 4.6% on Q4 19, with gold jumping 17.1% to 65,100oz and molybdenum 100t better to 2,400t.
However, the company is currently operating at two-thirds of its on-site workforce at its 4 producing operations that’s so far had a limited impact on production.