Antofagasta Plc
Antofagasta Plc
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Higher throughput and the anticipated improved grades particularly at its 70%-owned Centinela mine have helped Chilean copper major Antofagasta meet expectations with total production of 188,600t in the March qtr (Q1).
The result was below its Q4FY2018 production of 220,000oz, but CEO Iván Arriagada says that was a reflection of the large increases through the prior year.
“We are on-track for another record-setting year with full year production expected to increase by up to 9% to 750,000-790,000t,” he says.
Despite record copper production up 3% to 725,300t and expecting another record in 2019, Chilean mining major Antofagasta’s Dec 2018 year (FY/CY18) after tax profit has fallen to $US880.3M from 2017’s $1.2B profit.
EBITDA plunged 14% to $2.2B on revenue flat at $4.73B from $4.75B, cutting operating cash flow 25% to $1.9B.
Lower grades/copper price and higher inputs have pushed Antofagasta’s bottom line profit down $320M to $880M, despite record copper output.
Record Dec 2018 year (FY/CY18) copper production of 725,300t, up 3% on 2017, has provided the momentum to drive Chilean mining giant Antofagasta to another record in FY/CY19, up 9% to 750,000t-790,000t.
Chilean mining giant Antofagasta has approved the $US1.3B expansion of its 60%-owned Los Pelambres copper mine in the Coquimbo region designed to increase production by nearly 20%.
The project will include construction of a desalination plant and water pipeline that will protect the mine from prolonged or severe drought as well as supporting the production growth.
Antofagasta predicts up to 20% increase in production after giving the go-ahead for a $1.3B expansion of throughput capacity at its 60%-owned Los Pelambres copper mine in Chile.
CIMIC’s global mining services unit Thiess has won a $A420M ($US303M), 4-year contract extension for Antofagasta Minerals’ Encuentro oxide copper open pit operations in N Chile.
Under the extension, Thiess will continue to provide mining services spanning drilling, load and haul, mobile equipment maintenance and mine services.
Chilean copper producer Antofagasta continues to predict a strong second half performance after posting EBITDA of $US904.2M for the 6 months to June (H1), down from $1.1M a year earlier. Pre-tax profit fell 32.4% to $465.6M.
Group copper production fell 8.5% to 317,000t while group cash costs rose to $1.92/lb from $1.56/lb.
CEO Iván Arriagada says tonnages and unit costs should improve substantially as mined grades increase.
Antofagasta is maintaining FY2018 guidance at 705,000-740,000t at $1.35/lb.
Big Chilean copper miner Antofagasta has had a good recovery June 2018 qtr (Q2 18), lifting copper and gold production 6.1% and 22.9% respectively on Q1 18, but with prime producer Los Pelambres still coming back from the production sapping April/May pipeline blockage.
Despite lower production from Antofagasta’s big Los Pelambres operation due to April/May’s pipeline outage, Q2 18 copper/gold prodn well up