Antofagasta Share Discussion Threads

[waldron] 11/8/2022 07:40

OUTLOOK

As previously announced, considering the impact of the concentrate pipeline incident and the risk of continued low water shortages at Los Pelambres, Group copper production guidance for the full year has been revised from 660-690,000 tonnes to 640-660,000 tonnes. The increased rate of production in H2 is based on the precipitation levels to date, the stockpiled concentrates at Los Pelambres and the expected increase in grade at Centinela Concentrates.

Following increases in diesel and other input prices, net cash cost guidance is increased to $1.65/lb, assuming market consensus estimates at the period end of by-product prices, the Chilean Peso exchange rate and inflation for the rest of the year.

The significant decline in the copper price since the beginning of June has reinforced our commitment to control costs, particularly during this period of higher input prices and general inflation.

Although the copper price traded strongly at the beginning of the year averaging $4.49/lb in the first five months, it weakened rapidly in June, ending the half year at $3.74/lb as concerns about the speed of the economic recovery in China and the likelihood of a recession in the United States and Europe increased. These concerns were further heightened by the ongoing conflict in Ukraine and its impact on the availability of energy supplies, trade and stability, particularly in Europe. Given the current global environment of rising inflation and rising interest rates, commodity price volatility is expected to continue over the rest of the year, however the longer term fundamentals for copper remain strong.

[philanderer] 22/7/2022 10:07

mixed..take your pick ;-)

22nd july Barclays overweight tp 1410p
21st july RBC underperform tp 1000p

[tuftymatt] 20/7/2022 07:20

Yeah it seems to news was priced in already which would make sense after the recent share price performance.

Thought I may have seen a sub £10 price but not today so good luck all that hold 👍🏻

[waldron] 20/7/2022 07:07

slightly up at open

[waldron] 20/7/2022 07:05

Antofagasta PLC on Wednesday downgraded 2022 production and cost guidance after an issue at its Los Pelambres project caused copper output to fall 6.5% in the second quarter.

The Chilean copper miner cut full-year production to 640,000-660,000 metric tons, down from its latest guidance of the bottom end of the 660,000-690,000 tons range--revised weeks after the issue at Los Pelambres was identified.

On May 31, Antofagasta detected a leak in the underground pipeline that transports concentrate from its Los Pelambres concentrator plant to the port.

In addition, the company on Wednesday raised 2022 net cash cost guidance to $1.65 a pound from $1.55, reflecting inflation in diesel and other input prices.

For the second quarter, the group reported copper production of 129,800 tons, down from 138,800 tons in the first quarter. Net cash costs a pound jumped to $1.90 from $1.75 in the period.



Write to Jaime Llinares Taboada at [e-mail]; @JaimeLlinaresT



(END) Dow Jones Newswires

July 20, 2022 02:37 ET (06:37 GMT)

[muscletrade] 20/7/2022 06:40

Production lowered, costs up, copper price lower and tax uncertainty. Hardly a great mix, although maybe the market will view it as all priced in. We will find out shortly.

[tuftymatt] 20/7/2022 06:18

It will be interesting to see how the market reacts to that.

I am done trying to call the outcome of trading statements!!

[tuftymatt] 19/7/2022 15:20

Yeah maybe Steve but in these markets you just can't call anything really!!

Good luck to all holders 👍🏻

[stevegrass777] 19/7/2022 15:15

I think you may have missed anto's stint bellow £10.
The way it snapped back above £10 I can't see it doing so for long if at all.

[tuftymatt] 19/7/2022 13:21

This one has come on my radar today and I am thinking of adding if I can get in at around 960.

I agree with some on here who think copper has a solid future and even though a divi of circa 11% may not last, it should still remain very high. Will only take a small position but alongside my RIO holding I think it's a good fit.

Good luck all.

[peeks007] 15/7/2022 15:50

@waldron Probably no impact at all I should think.

@muscletrade Yes you make some very good points. I'm hoping the recession will be short lived. The energy transition and switch to electric cars should provide support to prices in the years ahead. If the stock falls to around 600p or so in the coming months then I'll happily keep buying.

[muscletrade] 15/7/2022 10:53

@peeks, you make a very good point as copper demand will only increase going forward and is reported to be running short a decade or so from now, more so as it takes approx 16 years to develop a new copper mine etc. Having said that 2030/35 is a long way off and the current fight against inflation is looking ever more likely to cause a recession. The negative effect on previously/free money induced high commodity prices and minerals in-particular is already significant, not made better by figures from China today as well as Rio Tinto etc etc
With reduced prices and increased costs margins will come down with reduced cashflow and in "Fags" case a likely reduced dividend(they have history on this).Is this priced in yet?
Maybe but personally I don't think so yet.

[waldron] 15/7/2022 09:29

DIVIDEND


Ex-div date 01 Sep 2022 (Thu)


Pay date 30 Sep 2022 (Fri)

[waldron] 15/7/2022 09:23

JULY/20/22 Interim 2022 Sales and Revenue Release - Production Report

AUGUST/11/22 Interim 2022 Earnings Release

[waldron] 15/7/2022 09:20

peeks

what impact do you think the change to fibre telephone land lines will have on the copper price

will they reuse the copper wiring to produce EV Batteries

HAD HOPED THAT CERTAIN FONE COS PROFIT SOME HOW

[peeks007] 15/7/2022 09:11

I think the market has underestimated the demand for copper. Long term copper prices will be a lot higher than they are now.

[pander45] 15/7/2022 07:39

Yes I'm looking at 800 or thereabouts.

[muscletrade] 15/7/2022 06:57

More interesting than a few weeks ago that's for sure, although probably not interesting enough yet.
Copper prices are still in free fall and down another 2% this morning. Iron ore ditto and even coal off over 4% today.

[pander45] 14/7/2022 21:45

Starting to get mildly interesting.

[muscletrade] 14/7/2022 13:23

@tuvart Are you still being patient? I hope so.

[porsche1945] 14/7/2022 10:40

I would think using 2008 and then 2015 periods a good copper price guide…..these at their long run rate of 850 ish value. Mining will be in the toilet, hedge funds dumping miners and oil, that bump is gone and china demand a major problem.

[fuji99] 11/7/2022 07:52

If inflation continues, it will ruin people. Employers have to compensate employees and adjust to probably lower profit margins. IMO markets have to correct drastically at some point because the only remedy to reduce inflation is interest rate rise. If interests rise, borrowing becomes more expensive leading to less investment, thus less output. All the ingredients are gathering for a long term bear market. This is even without adding the on-going Russia/Ukraine conflict with no end on sight. I am out for the remainder of 2022 until I see some visibility in what's going on. I have nothing to lose but a lot if I remain in such uncertain and volatile markets.

[philanderer] 05/7/2022 12:58

Mining stocks suffered from nervousness around the growing number of strikes. Antofagasta (ANTO) was hit worst as it reported roadblocks to its Chilean copper mines.

Citywire.com

[turvart] 27/6/2022 07:40

Looking good!