Antofagasta Copper Output Rises; Full-Year Targets Reaffirmed

By Alex MacDonald

LONDON--Antofagasta PLC (ANTO.LN) said Wednesday copper output rose in the first quarter compared with the same quarter a year before, prompting the Chilean copper producer to reaffirm its full-year output guidance.

The FTSE-100 miner said it produced 157,100 metric tons of copper in the three months ended March 31, 2016, up 7.3% from the same quarter a year ago due to higher production from last year's purchase of a 50% stake in the Zaldívar mine and the ramp up of the new Antucoya mine which offset lower production at Centinela Cathodes and the permanent shutdown of the Michilla mine.

Gold production, on the other hand, fell 1.2% on year to 56,700 troy ounces in the first quarter while molybdenum production dropped 19% on year to 1,700 tons during the same period due to lower grades.

Iván Arriagada, who took over as chief executive on April 8, said net cash costs also fell 4.2% on year to $1.37 per pound of copper due to the company's continued cost-savings program, prompting the company to reaffirm its full-year net cash cost guidance of $1.35 a pound of copper.

The company also reaffirmed that it expects to produce 710,000-740,000 tons of copper, 245,000-275,000 ounces of gold and 8,000-9,000 tons of molybdenum this year.

Looking ahead, Mr. Arriagada, said the movements in the copper price over the past quarter may suggest the market is starting to stabilize. He however noted that "price growth likely to remain subdued in the near term."

Write to Alex MacDonald at [e-mail]

(END) Dow Jones Newswires

April 27, 2016 02:34 ET (06:34 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.