Antofagasta Lowers Net Cash Cost Guidance by 10% for 2015

By Alex MacDonald

LONDON--Chilean copper producer Antofagasta PLC (ANTO.LN) Monday lowered its cash cost guidance by 10% for the current year due to more favorable input costs, particularly a weaker Chilean peso and lower oil price.

The U.K.-listed miner said it now expects net cash costs for 2015 to be $1.40 a pound, in line with 2014 net cash cost performance.

The company also reaffirmed its full-year production target for 710,000 tons of copper, 250,000 troy ounces of gold and 8,000 tons of molybdenum.

"The guidance we provided previously was based on assumptions we made several months ago, but in light of the current outlook for the peso and the oil price we have decided to rebase our assumptions for 2015," Chief Executive Officer Diego Hernandez said.

The revised net cash cost guidance is based on a Chilean peso to U.S. dollar exchange rate of 620 Chilean pesos per dollar and a WTI crude oil price of $50 a barrel. It also includes by-product credits from the sale of gold at an average price of $1,300 a troy ounce and molybdenum at $9.5 a pound.

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