Antofagasta Sees Higher Copper Output in 2016 After Fourth-Quarter Increase

By Alex MacDonald

LONDON--Chilean copper producer Antofagasta PLC (ANTO.LN) said Wednesday that its copper and gold output rose in the fourth quarter of 2015 from the previous quarter because of new mines in its portfolio, and it expects its copper output to rise this year following a decline last year.

The FTSE-100 miner said it produced 169,900 metric tons of copper in the three months ended Dec. 31, up 8.2% from the previous quarter due to higher production at its flagship Los Pelambres and Centinela Concentrates operations, and contributions from its newly commissioned Antucoya mine and the purchase of a 50% stake in the Zaldívar mine from Barrick Gold Corp. (ABX.T) in December.

The company's copper output last year totaled 630,300 tons, down 10.6% from the year before but broadly in line with revised guidance of 635,000 tons. Antofagasta cut its copper output expectations three times last year from an original forecast of 710,000 tons due to poor weather and protests.

Its gold output rose 22% from the previous quarter to 55,700 troy ounces while its molybdenum output amounted to 2,800 tons.

The company said that this year 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.

It forecasts its net cash cost will fall 10% to $1.35 a pound in 2016 after it rose 4.9% last year to $1.50 a pound, missing the company's guidance of $1.47 a pound.

Write to Alex MacDonald at [e-mail]

(END) Dow Jones Newswires

January 27, 2016 03:08 ET (08:08 GMT)

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