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(Updates with production details, analysts comments)
LONDON, July 21 (Reuters) - Chilean miner Antofagasta
said on Wednesday copper production in the first half
of 2021 fell 2.8% to 361,500 tonnes from the same year-ago
period, due to lower recoveries and grades at some operations.
In the three months to June, copper output stood at 178,400
tonnes, down from 183,000 tonnes in the previous quarter, it
said.
The London-listed miner left its full-year guidance
unchanged at 730,000 tonnes to 760,000 tonnes of copper at a net
cash cost of $1.25 per pound and capital expenditure of $1.6
billion, but warned that this could be affected by the lack of
rainfall, which is making 2021 the driest year in 12.
"Strict water management protocols are in place and various
options are being evaluated to mitigate the risk of the impact
of the reduced rainfall, in case this situation continues," it
said in its quarterly production results.
Antofagasta's net cash costs stood at $1.14 per pound in the
first half, compared to $1.12 in the first half of 2020, it
said, on higher prices for diesel and energy and lower
production.
"Unchanged cost guidance of $1.25/lb implies potential for
revision... while production will increase in the second half
with the weaker Chilean Peso likely to be another tailwind,"
Citi analysts said in a note.
Production of molybdenum, used in steel alloys, fell around
200 tonnes from the previous quarter to 2,800 tonnes, while gold
output rose 3.9% to 61,400 ounces over the period.
The miner said that major maintenance works at its biggest
mine, Los Pelambres, originally planned for the second quarter
have been postponed to the fourth quarter.
Antofagasta's share price was up 3.1% by 0815 GMT.
(Reporting by Clara Denina, editing by Louise Heavens)
