(Alliance News) - Antofagasta PLC on Wednesday reported a "good" 2019 despite problems such as drought and social unrest in Chile.
The copper miner achieved fourth-quarter copper production of 185,500 tonnes, which it said is "only" 5.8% lower than the previous quarter. The decline was due to planned lower grades and maintenance at the Centinela mine, as well as a strike at Antucoya and fuel delivery disruption at Los Pelambres due to social unrest in Chile.
There was also been a major, decade-long drought in central Chile, and Antofagasta said 2019 was the worst year of the drought so far. Antofagasta said making better use of water remains a priority at the Los Pelambres mine in the region.
Antofagasta's 2019 production of copper was 770,000 tonnes, a record for the company and at the top end of guidance. This was 6.2% higher than 2018 due to increased output at Los Pelambres, Centinela, and Zaldivar.
That guidance had been cut in November due to social unrest in Chile hindering operations. Guidance was lowered to 750,000 tonnes to 770,000 tonnes of copper, from 750,000 tonnes to 790,000 tonnes before.
Fourth-quarter gold production fell 28% quarterly to 55,600 ounces due to lower grades at Centinela, with the 2019 figure up 34% at 282,300 ounces. Molybdenum production in the fourth-quarter was 2,300 tonnes, down 21% on the previous quarter, and annual production fell 15% to 11,600 tonnes.
Antofagasta's net cash costs for 2019 were USD1.22 per pound, 5.4% lower than the year before and below guidance. Before by-product credits, annual cash costs fell 4.1% to USD1.65.
Looking ahead, the FTSE 100 miner sees copper production at 725,000 tonnes to 755,000 tonnes in 2020, as previously guided. Gold output is guided between 180,000 ounces and 200,000 ounces and 12,500 tonnes to 14,000 tonnes of molybdenum.
Chief Executive Ivan Arriagada said: "2019 was a good year operationally for Antofagasta. We expect a solid performance from the group in 2020 as we continue to focus on improving the operating efficiency of our mines, enter into labour negotiations at Centinela and Zaldivar, and continue to optimise water usage across the group and particularly at Los Pelambres.
"We will also complete the Centinela second concentrator feasibility study and continue to invest in our growth projects including the Los Pelambres expansion, the Esperanza Sur pit and the Zaldivar chloride leach project."
"Following the civil unrest in Chile last year and the disruption of supplies at Los Pelambres, all of our mining operations have been operating in line with their respective plans, although the Transport division has had some interruptions due to occasional road blockages in the city of Antofagasta," Arriagada added.
The company will release financial results for 2019 on March 17.
By George Collard; georgecollard@alliancenews.com
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Antofagasta (ANTO)
