(Alliance News) - Antofagasta PLC on Wednesday reaffirmed its guidance for 2020, despite a fall in copper output during the third quarter.
The FTSE 100 miner said copper production in the third quarter of 2020 came in 4.6% lower quarter-on-quarter at 169,600 tonnes, with the company blaming the decline on "major maintenance work" at its Los Pelambres mine in Chile as well as expected lower grades at Antucoya.
Copper sales in the third quarter fell 9.4% to 162,100 tonnes from 178,100 tonnes in the second quarter.
Gold production fell 17% quarter-on-quarter to 38,300 tonnes in the third quarter. However, molybdenum production was up 9.7% to 3,400 tonnes. Gold output was hurt by lower grades, but molybdenum benefited from higher grades.
For the nine-month period, copper production was in line with forecasts at 541,300 tonnes, though down 7.3% compared to the same period in 2019. Copper sales fell 7.3% to 536,300 tonnes, gold production fell 34% to 149,400 tonnes, and molybdenum production was down 4.3% at 8,900 tonnes.
"Copper production guidance for 2020 is unchanged at the lower end of the original 725-755,000 tonnes range," Antofagasta said, noting that government-imposed virus restrictions in Chile are easing.
Net cash costs were USD1.19 per pound of copper in the third quarter and USD1.14 in the first nine months, and the company expects costs to be below USD1.20 per pound for the year as a whole.
Looking further ahead, Antofagasta added: "In 2021, production is expected to be 730,000 to 760,000 tonnes of copper mainly as grades start to increase at Centinela concentrates in the fourth quarter of 2020 and assuming that Covid-19 health protocols remain in place for the whole year."
It said that 75% of the planned workforce is now on site for its Los Pelambres expansion project. It will stay at that level until Covid-19 restrictions are relaxed.
Shares in Antofagasta were trading 0.1% higher at 1,047.50 pence each on Wednesday morning in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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Antofagasta (ANTO)