Antofagasta on target as copper, gold output rises in Q2

30th Jul 2014 07:31

Chile-focused mining group Antofagasta has maintained its production guidance for 2014 after a sequential increase in output in the second quarter, while net cash costs were broadly flat.Group copper production in the three months to June 30th totalled 178,800 tonnes, up 5.5% on the first quarter of the year. The firm said this was mainly a result of higher plant throughput levels following the scheduled maintenance at its Los Pelambres and Esperanza projects at the start of the year. However, lower grades at the these two projects meant that first-half copper output was 348,200 tonnes, 4.4% lower than the same period last year.Gold production totalled 67,000 ounces in the second quarter, up 18% quarter-on-quarter, due to higher throughput and higher grades at Esperanza. First-half production, however, slipped 24% year-on-year to 123,800 ounces.Meanwhile, molybdenum output amounted to 1,600 tonnes in the second quarter, down 5.9% quarter-on-quarter. First-half molybdenum production fell 29.8%.As for the cost of production, cash costs before by-product credits were $1.90 a pound (lb) in the second quarter, up 3.8% quarter-on-quarter due to a one-off bonus agreed with labour unions.Nevertheless, net cash costs were just $1.45/lb, down 0.7% on the first quarter, supported by improved by-product credits from Los Pelambres.Antofagasta said it still remains on track to hit its full-year target of 700,000 tonnes of copper, 270,000 ounces of gold and 7,500 tonnes of molybdenum at net cash costs of $1.45/lb.BC