Antofagasta ramps up producton

3rd Aug 2011 11:10

Chilean miner Antofagasta saw copper production increase by more than a fifth in the second quarter of the year as it continued to ramp up production at its Esperanza project.Group copper production hit 158,700 in the April to June quarter, up 22.3% from the preceding quarter's level.Copper production was 288,500 tonnes in the first half of 2011, compared with 252,900 tonnes in the first half of 2010. As previously announced, current estimates for 2011 Group copper production are for between 620,000 and 640,000 tonnes.The London Metals Exchange (LME) copper price averaged 414.5 cents per pound in the second quarter, compared with 437.5 cents per pound in the first quarter. The LME spot copper price at 30 June 2011 was 421.9 cents per pound (31 March 2011 - 426.2 cents per pound; 31 December 2010 - 441.8 cents per pound).Molybdenum production at Los Pelambres in the second quarter was 2,600 tonnes, a 13.0% increase on the previous quarter, mainly due to an in increase in ore grade as well as higher throughput. Production in the first half of 2011 was 4,800 tonnes, compared with 4,400 tonnes in the first half of 2010.Quarterly gold production was 48,600 ounces, compared with 22,100 ounces in the previous quarter, mainly due to the ramp-up of Esperanza. Group cash costs (net of by-product credits) in the second quarter were 103.8 cents per pound compared to 107.8 cents per pound in the previous quarter. This decrease was due to reduced costs at Esperanza reflecting the progress of the ramp-up, decreased unit costs at El Tesoro, and increased production at Los Pelambres where costs are below the group's weighted average. Pre-credit costs were 159.4 cents per pound (Q1 2011 - 155.8 cents per pound).The share price of Antofagasta fell 8p to 1,320p in the morning session of the day on which the production update was released. --jh