Copper slide hits Antofagasta

26th Aug 2009 07:20

Mining firm Antofagasta posted a sharp slide in pre-tax profits as metals prices slid.For the six months to June 30, pre-tax profits totalled $476.6m, compared with $1.66bn over the same period the previous year, as revenues slid to $1.18bn from $2.40bn.Copper production fell by 6.6% to 218,200 tonnes as the firm looked to save costs and the average price of the red metal fell to $1.83 a pound from $3.67.'We had a very solid first half in 2009, with copper production ahead of budget and operating costs down on 2008 as planned,' chief executive Marcelo Awad said.'Commodity prices have improved strongly since March this year and whilst the short-term outlook remains uncertain, both copper and molybdenum prices appear to have found higher support levels at this time.'However the firm warned that stock-building in China, increased levels of financial investment in commodities compared with the second half of last year and continuing weak demand in the developed world made the short-term direction of commodity prices uncertain.The firm says it is still implementing development projects which should enable it to increase copper production from current levels to nearly 700,000.