Antofagasta share price: Miner posts Q1 production report

Antofagasta (LON:ANTO) has posted its quarterly production report this morning, revealing a rise in copper output.

**Highlights from the company statement:**
Antofagasta plc CEO, Iván Arriagada said:
“We made good progress during the first quarter of 2016, with the integration of Zaldivar and the ramp-up at Antucoya. Combined, these projects added 25,000 tonnes of production over the period. Our cost savings programme is also benefiting our results, contributing to a fall in our net cash costs of 4% versus Q1 2015 to $1.37/lb and our guidance for the year remains unchanged at 710-740,000 tonnes, at a net cash cost of $1.35/lb.

“Movements in the copper price over the quarter may suggest the market is beginning to stabilise. However, with price growth likely to remain subdued in the near term our focus continues to be on operating safely, efficiently and profitably.”
PRODUCTION
· Copper production in Q1 2016 was 157,100 tonnes, an increase of 7.3% on Q1 2015 with the first full quarter of production from Zaldívar and increases at Antucoya offset by lower production at Centinela Cathodes, as grade declined, and no contribution from Michilla, now that it is on care and maintenance
· Copper production in the quarter was 7.5% lower than in Q4 2015 despite the production from Zaldívar and Antucoya following extended maintenance during the quarter at Los Pelambres coupled with lower production at Centinela Cathodes and no production from Michilla
· Gold production in Q1 2016 was 56,700 ounces, a 1.8% increase on Q4 2015 largely due to higher gold recoveries at Centinela
· Molybdenum production at Los Pelambres was 1,700 tonnes in Q1 2016, compared to 2,100 tonnes in Q1 2015, principally due to a fall in grade

CASH COSTS
· Cash costs before by-product credits in Q1 2016 were $1.72/lb, 6.0% lower than in Q1 2015, but 4.2% higher than in Q4 2015. The increase from Q4 2015 is mainly related to lower production offset by cost savings and lower input prices, particularly energy
· Net cash costs were better than expected at $1.37/lb in Q1 2016, a 4.2% decrease compared with Q1 2015 with a significantly higher realised gold price offsetting the impact of lower production
As of 07:20 BST, Wednesday, 27 April, Antofagasta plc share price is 471.00p.