Antofagasta says copper production was 4.6% lower in the third quarter

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on Oct 21, 2020
Updated: Feb 29, 2024
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  • Antofagasta says copper production was 4.6% lower in the third quarter.
  • The London-based miner reports a 9.4% decline in Q3 copper sales.
  • Antofagasta forecasts roughly 725,000 tons of copper production in fiscal 2020.

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In an announcement on Wednesday, Antofagasta plc (LON: ANTO) said that copper production in the fiscal third quarter was lower than Q2. But the company reaffirmed its guidance for the full financial 2020, and also expressed confidence that output will improve in fiscal 2021.

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Shares of the company were reported about 2.5% up in premarket trading on Wednesday but lost the entire intraday gain on market open. Antofagasta now has a per-share price of £10.47 versus a much lower £6.12 per share in March. The stock had started the year at £9.45 per share.

Antofagasta reports a 9.4% decline in Q3 copper sales

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At 169,600 metric tons, Antofagasta reported a 4.6% decline in copper production in the quarter that concluded on 30th September. The company said that the decline was attributed to lower grades at Antucoya and maintenance work that was ongoing at Los Pelambres.

The London-headquartered miner also highlighted a 9.4% decline in third-quarter copper sales. Gold production, it added, was 16.7% lower in Q3, but molybdenum production came in 9.7% higher.

In separate news from the United Kingdom, the betting company, William Hill, said its revenue in the third quarter was now only 9% down on a year over year basis.

Antofagasta previously estimated a range of 725 thousand to 755 thousand tons for copper production in fiscal 2020. It confirmed on Wednesday that copper production was likely to print at the lower end of the estimate this year. The British multinational forecasts under £1.20 a pound of cash costs for fiscal 2020.

CEO Ivan Arriagada’s comments on Wednesday

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CEO Ivan Arriagada of Antofagasta commented on the report on Wednesday and said:

“Following the temporary and precautionary suspension of the Los Pelambres expansion project in the second quarter, approximately 75% of the original planned numbers are now working on site and all COVID-19 protocols are being followed. Similarly, work has also started at the Esperanza Sur and Zaldivar Chloride Leach projects.”

For fiscal 2021, the FTSE 100 listed company expects 730 thousand to 760 thousand tons of copper production. In an earlier report published in August, Antofagasta said its net profit slid to £103 million in the fiscal first half.

At the time of writing, Antofagasta is valued at £10.32 billion and has a price to earnings ratio of 39.99.

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