Antofagasta posts fall in first-half copper output
CHILEAN copper miner Antofagasta yesterday posted a 6.6 per cent fall in first-half copper output, slightly better than its own expectations, and said costs remained sharply higher than last year.
The London-listed firm said group cash costs in the second quarter stayed at the same level as the first quarter, up 35 per cent from 2008.
“The market will be disappointed that costs have remained unchanged at 97.5 cents/lb…there will have to be good progress made in the second half if the market is not to be disappointed,” said analyst Jon Bergtheil at Citigroup.
Costs have surged partly due to reduced byproduct credits for molybdenum, which has seen steep price declines. Investors appeared to focus more on Antofagasta’s exposure to the copper price. Demand for copper withered during the economic downturn and is still about 40 per cent below last year’s peak.