Antofagasta PLC on Wednesday said its metal production was boosted last year by strong performances by its Los Pelambres and Centinela mines.
The London-based, Chile-focused mining group said gold production climbed 18% to 209,000 ounces in 2023 from 176,800 in 2022 due to higher grades at Centinela.
In the fourth quarter alone, Antofagasta produced 65,500 ounces of gold, up 14% from 57,400 in the third quarter of 2023.
Copper production grew 2.2% in 2023 to 660,600 tonnes from 646,200 a year ago, with Antofagasta crediting an ‘increasing contribution from Los Pelambres’ as phase 1 of the project ramps up.
This led to a 10% boost in copper production for the final quarter of the year to 191,500 tonnes from 173,600 in immediately previous quarter.
Molybdenum production in 2023 rose 13% to 11,000 tonnes, due to higher throughput rates at Los Pelambres and higher recoveries at Centinela. In the fourth quarter, however, molybdenum production fell by 9.4% to 2,900 tonnes from 3,200 the quarter before, primarily due to lower recoveries at Centinela, Antofagasta said.
Cash costs before by-product credits in the final quarter of 2023 were $2.07 per pound of copper, a 8.8% decrease from $2.27 per pound the previous quarter, due to ‘higher production across the group and lower costs in Q4 at all our operations.’
For the full year, cash costs before by-product credits were 5.5% higher at $2.31 per pound of copper from $2.19 per pound in 2022, resulting from local inflation, appreciation of the Chilean peso, as well as the completion of ‘a number of three-year labour agreements’.
Looking ahead, Antofagasta said it expects to produce between 670,000 to 710,000 tonnes of copper in 2024. Output of by-products is forecast to be between 195,000 to 215,000 ounces of gold and 11.0 to 12.5 tonnes of molybdenum.
‘The expected increase in copper production in 2024 principally reflects the addition of the Los Pelambres phase 1 expansion project in 2023, with increased water availability and ore processing capacity expected in 2024,’ the company said.
Chief Executive Officer Ivan Arriagada said: ‘2023 was a year of significant progress, and we are pleased to be moving forward into the next phase of development and growth for our company. In 2023, we recorded another strong year of safety performance, with no fatalities and a reduction in lost time injury rates. We have delivered a year of robust operational performance in 2023, with production increasing by 2% and net cash costs in line year-on-year, with our strong cost discipline and increased output of by-products offsetting industry-wide cost inflation.
‘With the delivery of projects and announcement of a new phase of investment in growth, our company is well-positioned for the future. Copper prices continued to show stability in 2023, and we believe in copper’s fundamental role in the energy transition and electrification, which will support long-term pricing.’
Shares in Antofagasta were down 3.2% to 1,570.00 pence each in London on Wednesday morning, while the wider FTSE 100 index was down 1.4%.
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