Antofagasta PLC (LON:ANTO) reported strong copper production for the final quarter of 2020 but kept guidance for 2021 unchanged.
Cash costs in the fourth quarter of US$1.63 per lb were 1.9% higher than in the preceding quarter due to stronger exchange rates and a one-off bonus paid to conclude labour negotiations at the FTSE 100 group’s Centinela mine.
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Including by-product credits, net cash costs for the full year were US$1.14 per lb, lower than guidance and 6.6% lower than in 2019.
Copper production in the fourth quarter was 192,600 tonnes, up 13.6% on the previous quarter thanks to higher throughput at all operations.
This meant full-year production came out at 733,900 tonnes, down 4.7% but in line with guidance.
Assuming COVID-19 remains in place for the whole year, guidance for 2021 remains for 730,000-760,000 tonnes of copper, 240,000-260,000 ounces of gold and 9,500-11,000 tonnes of molybdenum.
This is expected to be achieved at a net cash cost of US$1.25/lb as ore grades increase at Centinela Concentrates.
“Considering the unprecedented situation, further changes may be required during the year,” the company said.