Antofagasta PLC (LON:ANTO) said its first-half production rose by 7.1% and the Chilean copper producer has kept its full-year cost and output guidance unchanged after talks to avert strike action at its mines.
The FTSE 100-listed company said full-year production was still expected to be between 685,000 and 720,000 tonnes, unchanged from a forecast from the beginning of the year, although output would be higher during the second half.
It also kept its forecast for costs unchanged, with cash costs before credits for by-products expected to be US$1.55 per pound and net cash costs of US$1.30 per pound.
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Antofagasta’s CEO Ivan Arriagada said the company had continued its focus on improving efficiencies and savings and as mines had improved output, costs had fallen.
New labour laws in Chile, combined with still relatively low prices, have stoked fears of more widespread labour disputes, but Antofagasta averted strike action last week when it signed a wage deal with workers.
In a note to clients commenting on the update, analysts at VSA Capital said: “Not much note of it, but foul weather did cause some disruption to shipments both at mines and away from ports which delayed an even better sales result.
“Hopefully, this won’t be repeated and will drive a better comparative sales result in H2.”
In mid-morning trading, Antofagasta shares were 0.5%, or 5p lower at 946p, reflecting a weaker mining sector on dull metal prices.