Antofagasta (LON:ANTO)
Antofagasta (LON:ANTO) Q1 2017 copper production was up 9.4% YoY although down 16.4% QoQ to 172kt due to expected weaker grades at Los Pelambres. Gold production was also weak, down 6% YoY and 42% QoQ to 53koz. ANTO is, however, on track to meet full year guidance of 685-720kt yet continues the trend of copper production underperformance by the majors in Q1 2017.
The impact of production weakness was naturally negative on cash costs which were up 12.4% QoQ on a net basis to US$1.27/lb, although down 7.3% YoY. Before by-product credits cash costs were up 8.9% QoQ and down 7.6% YoY to US$1.59/lb.
BHP Billiton (LON:BLT)
BHP Billiton (LON:BLT) has announced disappointing operational results as although modest gains were made in bulks production this was offset by significant declines in petroleum and copper production.
Total copper production of 939kt was down 20% YoY largely due to the strike action at Escondida although production at the other mines of 393kt was down 14% YoY also. Petroleum production of 157mmboe was down 15% YoY largely due to curtailments relating to market conditions.
Iron ore production of 171mnt was up 3% YoY as productivity improvements continued. Despite the cyclone impact BLT was able to increase met coal production by 2% to 31mnt YoY. Thermal coal production was unchanged YoY at 21mnt.
Fresnillo (LON:FRES) has produced robust operational numbers for Q1 2017 with total silver production of 13.5mnoz up 10% YoY and 1.6% QoQ. This annual increase reflects the contribution from the San Julian mine although the marginal quarterly increase was a result of weaker ore grades at Saucito which offset improvements elsewhere.
Gold production was, however, weaker as expected and down 3.3% YoY and 17% QoQ to 222koz. FRES previously guided towards lower gold grades at Herradura in 2017. Full year silver production guidance of 58-61mnoz has been maintained along with 870-900koz gold and in order to achieve this the second phase of the San Julian ramp up is required. Currently it is due to be commissioned at the end of Q2.