Antofagasta (LON:ANTO )
Net cash costs fell more than 5% to US$1.20/lb in the latest quarter reported by Antofagasta (ANTO LN). Copper production was 174,400t or 1.4% higher QoQ while gold production rose 10.5% QoQ to 58,900ozs due to improved grades at Centinella mine. Molybdenum grades improved at Los Pelambres mine which drove a 36% increase in output YoY and was reflected by 2,400t produced this quarter.
For the six month period, net cash costs were 1.6% lower at US$1.24/lb YoY due to improved productivity at mines and commodity price increases.
Forward guidance remains unchanged at 685kt to 720kt copper produced for the year, expecting higher output in the remaining half. Cash costs pre-by-product credits should come in at US$1.55/lb and net cash costs a bit higher at around US$1.30/lb.
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.
Fresnillo (LON:FRES) quarterly silver production of 14.5moz (including Silverstream) led improved production numbers which were up 11.7% YoY and up 7.3% QoQ. First half silver production of 28.0moz (including Silverstream) was up 11.2% YoY, primarily due to the start of operations at San Julián Phase I, higher ore processed at Fresnillo and higher ore grade at Ciénega. Cost comparative data was not disclosed in the release.
FRES is on track to achieve 2017 production guidance of 58moz to 61moz silver (including Silverstream) and 870koz to 900koz gold. San Julian Phase II should be operational in the coming quarter.
FRES has been delivering significant production growth according to plan and management expectation for several quarters now, demonstrating its premier global primary silver producer status.