Business
Q3 2018 PRODUCTION REPORT
Q3 2018 PRODUCTION REPORT.
About this update from Antofagasta Plc
[{"type":"text","content":"\n \nRNS Number : 9544E Antofagasta PLC 24 October 2018 \n\nNEWS RELEASE, 24 OCTOBER 2018\nQ3 2018 PRODUCTION REPORT\nPRODUCTION AND COSTS IMPROVE. GUIDANCE NARROWED. \n2019 GROWTH GUIDANCE RELEASED.\n \nAntofagasta plc CEO, Iván Arriagada said: \"As expected, copper production increased 15% quarter-on-quarter, reaching 188,300 tonnes in Q3. Production volumes will continue to grow, with the fourth quarter expected to be particularly strong.\n \"While we benefited from higher production in the quarter, our disciplined approach to costs has allowed us to combat inflationary pressures during the year which, combined with the strong molybdenum market, has contributed to a 15% fall in our net cash costs to $1.27/lb and for the full year guidance remains unchanged at $1.35/lb.\n\"The physical copper market continues to look tight and the outlook for next year remains positive despite ongoing fears about disruptions to global trade. We have narrowed our copper production guidance for the full year to 705-725,000 tonnes and looking ahead we expect production in 2019 to increase to 750-790,000 tonnes, driven by higher average grades at Centinela Concentrates and Zaldívar.\"\n \nHIGHLIGHTS\nPRODUCTION \n· Group copper production in Q3 2018 was 188,300 tonnes, 15.4% higher compared to the previous quarter as a result of higher production at all of our operations. \n· Group copper production for the first nine months of the year was 505,500 tonnes, 4.0% lower than in the same period last year as a result of lower grades.\n· Gold production during the quarter increased by 21.2% to 48,100 ounces compared to the previous quarter, but for the first nine months decreased by 30.1% to 120,100 ounces due to lower grades at Centinela.\n· Molybdenum production in the quarter was 4,400 tonnes, 57.1% higher than in Q2, and for the year to date was 10,300 tonnes, 43.1% higher than in the same period last year, principally due to higher grades and recoveries at Los Pelambres. Additionally, Centinela started producing molybdenum during this quarter.\n \nCASH COSTS\n· Cash costs before by-product credits in Q3 2018 were $1.72/lb, 7.0% lower than in Q2 2018. The decrease is mainly related to increased produ...