ANFGF - Antofagasta's 2022 copper production slips 10% expected to rise this year

Antofagasta ( OTC:ANFGF ) on Wednesday reported higher copper and gold output for Q4 in line with guidance, while forecasting production and net cash costs will rise in 2023.

The miner reported production of copper jumped 7.6% Q/Q to 195.7K metric tons in Q4 but fell 10.4% Y/Y to 646.2K tons for the full year, at the lower end of guidance of 640K-660K tons, hurt by a temporary reduction in throughput at Los Pelambres in Chile from the drought and reduced concentrate pipeline availability in June.

Q4 gold production surged 20% Q/Q to 56.1K oz but fell 30% Y/Y to 176.8K oz, within the company's guidance, as a result of expected lower grades at Centinela, also in Chile.

For FY 2023, Antofagasta ( OTC:ANFGF ) expects production will increase to 670K-710K metric tons with net cash costs of $1.65/lb, from $1.61/lb in 2022.

Citi analysts said unit cost guidance is higher than consensus expectations , reflecting cost pressures for copper mining in Chile.

Antofagasta ( OTC:ANFGF ) has "a clear runway for production growth after years of development capex," The Global Investor writes in an analysis posted recently on Seeking Alpha .

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