ANFGF - Antofagasta's Q1 copper output drops but in line with guidance

2023-04-19 09:56:23 ET

Antofagasta ( OTC:ANFGF ) said Wednesday its Q1 copper production fell 25% from the previous quarter due to lower water availability and reduced ore grades.

The Chilean copper miner said it produced 145.9K tons in Q1, which was 5% above year-ago levels and in line with its prior guidance, reflecting "expected temporary reduction in throughput at Los Pelambres on lower water availability, and expected lower grades and scheduled maintenance at Centinela."

Antofagasta ( OTC:ANFGF ) reiterated it expects FY 2023 copper production of 670K-710K metric tons and capital expenditure guidance of US$1.9B.

Q1 copper production costs were $2.49/lb before by-product credits, up 6.4% due to "general inflation and higher input prices during the period, particularly for energy and sulphuric acid."

Antofagasta ( OTC:ANFGF ) is facing domestic headwinds in Chile, and the stock trades at "a hefty price to take on so much concentration and country risk," ZMK Capital writes in an analysis published on Seeking Alpha .

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