Antofagasta first quarter copper output down 10.5 pct
LONDON, April 25 (Reuters) - Chilean-focused Antofagasta (LSE: ANTO.L - news) said first quarter copper production fell by 10.5 percent to 153,800 tonnes compared with the same quarter a year ago, mainly because of lower quality ore, but kept full-year output guidance unchanged.
The issue of ore quality in mature copper regions, especially Chile (Stuttgart: 704599.SG - news) , the largest copper producing country, has been widely flagged.
It means more rock has to be processed to get the same amount of copper and adds to production costs for a mineral perceived to be in high demand as the world shifts to greater electrification.
Antofagasta CEO Ivan Arriagada said in a statement the company had expected to begin the year with poorer grades, but would move to higher quality ores and improve output as the year went on.
Full-year production guidance remains at 705,000-740,000 tonnes.
Net (LSE: 0LN0.L - news) cash costs should also fall from $1.54 per pound of copper in the first quarter. Full-year guidance stays at $1.35/lb.
Analysts Bernstein said in a note the results were weaker than expected, but said it maintained its "outperform" rating as full-year guidance was maintained.
Antofagasta (Other OTC: ANFGF - news) shares have fallen around 3 percent since the start of the year. (Reporting by Barbara Lewis Editing by Keith Weir)