Antofagasta PLC reported a 27% drop in second-quarter net cash costs, driven by higher copper output and a surge in the production of valuable by-products.
The Chilean copper miner's net cash costs, an industry metric for production cost, fell to $1.12 a pound from $1.54 a pound in the first quarter, the company said.
Group copper production rose 3% to 160,100 tonnes, while gold and molybdenum output jumped 13% and 42% respectively, providing significant credits that lower the cost of copper.
“We delivered increased production at our two largest copper mining districts, Los Pelambres and Centinela,” Chief Executive Iván Arriagada said.
The company maintained its full-year production guidance of 660,000 to 700,000 tonnes of copper and said it expects net cash costs to be toward the lower end of its forecast range of $1.45 to $1.65 a pound.
Antofagasta also reported that its major growth projects are advancing on time and on budget and that it secured environmental approval during the quarter to extend the life of its Zaldívar mine to 2051.
More from this issuer
Related coverage
Antofagasta PLC lowered its full-year cost guidance after record credits from by-products such as gold helped drive down its production expenses in the third quarter.
Chilean copper miner Antofagasta said it has priced an issuance of $600 million in senior unsecured notes.