Third-quarter figures from Antofagasta (ANTO) received a mixed reception when they landed on Wednesday. At first, investors seemed encouraged by comments from chief executive Iván Arriagada, who said a tight physical copper market had created a “positive” outlook, “despite ongoing fears about disruptions to global trade”.
Shares in the miner rose, and the bears took the cue to sell. Any decision to do so may have been prompted by a lowering in the top-end range of production for 2018, from 740,000 to 720,000 tonnes.
Still, there were positives here. Third-quarter output rose 15 per cent against the three months to September, and Antofagasta believes higher grades at Centinela and Zaldívar should power production to 750,000-790,000 tonnes in 2019. What’s more, strong molybdenum prices have sharply lowered net cash costs, and capital expenditure guidance has fallen.
