Antofagasta manufacturing slumped in Q2 and is experiencing reasonable inflationary pressures – Commodity Commentary

By Jaime Llinares Taboada

Antofagasta PLC on Wednesday introduced a drop in copper manufacturing for the second quarter of the yr and reaffirmed its targets for the complete yr. This is what the Chile-focused FTSE 100 miner needed to say:

On copper manufacturing:

“The Group’s copper manufacturing in Q2 2021 was 178,400 [metric] tonnes, a lower of two.5% in comparison with the earlier quarter, primarily as a consequence of decrease recoveries at Centinela Cathodes and decrease grades anticipated at Zaldívar “

On gold manufacturing:

“Gold manufacturing for the quarter elevated 3.9% to 61,400 ounces from the primary quarter, primarily as a consequence of increased grades at Centinela, and for the primary six months it elevated by 8, 5% to succeed in 120,500 ounces ”

“Byproduct credit fell from $ 0.66 / lb within the first quarter to $ 0.78 / lb within the second quarter as a consequence of increased realized costs and gold manufacturing.”

On the manufacturing of molybdenum:

“Molybdenum manufacturing was 2,800 tonnes, 200 tonnes lower than within the earlier quarter.”

About charges:

“Inflationary strain on prices has to this point been reasonable and comes primarily from increased costs for primary commodities, corresponding to diesel, acid and vitality, and the depreciation of the Chilean peso, however with out proof of wage inflation or different everlasting results on native product costs. And companies “

Concerning the charges:

“The copper, gold and molybdenum markets have been robust all through the primary half of the yr, with copper buying and selling two-thirds increased than final yr at properly over $ 4.00 / lb. As immunization ranges improve world wide, the worldwide economic system is anticipated to proceed to get better strongly from the pandemic, offering further help to the copper market. “

Write to Jaime Llinares Taboada at [email protected]; @JaimeLlinaresT

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