By Jaime Llinares Taboada

 

Antofagasta PLC said Thursday that its copper production fell in the first quarter as expected, and capital expenditure in 2022 will be at the high end of the guidance range.

The Chilean copper miner produced 138,800 metric tons of copper in the first quarter of the year at a net cash cost of $1.75 a pound. This compares with 178,900 tons at $1.35 a pound in the fourth quarter of 2021.

"Production reflected the impact of the ongoing drought at Los Pelambres and the expected lower grades at Centinela Concentrates," Chief Executive Ivan Arriagada said.

The FTSE 100 company reaffirmed 2022 production guidance of 660,000-690,000 tons at a net cash cost of $1.55 per pound.

In addition, Antofagasta said that it has recently completed a review to its Los Pelambres Expansion project, which resulted in the estimated capital cost increasing to $2.2 billion from the previous $1.7 billion. As a result, capital expenditure for 2022 is now seen at the top end of the $1.7 billion-$1.9 billion guidance range.

 

Write to Jaime Llinares Taboada at jaime.llinares@wsj.com; @JaimeLlinaresT

 

(END) Dow Jones Newswires

April 21, 2022 02:42 ET (06:42 GMT)

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