Investing.com -- Antofagasta (LON:ANTO), in its production report on Thursday, maintained its 2025 production and cost targets despite slightly falling short of expectations in 2024.
Shares of the company rose 3.8% at 05:00 ET (10:00 GMT).
The mining group reported a total copper production of 664,000 tonnes, missing its guidance of 670,000 tonnes by 1%.
Copper production in the final quarter of 2024 reached 200,000 tonnes, aligning with consensus expectations.
Guidance for 2025 appears consistent, with copper production forecasted between 660,000 and 700,000 tonnes, aligning closely with analyst expectations.
Copper sales in the same period were weaker, totaling 192,000 tonnes, which represented a 5% drop against consensus.
Antofagasta's unit costs revealed a favorable variance. The gross cash cost for the quarter was $2.01 per pound, 8% below the consensus of $2.19.
Similarly, the net cash cost of $1.23 per pound was 18% below the consensus. However, the realized price for copper stood at $3.75 per pound, falling short of RBC's estimate of $4.16, reflecting a negative impact from provisional pricing adjustments.
The company indicated a strong capex plan of $3.9 billion, sitting at the upper range of prior guidance.
This figure is 2% above the consensus of $3.8 billion. The investment primarily reflects ongoing work on major projects, such as the Centinela second concentrator and development at Los Pelambres.
RBC analysts flagged that the higher capex aligns with the company’s push into a period of intensified investment, suggesting a strategic emphasis on positioning for long-term growth.
Despite the near-term challenges, Antofagasta appears resolute in its operational and fiscal strategies heading into 2025.
The outlook for 2025 costs indicates gross cash costs in the range of $2.25-$2.45 per pound, which is broadly in line with consensus.
Similarly, the midpoint of net cash cost guidance at $1.53 per pound matches market expectations.