Antofagasta reported lower profit and operating income for 2022 on Tuesday, citing lower copper production, lower copper prices and the impact of inflation on costs.
The London-listed company, which focuses on the Chilean mining sector, reported a pre-tax profit of $2.56bn for 2022, down 26% from $3.48bn the year before. Operating income fell 22% to $5.86 billion from $7.47 billion a year earlier.
Antofagasta blamed a 12 per cent year-on-year fall in copper sales volumes, from 725,600 tonnes to 642,500 tonnes, as well as a 12 per cent year-on-year fall in the company's realised copper price. Income was also affected by inflation and rising prices of production inputs.
The group produced 646,200 tonnes of copper in 2022, down 10% from the previous year; Gold production fell 30% to 176,800 ounces. The chief executive of Antofagasta, Ivan? Mr Arriagada said this reflected the continuing drought in Chile, higher prices for production inputs and the impact of the Los Pelambres pipeline accident.
Last June, the company reported a leak in the underground pipeline at Los Palamblas that carries copper concentrate from the concentrator to the port at Los Vilos. The pipeline was shut down immediately after the accident.
Antofagasta now expects copper production to reach between 670,000 and 710,000 tons in 2023, and gold between 220,000 and 240,000 ounces.
Looking ahead, expansion projects in Los Palamblas are expected to come on stream in the second quarter, including a new desalination plant, which will significantly ease the water shortages experienced over the past 18 months, Arijada said. In addition, the company's copper and by-product production is expected to increase in 2023. At the same time, the fundamentals of the copper market remain strong, with China showing signs of recovery and the energy transition supporting long-term demand for the metal.
