Company has three business divisions: Mining, Transport and Water, being the first of them the most important. Antofagasta plc is one of the largest international copper producing companies in the industry. Its activities are mainly concentrated in Chile where it owns and operates three copper mines, Los Pelambres, El Tesoro and Michilla, with a total production of 498 thousand tonnes in 2004, at an average cash cost of 24.4 c/lb. The Groups mining division, Antofagasta Minerals, is also actively involved in exploration particularly in Chile and Peru. The transport division operates an extensive rail network servicing the important mining region of northern Chile, which is centred on the port of Antofagasta. The water division operates a concession for the distribution of water in this region.

SALES PER ACTIVITY (Data as of 31/12/2005)

Copper mining: 94%
Rail transport:   4%
Water:             2%

Peel Hunt today reaffirms its hold investment rating on Antofagasta PLC (LON:ANTO) and raised its price target to 980p (from 950p).

Deutsche Bank today upgrades its investment rating on Antofagasta PLC (LON:ANTO) to hold (from sell) and raised its price target to 1000p (from 900p).

StockMarketWire.com
Antofagasta copper and gold production fell in the first quarter of the year compared to a year ago, while Molybdenum production rose. The miner maintained its full year production guidance.

Copper production in Q1 2018 decreased by 10.5% to 153,800 tonnes compared with the same quarter in 2017 mainly due to the anticipated lower grades.

Gold production was 32,300 ounces in Q1 2018, 39.4% lower than in Q1 2017 and 20.4% lower than in the previous quarter as grades were down at Centinela.

Molybdenum production increased by 40.9% compared to the same period in 2017 due to better grades and recoveries.

'As planned and in line with budget the year has started with lower grades at our operations,' the firm said.

Net cash costs increase to $1.54 per pound compared to $1.27 per pound in Q1 2017. Net cash costs guidance, however, remained unchanged at $1.35 per pound. The increase in cash costs during the quarter comes as Los Pelambres successfully completed labour negotiations with the plant union and in March with the mine union.

The one-off signing bonuses related to these three-year agreements increased Los Pelambres' cash costs by 8c per pound and group cash costs by 4c per pound for the quarter, equivalent to 2c per pound and 1c per pound on an annual basis.

Guidance for the year remained unchanged as group copper production for the full year is expected to be 705,000 tonnes to 740,000 tonnes.

Production is expected to increase quarter-by-quarter during the year as grades improve at the operations to achieve guided grades for the full year, the firm said

Peel Hunt today reaffirms its hold investment rating on Antofagasta PLC (LON:ANTO) and cut its price target to 965p (from 980p).

StockMarketWire.com
Antofagasta said Tuesday it had discovered and cleared blockage of the pipeline that transports concentrates from the processing plant at Los Pelambres to the port at Los Vilos on 5 May.

The firm estimated it would take up to three months for the stockpiles at the plant and the port to return to normal levels.

The impact of the blockage on production for the six months to 30 June was estimated to be approximately 10,000 tonnes of copper. Sales in the same period were expected to be impacted by some 15,000 tonnes, the firm said.

Full-year production remained unchanged, however, at 705,000 to 740,000 tonnes.

Exane BNP Paribastoday reaffirms its neutral investment rating on Antofagasta PLC (LON:ANTO) and raised its price target to 1010p (from 820p).

Morgan Stanley today reaffirms its underweight investment rating on Antofagasta PLC (LON:ANTO) and raised its price target to 800p (from 620p).

StockMarketWire.com
Antofagasta said Wednesday copper and gold production rose in the second quarter of the year compared to a year ago. The miner maintained its full year production guidance.

Copper production in Q2 increased by 6.1% to 163,200 tonnes compared to the previous quarter amid increased sulphide grades and higher throughput at all operations. But half year copper output fell 8.5% to 317,000 tonnes weighed down by lower grades mined.

Gold production increased 22.9% to 39,700 in Q2 but first half output fell by 35.8% to 72,000 ounces quarter as grades were down at Centinela.

Molybdenum production fell by 9.7% to 2,800 tonnes for the quarter.

Net cash costs were $1.50 a pound in Q2, a 2.6% decrease compared with the previous quarter, as lower cash costs before by-product credits were partially offset by lower by-product credits.

Guidance for the year remained unchanged as group copper production for the full year is expected to be 705,000 tonnes to 740,000 tonnes.

Cost guidance for the full year remained unchanged with net cash costs expected to come in at $1.35 per lb.

JP Morgan Cazenove today reaffirms its underweight investment rating on Antofagasta PLC (LON:ANTO) and raised its price target to 780p (from 750p).

HSBC today upgrades its investment rating on Antofagasta PLC (LON:ANTO) to hold (from reduce) and raised its price target to 760p (from 750p).

StockMarketWire.com
Antofagasta downwardly narrowed its copper guidance for the full-year Wednesday despite posting a 15% increase in copper production in the third quarter.

Copper production guidance for the full year was narrowed a range of 705,000 to 725,000 tonnes, down from 705,000 tonnes to 740,000 tonnes previously.

Copper production in the third quarter increased by 15.4% to 188,300 tonnes compared to the previous quarter while gold production increased 21.2% to 48,100 but first nine months of output fell by 30.1% to 120,100 ounces as grades were down at Centinela.

Molybdenum production rose by 57.1% to 4,400 tonnes from the previous quarter driven largely by higher grades and recoveries at Los Pelambres. Net cash costs were $1.27 a pound for the quarter, a 15.3% decrease compared with the previous quarter, supported by lower cash costs before by-product credits. Net cash cost guidance for the full year was unchanged at $1.35 a pound.

Total capital expenditure for the year was expected to be less than the $1.0bn previously guided, the company said.

In 2019 production was expected to increase to 750,000 to 790,000 tonnes of copper with higher average grades, particularly at Centinela Concentrates and Zaldivar, the minder added. 'As expected, copper production increased 15% quarter-on-quarter, reaching 188,300 tonnes in Q3. Production volumes will continue to grow, with the fourth quarter expected to be particularly strong,' said Ivan Arriagada.

'While we benefited from higher production in the quarter, our disciplined approach to costs has allowed us to combat inflationary pressures during the year which, combined with the strong molybdenum market, has contributed to a 15% fall in our net cash costs to $1.27/lb and for the full year guidance remains unchanged at $1.35/lb.'

Citigroup today reaffirms its buy investment rating on Antofagasta PLC (LON:ANTO) and cut its price target to 980p (from 1050p).

StockMarketWire.com
Antofagasta said Thursday it was granted approval to expand its Los Pelambres mine with first production expected in the second half of 2021.

The expansion of the Los Pelambres mine, which is 60% owned by Antofagasta and 40% owned by consortiums led by JX Nippon and Mitsubishi, would add an average of 60,000 tonnes of copper a year to the mine's production over the first 15 years of operation, Antofagasta said.

The expansion would boost annual copper production from 40,000 tonnes in the first year at the expanded throughput to 70,000 tonnes towards the end of a 15 year period, the miner said.

Construction of the $1.3bn expansion would start at the beginning of 2019 and first production was expected in the second half of 2021, it added. Throughput at the plant would be increased from the current capacity of 175,000 tonnes of ore per day to an average of 190,000 tonnes of ore per day.

The capital cost of the project also included $500m for a desalination plant and water pipeline.

'The expansion of our world-class Los Pelambres mine is an important step forward in the advancement of the Group's organic growth pipeline. The expansion project will add 60,000 tonnes a year of low cost copper production at this long-life operation and will ensure that it remains a first quartile producer for many years to come,' said Ivan Arriagada, the CEO of Antofagasta.

'The project includes the construction of a desalination plant and water pipeline which will also benefit the existing operation in cases of prolonged or severe drought, and for a potential further phase of expansion.'

Peel Hunt today reaffirms its buy investment rating on Antofagasta PLC (LON:ANTO) and cut its price target to 930p (from 1000p).

Peel Hunt today reaffirms its add investment rating on Antofagasta PLC (LON:ANTO) and cut its price target to 920p (from 930p).