Antofagasta profit beats on better cost management amid weak copper
Chilean miner Antofagasta on Thursday reported a slightly better-than-expected first-half profit, bolstered by higher copper sales, by-product revenue and lower cost of production but offset by lower copper prices.
Prices of the red metal, which is widely used in electrical components and renewable energy, have taken a hit this year by the prolonged Sino-U.S. trade war that has threatened demand and dimmed outlook.
The company, majority-owned by Chile's Luksic family, said that it would focus on controlling its costs amid the uncertainty arising from the trade negotiations between Washington and Beijing.
The copper miner maintained its full year forecast but said it expects copper production to decline in 2020 towards 2018 levels due to a reduction in grades at its Centinela mine but anticipates the decline will be partially reversed in 2021.
The FTSE-100 company said core earnings rose to $1.31-billion in the six months ended June 30, from $904.2-million last year. Margins expanded from a year earlier to 51.7%.
Revenue rose 19% to $2.53-billion, while net cash costs fell 22% to $1.19/lb of copper.
Analysts had expected the company to post core profit of $1.29-billion on revenue of $2.53-billion for the first half of 2019, according to a company-compiled consensus of 15 estimates.
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