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Mining giant Antofagasta reported a copper production in the fourth quarter, and forecast a further fall in output for 2022, owing to lower grades and the ongoing drought impact at its Los Pelambres mine.
Copper production in 2022 was guided between 660,000 and 690,000 tonnes at a net cash cost of $1.55 per pounds, compared with production of 721,500 tonnes in 2021.
The downbeat guidance arrived alongside a trading update showing Q4 copper output fell 1.2%, and by 1.7% for the full-year.
Gold production in Q4 fell 2.8%, but for the full year was 252,200 ounces, 23.6% higher than in 2020. Gold production for 2022 was expected in a range of 170,000 to 190,000 ounces of gold.
Molybdenum production in Q4 was lower than in the previous quarter, and fell 16.7% to 10,500 tonnes for the full-year, with a further decline to a range of 8,500 to 10,000 tonnes expected in 2022.
Capital expenditure in 2022 was expected to be between $1.7 and $1.9 billion, as 'sustaining and mine development expenditure increase for the year to approximately $1.0 billion, and development expenditure continues on the Los Pelambres expansion project and at Centinela, including the ongoing study and review work on the second concentrator,' the company said.