Profits of the Chilean mining company Antofogasta fell 39.4% in 2022

the miner Chilean antofagastaone of the largest in the world, reported this Tuesday that it registered in 2022 revenues of 5,862 million dollars and profits of 2,930 million dollars, which represents a drop compared to the previous year of 22% and 39.4%, respectively.

The company explained in a statement that the 2022 result was influenced by “the decrease in the price of copper and a lower production caused, mainly, by the effects of the drought and the lower grades in the minerals”.

The annual dividends of the group, whose parent company is listed on the London Stock Exchange, were thus reduced by more than half to 610 million dollars.

“The start of the INCO Los Pelambres project, with its desalination plant, will significantly alleviate the water constraints we have experienced in the last 18 months due to the drought affecting central Chile”said its executive president in the delivery of financial results, Iván Arriagada.

Thus, he added, “We expect the production of copper and by-products to increase progressively in the course of 2023 and that the net cost to cathode will be similar to that of 2022.”

Chile, the world’s largest copper producer, is facing a severe drought that has lasted for more than a decade and has affected mining and copper production.

Water is needed in copper smelters and concentrators, which break down raw ore and transform it into usable material.

The Antofagasta mining company, which operates four copper mines in Chile, also reported that it expects to produce between 670,000 and 710,000 tons of copper this year, between 220,000 and 240,000 ounces of gold and between 10,000 and 11,500 tons of molybdenum.

“Copper fundamentals remain strong, with China showing signs of recovery and the energy transition increasing long-term demand for copper,” said its CEO.

The state-owned Chilean Copper Commission (Cochilco) raised its price forecast for this year from $3.7 to $3.85 a pound at the end of January.

Source: EFE