Antofagasta PLC on Wednesday said output improved significantly in the third-quarter from second, with production nearly doubling at Los Pelambres on improved water availability.

Antofagasta is a London-based, Chile-focused mining group. Los Pelambres is its Coquimbo sulphide deposit, which produces copper concentrate containing gold and silver through a milling and flotation process.

For the third quarter, Antofagasta reported copper production of 181,900 tonnes, 40% higher than in the second quarter.

Gold production was 33% higher at 46,900 ounces, while molybdenum production rose 30% to 2,600 tonnes.

Antofagasta said that rainfall in recent months has enabled a progressive increase in throughput. It blamed lower year-to-date production figures on water scarcity during the drought in the first half.

For the first nine months of the year, copper production was 17% lower than a year before at 50,600 tonnes, down 24% at Los Pelambres due to reduced concentrate pipeline availability in June and drought.

Cash costs before by-product credits were $2.1 per pound, 28 cents per pound lower than in the previous quarter, reflecting the improved production during the period.

Cash costs before by-product credits in the first nine months of the year were 30% higher at $2.3 per pound, which Antofagasta attributed to lower production in the first half and higher input prices, particularly for diesel and sulphuric acid.

Net cash costs were $1.7 per pound for the quarter, and $1.8 per pound for the year-to-date, a 13% decrease and 53% increase respectively.

Antofagasta reiterated its copper production guidance for 2022 at the lower end of a 640,000 to 660,000 tonnes range, and added that its cost and competitiveness program is on track to achieve targeted savings of over $50.0 million during the year.

Looking further ahead, Antofagasta expects copper production for 2023 to be between 670,000 and 710,000 tonnes, with the completion of the Los Pelambres desalination and concentrator plants, and lower production at Centinela Cathodes.

Sustaining and mine development capital expenditure is expected to average approximately $1.0 billion per year.

Antofagasta shares were trading 2.7% lower at 1,078.50 pence each in London on Wednesday morning.

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