JOHANNESBURG (miningweekly.com) – LSE-listed Antofagasta’s continued focus on “profitable tonnes” has delivered higher production, net cash costs reductions, rigorous cost control and lower input prices for 2016.

The Chile-focused company produced 205 500 t of copper in the fourth quarter of the year – a 13.8% quarter-on-quarter increase – taking full year copper production to just under 710 000 t, 12.5% higher than in 2015.

Strong performances, driven by higher grades and increased throughput,  from the Centinela mine, as well as the new Antucoya and Zaldívar operations, were noted.

The positive outcomes of the year were partly offset by the closure of the Michilla mine at the end of 2015. The group sold the majority of the assets of Michilla for a total consideration of $52-million.

“During the year, our new Antucoya mine successfully ramped up to full production and our latest acquisition, Zaldívar, contributed its first full year of production. Both operations are now fully integrated into the group and are operating well,” said Antofagasta CEO Iván Arriagada.

Meanwhile, gold production for the fourth quarter increased by 29.7% quarter-on-quarter to 91 100 oz, with full-year gold output at 270 900 oz, 26.6% higher than in 2015.

Further, the Los Pelambres operation recorded a marginal increase of 2 000 t in molybdenum production for the fourth quarter; however, production for the full year was 3 000 t lower year-on-year at 7 100 t as grades and recoveries fell.

“Looking ahead into 2017, we remain focused on operating and cost efficiencies and achieving our production targets,” Arriagada said.

Cash costs before by-product credits were 5.2% lower at $1.46/lb in the fourth quarter, while cash costs before by-product credits for the full year were $1.54/lb.

Net cash costs decreased by 4.2% quarter-on-quarter to $1.13/lb in the fourth quarter and 20% lower year-on-year at $1.20/lb.

“This reflected the lower cash costs before by-product credits, higher gold production and higher realised prices for gold and molybdenum, partly offset by lower molybdenum production,” he said.

Antofagasta expects production for this year to reach 685 000 t to 720 000 t of copper, 185 000 oz to 205 000 oz of gold and 8 500 t to 9 500 t of molybdenum.

Group cash costs before by-product credits in 2017 are expected to be similar to 2016 levels at $1.55/lb and net cash costs are expected to be about $1.30/lb.