Antofagasta's 2008 copper output up 11 percent as costs soar

摘要

Antofagasta reported an 11 percent increase in copper outputand a 31 percent drop in molybdenum production in 2008, during which the company faced soaring costs due to lower molybdenum prices. Cash costs soared to 87.3 cents per Ib in 2008 from 31.6 cents in 2007 mainly due to lower by-product credits, reflecting lower molybdenum prices and volumes as well as expected higher on-site and shipping costs, although these were partly offset by lowertolling charges. In the fourth quarter alone, cash costs jumped to 1.27 dollars per Ib from 76.4 cents per Ib in the third quarter almost entirely due to the effect of the sharp decline in molybdenum prices on by-product credits.