Shares in Antofagasta (LON:ANTO) plummeted on Wednesday, after the company reported modest production forecasts for the year.
The copper mining company announced an increase in production for the quarter, boosted by a stronger performance at its Los Pelambres mine.
Alongside a rise in production, the company said cash costs for the year will be lower than previously expected.
Third quarter copper output grew 3.3 percent to 180,000 tonnes compared with the previous quarter, while net cash costs rose 9.3 percent to $1.18 per pound, the FTSE-100 company said.
Nevertheless, shares fell on Wednesday following the market update, amid relatively disappointing increases in production for the quarter.
Chief Executive Iván Arriagada commented: “We have had a further quarter of improved production with tonnages increasing by 3 percent compared to the previous quarter and by 4.5 percent on a year to date basis”
“Unit costs have kept flat, despite increased cost pressures, with higher production at Centinela and Antucoya, and our continued focus on improving efficiencies. With these savings achieved to date we now expect our net cash costs to be below our original guidance for the full year of $1.30/lb.”
He added: “In 2018 we plan to increase production to 705-740,000 tonnes of copper as Encuentro Oxides ramps-up to full production.”
For the year, Antofagasta sustained output expectations of 685,000 to 720,000 tonnes, with an aim of 705,000 to 740,000 tonnes in 2018.
Across the year, Antofagasta’s share price has risen by 52 percent amid higher copper prices.
Last week, prices hit a three-year high, up nearly 10 percent in the third quarter after China’s stronger-than-expected economic figures, China being one of the most dominant consumers.
The Chile-based copper mining group is listed on the London Stock Exchange, and is a constitute of the FTSE-100 index. The Group operates four copper mines located in Chile, alongside portfolio interests in the United States.
Shares in Antofagasta are currently down 3.91 percent as of 10.13AM (GMT).