Antofagasta boss stays cautious as he calls bottom of the market
The battered commodity markets have hit bottom, says the boss of copper miner Antofagasta.
Ivan Arriagada still struck a cautious tone, even as the company’s own production levels spiked. “Although we believe the industry has passed the low point in this commodity cycle, uncertainty persists,” he said.
Antofagasta reported today that copper production last year was 709,400 tons, 13% up on a year earlier but slightly off expectations, despite a strong performance from its Centinela mine and its new Antucoya and Zaldivar operations. Gold production was 27% higher. Shares rose 36p to 860p.
Meanwhile, Aussie rival BHP Billiton said it reached record Australian iron ore production in the last six months of 2016, allowing the world’s largest miner to benefit from the recent price surge.
Commodity prices for key metals such as iron ore have leapt recently. Chief executive Andrew Mackenzie said: “We have performed well in a period of higher prices.”
BHP is still recovering from the fallout after a mining disaster in Brazil led to 15 deaths.