Bloomberg News

Antofagasta Says Third-Quarter Copper Slump Cost $297 Million

November 24, 2011

Nov. 24 (Bloomberg) -- Antofagasta Plc, the copper producer controlled by Chile’s Luksic family, said nine-month sales were cut by $297 million because of lower-than-projected prices after shipments reached customers in the third quarter.

Antofagasta adjusted the price of 142,100 metric tons of its production to 318.3 cents a pound compared with the provisional contract price of 409.8 cents, it said in a statement today. The company earned $96.3 million from the adjustment in the same period last year. Output in the first nine months rose by 15 percent to 453,500 tons.

The company settles the price of its concentrate output three to five months after shipping to customers, it said in the statement. Copper prices at the London Metal Exchange declined to about $7,000 a ton at the end of September from about $9,800 in July.

Antofagasta, which is seeking to increase output by as much as 23 percent to 640,000 tons this year, today said earnings before interest, tax, depreciation and amortization, or Ebitda, rose 28 percent to $2.51 billion in the first nine months. Ebitda in the first half was $1.95 billion.

Antofagasta also failed to sell all of its production in the period because severe weather delayed shipments. It sold 433,100 tons of the 453,500 tons produced in the first nine months, according to the statement.

--Editors: Alex Devine, John Viljoen

To contact the reporter on this story: Firat Kayakiran in London at fkayakiran@bloomberg.net

To contact the editor responsible for this story: John Viljoen at jviljoen@bloomberg.net


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