Copper Trades with Sharp Losses

Indian Copper was trading at Rs 456.75 per kg, down 1.3%. The prices tested a high of Rs 461 per kg, and a low of Rs 455.3 per kg.

Chilean miner Antofagasta saw its share price dip on Wednesday after it reported a drop in overall copper production for the first quarter, due mainly to lower-quality ore. Antofagasta operates four primarily copper mines across the Antofagasta and Coquimbo regions of Chile. The Centinela mine is Antofagastas second-largest source of copper, producing 228,300 tonnes in 2017 as well as 157,000 tonnes of gold.

The quarterly report also says that labor negotiations at the companys largest copper asset, the Los Pelambres mine, have concluded. The mine is forecast to produce half the companys projected copper output at 345,000 to 355,000 tonnes. Eagle production remains on track to achieve full year guidance producing 5,141 tonnes of nickel and 4,773 tonnes of copper during the quarter. Quantities were lower than the prior year as a result of planned mine sequencing.

Nickel cash costs of $ 0.49/lb for the quarter benefited from lower nickel treatment and refining charges, bettering both guidance and the prior year. Development of the Eagle East access ramp continues ahead of schedule, and underground definition drilling is scheduled to commence in Eagle East in the second quarter of this year.

Neves-Corvo produced 10,760 tonnes of copper and 17,835 tonnes of zinc for the quarter with excellent mill throughput for both zinc and copper and remains on track to achieve full year guidance. Zinc production was in line with the prior year comparable period, despite lower head grades, while copper production was higher resulting from improved mine productivity and higher mill throughput driven by improvements in mine plan execution.