Bloomberg reported today that Chile’s Antofagasta plc (LSE:ANTO) has brought its forecast for a global surplus of copper down by roughly two thirds. The miner is chalking up the reduction to delays in starting new mines for the red metal, according to Bloomberg.
As quoted in the publication:
Antofagasta’s first-half net income dropped 16 percent to $330.8 million, the London-based mining company said today in a statement. Sales slid 4.2 percent to $2.67 billion.
Net cash costs, including earnings from by-products such as molybdenum, climbed 16 percent to $1.46 a pound of copper in the first half, the company said July 30. It targets $1.45 a pound for the year. Antofagasta reiterated its annual copper output goal of 700,000 tons after production sank 4.4 percent to 348,200 tons in the first half.
Antofagasta CEO, Diego Hernandez, said:
We expected to have a surplus of around 400,000 tons of copper by the end of the year, today we believe that will be reduced to 150,000.
From 2016 on the balance should be quite tight. We’re cautious on the short-term, but optimistic on the medium-to-long term.