By Fabian Cambero and Natalia Siniawski
SANTIAGO (Reuters) – Chilean miner Codelco, the world’s largest copper producer, on Friday reported a slight bump in production in the first quarter, though the boost was not enough to offset exchange-rate effects, which caused its profits to tumble.
Codelco posted a 53% drop in pre-tax profit compared to a year ago, slipping to $213 million for the first three months of the year.
The state-owned miner said its own output ticked up 0.3% totaled to 296,000 metric tons, with total production including its stakes in Freeport’s El Abra, Anglo American Sur and Teck’s Quebrada Blanca rising 1.6% to 324,000 metric tons.
The miner is targeting copper production between 1.37 million tons and 1.4 million tons this year, as it aims to boost output for the second year in a row after slipping to a quarter-century low in 2023.
Output in the quarter was dragged down by rains and a nationwide blackout in February, which reduced refined copper production by 10,000 tons, Codelco said.
Core earnings, or earnings before interest, taxes, depreciation and amortization (EBITDA), fell nearly 12% to $1.35 billion as the local peso currency lost ground, Codelco said.
The Chilean peso appreciated by 2.76% from the end of March 2024 to the end of March this year.
Codelco added that it had faced rising costs due to planned mine and plant maintenance, as well as higher operating costs for equipment leasing, which where partially offset by lower input prices, including for power and fuel.
The miner said that at its El Teniente mine, the Andesita section is expected to kick off production in the second quarter with Andes Norte following in the third.
Ramp-up of the concentrator at Rajo Inca, in Codelco’s Salvador Division, is expected to be completed in the third quarter.
(Reporting by Fabian Cambero and Natalia Siniawski; Editing by Kylie Madry and Alistair Bell)
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