Antofagasta warns copper prices will remain low for at least two years
Chilean copper miner Antofagasta has said it expects copper prices to remain low for the next two to three years.
Speaking at Antofagasta's annual general meeting today, chairman Jean-Paul Luksic said: "As we look forward we are not counting on an improved macroeconomic environment although we have recently seen some positive signals to this effect. We are expecting another year or two of low copper prices."
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Copper has rallied so far this year, but it lost some of the gains today after the strong dollar sent it to a three-month low. Antofagasta shares subsequently fell 3.8 per cent to 417.5p per share this afternoon, while Glencore shed 4.9 per cent to 129.8p and Anglo American was five per cent lower at 597.5p.
Luksic added that 2015 was a "tough" year for the miner due to the hostile business environment. Metals prices came under pressure as miners increased production, just as global demand started to fall.
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Antofagasta said it produced 630,300 tonnes of copper last year, together with 214,000 ounces of gold and just over 10,000 tonnes of molybdenum.
Its average released price for copper fell 24 per cent to $2.28/lb compared to 2014, while gold and moly prices shed eight per cent and 49 per cent respectively.