Ifamagazine reported that Antofagasta reported a 29.2% fall in earnings in the Q1 reflecting lower commodity prices and higher operating costs.

Earnings before tax interest, tax, depreciation and amortization came to USD 781.7 million in the first 3 months compared to USD 1.1 billion the previous year.

Revenues fell 14.6% to USD 1.5 billion from USD 1.7 billion as prices of copper and gold dropped during the quarter. The realized copper price in the period declined from USD 4.29 per pound in the Q1 of 2012 to USD 3.41 per pound this year.

Market gold prices averaged USD 1,632.1 per ounce a decrease from the average price of USD 1,690.9 per ounce in Q1 of 2012. Copper production rose 12.8% to 183,800 tonnes from 162,900 tonnes thanks to higher plant throughput at the Esperanza mine in Chile.

Sales volumes rose modestly in comparison to production at 170,000 tonnes up from 158,700 tonnes the prior year as the company was hit by temporary delays in shipping due to strikes at ports from which El Tesoro and Michilla’s copper production is transported.

Gold production volumes increased to 86,200 ounces from 63,500 ounces while sales climbed to 74,800 ounces from 63,400 ounces, driven by increased production at Esperanza. The group ended the period with net cash of USD 2.6 billion up from USD 2.5 million at the end of the previous quarter.