LONDON (ShareCast) - (Sharecast News) - Canaccord Genuity has maintained its 'buy' recommendation on miner Antofagasta despite the firm cutting its output forecasts on Thursday.
The Chile-based copper mining group reported that first-half revenues rose 14% to $2.89bn, while EBITDA rose by a lesser 7.5% to $1.33bn due to higher operating costs. As such the EBITDA margin fell to 46.1% from 49% the year before.

Copper output rose 10% to 295.5 thousand tonnes (kt) after a 23.9% increase in throughput at Los Pelambres - its sulphide deposit in the Coquimbo Region.

However, the firm cut its full-year production guidance slightly to 640-670kt (previously 670-710kt), citing the rescheduling of completion activities at the desalination plant and concentrator expansion at Los Pelambres and the reduced availability of water in the first half of the year.

"The outlook given by management remains mostly in line with previous guidance for production, net cash costs and capex. However, the company has adjusted its gross cash cost guidance up to US$2.30/lb (from US$2.20/lb) due to the lower production guidance," Canaccord Genuity wrote in a research report Thursday morning.

"Our main focus remains on higher volumes from Los Pelambres due to come in 4Q23 where the desalination plant is nearing the end of commissioning and the concentrator expansion is on track to complete commissioning in 2H23."

The broker left its 1,900p target price unchanged for the stock, which was trading 1.3% higher at 1,628p by 1151 BST.

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