Codelco Faces 53% Dip in Profit Despite Production Uptick

Codelco, the world's leading copper producer, reported a significant 53% drop in pre-tax profit for the first quarter, totaling $213 million. Despite a slight increase in copper output and challenges like regional rain and a national blackout, higher operational costs impacted financial performance.

Chile's Codelco, renowned as the world's foremost copper producer, has announced a formidable 53% decline in its pre-tax profit, amounting to $213 million for the initial quarter of the year.

The state-owned enterprise managed a slight increase in copper output, totaling 296,000 metric tons—up by a modest 0.3% from the same timeframe the previous year. This growth was realized despite the hurdles posed by the rainy season and a national blackout in February, both of which reduced refined copper output by 10,000 tons.

Rising operational costs, compounded by planned mine and plant maintenance expenditures, along with increased equipment leasing expenses, substantially affected the miner's financial outcome. These were somewhat mitigated by reductions in power and fuel prices as Codelco remains committed to boosting copper production between 1.37 million and 1.4 million tons this year, following a record low in 2023.

(With inputs from agencies.)