KGMH’s Sierra Gorda mine, that produces copper and molybdenum in Chile, may no longer need financial support because of record high production which resulted in high core operating profit in the first half of 2020. Production at Sierra Gorda accounted for 39,200mt in H1 and is projected to rise to 78,700mt by the end of the year.
The company’s presentation for H1 stated that high ore throughput and higher copper content in ore resulted in overall production to be flat from the same period the prior year. The company’s total copper production was at 351,000 in H1. The company’s Polish unit intends to produce 399,200mt of copper in 2020. The company sold 277,000mt of copper in H1 and has projected sales of 565,700mt for 2020.
Sierra Gorda mine posted its operating profits in the second quarter at PLN324mn ($86.98mn), a jump of 150pc from the prior year despite the effects of COVID-19. The company is optimistic of Sierra Gorda’s future financial results based on its exceptional performance. The second quarter for major copper producers was tough given the effects of COVID-19. But only three out of 15 of these global mining companies, including KGHM, managed to post an increase in the second quarter, said KGHM.
During the lockdown period, the mine faced no loss in production days as infections at the mine didn’t spread and smelting operations were sustained. The company had planned to limit operational hours on the fear of COVID-19 but continued anyway at optimum capacity with safety measures amid COVID-19.
Polish miner KGHM in their earning’s call said that despite Chile’s high cases of COVID-19, Sierra Gorda is still up and running. KGMH owns a 55pc stake in the mine that has a capacity to produce 110,000mt daily.