(Bloomberg) -- Codelco, the world's biggest copper supplier, saw a jump in fourth-quarter sales as higher prices of the metal offset lower production.
While the Chilean state-owned company didn't give a quarterly breakdown, based on annual and previously reported results, revenue rose above $6 billion in the October-December period. Production at the firm's own mines slipped 4.3% from a year earlier.
On an annual basis, production was little changed from 2020 levels, while costs rose slightly on pricier inputs and surging metal prices fueled an almost doubling of earnings before items. That's good news for a nation seeking funding for policies to counter inequalities after mass protests in late 2019.
Still, a fourth-quarter dip in output at the top copper supplier offers little relief for a tight global market characterized by low stockpiles. The result follows the release of data showing Chilean copper output fell 1.9% last year. Some mines around the world are still catching up on earthworks and maintenance that was postponed during the pandemic in a bid to continue producing with reduced staffing.
Codelco, which expects similar production levels this year, has stepped up the pace of a multibillion-dollar overhaul of its aging deposits after Chile eased pandemic restrictions. While maintenance at its Chuquicamata smelter probably won't hinder overall production, it will restrict output of refined metal, Chief Executive Officer Octavio Araneda told reporters on a video conference. Besides cathodes, Codelco also ships semi-processed copper concentrates to offshore smelters.
While the copper market will be paying careful attention to Russia's invasion of Ukraine, the conflict doesn't appear to pose a significant threat to Codelco's sales, Araneda said. Unless there's a major escalation, copper prices will likely stay near current levels as strong demand keeps supply tight, Chief Financial Officer Alejandro Rivera said.
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