Chilean copper behemoth Codelco disclosed a gross profit of $3.12 billion for 2023, marking a 34% decline from the previous year, as detailed in a filing released by the state-owned producer on Thursday. Codelco, renowned as the world’s leading copper miner, recorded production of 1.325 million metric tons for the year, representing its lowest output level in 25 years, compared to 1.446 million tons in 2022. Despite grappling with operational and production hurdles that led to a 74% year-on-year drop in pre-tax profit to $719 million, Codelco expressed optimism about forthcoming improvements, anticipating a production recovery by 2030.
Chief Executive Ruben Alvarado acknowledged the challenges faced in 2023 but remained optimistic about a turnaround, projecting a gradual recovery towards achieving a production level of 1.7 million tons by the end of the decade. The company foresees copper output for 2024 to remain stable within the range of 1.325 to 1.390 million tons, with an estimated capital expenditure of $4 billion to $5 billion. Codelco’s earnings before interest, taxes, depreciation, and amortization (EBITDA) amounted to $4.184 billion, reflecting a decline of over a quarter from the previous year.
The company’s flagship projects at Chuquicamata and El Teniente have encountered delays, impacting production timelines, with efforts underway to address these challenges and enhance operational efficiency. Additionally, Codelco has assumed a pivotal role in advancing future lithium projects in Chile, with plans for majority control over key lithium-rich salt flats as part of strategic government initiatives under President Gabriel Boric’s administration.