The chief executive of copper producer Antofagasta, Marcelo Awad, has dismissed recent concern about metals prices, saying he believes commodity prices will remain strong well into 2008.
London-listed Antofagasta, controlled by Chile's Luksic family since 1980, posted a 12pc increase in first-half profits yesterday, sparking another rise in a share price that has outperformed many mining stocks this year.
Despite some analysts predicting that copper prices may fall, Mr Awad remains bullish. "Fundamentals in both the copper and molybdenum [used in stainless steel] markets remain solid, and despite recent uncertainty in the United States, we expect commodity prices to remain strong for the remainder of the year and well into 2008," he said.
The company's half-year profits rose from $652.6m to $728.4m ( 361m), ahead of the analysts' consensus of $675m, on the back of the continuing strong demand from China and other developing economies. Sales increased 5pc to $1.94bn. The shares rose 8 to 692p, taking the gain this year to 42pc.
Chinese economic expansion has led a five-year rally in metals. But the company yesterday downgraded its full-year copper production forecast to 449,000 metric tons from 457,000 tons, putting the second half of the year on a slower pace than the first.
Copper prices have been volatile for much of the year and hit a near-term low on August 16 during the height of financial market turmoil before staging a recovery. But the metal's average price in the first half was still 12pc higher than a year earlier.
Antofagasta operates three mines in Chile, the top copper-producing country. Once a railroad company, it has been traded on the London Stock Exchange since 1888 before it became the holding company for the billionaire Luksic family's mining, water and railroad assets.
London-listed Antofagasta, controlled by Chile's Luksic family since 1980, posted a 12pc increase in first-half profits yesterday, sparking another rise in a share price that has outperformed many mining stocks this year.
Despite some analysts predicting that copper prices may fall, Mr Awad remains bullish. "Fundamentals in both the copper and molybdenum [used in stainless steel] markets remain solid, and despite recent uncertainty in the United States, we expect commodity prices to remain strong for the remainder of the year and well into 2008," he said.
The company's half-year profits rose from $652.6m to $728.4m ( 361m), ahead of the analysts' consensus of $675m, on the back of the continuing strong demand from China and other developing economies. Sales increased 5pc to $1.94bn. The shares rose 8 to 692p, taking the gain this year to 42pc.
Chinese economic expansion has led a five-year rally in metals. But the company yesterday downgraded its full-year copper production forecast to 449,000 metric tons from 457,000 tons, putting the second half of the year on a slower pace than the first.
Copper prices have been volatile for much of the year and hit a near-term low on August 16 during the height of financial market turmoil before staging a recovery. But the metal's average price in the first half was still 12pc higher than a year earlier.
Antofagasta operates three mines in Chile, the top copper-producing country. Once a railroad company, it has been traded on the London Stock Exchange since 1888 before it became the holding company for the billionaire Luksic family's mining, water and railroad assets.
