Chilean Miners Enjoy Copper Price Boost, But Investment Costs Bite

High copper prices have given Chilean miners a boost in profitability, but rising investment costs are eroding much of those gains, according to Moody's.

The ratings agency noted that Chile is currently in an investment cycle aimed at sustaining output levels and replacing depleted reserves as major deposits age.

Strong copper prices have lifted profits for miners, but capital expenditures consume a large share of those profits, leaving high-cost producers vulnerable to price corrections. Copper prices on the London Metal Exchange have risen 9% so far this quarter.