Cap Falls as Mining Costs Pare Quarterly ProfitEduardo Thomson
Cap SA, Chile’s largest steel producer and iron miner, fell the most in five weeks as an increase in operating costs led to quarterly earnings that trailed analysts’ estimates.
The shares fell 3.3 percent to 10,473 pesos at the close in Santiago, the steepest fall since Oct. 8 on a closing basis. The IPSA benchmark index retreated 1.6 percent.
Cap reported a profit of $64.2 million in the third quarter, below the $85.2 million average forecast of three estimates compiled by Bloomberg. Banco Santander SA analysts cited in an e-mailed research note to clients a 26 percent increase in mining costs from a year earlier that overshadowed a 24 percent advance in iron-ore shipments and an 11 percent gain in prices.
“Costs continue to rise in mining and steel,” Rodrigo Ordonez and Francisco Errandonea of Santander wrote. “This was the main surprise to our estimates and market consensus.”