May 21, 2024

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Codelco will not be at risk of bankruptcy, according to its president

Codelco will not be at risk of bankruptcy, according to its president

SANTIAGO – Máximo Pacheco, Chairman of the Board of Directors of Codelco, explained this State Copper Company “Financially Strong and Solid” At a session of the Mining Committee of the House of Representatives. “Codelco’s EBITDA in the year when production declined, as we delayed structural projects, this year will exceed $5,000 million. That said, The daily profits of this company reach 14 million US dollarsHe said on Wednesday.

The director pointed out that Codelco issued bonds to finance the development of its structural projects in New York a week ago. He indicated that they were searching 2 billion US dollarsBut the market demanded Almost five times more than what was shown.

There is no risk of bankruptcy

Pacheco considered it “strange” to think that the state copper company would be at risk of bankruptcyReferring to a report from the Cisco Research Center that analyzed the company’s key results and concluded that if the current path is maintained, the increase in the company’s debt could lead to possible bankruptcy. “I’ve been left with thousands of reviews from other people who still trust this company,” the Codelco president said.

Paying higher costs and lower profits Moody’s Investors Service puts the company under review for a possible downgrade in its credit rating. Codelco is trying to boost its production and increase its profits, while bearing heavy debts amounting to $19 billion.

According to Pacheco, the contraction in copper production at the state company represents a “headache,” although a recovery is expected next year. It is estimated that the company may reach 1.7 million tons by the end of this decade. The company laid off 105 people from its headquarters and project team between July and August.

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