As is its wont, Antofagasta (ANTO) was at pains to point out its "cautious approach" and "continued commitment to capital discipline" in full year results for 2016. The clearest markers of that trend were the 24 per cent drop in capital expenditure to $795m (£654m) - aided by the completion of the Antucoya project and expansion at Centinela - and a steely focus on mine site spend, which brought operating costs down by 11¢ per pound of copper.
Although it is important for any natural resources company to display restraint in word and deed, other actions suggest the Chilean miner is getting bullish about the copper market. First off, the total dividend for the year is equivalent to 53 per cent of underlying net earnings per share and well in excess of the company's commitment to pay out a minimum of 35 per cent. Second, management comments point to optimism that 2016's cash profit margin of 44.9 per cent can be maintained or increased, given expectations of "a steady shift from a market in balance to a slight deficit".