Antofagasta (ANTO) turned in full-year cash profits of $2.22bn (£1.5bn) - down 18 per cent on the 2013 total but broadly in line with expectations. Analysts had anticipated lower profits on the back of falling ore grades and lower copper prices, but the miner, which is majority owned by Chile's Luksic family, has also had to contend with protests and a lawsuit affecting its flagship Los Pelambres mine.
Lower grades pushed annual production back by 2.3 per cent to 704,800 tonnes. Antofagasta is targeting 710,000 tonnes in 2015, although the impact of the disruption at Los Pelambres could force a rethink. A Chilean court has ruled that Antofagasta must demolish a dam that protesters claim is reducing local water availability. Antofagasta is appealing the decision, but the protests have already sapped expected copper production at the mine by 8,000 tonnes.
In a concession to protestors, the miner said it would develop a desalination plant if it decides to pursue a planned expansion of Los Pelambres. Chief executive Diego Hernandez confirmed that building such a plant would add $300m-$400m to the $1.2bn cost of the expansion as previously budgeted. A decision is due by 2018, by which time the copper supply-demand balance should be far more favourable.
JPMorgan Cazenove anticipates 2015 EPS of 63¢, with cash profits flat at $2.2bn.
| ANTOFAGASTA (ANTO) | ||||
|---|---|---|---|---|
| ORD PRICE: | 681p | MARKET VALUE: | £6.7bn | |
| TOUCH: | 680-681p | 12-MONTH HIGH: | 900p | LOW: 620p |
| DIVIDEND YIELD: | 2.1% | PE RATIO: | 22 | |
| NET ASSET VALUE: | 626¢ | NET DEBT: | 20% | |
| Year to 31 Dec | Turnover ($bn) | Pre-tax profit ($bn) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2010 | 4.60 | 2.60 | 107 | 16* |
| 2011 | 6.10 | 3.10 | 125 | 20* |
| 2012 (restated) | 6.70 | 2.80 | 105 | 21* |
| 2013 | 5.97 | 2.08 | 66.9 | 95 |
| 2014 | 5.29 | 1.57 | 46.6 | 21.5 |
| % change | -11 | -24 | -30 | -77 |
Ex-div: 23 Apr Payment: 22 May *Excludes special dividend payments per share of 77.5¢ in 2012, 24¢ in 2011 and 100¢ in 2010 £1=$1.48 | ||||
