Considering the general decline in copper prices, Chile-based miner Antofagasta managed a commendable enough half-year performance - cash profit, for example, fell a fairly modest 5 per cent year-on-year to $1.84bn (£1.2bn). Management reckons that "industry fundamentals remain strong over the medium term" - although the shares are looking rated up with events.
Rising copper and gold volumes, particularly from its Esperanza mine, enabled Antofagasta to boost revenues despite an 12 per cent fall in its average realised copper price to 373¢ per pound. Copper sales volumes increased by 11.3 per cent to 322,200 tonnes, while gold sales, at 127,500 ounces, nearly doubled in the period. What's more, and unlike many of its peers, Antofagasta's cash costs fell 6.3 per cent to 98.9¢ per pound, net of by-product credits.
Antofagasta has maintained its full-year guidance at around 700,000 tonnes of copper, too, in addition to 280,000 ounces of gold and 11,000 tonnes of molybdenum. The miner also confirmed that its Antucoya project remains on track with all of the main procurement and construction contracts now in place.
Broker Canaccord Genuity expects full-year EPS of 140¢, (2011: 141¢).
| ANTOFAGASTA (ANTO) | ||||
|---|---|---|---|---|
| ORD PRICE: | 1,115p | MARKET VALUE: | £11bn | |
| TOUCH: | 1,114-1,117p | 12-MONTH HIGH: | 1,400p | LOW: 851p |
| DIVIDEND YIELD†: | 1.2% | PE RATIO: | 15 | |
| NET ASSET VALUE: | 656¢ | NET CASH: | $1.34bn | |
| Half-year to 30 June | Turnover ($bn) | Pre-tax profit ($bn) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2011 | 3.05 | 1.69 | 70.6 | 8.00 |
| 2012 | 3.16 | 1.56 | 65.5 | 8.50 |
| % change | +4 | -8 | -7 | +6 |
Ex-div: 12 Sep Payment: 4 Oct £1 = $1.58 †Excludes 2011's 24¢ special dividend | ||||
