Antofagasta H1 earnings jump on higher copper prices

Chilean copper miner Antofagasta reported a jump in earnings for the first half as revenues rose amid higher copper prices.

In the six months to the end of June, earnings before interest, tax, depreciation and amortisation were up 88% to $1.08bn as revenue climbed 42% to $2.05bn. Realised copper prices rose 25%, while sales volumes were up 14%.

Group copper production was 7% higher at 346,300 tonnes thanks to increased output at Centinela and Antucoya and net cash costs were down 1.6% to $1.24 a pound.

Antofagasta lifted its interim dividend by a whopping 232% from last year to 10.3 cents per share.

The company said group copper production for the year is expected to be between 685,000 and 720,000 tonnes, as guided in January, while unit costs are unchanged with cash costs before by-product credits expected to be $1.55/lb and net cash cost of $1.30/lb. Meanwhile, capital expenditure guidance for the full year was left unchanged at $900m.

Chief executive officer Ivan Arriagada said: "Our performance benefited from increases in the copper price, higher sales volumes and tight cost management. As a result, EBITDA margins have returned to over 50% and cash flow from operations is up 48% to $1.1bn.

"The company is well positioned for future growth, generating strong cash flows and improving returns against a background of a recovery in copper demand. The outlook for Antofagasta is positive - we have the assets, capabilities and strategy to continue to create long-term value for all of our stakeholders."