Antofagasta has reported a resilient financial performance for the first half of 2024, driven by strong EBITDA margins, cash flow generation, and continued investment in key growth projects. CEO Iván Arriagada highlighted the company's achievements in maintaining robust financial metrics despite challenging conditions, with EBITDA increasing by 5% to $1,394.4 million and revenue rising by 2% to $2,955.2 million compared to the same period in 2023.
Key projects, including the Centinela Second Concentrator, are progressing ahead of schedule, and initial work has begun on the expansion of the Los Pelambres projects. The company remains on track with its growth plan, supported by a solid balance sheet and cash flow, which have enabled the approval of an interim dividend of 7.9 cents per share, representing 35% of net earnings in line with Antofagasta's dividend policy.
Key Financial Highlights for H1 2024:
- Revenue: $2,955.2 million (+2.3% YoY)
- EBITDA: $1,394.4 million (+4.8% YoY)
- EBITDA Margin: 47.2%, up by 1.1 percentage points
- Profit Before Tax: $712.6 million (-6.8% YoY)
- Cash Flow from Operations: $1,483.9 million (+14.5% YoY)
- Net Debt/EBITDA Ratio: 0.46x
- Earnings Per Share (EPS): 26.3 cents (-21.5% YoY)
- Underlying EPS: 22.4 cents (-33.1% YoY)
- Interim Dividend: 7.9 cents per share (-32.5% YoY)
Operationally, Antofagasta recorded copper production of 284,700 tonnes, a 4% decrease year-on-year due to lower production at Centinela concentrates, partially offset by higher production at Centinela Cathodes and Los Pelambres. Cash costs before and after by-product credits rose to $2.65/lb and $1.94/lb, respectively, due to lower ore grades and recoveries.
Despite these challenges, the company generated $130 million in savings and productivity improvements through its Competitiveness Programme, equivalent to a reduction of 20.7c/lb in unit cash costs.
Looking forward, Antofagasta expects full-year production to be at the lower end of its 670,000 to 710,000 tonne guidance range, with cash costs before by-product credits projected at $2.40/lb and net cash costs at $1.70/lb.
