18th Feb 2025 08:58
(Alliance News) - Antofagasta PLC on Tuesday reported a rise in annual earnings, saying it is encouraged by the demand outlook for copper, a commodity the "world needs more of".
The London-based copper miner in Chile said pretax profit was USD2.07 billion in 2024, a 5.4% rise from USD1.97 billion in 2023.
Revenue improved 4.6% to USD6.61 billion from USD6.32 billion, while total operating costs increased by just 1.4% to USD4.60 billion from USD4.54 billion.
Copper production volumes climbed 0.5% to 663,950 tonnes in 2024 from 660,600 tonnes in 2023.
The faster pace in revenue growth reflected the higher realised copper price, which rose 7.5% to USD4.18 per pound in 2024 from USD3.89 in 2023.
"We have delivered another year of strong revenue growth and cash flow generation, and our earnings before interest, tax, depreciation and amortisation margin widened to 52%, maintaining our position at the top-end of our peer group of pure-play copper producers," Chief Executive Officer Ivan Arriagada said.
"Copper's unique role in energy security and electrification means that the world needs more of it, and our projects are on track to deliver industry-leading levels of responsible copper supply growth. Our strong balance sheet enables us to invest in profitable growth for the medium and long term."
Antofagasta cut its annual dividend by 13% to 31.4 cents from 36.0 cents. It trimmed its final dividend by 3.3% to 23.5 cents. It noted its payout ratio was 50% of underlying earnings.
CEO Arriagada added: "We are encouraged by the outlook for copper as demand remains strong and global constraints, such as grade decline, ore hardness and capex inflation, are steadily limiting existing supply expansions."
Antofagasta shares were up 3.3% to 1,897.00 pence each on Tuesday morning in London.
By Tom Budszus, Alliance News slot editor
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