19th May 2020 09:01
(Alliance News) - Copper miner Antofagasta PLC on Tuesday said it has decided to cut its previously declared final dividend payout for 2019 due to the "heightened uncertainty" created as a result of a significant increase in number of new Covid-19 cases in Chile and a total quarantine over the greater Santiago area of the country.
"While these latest restrictions are not expected to have an impact on the company's current operations, it has created additional uncertainty. The evolution of the health emergency in Chile could result in an increased risk of an escalation in quarantine provisions which could restrict the company's ability to move its workforce to and from its operations," the FTSE 100-listed company explained.
Antofagasta, in order to conserve cash, has decided to lower its 2019 final dividend to 7.1 US cents per ordinary share, or a total of USD70.0 million, from 16.3 cents per share, or a total of USD160.7 million, from the previous recommendation.
The total dividend payment for 2019 will therefore be 17.8 cents per share, which amounts to USD175.5 million, equal to a 35% pay-out of net earnings and in-line with Antofagasta's dividend policy.
"In making this decision, the board carefully considered the need to balance its responsibility towards all stakeholders, including the company's employees, contractors, communities, suppliers and broader Chilean civil society, especially in the current environment as the health emergency in Chile moves into, what seems likely to be, a more critical phase. It is vital, for the long-term sustainability of the business that Antofagasta supports all its stakeholders in Chile and globally during these unprecedented times," the company said.
Shares in Antofagasta were down 3.8% at 822.60 pence each in London on Tuesday morning.
By Tapan Panchal; [email protected]
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