17th Mar 2020 07:33
(Alliance News) - Antofagasta PLC chopped its full-year dividend, although it posted an earnings rise on Tuesday, with the Chilean miner adding it is in "good shape" despite copper prices falling due to the Covid-19 crisis.
In 2019, Antofagasta's revenue climbed 4.9% to USD4.97 billion from USD4.73 billion. Pretax profit rose 7.7% to USD1.35 billion from USD1.25 billion.
Earnings before interest, tax, depreciation and amortisation rose 9.5% to USD2.44 billion from USD2.23 billion.
Boosting earnings was a 7.6% rise in copper sales volumes to 772,200 tonnes from 717,600 tonnes. Average realised copper price fell 2.1% to USD2.75 per pound from USD2.81.
Antofagasta's 2019 payout was chopped by 21% to 34.1 cents per share from 43.8 cents.
Antofagasta reported production figures for 2019 back in January. Annual output was 770,000 tonnes, a record number and 6.2% higher on the year before.
That figure was at the top end of guidance of 750,000 tonnes to 770,000 tonnes, but this had been reduced earlier in the year after social unrest in Chile hampered operations.
Chief Executive Officer Ivan Arriagada said on Tuesday: "While Antofagasta emerges from 2019 with a record copper production and safety performance, 2020 has begun with an unprecedented global challenge in the form of Covid-19. We are taking every measure possible to keep our colleagues safe and healthy, and our operations have not yet been impacted by the virus. The strength of our balance sheet, the flexibility of our cash flow due to our cost and competitiveness programme and our strong safety and health culture means that the business is extremely robust in this challenging macro environment."
In January, Antofagasta reiterated 2020 copper production guidance of 725,000 tonnes to 755,000 tonnes. Gold output was guided between 180,000 ounces and 200,000 ounces, with 12,500 tonnes to 14,000 tonnes of molybdenum.
"Looking ahead to the rest of 2020, while we can't predict the shape of the recovery from Covid-19, Antofagasta is in good shape. We are looking to reduce our expected total capital expenditure, while continuing to progress the delivery of our growth projects at Los Pelambres, Zaldivar and Centinela," Arriagada added.
On its Chilean mines, Antofagasta said Los Pelambres had a "strong 2019", Centinela had record annual copper production, with Zaldivar also seeing improved output.
Antucoya meanwhile, had a "challenging 2019 due to lower than expected plant availability".
Loking ahead, Antofagasta added: "The outbreak of Covid-19 is impacting global GDP growth and the outlook for the year. This, together with the resulting uncertainty, depressed copper demand expectations and copper prices have fallen below USD2.50 per pound. It is not clear how long copper will trade at these levels, which will depend on how quickly the spread of Covid-19 is controlled and how quickly the Chinese and other major economies return to normal."
By Eric Cunha; [email protected]
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