Antofagasta 1st Half Net Profit Falls; Reaffirms Output Guidance
August 16 2016 - 03:00AM
Dow Jones News
By Alex MacDonald
LONDON--Antofagasta PLC (ANTO.LN) reported a fall in first-half
net profit but reaffirmed its expectations for higher output this
year as the Chilean copper producer continues to benefit from the
ramp up of its Antucoya project.
The U.K.-listed miner Tuesday reported a net profit of $88.1
million for the first six months of the year compared with $706
million in the same period a year before when it benefited from a
$620 million gain on proceeds from the sale of its water
division.
Revenue fell 18.5% on year to $1.45 billion in the first half of
the year due to lower copper prices and sale volumes as well as the
closure of it Michilla mine at the end of last year. But earnings
before interest, taxes, depreciation and amortization, a closely
watched earnings metric, rose 2.3% on year to $572 million thanks
to a roughly 25% reduction in operating costs.
The Ebitda and net profit figure beat analysts expectations of
$532 million and $62 million respectively, according to a
company-complied consensus forecast of 12 analysts.
Looking ahead, the company reaffirmed that it plans to meet the
lower end of its 710,000 to 740,000 ton copper production guidance
range compared with 630,000 tons due to the ramp up of its Antucoya
project, which began commercial production last quarter, and the
purchase of a 50% stake in the Chiean Zaldivar mine last
December.
It declared an interim dividend of $0.031 a share, unchanged
from last year.
"Given the current economic uncertainty we are cautious in our
outlook and remain conservative in our approach to managing
capital," said Antofagasta CEO Iván Arriagada.
Write to Alex MacDonald at alex.macdonald@wsj.com
(END) Dow Jones Newswires
August 16, 2016 02:45 ET (06:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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