CEO Iván Arriagada has said: “Antofagasta has had a strong first half year, our performance benefited from increases in the copper price, higher sales volumes and tight cost management.
“As a result, EBITDA margins have returned to over 50% and cash flow from operations is up 48% to $1.1 billion.”
“This better performance means the Company’s interim dividend has significantly increased compared to last year to 10.3 cents per share with the Company’s policy of paying out a minimum of 35% of underlying net earnings unchanged.”
“Antofagasta’s strategy remains focused on producing profitable tonnes through reducing costs, making improvements in productivity and efficiency and the application of innovative solutions. A disciplined approach to capital allocation underpins our decision-making process. Projects and future developments must compete internally for capital with any excess cash distributed to shareholders.”
“The Company is well positioned for future growth, generating strong cash flows and improving returns against a background of a recovery in copper demand. The outlook for Antofagasta is positive – we have the assets, capabilities and strategy to continue to create long-term value for all of our stakeholders.”
Some examples of great financial progress include revenue 41.9% higher from 2016 at US$2 049 million, as realised copper prices increased by 25.3% and a rise in sales volumes by 14.3%. EBITDA increased 87.8% to US$1 079.8 million mainly due to higher revenues generated in the first half of 2017. Operating cost reductions of US$44 million achieved, as part of the Costs and Competitiveness Programme, contributing to savings of US$0.06/lb in cash costs during the current period.
The report also compares operating performance with the same period in 2016, with the report stating group copper production is 7.1% higher at 346 300 t, due to increased production at Centinela and Antucoya. Group cash costs before by-product credits fell by 2.5% to US$1.56/lb, primarily due to higher production and cost savings achieved from the cost and competitiveness programme group net cash costs were 1.6% lower at $1.24/lb, reflecting lower cash costs before by-product credits and higher by-products credits.
Read the article online at: https://www.globalminingreview.com/finance-business/23082017/antofagasta-plc-has-revealed-its-financial-report-for-the-first-half-of-2017/