Antofagasta (ANTO) H1 2024 earnings summary

Executive summary

• Revenue increased by 2% to $2,955.2m and EBITDA rose 5% to $1,394.4m in H1 2024, driven by higher copper and gold prices despite lower sales volumes.

• Cash flow from operations grew 14–15% to $1,483.9m, with a robust balance sheet and net debt/EBITDA at 0.46x.

• Interim dividend of 7.9 cents/share, representing 35% of underlying earnings, declared in line with policy.

• Advanced key growth projects, including Centinela Second Concentrator and Los Pelambres expansion, targeting 35% copper production growth to 900kt.

• Safety performance remained strong with no fatalities and injury rates below 1.0.

Financial highlights

• Revenue: $2,955.2m (+2.3% YoY); EBITDA: $1,394.4m (+4.8% YoY); EBITDA margin: 47.2%.

• Underlying EPS was 22.4c, down from 33.5c in H1 2023; profit before tax $712.6m (-6.8% YoY).

• Net debt/EBITDA increased to 0.46x; cash flow from operations stable and supports growth investments.

• Net cash cost per lb of copper was $1.94, up from $1.61 in H1 2023; 2024 guidance set at $1.70/lb.

• Interim dividend of 7.9c/share, equivalent to 35% of earnings.

Outlook and guidance

• 2024 copper production expected at the low end of 670–710kt guidance; net cash costs forecast at $1.70/lb.

• Full-year capex guidance unchanged at $2.7bn.

• Ongoing investments to deliver 35% growth in copper production to 900kt.

• Cost guidance for 2025 to be provided later, with positive drivers from higher capacity and grades.

• Medium-term copper demand supported by energy transition; supply growth constrained by technical and permitting challenges.