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% to $1,483.9m, and the balance sheet remains robust with net debt/EBITDA at 0.46x.

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

• Growth projects, including Centinela Second Concentrator and Los Pelambres expansions, are progressing ahead of schedule.

• 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% (up 1.1pp YoY).

• Underlying EPS (excluding exceptionals) was 22.4c, down from 33.5c in H1 2023.

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

• Net debt/EBITDA ratio increased to 0.46x from 0.38x at December 2023.

• Capital expenditure: $1,059.5m (+3.7% YoY), mainly on Centinela Second Concentrator and Los Pelambres Phase 1 Expansion.

Outlook and guidance

• 2024 copper production expected at the low end of 670–710kt guidance; H2 requires a 25% step-up driven by higher grades and destocking.

• Cash costs before by-product credits forecast at $2.40/lb, net cash costs at $1.70/lb for FY 2024.

• Positive cost drivers expected for 2025 as Pelambres and Centinela operate at higher capacity and grades.

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

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