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Highlights

  • Antofagasta is an FTSE 100 index listed company engaged in copper mining
  • In 1HFY24, ANTO’s revenue jumped 2% YoY to USD 2,955.2 million and EBITDA increased by 5% YoY to USD 1,394.4 million
  • Abaroa Foundation has the highest holding in the company with a shareholding of around 60.66%

Antofagasta PLC (LSE:ANTO) is a copper mining company which operates four copper mines in Chile. This FTSE 100 index listed firm also operates a transport division in Northern Chile, to serve mining customers.

In the first half of the financial year 2024 (1HFY24), revenue of ANTO grew by 2% YoY to USD 2,955.2 million, driven by a 10% increase in copper prices and a 16% rise in gold prices. However, this growth was partially offset by a 6% decline in copper sales and a 23% drop in gold sales.

In 1HFY24, EBITDA increased by 5% YoY to USD 1,394.4 million, supported by higher revenue, with the EBITDA margin improving slightly to 47.2%, up from 46.1% in H1 2023.

Cash flow from operations rose by 14% to USD 1,483.9 million, mainly due to favourable creditor balance movements.

Group ore throughput increased in 1HFY24 compared to 1HFY23, boosted by the Los Pelambres Phase 1 expansion (up 44%) and operational improvements at Centinela copper cathode plants (up 11%), Antucoya (up 6%), and Zaldívar (up 16%). Copper production for H1 2024 reached 284,700 tonnes, marking a 4% year-on-year decline due to reduced output at Centinela concentrates.

Top 10 shareholders of ANTO

The top 10 shareholders of ANTO have approximately 73.02% of the total shares, while the top four have 67.30% of the total shareholding. E. Abaroa Foundation has the highest holding in the company with a shareholding of around 60.66%, followed by Jean-Paul Luksic, who holds approximately 4.26% of the company's shares.

Recent business update

On 14 August 2024, the company announced that Tracey Kerr, who has been an Independent Non-Executive Director of ANTO since January 2024, has been appointed to the Audit and Risk Committee, effective 1 September 2024.

Outlook

The increasing demand for copper, fueled by the global shift towards electric vehicles, renewable energy, and infrastructure development, is projected to grow at an annual rate of 2-3% through 2030.

The company boasts an extensive Mineral Resource base exceeding 21 billion tonnes, with key assets including over 6 billion tonnes at Los Pelambres and 5 billion tonnes at Centinela.

 To support medium-term growth, the company has several expansion projects in progress, including the Centinela Second Concentrator Project, which intends to boost copper production to approximately 900,000 tonnes annually.

Share performance of ANTO

ANTO shares closed at GBX 1,663.5 apiece on 10 September 2024 with a market cap of GBP 16,360.29 million. In the last three months, ANTO’s stock price has fallen by almost 19.64%, while in the last six months, it has declined by almost 8.63%.

52-week high of ANTO is GBX 2,425 and 52-week low is GBX 1,280.