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Highlights

  • Antofagasta’s Q3FY24 copper production rose by 15%, reaching 179,000 tonnes, driven by improved operational efficiency
  • Gold production surged 54% in Q3FY24, totaling 51,800 ounces due to higher grades
  • EBITDA for H1FY24 grew by 4.8% YoY, reaching USD 1,394.40 million
  • Antofagasta's copper production forecast for FY24 ranges between 670,000 to 710,000 tonnes

Antofagasta PLC (LSE:ANTO) is a leading FTSE 100 company focused on copper mining. It manages four copper mines in Chile and also operates a transport division in Northern Chile to support mining clients. The company’s copper production in the third quarter of the financial year 2024 (Q3FY24) increased by 15% QoQ to 179,000 tonnes, driven by inventory destocking at Los Pelambres and improved grades and recoveries at Centinela. Gold production in Q3FY24 also surged by 54% QoQ to 51,800 ounces, fueled by higher gold grades at Centinela Concentrates.

Financial Update

In the first half of the financial year 2024 (H1FY24), the company saw a 3.6% increase in revenue, reaching USD 2,995.20 million, compared to USD 2,890.10 million in H1FY23. This growth of USD 105.10 million was driven by higher average realised sales prices of commodities, which partially offset a decline in overall commodity production during the period. Despite a lower level of production, the higher sales prices helped mitigate the impact of increased production costs and lower depreciation expenses.

Additionally, EBITDA for the six months grew by 4.8% YoY, amounting to USD 1,394.40 million, an increase of USD 63.40 million from the previous year.

The company reported a higher EBITDA margin of 44.9% in H1 FY24, along with a stronger current ratio of 2.14x, compared to the industry median of 14.1% and 1.67x, respectively.

Company Outlook

The company has maintained its guidance for FY24, with group copper production expected to range between 670,000 tonnes and 710,000 tonnes, showing an increase in quarterly production throughout the year. Cash cost guidance remains at USD 2.40 per pound before by-product credits and USD 1.70 per pound after credits. Additionally, capital expenditure is unchanged at USD 2.7 billion.

Top 10 Shareholders

The top 10 shareholders of Antofagasta together hold approximately 72.51% of the company's total shares. The largest shareholder is the E. Abaroa Foundation, with around 60.66% of the shares, followed by Jean-Paul Luksic, who holds about 4.26%.

Stock Performance

The stock has dropped by approximately 9.80% over the past three months and around 20.88% in the last six months. Its 52-week high and low are GBX 2,425.00 and GBX 1,538.00, respectively. Currently, it is trading below the average of these two values. As of 10 January 2025, the stock closed at GBX 1,697.00.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 10 January 2025. The reference data in this report has been partly sourced from EODHD/Others.