Antofagasta Plc reports resilience H1 performance, strong platform for future growth

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Antofagasta PLC (LON:ANTO) has announced half year results for the six months ended 30 June 2024.

Antofagasta plc CEO Iván Arriagada said: “Antofagasta demonstrated its resilience in the first half of the year, maintaining EBITDA margins, generating savings and productivity improvements of $130 million and advancing with key projects that provide a strong platform for future growth. In terms of financial results, revenue rose by 2% and EBITDA increased by 5% during the first half of 2024.

“Importantly, our growth plan remains on track, with the Centinela Second Concentrator moving forward ahead of schedule and initial work starting at new Los Pelambres projects.

“With a strong balance sheet, EBITDA margins and cash flow generation to fund our expansion plans and sustaining capex, the board of directors has approved an interim dividend representing 35% of net earnings, in line with the Company’s dividend policy.”

UNAUDITED RESULTS SIX MONTHS ENDED 30 JUNE		H1 2024	H1 2023	%
Revenue¹	$m	2,955.2	2,890.1	+2.3%
EBITDA	$m	1,394.4	1,331.0	+4.8%
EBITDA margin²	%	47.2	46.1	+1.1pp
Profit before tax (including exceptional items)	$m	712.6	764.5	(6.8%)
Cash flow from operations	$m	1,483.9	1,296.4	+14.5%
Net debt / EBITDA¹	X	0.46	0.27	+70%
Earnings per share (including exceptional items)	cents	26.3	33.5	(21.5%)
Underlying earnings per share (excluding exceptional items)¹	cents	22.4	33.5	(33.1%)
Dividend per share	cents	7.9	11.7	(32.5%)

¹Non-IFRS measures. Refer to the alternative performance measures section on page 56 in the half-year financial report below.

²Calculated as EBITDA/Revenue. If Associates and JVs’ revenue is included, EBITDA Margin was 44.5% in HY 2024 and 43.2% in HY 2023.

HIGHLIGHTS

● Continued strong safety performance recorded in H1 2024, with no fatalities and an injury frequency rate continuing at a level below 1.0.

● Copper production was 284,700 tonnes, 4% lower year-on-year, principally representing a balance of lower production at Centinela concentrates, and higher production at both Centinela Cathodes and Los Pelambres.

● Cash costs before and after by-product credits were $2.65/lb and $1.94/lb, 7% and 11% higher than H1 2023, due to lower ore grade and recoveries at Centinela concentrates and lower grades at Los Pelambres.1

● EBITDA was $1,394.4 million, 5% higher than in H1 2023 on higher revenues, maintaining our strong EBITDA margin[2] of 47.2%. Cash flow from operations increased by 14% to $1,483.9 million.

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● The balance sheet remained robust with a net debt to EBITDA ratio of 0.46x, after supporting shareholder distributions and investment in future production, in line with the Company’s capital allocation framework.

● As previously announced, total production for 2024 is expected to be at the low end of the Company’s 670-710,000 tonne guidance range.

● Given projected production for the full year, cash costs before by-product credits are expected to be $2.40/lb and net cash costs expected to be $1.70/lb (based on current spot prices).

● The Competitiveness Programme generated savings and productivity improvements of $130.0 million in H1 2024, equivalent to 20.7c/lb of unit cash costs, in line with our plan.

● The Company’s growth programme remains on track, with construction of the Centinela Second Concentrator currently ahead of schedule and initial groundworks commencing at Los Pelambres’ desalination plant expansion, concentrate pipeline and El Mauro enclosures.

● Interim dividend of 7.9 cents per share announced, equivalent to a pay-out ratio of 35% of underlying net earnings in line with the Company’s capital allocation framework.

A recording and copy of the 2024 Half Year Results presentation is available for download from the Company’s website www.antofagasta.co.uk.

There will be a Q&A video conference call at 2:00pm (UK) today hosted by Iván Arriagada – Chief Executive Officer, Mauricio Ortiz – Chief Financial Officer and Alejandra Josefina Vial – Vice President Sustainability. Participants can join the conference call via the following link: