Antofagasta cuts final dividend due to Covid-19

Chilean copper miner Antofagasta said on Tuesday that it has cut its 2019 final dividend in light of the coronavirus pandemic and the measures taken to slow its spread.

The company said it now plans to pay out 7.1 cents a share - or a total of $70m - down 16.3 cents per share from the previous recommendation. The total dividend payment for 2019 will be 17.8 cents a share, amounting to $175.5m and equal to a 35% payout of net earnings, in-line with Antofagasta's dividend policy.

The group pointed to the fact that the Chilean Government imposed a total quarantine over the Greater Santiago area on 15 May following a significant rise in coronavirus cases.

"While these latest restrictions are not expected to have an impact on the company's current operations, it has created additional uncertainty," it said. "The evolution of the health emergency in Chile could result in an increased risk of an escalation in quarantine provisions which could restrict the company's ability to move its workforce to and from its operations."

As a result, Antofagasta decided it was "prudent" to conserve cash.