Antofagasta reviews capex as FY profits rise

Chilean copper producer Antofagasta reported increased full year profits as sales rose and costs fell, but warned spending was under review in light of tough global economic conditions.

The company on Tuesday said earnings before interest, tax, depreciation and amortisation rose 9.5% to $2.4bn. Pre-tax profits rose to $1.35bn from $1.25bn on-year as revenue increased 4.9% to $4.96bn.

Antofagasta lowered its forecast expenditure estimate to $1.3bn - $1.5bn from $1.5bn previously.

"In view of the current global situation, the expenditure programme is being reviewed to identify possible savings or deferrals," Antofagasta said.

Copper production increased to a record of 770,000 tonnes while cash costs improved to $1.22/lb, the company said. Gold production rose 34.4% to 282,300 ounces.

A final dividend of 23.4 cents per share was declared taking its full year dividend to 34.1 cents a share, and lower than the 43.8 paid out in 2018.

"Looking ahead to the rest of 2020, while we can't predict the shape of the recovery from Covid-19, Antofagasta is in good shape,” the company said.

“We expect to maintain our strong safety and operating performance with copper production in the range of 725,000 - 755,000 tonnes at a net cash cost of $1.30/lb, as guided previously.”