Antofagasta plc Reports Resilient Financial Performance for the First Half of 2024

Antofagasta's resilient financial performance in the first half of 2024 demonstrates its ability to navigate industry challenges while continuing to deliver value to shareholders and invest in future growth.

Antofagasta plc has announced its financial results for the first half of 2024, highlighting a resilient performance amidst ongoing challenges in the global mining industry. The company's CEO, Iván Arriagada, emphasized the strength of Antofagasta's financial position, underpinned by robust EBITDA margins, strong cash flow generation, and a solid balance sheet.

Key Financial Highlights:

Revenue and EBITDA Growth: Antofagasta reported a 2% increase in revenue and a 5% rise in EBITDA for the first half of 2024. This growth reflects the company's ability to maintain its margins and deliver significant savings and productivity improvements totaling $130 million.

Continued Progress in Key Projects: The company's growth plan remains on track, with the Centinela Second Concentrator project advancing ahead of schedule. Additionally, initial work has begun on new projects at Los Pelambres, further reinforcing Antofagasta's platform for future growth.

Dividend Declaration: The board of directors approved an interim dividend of 7.9 cents per share, representing 35% of net earnings. This decision aligns with the company's dividend policy and reflects confidence in its ability to fund expansion plans and sustaining capital expenditures.

Operational Performance:

Copper Production: The company produced 284,700 tonnes of copper, a 4% decrease compared to the same period in 2023. This reduction was primarily due to lower production at Centinela concentrates, partially offset by higher output at Centinela Cathodes and Los Pelambres.

Cash Costs: Cash costs before and after by-product credits were $2.65/lb and $1.94/lb, respectively, reflecting a 7% and 11% increase year-on-year. The rise in costs is attributed to lower ore grades and recoveries at Centinela concentrates and Los Pelambres.

Competitiveness Programme: Antofagasta's Competitiveness Programme delivered $130 million in savings and productivity improvements, equivalent to 20.7 cents per pound of unit cash costs. This initiative is a crucial component of the company's strategy to maintain cost efficiency.

Safety Performance: The company continued its strong safety performance, recording no fatalities and maintaining an injury frequency rate below 1.0 during the first half of 2024.

Outlook for 2024:

Looking ahead, Antofagasta expects full-year copper production to be at the lower end of its guidance range of 670,000 to 710,000 tonnes. Cash costs before by-product credits are projected to be $2.40/lb, with net cash costs estimated at $1.70/lb, based on current spot prices.

The company's growth programme remains on schedule, with significant progress in the construction of the Centinela Second Concentrator and the commencement of groundwork at Los Pelambres' desalination plant expansion.

Antofagasta's resilient financial performance in the first half of 2024 demonstrates its ability to navigate industry challenges while continuing to deliver value to shareholders and invest in future growth.

For further details, including a recording and copy of the 2024 Half Year Results presentation, please visit the company's website at www.antofagasta.co.uk.