Chile-based copper miner Antofagasta Plc. (ANTO.L,ANFGY.PK) Tuesday reported a sharp decline in profit for 2013 that was marked with weaker commodity prices and higher costs, but copper production improved from the prior year. The stock is gaining close to 4 percent in early morning trade.
Net earnings plunged to $659.6 million from $1.04 billion a year ago, amid a decline in Earnings Before Interest, Taxes, Depreciation, Amortization or EBITDA, and an increase in withholding tax related to this year's dividend.
Basic earnings per share dropped to 66.9 US cents from 105.2 US cents. Prior-year results have been restated.
Pre-tax profit declined to $2.08 billion from $2.76 billion in 2012. Excluding exceptional items, profit before tax decreased 36.1 percent.
EBITDA plunged over 30 percent to $2.7 billion, as increased production was offset by the decrease in realised metal prices and the increase in cash costs.
Revenues declined to $5.97 billion from the restated $6.74 billion. The average LME market price of copper fell 7.9 percent and realised copper prices dropped 10.6 percent as prices trended downwards during the period.
Copper production improved 1.6 percent to 721,200 tonnes, mainly due to higher plant throughput at Esperanza. In 2014, the group expects to produce some 700,000 tonnes of copper.
Group cash costs, before by-product credits, were up 9.8 percent at $1.79/lb, primarily due to expected higher energy costs at Los Pelambres.
The company amended its dividend policy, and the board of directors decided to recommend a final dividend of 86.1 cents per share, bringing the total dividend for the year to 95.0 cents per share. In 2012, the company announced a final dividend of 12.5 cents per share and a special dividend of 77.5 cents per share. Total dividend in 2012 was 98.5 US cents.
Antofagasta Minerals CEO Diego Hernandez said, "I am pleased to report that even in this period of depressed prices we have been able to deliver a strong set of results and a final dividend of 86.1 cents per share, which represents a significant return of capital to shareholders.''
Looking ahead, the company said it expects the operating environment in 2014 to be a similar to 2013, adding that it enters the year in a strong position.
ANTO.L is gaining 3.8 percent in early morning trade at 880.00 pence.
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