Antofagasta Plc (ANTO.L, ANFGY.PK) Tuesday reported a decline in full-year 2012 profit, reflecting higher operating costs. Revenues grew about 11 percent year-over-year, despite lower commodity prices, benefited by increased production volumes at Esperanza mine. The Chile-based copper miner expects copper production in 2013 to be broadly in line with the 2012 level.
Copper production volumes improved 10.8 percent to 709.6 thousand tonnes, mainly reflecting further increase in production at 70 percent-owned Esperanza. Production was also ahead of its original forecast of about 700 thousand tonnes. Esperanza produced 163,200 tonnes of copper, an 81.1 percent increase compared with 2011.
Copper sales volumes were 703.2 thousand tonnes, up 9.9 percent from last year. Meanwhile, average LME copper price dropped 9.8 percent to 360.6 cents per pound.
Gold production volumes climbed 52.4 percent to 299.9 thousand ounces, reflecting higher throughput at Esperanza.
Diego Hernandez, CEO of Antofagasta Minerals said, "2012 was an important year for the Group, in which we consolidated the performance of our existing operations, and strengthened our organisation for the future opportunities we face."
Total operating costs, including exceptional items, advanced to $3.9 billion from $3.0 billion a year earlier.
Announcing its preliminary results, the company said its profit before tax for the year declined 10.5 percent to $2.75 billion. Excluding exceptional items, pre-tax profit increased 1.2 percent to $3.25 billion.
Basic earnings per share were 104.7 cents, lower than 125.4 cents per share in 2011. Basic earnings, excluding exceptional items, rose to 140.2 cents from 139.7 cents per share last year.
Group revenue grew 10.9 percent to $6.74 billion. The increase was mainly due to higher copper and gold sales volumes, the company said.
The board has declared a final dividend of 90 cents per share, to shareholders of record on May 10, 2013, payable on June 13. The final dividend comprises an ordinary dividend of 12.5 cents per share and an exceptional dividend of 77.5 cents per share. This will result in a total dividend for the year of 98.5 cents, more than double from last year.
For full-year 2013, Antofagasta forecast copper production to be about 700,000 tonnes, broadly in line with the level achieved in 2012. Gold production is expected to be 260,000 ounces, and molybdenum to be 8,000 tonnes.
The company noted that the reduction in by-product production compared with 2012 reflects an expected decrease in average gold and molybdenum grades.
In London, Antofagasta shares are currently trading at 1,149 pence, up 54 pence or 4.93 percent, on a volume of 1.78 million shares.
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