Antofagasta 1st Half Net Profit Falls; Reaffirms Output Guidance

By Alex MacDonald

LONDON--Antofagasta PLC (ANTO.LN) reported a fall in first-half net profit but reaffirmed its expectations for higher output this year as the Chilean copper producer continues to benefit from the ramp up of its Antucoya project.

The U.K.-listed miner Tuesday reported a net profit of $88.1 million for the first six months of the year compared with $706 million in the same period a year before when it benefited from a $620 million gain on proceeds from the sale of its water division.

Revenue fell 18.5% on year to $1.45 billion in the first half of the year due to lower copper prices and sale volumes as well as the closure of it Michilla mine at the end of last year. But earnings before interest, taxes, depreciation and amortization, a closely watched earnings metric, rose 2.3% on year to $572 million thanks to a roughly 25% reduction in operating costs.

The Ebitda and net profit figure beat analysts expectations of $532 million and $62 million respectively, according to a company-complied consensus forecast of 12 analysts.

Looking ahead, the company reaffirmed that it plans to meet the lower end of its 710,000 to 740,000 ton copper production guidance range compared with 630,000 tons due to the ramp up of its Antucoya project, which began commercial production last quarter, and the purchase of a 50% stake in the Chiean Zaldivar mine last December.

It declared an interim dividend of $0.031 a share, unchanged from last year.

"Given the current economic uncertainty we are cautious in our outlook and remain conservative in our approach to managing capital," said Antofagasta CEO Iván Arriagada.

Write to Alex MacDonald at [e-mail]

(END) Dow Jones Newswires

August 16, 2016 02:45 ET (06:45 GMT)

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