🕐18.03.14 - 08:54 Uhr

ANTOFAGASTA PLC EMAIL ALERTING SERVICE



Antofagasta plc released its 2013 Full Year Preliminary Results at 7am on 18 March 2014.

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.

For a second year running we achieved a record level of copper production of 721,200 tonnes, 1.6% more than in 2012 with all of our operations exceeding their production targets for the year.

Los Pelambres remained the largest contributor to our total copper production, at 56%, and the lowest cost operation contributing 67% to EBITDA.

There is no doubt that this has been a challenging year with weaker commodity prices and higher costs, particularly energy.

Net earnings have been further impacted by the withholding tax on the higher dividend pay-out.

These factors have resulted in a decline in net earnings of 36.4% to $659.6 million.

In this environment we are focused on resetting our cost base and optimising our operating assets, while continuing to invest in the future.

Looking ahead, we expect the operating environment in 2014 to be a similar to 2013 and we enter the year in a strong position.

The changes we have put in place will continue to result in improved operational efficiency, our development projects are on-time and on-budget, and we are focussed on profitability and productivity across the Group”.

HIGHLIGHTS

Financial performance

  • Final dividend of 86.1 cents per share, representing a significant return of capital to shareholders and a pay-out ratio for the year of 142%
  • Revenue 11.4% lower, at $5,971.6 million, following the average LME market price of copper falling by 7.9% and realised copper prices falling by 10.6% as prices trended downwards during the period.
  • EBITDA fell 30.1% to $2,702.2 million, with increased production offset by the decrease in realised metal prices and the increase in cash costs.
  • EBITDA margin remains strong at 45.3%, though down on last year’s margin of 57.3%.
  • Net earnings fell 36.4% to $659.6 million, primarily impacted by the decrease in EBITDA and the increase in withholding tax related to this year’s dividend.

  • Operating cash flow generation of $2,659.2 million in the period, compared with $3,826.0 million in 2012.

  • Balance sheet remains strong with Group attributable net cash at 31 December of $1,472.3 million.

Operational performance

  • Record copper production of 721,200 tonnes, 1.6% increase on 2012 mainly due to higher plant throughput at Esperanza.

  • Group cash costs (before by-product credits) were in-line with expectations at $1.79/lb, 9.8% higher than 2012 primarily due to expected higher energy costs at Los Pelambres.
  • Group net cash costs were slightly lower than expectations at $1.36/lb, up 32.0% compared to 2012 reflecting lower molybdenum volumes and lower molybdenum and gold prices.
  • Ongoing review of costs across supply chain, procurement and work practices.

Investing through the cycle

  • Antucoya project progressing on-schedule and on-budget, $650 million project financing completed in December with ramp-up expected in the first half of 2015
  • Primary focus on brownfield growth to deliver greatest returns, including increasing throughput at Esperanza to 105ktpd and commencement of feasibility studies on the Los Pelambres marginal expansion and Encuentro Oxides projects.

  • Longer term growth options advanced with current focus in the Centinela Mining District on the joint development of Esperanza Sur and Encuentro Sulphides, and ongoing work at the Twin Metals project.

  • Reviewing options for reducing the capital cost of the projects, including the impact of using fewer EPCM contractors and more Chinese-sourced equipment.
  • Group production expected to rise to nearly 900,000 tonnes per annum by 2018 on capital investment of $3 billion

To read the full press release, go to:
http://www.antofagasta.co.uk/media/press-releases/year-2014.aspx

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