Antofagasta plc announce a recommended final dividend of 24.3 cents per share, in line with the Company's dividend policy of distributing at least 35% of earnings. The proposed final dividend is subject to approval by shareholders at the Company's AGM in May 2024, and if approved, would bring the total dividend for the year to 36.0 cents per share (50% of underlying earnings per share).
Other financial highlights include:
Cost and Competitiveness Programme (CCP) generated benefits of $135 million in 2023 (2022: $124 million), comprising $107 million of cost savings and $28 million of productivity improvements. A target for the CCP has been set at $200 million in 2024, which is expected to help the Company to maintain cash costs in line year-on-year.
Profit before tax excluding exceptional items increased by 11% to $1,798 million, as a result of increases in both sales and pricing, partially offset by a rise in cash costs.
Profit before tax including exceptional items decreased by 23% to $1,966 million, with this year-on-year movement principally related to the recognition in 2022 of an exceptional gain relating to the disposal of the Reko Diq project.
Cash flow from operations was $3,027 million, 11% higher than in 2022 primarily as a result of the Company's higher EBITDA during the year, and a minor positive variance in working capital movements in 2023.
Low net debt to EBITDA ratio maintained, with a year-end 2023 figure of 0.38x (2022: 0.30x). Net debt was $1,160 million at the end of the period compared with net debt of $886 million as of 12 months previously.
Capital expenditure of $2,129 million in 2023, compared with $1,879 million in 2022, reflecting the Los Pelambres Phase 1 Expansion, construction of which was completed during the year, and mine development work at Centinela.
Underlying earnings per share from continuing operations and excluding exceptional items of 72.0 cents, representing a 21% increase year-on-year (2022: 59.7 cents).
Earnings per share from continuing operations including exceptional items were 84.7 cents, 46% lower than in 2022, which primarily relates to the recognition in 2022 of an exceptional gain relating to the disposal of the Reko Diq project.
