The Antofagasta plc Board has declared an interim dividend for the first half of 2024 of 7.9 cents per ordinary share, which amounts to $77.9 million. The interim dividend will be paid on 30 September 2024 to ordinary shareholders that are on the register at the close of business on 6 September 2024.
Other financial highlights include:
● Continued strong safety performance recorded in H1 2024, with no fatalities and an injury frequency rate continuing at a level below 1.0.
● Copper production was 284,700 tonnes, 4% lower year-on-year, principally representing a balance of lower production at Centinela concentrates, and higher production at both Centinela Cathodes and Los Pelambres.
● Cash costs before and after by-product credits were $2.65/lb and $1.94/lb, 7% and 11% higher than H1 2023, due to lower ore grade and recoveries at Centinela concentrates and lower grades at Los Pelambres.
● EBITDA was $1,394.4 million, 5% higher than in H1 2023 on higher revenues, maintaining their strong EBITDA margin of 47.2%. Cash flow from operations increased by 14% to $1,483.9 million.
● The balance sheet remained robust with a net debt to EBITDA ratio of 0.46x, after supporting shareholder distributions and investment in future production, in line with the Company's capital allocation framework.
● As previously announced, total production for 2024 is expected to be at the low end of the Company's 670-710,000 tonne guidance range.
● Given projected production for the full year, cash costs before by-product credits are expected to be $2.40/lb and net cash costs expected to be $1.70/lb (based on current spot prices).
● The Competitiveness Programme generated savings and productivity improvements of $130.0 million in H1 2024, equivalent to 20.7c/lb of unit cash costs, in line with our plan.
● The Company's growth programme remains on track, with construction of the Centinela Second Concentrator currently ahead of schedule and initial groundworks commencing at Los Pelambres' desalination plant expansion, concentrate pipeline and El Mauro enclosures.
● Interim dividend of 7.9 cents per share announced, equivalent to a pay-out ratio of 35% of underlying net earnings in line with the Company's capital allocation framework.
