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(Sharecast News) - Copper miner Antofagasta posted a strong firsthalf performance on Thursday, delivering higher earnings and margins, but shares fell in early trading as investors focused on weaker production and a reduced fullyear output outlook.
Underlying earnings rose 27% yearonyear to $2.84bn, driven by an 18% increase in revenues to $4.48bn, supported by sharply higher realised prices. EBITDA margins widened five percentage points to 63.4%, while pretax profits jumped 72% to $1.99bn and earnings per share climbed 62% to 85.9cents.
Cash flow from operations increased 53% to $2.77bn, helped by stronger earnings and favourable workingcapital movements, while net debt surged to $3.97bn from $2.75bn at yearend, reflecting capex, dividends and the recognition of new waterinfrastructure leases, leaving the firm's net debttoEBITDA ratio at 0.68x. The interim dividend was set at USD 30.1cents per share.
Copper production fell 9% to 285,000 tonnes, mainly due to lower grades and temporary disruptions at Los Pelambres and Centinela, while gold output rose 2% to 92,800 ounces, and molybdenum production dropped 18% to 6,100 tonnes.
Net cash costs decreased 8% to $1.22 per pound, supported by stronger byproduct credits and costcontrol measures, though higher input costs and lower volumes remained headwinds.
The FTSE 100-listed group said major growth projects continued to advance, including the Centinela Second Concentrator and infrastructure expansions at Los Pelambres. It also approved a $900m investment in new water infrastructure for Zaldívar, enabling a shift away from continental water from 2028 and supporting a potential minelife extension to 2051.
Looking ahead, Antofagasta expects fullyear copper production of 625,000-655,000 tonnes, a reduction from prior guidance, also contributing to Thursday's shareprice weakness. Cashcost and capex guidance remained unchanged, while Antofagasta's Competitiveness Programme delivered $67m of savings in H1, keeping it on track for its $110m fullyear target.
As of 0900 BST, Antofagasta shares were down 4.39% at 3,852p.
Reporting by Iain Gilbert at Sharecast.com
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