Never miss an issue of Master Investor Magazine – sign-up now for free!
FTSE 100 miner Antofagasta (LON:ANTO) increased revenues by 3.6% to $2,120.7 million as higher realised prices outweighed lower volumes in copper markets. However, pre-tax profits for the period dropped by 32.4% to $465.5 million, as margins fell significantly due to higher production costs.
CEO Ivan Arriagada said that: “As we have guided, this year is a tale of two halves. The first half, on which we are reporting, is expectedly softer due to lower sales tonnes and grades and higher costs, but we are expecting tonnages and unit costs to improve substantially during the second half and well into 2019 as mined grades increase in line with our mine plan. Our confidence in achieving this is underpinned by the reiteration of our previously stated copper production guidance and net cash cost guidance for the full year of 705-740,000 tonnes at $1.35/lb…
Regardless of external factors such as prices, inflation and foreign exchange movements, Antofagasta is well positioned for growth, generating strong cash flow and improving returns. The outlook is positive – we have the assets, capabilities and the capital allocation strategy as well as the discipline to continue to deliver long-term value for all our stakeholders“.
Shares in the business dropped by 5.58% to 899.60p (as of 14:00 BST).