Following sturdy efficiency in 2024, Antofagasta saved its manufacturing steering for 2025 steady, anticipating output to be between 660,000 and 700,000 tonnes this 12 months.
Mining large Antofagasta noticed income soar 5% to $6.6 billion (€6.3bn) in 2024, boosted by elevated copper costs, though positive aspects had been capped by falling gross sales volumes, in keeping with the most recent figures.
Volumes had been hit by vessels being rescheduled as a result of December’s dangerous climate circumstances together with sea swells within the north of Chile.
Antofagasta’s shares inched up 2.3% on Tuesday morning.
The corporate’s steering for this 12 months remained the identical, with manufacturing more likely to be someplace between 660,000 and 700,000 tonnes. Web money prices are estimated to be between $1.45 (€1.4) per pound and $1.65 (€1.6) per pound.
CEO Iván Arriagada stated on the corporate’s web site: “We have now delivered one other 12 months of sturdy income development and money circulation technology, and our EBITDA margin widened to 52%, sustaining our place on the top-end of our peer group of pure-play copper producers.
“Copper’s distinctive function in power safety and electrification signifies that the world wants extra of it, and our tasks are on observe to ship industry-leading ranges of accountable copper provide development. Our sturdy stability sheet permits us to spend money on worthwhile development for the medium and long run.
“We’re inspired by the outlook for copper as demand stays sturdy and international constraints, corresponding to grade decline, ore hardness and capex inflation, are steadily limiting current provide expansions.”
Miners boosted by US president Donald Trump’s tariff threats
US president Donald Trump’s current threats about reciprocal tariffs have introduced assist tomining firm share costs.
Trump’s tariff threats have raised worries about potential provide chain points, particularly for important industrial metals corresponding to copper, zinc and silver, with buyers anticipating larger steel costs as properly.
With the US presumably imposing larger tariffs on imports from China, this has additionally raised demand for non-Chinese language producers.
Copper, a predominant product for Antofagasta in addition to a number of different miners, is more likely to see a lift in costs as a result of potential provide points. Metallic costs are additionally experiencing a hike in demand as they’re seen as inflation hedges too.
Antofagasta’s earnings earlier than curiosity, taxes, depreciation and amortisation (EBITDA) rose to $3.4bn (€3.3bn) in 2024, an 11% rise in contrast with 2023. This was primarily due to sturdy revenues and robust value management.
The group’s EBITDA margin rose to 52% in 2024. Revenue earlier than tax, together with distinctive objects, inched up 5% to $2.1bn (€2bn) final 12 months.
Money circulation from operations hit $3.3bn (€3.2bn) final 12 months, which was an increase of 8% from 2023, whereas capital expenditure for the complete 12 months 2024 got here as much as $2.4bn (€2.3bn). For 2025, Antofagasta expects the group’s capital expenditure to come back as much as $3.9bn (€3.7bn), which is according to earlier steering.