ANTO23 Aug 2011 15:16
Antofagasta Doubles Divi As Profits Rise
August 23 2011 -
Chilean miner Antofagasta reported sharp rise in first-half net profits following higher average commodity prices and volumes.
The company said in a statement that net profits rose 54% to $696.2m compared with the first six months of 2010, while the declared interim dividend rose to $0.08 a share from $0.04 a share in the same period a year ago.
Chief Executive Marcelo Awad said in the statement:“Recent events have shown the volatility of commodity prices, and the industry is also continuing to see relatively strong cost pressures. However, I believe that Antofagasta, with its low average net cost position, is well placed to deal with these challenges. While markets are likely to remain volatile, especially in the near-term, we remain confident that copper fundamentals will remain supportive of a strong pricing environment.”
The miner re-iterated its forecast to produce 620,000 to 640,000 tons of copper and 200,000 to 215,000 troy ounces of gold this year, up from 521,000 tons and 35,100 ounces respectively in 2010. The increase in gold production is largely due to the ramp up of its Esperanza mine, which should reach full production by year-end, despite some delays.
The company also said it has substantially completed its feasibility study for the Antucoya project in northern Chile. The project will produce 80,000 tons of copper cathode annually over a mine life of more than 20 years, beginning 2014 and at a cost of $1.35 billion.
Antofagasta's shares rose by as much as 3.3% during morning trading but pared gains and were up 0.41% to 1217p at 1316BST
Sign In
Follow the stocks
