Antofagasta Copper Prices Fuel Profit Surge Amid Production Dip
Antofagasta reported significant profits and dividend growth in its first-half earnings, driven by soaring copper prices. The company's revenue increased by 18% to $4.48 billion in the six months to June 30th, with a 36% jump in the average realised copper price to $6.19 per pound contributing to the gains.
The miner's EBITDA climbed 27% to $2.84 billion, and pre-tax profit surged 72% to $2 billion. Antofagasta also lifted its dividend by more than 80%, paying out 30.1 cents per share. However, production fell by 9% in the first half.
Analyst Duncan Ferris noted that while high copper prices provided a supportive backdrop for the company's performance, the decline in production was a concern. Production from the first half already looked 'a bit lightweight' when compared to full-year guidance, and Antofagasta cut its production target by 10% due to massive rainstorms.