Half Year 2024 Antofagasta PLC Earnings Call Transcript
Key Points
- Antofagasta PLC (ANFGF) reported strong financial performance with increased revenues and EBITDA for the first half of 2024.
- The company maintained a healthy EBITDA margin of 47%, showcasing effective cost control and operational efficiency.
- Antofagasta PLC (ANFGF) declared an interim dividend representing 35% of net earnings, consistent with its dividend policy.
- The company has commenced full construction at Centinela, which is expected to add 170,000 tonnes of copper equivalent production by 2027.
- Antofagasta PLC (ANFGF) has made significant progress in sustainability, including the publication of its first climate action plan and improvements in water management.
- The company expects to be at the lower end of its full-year copper production guidance range.
- Higher depreciation and taxation impacted underlying earnings due to the completion of the Los Pelambres Phase 1 expansion project and the new mining royalty regime.
- Lower grades at Pelambres and Centinela balanced the impact of higher throughput, affecting overall production.
- The company saw a $227 million increase in net debt due to higher CapEx, dividends, and taxes.
- Despite strong financial performance, the concentrate inventory build-up at Los Pelambres could pose challenges in the short term.
Good morning, everyone, and welcome to our results presentation for the first half of 2024. Today, we have announced another strong set of results whereby we have continued to deliver consistent cash flows and healthy EBITDA margins with a balance sheet that is supportive of the brownfield growth projects and investments that we have recently commenced.
On the copper market. We have conviction on copper's fundamental value given its role in the energy transition and electrification. Given the clear limitations to growth of global mine copper supply, we see this balance as highly supportive of coppers long-term pricing. Despite the recent volatility in markets that has been based on short-term news flows on market speculation.
As such, we're investing in our project pipeline to deliver our strategy around growth. Here presenting alongside me today Mauricio Ortiz, Chief Financial Officer; and for the first time, Alejandra Vial, our Vice President of Sustainability. Alejandra is an engineer by background, who has 25-years of
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