Chilean copper producer Antofagasta plc reported record full-year profit and revenue that was in line with expectations, although its dividend payout was lower than anticipated.Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 32% to US$3.7 billion as revenue grew 33% to US$6.1 billion helped by the ramp-up of the 70%-owned Esperanza operation. The FTSE-100 company plans to pay a total dividend for the year of US$0.44/share (including a special dividend of US$0.24) missing the consensus estimate of US$0.73.
Chairman Jean-Paul Luksic, who is also acting chief executive following the unexpected departure of Marcelo Awad last week, said he expects copper prices to be choppy in the short term.
"Despite the improvement in the copper price since the year-end, macro-economic uncertainty means that prices in the short-term are likely to remain volatile. Nevertheless, long-term market fundamentals remain positive for copper, with inventories remaining at low levels by historic standards."
The company also took a US$140.5 million charge related to the Reko Diq project in Pakistan. The government of Balochistan has rejected a mining lease application for Reko Diq, Antofagasta's 50:50 joint venture with Barrick Gold Corp.
Antofagasta expects to produce a record 700,000t of copper and 280,000oz of gold in 2012, compared with 640,500t and 196,800oz respectively in 2011, while molybdenum output is anticipated to rise to 11,000t from 9,900t last year.
