Antofagasta
plc CEO Iván Arriagada said:
“While
Antofagasta emerges from 2019 with a record copper production and safety
performance, a strong balance sheet and low cash costs resulting in EBITDA
increasing by 9.5% to $2.4 billion, 2020 has begun with an unprecedented
global challenge in the form of COVID-19. We are taking every measure
possible to keep our colleagues safe and healthy, and our operations have
not yet been impacted by the virus. The strength of our balance sheet, the
flexibility of our cash flow due to our Cost and Competitiveness Programme
and our strong safety and health culture means that the business is
extremely robust in this challenging macro environment.
“During
2019, our copper production increased to a record of 770,000 tonnes while
cash costs improved to $1.22/lb. The Board has declared a final dividend
of 23.4 cents per share, taking our full year dividend pay-out ratio to
67%.
“Looking
ahead to the rest of 2020, while we can’t predict the shape of the
recovery from COVID-19, Antofagasta is in good shape. We expect to
maintain our strong safety and operating performance with copper
production in the range of 725-755,000 tonnes at a net cash cost of
$1.30/lb, as guided previously. We are looking to reduce our expected
total capital expenditure, while continuing to progress the delivery of
our growth projects at Los Pelambres, Zaldívar and Centinela. We have the
flexibility, with our strong cash flows and balance sheet, to remain
resilient through the cycle.”
Highlights
Financial
performance
l
Revenue
for the full year of $4,965 million was 4.9% higher than 2018 reflecting
the increase in copper and gold sales, partially offset by the decrease in
the realised copper price
l
EBITDA(1)
was $2,439 million, 9.5% higher than the previous year on higher revenue
and lower unit costs due to grade increases at all operations,
particularly Centinela Concentrates
l
EBITDA
margin(2) increased to 49.1% from 47.1% in 2018
l
Cost
and Competitiveness Programme generated savings of $132 million,
outperforming the original target of $100 million
l
Strong
balance sheet with net debt of $563.4 million at the end of 2019, a 5.5%
decrease compared to 2018, equivalent to a Net Debt/EBITDA ratio of 0.23
times
l
Capital
expenditure increased to $1,079 million(3), below guidance of $1,200
million and $206 million higher than in 2018 with higher capital
expenditure on the Los Pelambres Expansion project
l
Earnings
per share from continuing operations of 50.9 cents per share, were 1.2%
lower than in 2018 with higher EBITDA offset by higher depreciation and
amortisation, and tax
l
Final
dividend of 23.4 cents per share declared, bringing the total dividend for
the year to 34.1 cents per share, which amounts to $336 million, equal to
a 67% pay-out of net earnings and similar to last year’s pay-out ratio
Operational
performance
l
Safety
is our top priority. As previously announced, during 2019 the Group had
its best safety performance ever with improved safety performance at all
its mining and transport operations and no fatalities
l
Record
copper production for the full year at 770,000 tonnes, 6.2% higher than
2018 with a particularly strong performance at Centinela Concentrates
l
Cash
costs before by-product credits(1) for the full year were $1.65/lb, 7c/lb
lower than last year due to higher production, tight cost control and the
weaker Chilean peso
l
Net
cash costs(1) for 2019 were $1.22/lb, 5.4% lower than in 2018, due to
lower cash costs before by- product credits and were below guidance
2020
Guidance
l
As
previously announced, production in 2020 is expected to be 725-755,000
tonnes of copper, 180- 200,000 ounces of gold and 12,500-14,000 tonnes of
molybdenum. Copper production is expected to decrease as Centinela
Concentrates mines through lower grade areas
l
As
previously announced, cash costs in 2020 before and after by-product
credits are expected to be $1.70/lb and $1.30/lb respectively
l
Capital
expenditure in 2020 is expected to be in the range of $1.3-1.5 billion. In
view of the current global situation, the expenditure programme is being
reviewed to identify possible savings or deferrals
YEAR ENDING 31 DECEMBER
|
Unit
|
2019
|
2018
|
%
|
Group revenue
|
$m
|
4964.5
|
4733.1
|
4.9
|
EBITDA
|
$m
|
2438.9
|
2228.3
|
9.5
|
EBITDA margin
|
%
|
0.491
|
0.471
|
4.2
|
Underlying Earnings per share (continuing
operations)
|
Cents
|
50.9
|
51.5
|
-1.2
|
Earnings per share (continuing and discontinued
operations)
|
Cents
|
50.9
|
55.1
|
-7.6
|
Dividend per share
|
Cents
|
34.1
|
43.8
|
-22.1
|
Cash flow from operations (continuing &
discontinued)
|
$m
|
2570.7
|
1877
|
37
|
Capital expenditure
|
$m
|
1078.8
|
872.9
|
23.6
|
Net debt at period end
|
$m
|
563.4
|
596.3
|
-5.5
|
Average realised copper price
|
$/lb
|
2.75
|
2.81
|
-2.1
|
Copper sales
|
kt
|
772.2
|
717.6
|
7.6
|
Gold sales
|
koz
|
288.8
|
198.1
|
45.8
|
Molybdenum sales
|
kt
|
12.1
|
14
|
-13.6
|
Cash costs before by-product credits
|
$/lb
|
1.65
|
1.72
|
-4.1
|
Net cash costs
|
$/lb
|
1.22
|
1.29
|
-5.4
|
Source: Antofagasta
plc
|