Antofagasta share price increases as it reveals jump in earnings and revenue

Caitlin Morrison
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Rising copper prices helped boost Antofagasta in the first half (Source: Antofagasta )

Antofagasta has reported an 88 per cent jump in earnings and a 42 per cent increase in revenue for the first half of the year.

The figures

The FTSE 100-listed miner reported revenue of $2.05bn (£1.59bn), up from $1.44bn in the same period of last year.

Earnings before interest, taxation, depreciation and amortisation (Ebitda) rose to $1.08bn from $575m, while earnings per share rose 231.5 per cent to 29.5p.

The company hiked its interim dividend to 10.3 cents per share, a 232.3 per cent increase compare to last year's and equivalent to a payout ratio of 35 per cent, the firm said.

Shares in Antofagasta rose 1.73 per cent to more than 970p in early trading.

Why it's interesting

Antofagasta attributed the rise in revenue to a 25.3 per cent increase in realised copper prices, as well as a 14.3 per cent expansion in sales volumes.

Meanwhile, the group said it had reduced operating costs by $44m as part of its costs and competitiveness programme. The company began efforts to cut spending last year in the face of low copper prices.

What Antofagasta said

"Antofagasta's strategy remains focused on producing profitable tonnes through reducing costs, making improvements in productivity and efficiency and the application of innovative solutions," said chief executive Ivan Arriagada.

"A disciplined approach to capital allocation underpins our decision-making process. Projects and future developments must compete internally for capital with any excess cash distributed to shareholders.

"The company is well positioned for future growth, generating strong cash flows and improving returns against a background of a recovery in copper demand. The outlook for Antofagasta is positive - we have the assets, capabilities and strategy to continue to create long-term value for all of our stakeholders."

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