GAVIN WOOD EDISON INVESTMENT RESEARCH
The main surprise in the results is the special dividend. Following several years of strong production and earnings growth, the 2013 outlook for Antofagasta, with declining production and sharply rising production costs, will be much less inspiring to investors.
PETER MALLIN-JONES CANACCORD GENUITY
A further likely build up of net cash through 2013 increases our conviction that a similar large special dividend could be announced at the 2013 results. But, we see limited further upside without copper price upside driving higher free cash flows and the potential for even larger dividends.
CAILEY BARKER NUMIS SECURITIES
The special dividend reflects a payout ratio of 70 per cent, which should please the punters. Antofagasta remains a quality company but with Antucoya pushed back we see limited growth and expect it trade sideways with the copper price.