Antofagasta sees profits fall by over 37 per cent as commodities slump

Miner Antofagasta has announced pre tax profits of just $981.0m (£629.9m) in the six months ended June, a 37.3 per cent decline on the same period last year (release).

While copper and gold production were both up, at 8.4 per cent and 19.7 per cent respectively, revenues fell by a hefty 12.1 per cent as commodities values have suffered.

The firm cited the average LME market price decline of 6.8 per cent and experienced copper prices falling by 15.5 per cent during the period.

Antofagasta said the optimisation of Esperanza is on track, with average throughput of 86,700 tones per day, and 105,000 tonnes per day expected in 2015.

Diego Hernandez, CEO of Antofagasta Minerals S.A. commented:

Antofagasta has delivered a good start to 2013 with stronger production levels than during the same period last year and we remain on track to meet full year guidance of 700,000 copper tonnes.

Market conditions remain challenging with lower prices and higher costs impacting our revenues and profitability. However, cash generation by the business was strong and the interim dividend has been increased by 4.7% to 8.9 cents.