Company has three business divisions: Mining, Transport and Water, being the first of them the most important. Antofagasta plc is one of the largest international copper producing companies in the industry. Its activities are mainly concentrated in Chile where it owns and operates three copper mines, Los Pelambres, El Tesoro and Michilla, with a total production of 498 thousand tonnes in 2004, at an average cash cost of 24.4 c/lb. The Groups mining division, Antofagasta Minerals, is also actively involved in exploration particularly in Chile and Peru. The transport division operates an extensive rail network servicing the important mining region of northern Chile, which is centred on the port of Antofagasta. The water division operates a concession for the distribution of water in this region.

SALES PER ACTIVITY (Data as of 31/12/2005)

Copper mining: 94%
Rail transport:   4%
Water:             2%

Deutsche Bank today reaffirms its hold investment rating on Antofagasta PLC (LON:ANTO) and raised its price target to 585p (from 470p).

Berenberg today reaffirms its sell investment rating on Antofagasta PLC (LON:ANTO) and raised its price target to 370p (from 365p).

Credit Suisse today reaffirms its underperform investment rating on Antofagasta PLC (LON:ANTO) and raised its price target to 400p (from 360p).

Peel Hunt today reaffirms its hold investment rating on Antofagasta PLC (LON:ANTO) and cut its price target to 485p (from 515p).

RBC Capital Markets today reaffirms its sector performer investment rating on Antofagasta PLC (LON:ANTO) and raised its price target to 500p (from 410p)

StockMarketWire.com
Antofagasta's revenues fell by 18.5% to $1,448.0 million in the six months to the end of June, on lower copper prices and sales volumes, and the closure of Michilla at the end of 2015.

But EBITDA increased 2.3% to $571.6 million despite the fall in revenue, reflecting a 24.7% reduction in operating costs and a first time EBITDA contribution from Zaldivar and other associates.

EBITDA margin strengthened to 39.5%, up from 31.5% and operating cost reductions of $124 million were achieved, contributing to savings of $0.11/lb in cash costs.

Operating profit and earnings per share fell by 9.2% and 3.3% respectively.

Operating cash flow generation of $774.1 million in the period, 4.2% less than in the first half of 2015.

Capital expenditure of $385.4 million, $276.9 million lower than in the first half of 2015. Full year expenditure expected to be lower than original guidance.

Interim dividend of 3.1 cents per share. Dividend policy to pay a minimum pay-out ratio of 35% of net earnings for the full year remains unchanged.

Group net debt of $1,039.7 million, almost unchanged since the end of 2015.

Chief executive Iv�n Arriagada said: "A 24.7% reduction in operating costs offset the decline in the copper price and lower sales volumes resulting in EBITDA of $571.6 million, 2.3% higher than in the same period last year. "Continued management actions to reduce costs and preserve cash contributed to our EBITDA margin strengthening to 39.5%, from 26.2% in the full year 2015. While reducing costs in absolute terms is important we are focused on achieving improved efficiencies in a sustainable manner to ensure long-term shareholder value.

"Given the current economic uncertainty we are cautious in our outlook and remain conservative in our approach to managing capital. The Board has declared a dividend of 3.1 cents per share equal to 35% of net earnings at the interim, in line with our policy to pay a minimum of 35% of full year net earnings which remains unchanged.

"At Los Pelambres, following the agreement reached with the Caimanes community in April, the two longstanding court cases relating to the Mauro tailings dam have recently been resolved. Although an appeal is possible, it is unlikely to be accepted and Los Pelambres and the Antofagasta group now move into a new era of community engagement."

JP Morgan Cazenove today reaffirms its neutral investment rating on Antofagasta PLC (LON:ANTO) and raised its price target to 390p (from 380p).

Peel Hunt today reaffirms its hold investment rating on Antofagasta PLC (LON:ANTO) and raised its price target to 575p (from 485p).

Canaccord Genuity today reaffirms its hold investment rating on Antofagasta PLC (LON:ANTO) and raised its price target to 545p (from 505p).

Jefferies International today reaffirms its hold investment rating on Antofagasta PLC (LON:ANTO) and raised its price target to 550p (from 500p).

StockMarketWire.com
Antofagasta reports a strong third quarter, with copper production up 8.7% versus the previous three months and Antucoya reaching production capacity in August.

Group copper production for the year to date of 503,900 tonnes was 9.4% higher than in the same period last year, primarily due to new production from Zaldavar and Antucoya, offset by the closure of Michilla at the end of 2015

Gold production was 70,300 ounces in the quarter, a 33.1% increase on Q2 2016 largely due to higher gold grades at Centinela.

Molybdenum production at Los Pelambres was 1,900 tonnes in Q3 2016, compared to 1,600 tonnes in Q2 2016 with higher grades at Los Pelambres.

Chief executive Ivan Arriagada said: "Performance is expected to continue to improve during the final quarter of the year, with full year 2016 copper production expected to be close to the lower end of the original guidance range of 710,000 to 740,000 tonnes.

"Since becoming CEO I have continued to focus our efforts on reducing costs and improving operational efficiencies, and here again we are making good progress with net cash costs decreasing by 5.6% to $1.18/lb. We now expect cash costs for the full year to be $1.25/lb, 5c/lb lower than previously guided.

"As part of these efficiency programmes we have also reviewed our mine plans and wider operational activities to improve decision making and the accuracy of forecasting. This has involved a rigorous assessment of our plans with a focus on profitable tonnes and a higher level of certainty without compromising safety or operational standards. Following this review, production in 2017 is expected to be in the range of 685,000 to720,000 tonnes."

Slump in Antofagasta.

Shares in Antofagasta PLC (LON:ANTO) slumped by more than 6% in early trade on 26 October after the company’s operational update for the third quarter of 2016 indicated that full year production is likely to come in at the lower end of the previously announced 710,000-740,000 tonnes of copper.

That was in spite of a strong quarterly performance in which costs fell and production rose significantly. Net cash costs for the full year are now expected to come in at US$1.25 per pound, US$0.05 lower than previously anticipated, according to chief executive Ivan Arriagada.

But in the context of a copper market that remains weak in spite of price strength in other areas of the commodities complex, Antofagasta is now forecasting production to be in a lower range again next year, at between 685,000 and 710,000 tonnes.

As it is, analysts are not convinced Antofagasta will even hit its target this year.

“Antofagasta will have to have a very strong quarter to hit the bottom end of 2016 guidance,” said Liberum in a broader note on the copper sector that it issued following the Antofagasta results.

Liberum noted that previous guidance for 2017 from Antofagasta ran in the 750,000 tonne range, but it also pointed out that in the copper space Antofagasta isn’t the only cutting or missing targets.

Downgrades from BHP Billiton (LON:BLT), Rio Tinto (LON:RIO) and Freeport McMoRan (NYSE:FCX) combined with the new bottom-end numbers from Antofagasta will have taken 166,000 tonnes of forecast copper production out of the market by the year end, Liberum noted.

Even so, the market looks likely to remain in surplus until 2019, on the strength of current global production. Liberum is thus bearish on copper in general, and adds that pricing weakness is also likely to be exacerbated by dollar strength.

However, that call isn’t completely cut and dried. Ongoing protests at the massive Las Bambas copper mine in Peru, owned by the Chinese-backed MMG could curtail supply.

And there’s also the possibility that the ongoing Chinese property boom, which pundits are constantly calling an end to, may actually continue and drive up demand for copper.

If that’s the case, the financial impact of production downgrades may be off-set by copper price strength. But no-one in the market is holding their breath for that.

For its part, the other big player in copper, Glencore, is set to release third quarter production results on 3 November. We’ll probably get a further insight into the state of play then.

According to the FT, the declared short interest is c20%. Not sure if that's correct.

Exane BNP Paribas today downgrades its investment rating on Antofagasta PLC (LON:ANTO) to underperform (from neutral) and cut its price target to 435p (from 545p).

Peel Hunt today reaffirms its hold investment rating on Antofagasta PLC (LON:ANTO) and raised its price target to 580p (from 575p).

StockMarketWire.com
Antofagasta says that following the closure of the Michilla mine at the end of 2015 it has today signed an agreement to sell Minera Michilla SA to Haldeman Mining Company SA, for $52 million.

The transaction includes the open pit mine, the underground mine, the cathode production plant and various mining properties.

Antofagasta will retain the acid terminal and other facilities located at Caleta Michilla, which are currently used by its Centinela and Antucoya mining operations.

01/12/16 - Exane BNP Paribas today reaffirms its underperform investment rating on Antofagasta PLC (LON:ANTO) and set its price target at 600p.

07/12/16 - Credit Suisse today reaffirms its underperform investment rating on Antofagasta PLC (LON:ANTO) and raised its price target to 530p (from 450p).

Barclays Capital today (09/01/17) reaffirms its equal weight investment rating on Antofagasta PLC (LON:ANTO) and raised its price target to 650p (from 510p)

Peel Hunt today (11/01/17) reaffirms its hold investment rating on Antofagasta PLC (LON:ANTO) and raised its price target to 675p (from 580p)

StockMarketWire.com
Mining giant Antofagasta has agreed to exit the Alto Maipo hydroelectric project in Chile.

Antofagasta's subsidiary Minera Los Pelambres has been reviewing its options over its 40% investment in the project since October following the announcement of a forecast 10-20% total cost overrun.

Antofagasta said that yesterday (19 January) the project's controlling shareholder, AES Gener SA announced an update on the progress of negotiations between itself, Los Pelambres and lenders, which have reached an advanced stage, subject to final approval by the lenders.

Los Pelambres has agreed to transfer its 40% interest in Alto Maipo to Gener and the electricity price applicable to the power purchase agreement with Alto Maipo is reduced.

Antofagasta chief executive Ivan Arriagada said: "Mining is our core business. We entered into this project when electricity supply in the central region of Chile was constrained to ensure that Los Pelambres would be able to access a reliable source of electricity at competitive prices.

"We are now close to fulfilling this objective at an improved price, and to ensure a clean, stable and long-term energy supply for Los Pelambres."

Peel Hunt today reaffirms its hold investment rating on Antofagasta PLC (LON:ANTO) and raised its price target to 800p (from 675p).

StockMarketWire.com
Antofagasta's EBITDA for 2016 rose to $1,626.1 million - 78.7% higher than the previous year - as operating costs, before exceptional items, fell by 8.1% and revenue increased by 12.3%.

Operating cash flow generation of $1,457.3 million, up 69.8% on a year ago on the back of stronger margins and higher production.

Capital expenditure was down by 24.2% to $795.1 million as the Antucoya project and Centinela expansion were completed during the year.

The group reported operating cost reduction of $242 million, of which $176 million was achieved under the 'cost and competitiveness' programme which reduced mine site costs by 11c/lb.

Exceptional items during the year totalled $386.4 million after tax, which included the previously announced write off of the group's interest in Alto Maipo, and an impairment charge against Antucoya.

Chief executive Ivan Arriagada said: "2016 has been a year of operational delivery for Antofagasta putting us on a stronger and larger production base from which to grow.

"The successful integration of Zaldavar and the ramp-up of Antucoya - alongside the completion of the expansion of Centinela Concentrates - have contributed to a 12.5% rise in copper production to 709,400 tonnes.

"But volume increases are not the whole story at Antofagasta. We are focused on growth through profitable tonnes.

A combination of measures to boost productivity, improve efficiencies and reduce costs has led to sustainable mine site cost reductions of $176 million in 2016.

"This performance helped cash flow from operations increase by 70% to $1.5 billion during the year whilst our EBITDA margins improved from 28% to 45%.

"In the medium term we expect to see a steady shift from a copper market in balance to a slight deficit, leading to further improvement in prices.

"The Board has decided that in view of the Company's improved performance and the more positive outlook to declare a final dividend of 15.3 cents per share, bringing the dividend for the full year to 18.4 cents per share, which represents 53% of underlying earnings per share, significantly more than the company's commitment to pay-out a minimum of 35%.

"Antofagasta's cautious approach has served us well in what is a cyclical industry, providing us with a stable operating base and a strong balance sheet.

"As a company we were founded with an entrepreneurial spirit, one that looks for opportunities where others do not see them and it is this attitude - combined with a continued commitment to capital discipline - that informs our outlook.

"Consequently, our focus in 2017 is on developing those projects that offer all our stakeholders the best returns - such as the incremental expansion at Los Pelambres, which we expect to approve by the end of the year - and will underpin the continued success of Antofagasta."

Peel Hunt today reaffirms its hold investment rating on Antofagasta PLC (LON:ANTO) and raised its price target to 865p (from 800p).

Berenberg today (22/03/17) reaffirms its sell investment rating on Antofagasta PLC (LON:ANTO) and raised its price target to 650p (from 515p).

Jefferies International today (23/03/17) reaffirms its hold investment rating on Antofagasta PLC (LON:ANTO) and raised its price target to 800p (from 700p).

HSBC today (18/04/17) reaffirms its hold investment rating on Antofagasta PLC (LON:ANTO) and raised its price target to 760p (from 750p).

Peel Hunt today (24/04/17) reaffirms its hold investment rating on Antofagasta PLC (LON:ANTO) and raised its price target to 875p (from 865p).

StockMarketWire.com
Antofagasta's copper production increased to 171,900 tonnes in the first quarter - 9.4% up on a year ago - driven by higher output at Centinela, and Antucoya operating at full production.

Compared with the previous quarter, copper production fell by 16.4% due to expected lower grades at Los Pelambres and Centinela concentrates.

Gold production was 53,300 ounces in Q1 2017, 6.0% lower than in Q1 2016 and 41.5% lower than in the previous quarter as grades declined at Centinela.

Molybdenum production at Los Pelambres increased by 29.4% compared to the same period in 2016 as grades increased and by 10.0% compared with the previous quarter as recoveries improved.

Chief executive Ivan Arriagada said: "We have started the year with a continued focus on cost efficiency and productivity improvements.

"Production is in line with our expectations and is some 9% higher than in the same quarter of last year.

"When compared with the last quarter of 2016 the lower production reflects the expected grade decline at Los Pelambres and Centinela.

"Cash costs before by-product credits were 8% lower compared with the same quarter last year as we continue to progress our cost improvement measures.

"We reassert our guidance for the year of 685-720,000 tonnes of copper at a cash cost before by-product credits of $1.55/lb and a net cash cost of $1.30/lb."

Liberum Capital today reaffirms its sell investment rating on Antofagasta PLC (LON:ANTO) and set its price target at 400p.

Deutsche Bank today (19/05/17) downgrades its investment rating on Antofagasta PLC (LON:ANTO) to sell (from hold) and cut its price target to 700p (from 800p).

StockMarketWire.com
Antofagasta's group copper production for the first six months of the year rose to 346,300 tonnes - 7.1% up on a year ago.

This was primarily due to higher production at Centinela and Antucoya.

Gold production during the second quarter increased by 10.5% to 58,900 ounces and for the first six months by 2.5% due to improving grades at Centinela.

Molybdenum production at Los Pelambres increased in Q2 to 2,400 tonnes and for the year to date was 36.4% higher than in the corresponding period last year at 4,500 tonnes principally due to higher molybdenum grades.

Chief executive Ivan Arriagada said: "Our copper production performance during the year so far has been stronger than in the same period last year, especially at Centinela and Antucoya, which is now operating at full capacity.

"We have continued our strategy of focusing on improving efficiencies and achieving savings. This has resulted in a net cash cost of $1.20/lb for the second quarter of 2017, down more than 5% on the previous quarter.

"Production and costs remain in-line with our expectations and our guidance for the year is unchanged."

StockMarketWire.com
Antofagasta had a strong first half with revenues up 41.9% at $2,049m, as realised copper prices increased by 25.3% and sales volumes rose by 14.3% and EBITDA increased 87.8% to $1,079.8m.

The EBITDA margin rose from 39.8% in the first half of 2016 to 52.7%, the highest half year margin reported by the group since 2012.

Operating cost reductions of $44m were achieved, as part of the 'costs and competitiveness' programme, contributing to savings of $0.06/lb in cash costs during the current period

The board has declared an interim ordinary dividend of 10.3 cents per share, which represents a pay-out ratio of 35%, consistent with the group's dividend policy.

Chief executive Ivan Arriagada said: "Antofagasta has had a strong first half year, with EBITDA up 88% versus HY 2016.

"Our performance benefited from increases in the copper price, higher sales volumes and tight cost management. As a result, EBITDA margins have returned to over 50% and cash flow from operations is up 48% to $1.1 billion.

"This better performance means the Company's interim dividend has significantly increased compared to last year to 10.3 cents per share with the Company's policy of paying out a minimum of 35% of underlying net earnings unchanged.

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

"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."