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%

HSBC today reaffirms its reduce investment rating on Antofagasta PLC (LON:ANTO) and raised its price target to 730p (from 720p).

JP Morgan Cazenove today reaffirms its underweight investment rating on Antofagasta PLC (LON:ANTO) and cut its price target to 670p (from 740p).

Citigroup today reaffirms its buy investment rating on Antofagasta PLC (LON:ANTO) and set its price target at 1100p.

Peel Hunt today reaffirms its hold investment rating on Antofagasta PLC (LON:ANTO) and raised its price target to 1010p (from 1000p).

StockMarketWire.com
Antofagasta reported copper production in the fourth quarter of 2017 fell 1.3% to 177,800 tonnes compared to the previous quarter.

Higher production at Los Pelambres and the ramp-up of the Encuentro Oxides project offset lower production at Centinela Concentrates.

The slowdown in copper production in Q4 - versus the previous quarter - weighed on full year output.

Group copper production for the full year was 704,300 tonnes, in line with guidance but 0.7% lower than in 2016.

This was due to the impact of the expected lower grades at Los Pelambres and Centinela, which was offset by Encuentro Oxides coming into production in October and following the completion of the ramp-up at Antucoya in 2016.

Gold production was 40,500 ounces in Q4 2017, a 32.0% decrease on Q3 2017. For the full year production was 212,400 ounces, 21.6% lower than in 2016, reflecting lower grades and recoveries at Centinela.

Molybdenum production at Los Pelambres was 3,300 tonnes in Q4 2017. While output for the full year rose 47.9% on higher grades to 10,500 compared to the previous year.

Net cash costs were $1.36/lb in Q4 2017, a 15.3% increase compared with the previous quarter. This was primarily due to higher cash costs before by-products credits and the lower gold grade at Centinela and lower by-product revenue.

Group production in 2018 is expected to be in the range of 705,000 to 740,000 tonnes of copper, 190,000 to 210,000 ounces of gold and 11,500 to 12,500 tonnes of molybdenum.

Chief executive Ivan Arriagada said: 'Antofagasta had a strong year operationally. Copper production at 704,300 tonnes was in line with guidance and came in at a net cash cost of $1.25/lb.

'The new additions to our portfolio at Zaldivar, Antucoya and Encuentro Oxides now account for 25% of Group production, helping offset declines at our mature assets and providing Antofagasta with a platform for growth as copper prices recover,' Arriagada said.

JP Morgan Cazenove today reaffirms its underweight investment rating on Antofagasta PLC (LON:ANTO) and cut its price target to 660p (from 700p).

Citigroup today reaffirms its buy investment rating on Antofagasta PLC (LON:ANTO) and set its price target at 1130p.

Peel Hunt today reaffirms its hold investment rating on Antofagasta PLC (LON:ANTO) and cut its price target to 950p (from 1050p)

StockMarketWire.com
Antofagasta reported EBITDA (earnings) jumped 59.1% to $2.59bn last year buoyed by rising copper prices and sales which helped offset lower gold revenue.

A final dividend of 40.6 cents per share was declared, bringing the total dividend for the year to 50.9 cents per share, a 177% increase compared to 2016 .

Revenues increased 31.1% to $4.75bn, while operating costs, before exceptional items, rose by $218.9m to $2.32bn driven by increased costs at the mining division.

Copper production decreased by 0.7% to 704,300 tonnes while copper sales rose 1.5%, compared to 2016. The fall in production was weighed by lower grades at Los Pelambres and Centinela.

The LME copper price of $2.51 per pound at the beginning of 2017 rose to $3.27 per pound by year-end, averaging $2.80 per pound over the whole year, an increase of 27% compared to the previous year.

Gold production fell 21.6% to 212,400 ounces while gold sales slipped 19.6% compared to 2016. The fall in production came amid lower grades at Los Pelambres and a shift to higher copper content ores at Centinela. Molybdenum production, however, was boosted by 47.9% year on year by higher grades.

Group production in 2018 is expected to between 705,000 and 740,000 tonnes of copper, 190,000 to 210,000 ounces of gold and 11,500 to 12,500 tonnes of molybdenum.

Copper production is expected to grow quarter-by-quarter through the year as grades improve, with approximately 45% of the year's production expected in the first half of the year.

The miner reported operating cash flow generation of $2.5bn, up 71.2% from 2016 on the back of stronger margins and higher sales.

Capital expenditure was up by 13.1% to $899 million amid increased capitalised stripping costs at Centinela and Antucoya, and higher sustaining capital expenditure. Chief executive Ivan Arriagada said: 'We have continued to invest through the cycle while maintaining our focus on cost discipline and operating performance. As a result, as copper prices rose in 2017 Antofagasta had another successful year completing the development of Encuentro Oxides, meeting our safety target of zero fatalities and achieving both our production and cost guidance.' 'EBITDA increased by 59% to $2.6 billion with operating cash flow rising to $2.5 billion. Testament to the improved copper market and our continuing cost management programme, our EBITDA margin rose to 54% - the highest level since 2012 when the copper price was 30% higher. As a result of this performance the Board has recommended a final dividend of 40.6 cents per share which, combined with the interim dividend, brings the total dividend for the year to 50.9 cents per share, an increase of 177% on 2016, and represents a cash payout of 67% of earnings.' 'Our priorities for 2018 are continued capital discipline and the next phase of our growth - notably the review and expected approval of the Los Pelambres Incremental Expansion project and progressing expansion plans at Centinela.

Peel Hunt today reaffirms its hold investment rating on Antofagasta PLC (LON:ANTO) and raised its price target to 980p (from 950p).

Deutsche Bank today upgrades its investment rating on Antofagasta PLC (LON:ANTO) to hold (from sell) and raised its price target to 1000p (from 900p).

StockMarketWire.com
Antofagasta copper and gold production fell in the first quarter of the year compared to a year ago, while Molybdenum production rose. The miner maintained its full year production guidance.

Copper production in Q1 2018 decreased by 10.5% to 153,800 tonnes compared with the same quarter in 2017 mainly due to the anticipated lower grades.

Gold production was 32,300 ounces in Q1 2018, 39.4% lower than in Q1 2017 and 20.4% lower than in the previous quarter as grades were down at Centinela.

Molybdenum production increased by 40.9% compared to the same period in 2017 due to better grades and recoveries.

'As planned and in line with budget the year has started with lower grades at our operations,' the firm said.

Net cash costs increase to $1.54 per pound compared to $1.27 per pound in Q1 2017. Net cash costs guidance, however, remained unchanged at $1.35 per pound. The increase in cash costs during the quarter comes as Los Pelambres successfully completed labour negotiations with the plant union and in March with the mine union.

The one-off signing bonuses related to these three-year agreements increased Los Pelambres' cash costs by 8c per pound and group cash costs by 4c per pound for the quarter, equivalent to 2c per pound and 1c per pound on an annual basis.

Guidance for the year remained unchanged as group copper production for the full year is expected to be 705,000 tonnes to 740,000 tonnes.

Production is expected to increase quarter-by-quarter during the year as grades improve at the operations to achieve guided grades for the full year, the firm said

Peel Hunt today reaffirms its hold investment rating on Antofagasta PLC (LON:ANTO) and cut its price target to 965p (from 980p).

StockMarketWire.com
Antofagasta said Tuesday it had discovered and cleared blockage of the pipeline that transports concentrates from the processing plant at Los Pelambres to the port at Los Vilos on 5 May.

The firm estimated it would take up to three months for the stockpiles at the plant and the port to return to normal levels.

The impact of the blockage on production for the six months to 30 June was estimated to be approximately 10,000 tonnes of copper. Sales in the same period were expected to be impacted by some 15,000 tonnes, the firm said.

Full-year production remained unchanged, however, at 705,000 to 740,000 tonnes.

Exane BNP Paribastoday reaffirms its neutral investment rating on Antofagasta PLC (LON:ANTO) and raised its price target to 1010p (from 820p).

Morgan Stanley today reaffirms its underweight investment rating on Antofagasta PLC (LON:ANTO) and raised its price target to 800p (from 620p).

StockMarketWire.com
Antofagasta said Wednesday copper and gold production rose in the second quarter of the year compared to a year ago. The miner maintained its full year production guidance.

Copper production in Q2 increased by 6.1% to 163,200 tonnes compared to the previous quarter amid increased sulphide grades and higher throughput at all operations. But half year copper output fell 8.5% to 317,000 tonnes weighed down by lower grades mined.

Gold production increased 22.9% to 39,700 in Q2 but first half output fell by 35.8% to 72,000 ounces quarter as grades were down at Centinela.

Molybdenum production fell by 9.7% to 2,800 tonnes for the quarter.

Net cash costs were $1.50 a pound in Q2, a 2.6% decrease compared with the previous quarter, as lower cash costs before by-product credits were partially offset by lower by-product credits.

Guidance for the year remained unchanged as group copper production for the full year is expected to be 705,000 tonnes to 740,000 tonnes.

Cost guidance for the full year remained unchanged with net cash costs expected to come in at $1.35 per lb.

JP Morgan Cazenove today reaffirms its underweight investment rating on Antofagasta PLC (LON:ANTO) and raised its price target to 780p (from 750p).

HSBC today upgrades its investment rating on Antofagasta PLC (LON:ANTO) to hold (from reduce) and raised its price target to 760p (from 750p).

StockMarketWire.com
Antofagasta downwardly narrowed its copper guidance for the full-year Wednesday despite posting a 15% increase in copper production in the third quarter.

Copper production guidance for the full year was narrowed a range of 705,000 to 725,000 tonnes, down from 705,000 tonnes to 740,000 tonnes previously.

Copper production in the third quarter increased by 15.4% to 188,300 tonnes compared to the previous quarter while gold production increased 21.2% to 48,100 but first nine months of output fell by 30.1% to 120,100 ounces as grades were down at Centinela.

Molybdenum production rose by 57.1% to 4,400 tonnes from the previous quarter driven largely by higher grades and recoveries at Los Pelambres. Net cash costs were $1.27 a pound for the quarter, a 15.3% decrease compared with the previous quarter, supported by lower cash costs before by-product credits. Net cash cost guidance for the full year was unchanged at $1.35 a pound.

Total capital expenditure for the year was expected to be less than the $1.0bn previously guided, the company said.

In 2019 production was expected to increase to 750,000 to 790,000 tonnes of copper with higher average grades, particularly at Centinela Concentrates and Zaldivar, the minder added. 'As expected, copper production increased 15% quarter-on-quarter, reaching 188,300 tonnes in Q3. Production volumes will continue to grow, with the fourth quarter expected to be particularly strong,' said Ivan Arriagada.

'While we benefited from higher production in the quarter, our disciplined approach to costs has allowed us to combat inflationary pressures during the year which, combined with the strong molybdenum market, has contributed to a 15% fall in our net cash costs to $1.27/lb and for the full year guidance remains unchanged at $1.35/lb.'

Citigroup today reaffirms its buy investment rating on Antofagasta PLC (LON:ANTO) and cut its price target to 980p (from 1050p).

StockMarketWire.com
Antofagasta said Thursday it was granted approval to expand its Los Pelambres mine with first production expected in the second half of 2021.

The expansion of the Los Pelambres mine, which is 60% owned by Antofagasta and 40% owned by consortiums led by JX Nippon and Mitsubishi, would add an average of 60,000 tonnes of copper a year to the mine's production over the first 15 years of operation, Antofagasta said.

The expansion would boost annual copper production from 40,000 tonnes in the first year at the expanded throughput to 70,000 tonnes towards the end of a 15 year period, the miner said.

Construction of the $1.3bn expansion would start at the beginning of 2019 and first production was expected in the second half of 2021, it added. Throughput at the plant would be increased from the current capacity of 175,000 tonnes of ore per day to an average of 190,000 tonnes of ore per day.

The capital cost of the project also included $500m for a desalination plant and water pipeline.

'The expansion of our world-class Los Pelambres mine is an important step forward in the advancement of the Group's organic growth pipeline. The expansion project will add 60,000 tonnes a year of low cost copper production at this long-life operation and will ensure that it remains a first quartile producer for many years to come,' said Ivan Arriagada, the CEO of Antofagasta.

'The project includes the construction of a desalination plant and water pipeline which will also benefit the existing operation in cases of prolonged or severe drought, and for a potential further phase of expansion.'

Peel Hunt today reaffirms its buy investment rating on Antofagasta PLC (LON:ANTO) and cut its price target to 930p (from 1000p).

Peel Hunt today reaffirms its add investment rating on Antofagasta PLC (LON:ANTO) and cut its price target to 920p (from 930p).