Fluctuating copper prices result in 30 per cent revenue drop for Antofagasta

Antofagasta’s revenue dropped 30 per cent to $2.5bn (£2.05bn) in the first half of 2022 as market volatility led to lower copper prices and sales while a drought persisted in Chile.

The Chilean mining company reported profit before tax at $680m (£557m), a $1.1bn (£0.9bn) decline from a year before with EBITDA 47.5 per cent lower at $1.2bn (0.98bn) due to rising costs and lower revenue.

The company’s copper production was 268,600 tonnes, 25.7 per cent lower than in the same period last year as a drought persisted in Chile. Antofagasta expects full year copper production at 640–660,000 tonnes.

“Although we have experienced significant challenges over the half year – a volatile copper price as a result of macro developments, the continued drought in Chile, and an incident with our concentrate pipeline at Los Pelambres – the actions we have taken, coupled with the quality of our assets and balance sheet, have meant that we were able to weather the storm,” Antofagasta CEO Iván Arriagada said.

Its cash flow from operations dropped to $1.6bn (£1.3bn) from $2.5bn (£2.05bn) in the first half of 2022. Antofagasta’s mining business, which generates 97 per cent of its revenue, is on 100 per cent renewable energy after ditching fossil fuels. 

The company expects the rest of the year to “look very different from the first half” according to the CEO and has approved an interim dividend of 9.2 cents per share.