Antofagasta (ANTO)

Business description

Antofagasta is a major Chile-based copper mining group with interests in transport and water distribution. Its mining operations produce over 700ktpa copper. It has a number of major growth projects and several international exploration partnerships.

Share price chart

Share chart

Stock data

Market cap.£6807.3m
Last close690.50p
High / Low (52 weeks)959.0p / 661.5p
Stock market listingLN
Forecast net cash (US$m)1369
Forecast gearing ratio (%)N/A
TeamResources - Mining
SectorMining

Price performance

%1m3m12m
Actual(4.2)(15.4)(23.1)
Relative *(2.2)(11.7)(19.7)

* % Relative to local index

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Y/E Dec Revenue (US$m) EBITDA (US$m) PBT (US$m) EPS (fd) (c) P/E (x) P/CF (x)
2011A 6076.0 3646.0 3193.0 139.69 8.0 3.1
2012A 6740.0 3868.0 3283.0 140.71 7.9 2.9
2013E 5680.0 2536.0 1928.0 82.78 13.4 4.0
2014E 5431.0 2431.0 1783.0 80.63 13.8 4.7

Last updated on 20/03/2014

Latest research

Investment summary

Antofagasta reported 9M13 revenues, EBITDA and attributable net cash all in line with our forecasts. Revenues were down 9.2% y-o-y to US$4,404m due to lower realised prices partly offset by increased copper and gold sales volumes. Copper sales of 532kt were 7.4% higher y-o-y, while the US$3.26/lb average realised copper price was 12.8% lower y-o-y. EBITDA fell 27.9% y-o-y to US$2,053m, reflecting lower revenue and higher operating costs. Gross cash costs rose 11.9% y-o-y to US%1.79/lb and net cash costs increased 34.3% y-o-y to US$1.33/lb, affected by weaker gold and molybdenum prices and lower molybdenum production volumes. We expect Antofagasta to achieve FY13 guidance of 700kt copper production and US$1.40/lb cash costs. Our valuation of Antofagasta is 661p/share at a 10% discount rate and 721p/share at a 9% discount rate.

Last updated on 30/09/2014

Industry outlook

Copper is currently trading at US$3.30/lb compared to our long-term forecast of US$2.96/lb.

Last updated on 30/09/2014

Key management

Jean-Paul Luksic, Chairman
Diego Hernández, CEO

Company address

Cleveland House
33 King Street
London
SW1Y 6RJ
United Kingdom
+44 20 7808 0988
View website