Antofagasta miner’s profit drops due to costs and drought

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LONDON, Aug 11 (Reuters) – Antofagasta (ANTO.L) reported lower half-year profits on Thursday as rising costs, falling grades and a lingering drought in Chile hit the miner’s copper output.

It said it would cut its interim dividend to 9.2 cents per share from a record 23.6 cents last year, joining other miners including Rio Tinto (RIO.L), (RIO.AX ) and Anglo American (AAL.L) to cut payments after last year’s windfall.

Mining companies also warned of future returns, fearing that slowing growth or a recession in key markets could weigh on demand for commodities in the coming months.

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London-listed Antofagasta, majority-owned by the wealthy Chilean Luksic family, saw its earnings before interest, tax, depreciation and amortization (EBITDA) for the first six months fall to $1.24 billion from $2.4 billion. dollars last year.

Antofagasta’s earnings hit their highest level ever in 2021 when copper prices hit record highs, helping it pay a record $1.4 billion shareholder payout for the year.

It said it remained on track to produce its revised forecast of 640,000 to 660,000 tonnes of copper for the full year.

“We expect the rest of the year to be very different from the first half as production improves quarter over quarter,” chief executive Iván Arriagada said.

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Reporting by Clara Denina and Muhammed Husain; Editing by Shailesh Kuber and Alexander Smith

Our standards: The Thomson Reuters Trust Principles.

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