Following strong performance in 2024, Antofagasta kept its production guidance for 2025 stable, expecting output to be between 660,000 and 700,000 tonnes this year.
ADVERTISEMENTMining giant Antofagasta saw revenue jump 5% to $6.6 billion (€6.3bn) in 2024, boosted by increased copper prices, although gains were capped by falling sales volumes, according to the latest figures.
Volumes were hit by vessels being rescheduled due to December’s bad weather conditions including sea swells in the north of Chile.
Antofagasta’s shares inched up 2.3% on Tuesday morning.
The company’s guidance for this year remained the same, with production likely to be somewhere between 660,000 and 700,000 tonnes. Net cash costs are estimated to be between $1.45 (€1.4) per pound and $1.65 (€1.6) per pound.
CEO Iván Arriagada said on the company’s website: “We have delivered another year of strong revenue growth and cash flow generation, and our EBITDA margin widened to 52%, maintaining our position at the top-end of our peer group of pure-play copper producers.
“Copper’s unique role in energy security and electrification means that the world needs more of it, and our projects are on track to deliver industry-leading levels of responsible copper supply growth. Our strong balance sheet enables us to invest in profitable growth for the medium and long term.
“We are encouraged by the outlook for copper as demand remains strong and global constraints, such as grade decline, ore hardness and capex inflation, are steadily limiting existing supply expansions.”
Miners boosted by US president Donald Trump’s tariff threats
US president Donald Trump’s recent threats about reciprocal tariffs have brought support tomining company share prices.
Trump’s tariff threats have raised worries about potential supply chain issues, especially for vital industrial metals such as copper, zinc and silver, with investors expecting higher metal prices as well.
With the US possibly imposing higher tariffs on imports from China, this has also raised demand for non-Chinese producers.
Copper, a main product for Antofagasta as well as several other miners, is likely to see a boost in prices due to potential supply issues. Metal prices are also experiencing a hike in demand as they are seen as inflation hedges too.
Antofagasta’s earnings before interest, taxes, depreciation and amortisation (EBITDA) rose to $3.4bn (€3.3bn) in 2024, an 11% rise compared with 2023. This was mainly because of robust revenues and strong cost control.
The group’s EBITDA margin rose to 52% in 2024. Profit before tax, including exceptional items, inched up 5% to $2.1bn (€2bn) last year.
Cash flow from operations hit $3.3bn (€3.2bn) last year, which was a rise of 8% from 2023, whereas capital expenditure for the full year 2024 came up to $2.4bn (€2.3bn). For 2025, Antofagasta expects the group’s capital expenditure to come up to $3.9bn (€3.7bn), which is in line with previous guidance.
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