Antofagasta Share Price Edged Up 1.68% on Its FY 2023 Earnings

The Antofagasta plc (LON: ANTO) share price edged up 1.68% after releasing its full-year 2023 results. The company's annual revenue reached $6,325 million, an 8% increase from the previous year, thanks to higher sales and pricing of copper and its by-products. 

The firm’s EBITDA grew by 5% to $3,087 million compared to the previous year, fueled by higher sales and prices, though partially negated by increased cash costs. The EBITDA margin slightly dropped to 48.8%, down from 50% in the prior year.

The Cost and Competitiveness Programme (CCP) delivered $135 million in benefits for 2023, including $107 million in cost savings and $28 million from productivity gains. A 2024 target of $200 million has been set to help stabilise cash costs year-over-year.

Excluding exceptional items, the profit before tax saw an 11% increase to $1,798 million despite higher cash costs counteracting gains in sales and pricing. Including exceptional items, profit before tax fell by 23% to $1,966 million, mainly due to the prior year's gain from the Reko Diq project disposal.

Operational cash flow rose by 11% to $3,027 million, driven by higher EBITDA and slight improvements in working capital in 2023. The year-end net debt to EBITDA ratio was 0.38x, slightly increasing from 0.30x in 2022, with net debt at $1,160 million.

Capital investments totalled $2,129 million in 2023, up from $1,879 million in 2022, reflecting significant projects like the Los Pelambres Expansion and Centinela mine development. Underlying earnings per share, excluding exceptional items, increased by 21% year-on-year to 72.0 cents.

Antofagasta plc’s CEO Iván Arriagada said: “Antofagasta delivered strong performance in 2023, including a 5% increase in EBITDA and an 11% increase in cash flow from operations. Our cost and competitiveness programme continues to deliver results, generating cost benefits of $135 million during the year, the equivalent of a 9c/lb savings on the Company's cash cost base. With a strong balance sheet, the Company is well-positioned as it enters a new phase of growth. This next growth stage includes continuing the development of the future of Los Pelambres following the completion of the Los Pelambres Phase 1 Expansion and initiating the construction of the Centinela Second Concentrator project.”

Antofagasta share price. 

The Antofagasta share price edged up 1.68% to trade at 1798.0p from Monday’s closing price of 1768.25p.