By Michael Susin
This headline was corrected at 0619 GMT. The earlier version incorrectly said the company cuts 2023 view.
Antofagasta PLC, a Chile-focused copper mining company, announced that its profit for the first half of 2023 has increased due to higher sales volumes. The company also confirmed its annual production target and raised its dividend payout.
In the first six months of 2023, Antofagasta reported a pretax profit of $764.5 million, showing growth from $679.6 million during the same period in the previous year.
The company’s revenue rose by 14% to $2.89 billion, driven by increased sales volumes of copper, gold, and molybdenum, as well as higher realized byproduct prices.
Antofagasta’s earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 7.5% to $1.33 billion. This growth was mainly attributed to higher sales volumes, inflation, and a stronger Chilean peso.
The company reaffirmed its full-year copper production guidance of 640,000-670,000 metric tons.
Moreover, Antofagasta declared an interim dividend of 11.7 cents per share, marking an increase from 9.2 cents in 2022.
“Looking ahead to the second half of the year, we expect the desalination plant will continue to ramp-up to its design capacity, which will allow increased throughput at Los Pelambres, supporting the delivery of our production and cost guidance,” said Chief Executive Ivan Arriagada.