The outcomes will let Antofagasta, majority-owned by Chile’s Luksic household, one of many nation’s wealthiest, pay a remaining dividend of 118.9 cents per share. The determine takes the whole annual return to shareholders to 142.5 cents per share, or $1.4 billion.
The bumper payout comes as a particular meeting in Chile has begun debating motions for a new Constitution to interchange a market-focused one courting again to the dictatorship of Normal Augusto Pinochet.
Politicians on the world’s prime copper-producing nation are additionally fine-tuning a new mining royalty bill, which is able to elevate tariffs on companies based mostly on product sales and profitability.
Antofagasta, which has been very vocal in regards to the adverse results increased royalties might have on Chile’s financial system, appeared extra optimistic on the potential final result.
The corporate stated the Senate had already printed a plan that was “much less onerous than the unique proposal made by the decrease home”. It additionally famous there have been nonetheless “a number of additional legislative steps” required earlier than a remaining invoice might be permitted.
Minnesota hit
Antofagasta stated its capital expenditure climbed 36% to $1.77 billion in 2021 as a result of growth of its flagship mines Los Pelambres and Centinela and inflation.
This 12 months, it expects capex to rise by $1.7 billion-$1.9 billion on growth prices and water shortages, which has already compelled it to chop manufacturing steering.
It additionally booked a $178 million impairment after its proposed copper and nickel mine Twin Metals in Minnesota was blocked by the US Division of the Inside’s January decision to cancel two mineral leases on home conservation considerations.
The corporate stated final month output this 12 months can be under 2021 ranges, as operations proceed to be impacted by the house nation’s longest drought in many years.
[Click here for an interactive chart of copper prices]
The Santiago-based miner, which already noticed 2021 copper manufacturing drop by 1.7% to 721,500 tonnes, anticipates churning out between 660,000 to 690,000 tonnes of the steel this 12 months.
Costs for the crimson steel, utilized in every part from development to electrical automobiles and wind generators, has greater than doubled from pandemic lows of early 2020, climbing 26% in 2021 alone.
It’s now buying and selling near $10,000 a tonne.
