Antofagasta reports 5% increase in 2023 profit, slashes dividend

Centinela copper mine. (Image courtesy of Minera Centinela.)

Chilean miner Antofagasta reported on Tuesday a rise of 5% in 2023 profit as copper production and prices increased, offsetting higher costs.

The group reported earnings before interest, tax, depreciation and amortization (EBITDA) of $3.1 billion, up from $2.9 billion in 2022.

However, it slashed the full-year dividend to shareholders to 36 cents a share, compared to 59.7 cents last year.

Antofagasta made a record shareholder payout of 142.5 cents a share in 2021, amounting to $1.4 billion, when surging copper prices helped it post its highest profit ever.

The Chilean miner also reported an increase of 13% in capital expenditure to $2.13 billion last year due to expansion of its Los Pelambres flagship mine.

It expects the figure to stand at $2.7 billion in 2024, as it starts work on its Centinela concentrator.

Earlier Antofagasta reported a rise of 2% in 2023 copper production, to 660,600 metric tons, boosted by higher output at Los Pelambres and left guidance unchanged at between 670,000 tons and 710,000 tons for 2024.

(By Clara Denina; Editing by Jason Neely and Clarence Fernandez)

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