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Antofagasta's half-year earnings jump 60% due to higher copper prices and demand

The Chilean miner Antofagasta reported a 60% increase in its core earnings for the first half of this year, thanks to higher production and prices paid by customers for copper used as an energy transition material.

The EBITDA for the first half of this year rose from $1.39 to $2.23, slightly exceeding analysts' expectations.

Antofagasta is majority owned by the Luksic Family of Chile. The company announced a dividend per share of 16.6 cents, up from 7.9 cents in the interim last year.

Copper is a key material for power and construction industry applications, as well as for green energy conversion.

Analysts predict that copper prices could reach a record high of $12,000 per metric ton by the end the decade. This is an increase of around 20% over current levels.

Antofagasta bucked a trend set by other FTSE100 companies that reported lower results. Global trade concerns have been a factor in the price of industrial metals for most of this year.

Ivan Arriagada, CEO of the company, said that the company is expecting a 30% increase in production in the medium-term.

Early London trading was flat, as expected in the resources sector.

Analysts at RBC Capital Markets said Antofagasta had produced a "remarkably clean" set of results. They noted that the company expected capital expenditures to accelerate in the second half.

Centinela Concentrator, a producer's Centinela concentrator, is expected to cost $3.9 billion by 2025, up from $2.7 in 2024.

Antofagasta has four copper mines operating in Chile. It also wants to develop Twin Metals, a project in Minnesota that was put on hold after the administration of President Joe Biden blocked permits due to environmental concerns.

Arriagada said on July 10, he saw an "opportunity" to advance Twin Metals following President Donald Trump’s decision to impose a tariff of 50% on copper imports. (Reporting and editing by Clara Denina, Joe Bavier, and Bernadettebaum)

(source: Reuters)