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Chile-focused copper miner Antofagasta has reported first-half revenue down 15.3% as a result of lower copper prices and sales volumes, while group copper production guidance remains at the lower end of the range.
In its results for the six months ended 30 June 2020, the company announced revenue of $2.1bn, down 15.3% on the same period in 2019, mainly as a result of realised copper prices 12.5% lower than the same period last year and lower sales volumes, but partially offset by the increase in the realised gold price.
EBITDA was $293m lower at $1bn in the first half of 2020 on lower revenue which Antofagasta said was partially offset by lower operating costs due to the weaker Chilean peso, lower input costs and continued tight cost control.
The EBITDA margin was 47.4%, compared to 51.7% in the first half of 2019.
Group copper production in the first six months of the year was 371,700 tonnes, in line with expectations, and down 4% than the same period last year on lower grades.
Antofagasta announced group copper production guidance is at the lower end of the original 725-755,000 tonnes range and is on the basis that there are no COVID-19 related shutdowns during the rest of the year.
The company declared an interim dividend of 6.2 cents per share, consistent with its dividend policy of paying out a minimum of 35% of underlying net earnings.
Chief executive Ivan Arriagada said despite the challenges 'the group had a strong operating and cost performance with copper production of 371,700 tonnes, sales volumes falling by only 2% compared to the first half of 2019, and a 6% improvement in net cash costs, aided by savings of $78m from our cost and competitiveness programme.'