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Antofagasta (GB:70GD)
LSE:70GD
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Antofagasta
(LSE:70GD)
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Rating:63Neutral
Price Target:
75.00p
▲(6.38% Upside)
Antofagasta's overall stock score is driven by strong financial performance and positive earnings call highlights, including significant revenue and production growth. However, technical analysis indicates an overbought condition, and valuation concerns due to the lack of a P/E ratio and high dividend yield present risks. Effective management of cash flow and capital expenditures is crucial for future stability.
Positive Factors
Revenue Growth
Significant revenue and EBITDA growth indicate strong market demand and operational efficiency, supporting long-term financial stability.
Project Progress
Expansion projects at Centinela and Pelambres will enhance production capacity by 30%, strengthening market position and future revenue potential.
Mine Life Extension
The extension of the Zaldívar mine life to 2051 ensures long-term resource availability, supporting sustained production and revenue.
Negative Factors
Negative Free Cash Flow
High capital expenditures leading to negative free cash flow may strain liquidity, impacting the company's ability to invest in future growth.
CapEx Execution Concerns
Under-execution of CapEx plans could delay strategic projects, affecting future production capabilities and competitive positioning.
Water Solution Challenges
Unresolved water supply issues at Zaldívar could hinder operations post-2028, requiring potentially costly solutions to maintain production.
Antofagasta (70GD) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£26.25B
Dividend Yield709.22%
Average Volume (3M)0.00
Price to Earnings (P/E)―
Beta (1Y)0.16
Revenue GrowthN/A
EPS GrowthN/A
CountryUK
Employees8,095
SectorBasic Materials
Sector Strength58
IndustryCopper
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume0
30 Day Avg. Volume0
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)<0.01
Price to Sales (P/S)0.00131
P/FCF Ratio-0.07
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Antofagasta Business Overview & Revenue Model
Company DescriptionAntofagasta PLC is a Chilean-based mining company primarily engaged in the production of copper and other minerals. The company operates several mines in the Antofagasta region of northern Chile, focusing on key sectors such as mining and metal production. Its core products include copper cathodes, molybdenum, and gold, which are essential for various industrial applications and contribute significantly to the global demand for metals.
How the Company Makes MoneyAntofagasta generates revenue primarily through the extraction and sale of copper, which is sold to customers worldwide, including major industrial companies and manufacturers. The company operates a vertically integrated model that includes mining, refining, and processing, allowing it to maximize efficiency and control costs. Key revenue streams include the sale of copper concentrate, molybdenum, and by-products from its mining operations. Additionally, Antofagasta benefits from long-term contracts with customers and fluctuating market prices for metals, which can significantly impact earnings. The company also engages in partnerships and joint ventures that enhance its operational capabilities and expand its market reach, further contributing to its financial performance.
Antofagasta Earnings Call Summary
Earnings Call Date:Aug 14, 2025
(Q2-2025)
| Next Earnings Date:Feb 24, 2026
Earnings Call Sentiment Positive
The earnings call highlights a strong financial and operational performance with significant revenue and production growth, successful project progress, and strategic advancements in technology. However, there are concerns about CapEx execution, maintenance impacts, and future water solutions which present potential challenges.Q2-2025 Updates
Positive Updates
Strong Financial Performance
Revenues increased by 29%, EBITDA rose by 60%, and the EBITDA margin was up by 25% to 58.8%.
Increased Production
Higher copper production compared to last year, along with significant increases in gold and molybdenum production.
Project Progress
Good progress on the expansion projects at Centinela and Pelambres, tracking according to program with expected production increase of 30% upon completion.
Dividend Declaration
Declared a dividend of $0.166 per share, in line with the policy of 35% of net earnings.
Zaldívar Mine Life Extension Permit
The permit was renewed, extending the mine life to 2051, allowing the monetization of over 1 billion tonnes of resources.
Cuprochlor Technology
Progress in testing new technology with plans to complete an industrial scale heap at Zaldívar next year.
Negative Updates
CapEx Concerns
First half capital spend was $1.6 billion, significantly below the 50% mark for the $3.9 billion CapEx guidance for the year.
Maintenance Impact on Production
Additional maintenance at Los Pelambres impacting production, although full-year guidance remains unchanged.
Water Solution Challenges at Zaldívar
Need to find a water solution beyond 2028, with options being evaluated, including capital-intensive projects.
Company Guidance
In the 2025 Half Year Results Call for Antofagasta, significant financial improvements were highlighted, including a 29% increase in revenues and a 60% boost in EBITDA, resulting in an EBITDA margin of 58.8%, a 25% increase from the previous year. The company also reported a strong cash flow, driven by higher production of copper, gold, and molybdenum. They announced a dividend of $0.166 per share, adhering to their policy of paying out 35% of net earnings. Antofagasta is progressing well with key projects, such as the Centinela expansion and Pelambres water system upgrade, which are expected to enhance production by 30% upon completion. Despite a slower first-half capital expenditure of $1.6 billion, the company maintains a full-year guidance of $3.9 billion and plans to ramp up spending in the second half, including the Encuentro project. Guidance for production remains unchanged, with expectations for increased output in the second half, particularly at Los Pelambres and Centinela.Antofagasta Financial Statement Overview
Summary
Antofagasta demonstrates strong operating margins and a stable balance sheet. Revenue growth is steady, but profitability margins could improve. The company faces challenges with negative free cash flow due to high capital expenditures, which could impact liquidity if not managed carefully.Income Statement
Antofagasta's income statement shows a strong gross profit margin of approximately 37.9% for 2024, reflecting efficient cost management. However, the net profit margin is moderate at 12.5%, indicating room for improvement in profitability. Revenue growth from 2023 to 2024 is 4.6%, demonstrating steady growth, though slower compared to previous years. EBIT and EBITDA margins are robust at 30.4% and 60.0% respectively, highlighting significant operating efficiency.78
Positive
Balance Sheet
The balance sheet of Antofagasta reveals a debt-to-equity ratio of 0.57, showing a moderate level of leverage. Return on equity (ROE) is 8.8%, indicating moderate profitability for shareholders. The equity ratio stands at 41.8%, suggesting a stable financial structure with a good proportion of assets financed by equity. However, there is a moderate level of debt that presents potential risk in fluctuating market conditions.72
Positive
Cash Flow
Antofagasta's cash flow statement indicates negative free cash flow for 2024, reflecting significant capital expenditures, which could be a concern. The operating cash flow to net income ratio is strong, signifying good cash conversion efficiency. However, the free cash flow to net income ratio is negative due to high capital expenditures, suggesting potential liquidity challenges if not managed carefully.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.32B | 6.61B | 6.32B | 5.86B | 7.47B | 5.13B |
| Gross Profit | 2.66B | 2.50B | 2.66B | 2.43B | 4.17B | 2.27B |
| EBITDA | 2.89B | 3.97B | 3.30B | 2.85B | 4.73B | 2.63B |
| Net Income | 835.10M | 829.40M | 835.10M | 1.53B | 2.23B | 886.60M |
Balance Sheet | ||||||
| Total Assets | 19.65B | 22.63B | 19.65B | 18.24B | 17.28B | 16.60B |
| Cash, Cash Equivalents and Short-Term Investments | 3.38B | 4.32B | 3.38B | 2.39B | 3.71B | 3.67B |
| Total Debt | 4.08B | 5.35B | 4.08B | 3.27B | 3.17B | 3.75B |
| Total Liabilities | 7.60B | 9.68B | 7.60B | 6.59B | 6.25B | 6.52B |
| Stockholders Equity | 8.95B | 9.46B | 8.95B | 8.63B | 8.35B | 7.75B |
Cash Flow | ||||||
| Free Cash Flow | 203.80M | -129.30M | 203.80M | -2.30M | 1.89B | 751.30M |
| Operating Cash Flow | 2.33B | 2.29B | 2.33B | 1.88B | 3.67B | 2.06B |
| Investing Cash Flow | -2.09B | -2.08B | -2.09B | -477.50M | -2.20B | -2.19B |
| Financing Cash Flow | -402.00M | 1.35B | -402.00M | -1.33B | -1.95B | 717.10M |
Antofagasta Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | £262.75M | 9.44 | 9.97% | 5.72% | 5.70% | -9.60% | |
76 Outperform | $20.10B | 57.12 | 11.97% | 2.45% | 34.84% | 78.48% | |
76 Outperform | £950.12M | 15.11 | 15.06% | 0.82% | 23.97% | 216.41% | |
68 Neutral | £41.28B | -26.72 | -5.26% | 1.95% | -1.06% | -285.88% | |
63 Neutral | £26.25B | ― | ― | 709.22% | ― | ― | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
56 Neutral | $30.82B | ― | -9.21% | 0.82% | -27.65% | -160.77% |
* Basic Materials Sector Average
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0.00%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.