Copper miner Antofagasta (LON:ANTO) has today announced it will be raising their dividend to 18.4 cents, an increase far exceeding the board’s previous guidance of 35% of EPS.
Antofagasta has been helped by a rising copper price and increases in production.
In addition to a 78.7% jump in EBITDA, margins improved 28% to 45%.
CEO Ivan Arriagada commented on the results:
“Antofagasta’s cautious approach has served us well in what is a cyclical industry, providing us with a stable operating base and a strong balance sheet. As a company we were founded with an entrepreneurial spirit, one that looks for opportunities where others do not see them and it is this attitude – combined with a continued commitment to capital discipline – that informs our outlook. Consequently, our focus in 2017 is on developing those projects that offer all our stakeholders the best returns – such as the incremental expansion at Los Pelambres, which we expect to approve by the end of the year – and will underpin the continued success of Antofagasta.”
Despite the seemingly strong results, voices of concern came from the City regarding cash flow in future.
“We worry that Antofagasta will execute on its extensive growth pipeline, thus draining excess cash flows through 2020,” said analysts at Morgan Stanley.
Shares traded mildly higher in London at lunchtime, +0.55%.