Antofagasta shares slid 0.5% to 1,186.5p in early morning trading on Thursday following a 29.6% revenue fall to $2.5 billion in HY1 2022.
The mining company announced a 47.5% EBITDA drop to $1.2 billion, as a result of lower revenue and a 6.9% climb in operating costs.
Antofagasta mentioned a pre-tax profit slide of 61.9%, with a HY1 profit of $680 million.
The FTSE 100 giant attributed its lacklustre report to a volatile copper price linked to the volatile market environment, continued drought at its Chile operations, and an incident at its Los Pelambres concentrate pipeline.
Antofagasta reported its cash costs were higher, with its fall in production and higher input prices. However, cost inflation was offset by the weak Chilean peso.
The commodities group said it was confident in delivering its revised guidance of 640,000-660,000 tonnes of copper for FY 2022.
“Copper’s critical role in the development of low-carbon technologies is essential for the energy transition and the long-term fundamentals for copper remain favourable,” said Antofagasta CEO Iván Arriagada.
“I am confident that Antofagasta’s strategy of developing mining for a better future is the right one and will deliver long-term value for all our stakeholders.”
Antofagasta cut its dividend by 61% to 9.2c per share in HY1 2022.