Business
Preliminary Results Announcement
Preliminary Results Announcement.
About this update from Antofagasta Plc
[{"type":"text","content":"\n \nRNS Number : 0969S Antofagasta PLC 15 March 2016 \n\nNEWS RELEASE, 15 MARCH, 2016\n \nPRELIMINARY RESULTS ANNOUNCEMENT FOR THE YEAR ENDED 2015\n \nRESPONDING TO A CHALLENGING YEAR\n \nAntofagasta plc CEO Diego Hernández said: \n\"Each of our mines continued to generate cash flow at the operating level despite the exceptionally challenging operating environment. The year was one of change and the Group has emerged stronger, more focussed on its core business and operating at significantly lower costs. \n\"During the year we started production at the Antucoya mine, sold the water division and purchased 50% of the Zaldívar copper mine while closing our oldest operation, Michilla. Now, in 2016 we expect our net cash costs to return to levels we have not seen since 2012. Combined with our healthy balance sheet we will be in a better position to weather the current market conditions. \n\"We know that copper is a cyclical industry and as a result of the actions that we have taken over the past year we will be positioned to benefit from the recovery when it comes. In the meantime, our focus is on optimising our operations and projects under construction to cut costs and free-up cash flow whilst retaining the flexibility to accelerate investment for future growth if circumstances are appropriate.\" \n \nHIGHLIGHTS\nFinancial performance \n· Revenue 34.0% lower at $3,394.6 million, with realised copper prices falling almost 24% during the period and sales volumes down by 9.5%, following a challenging year for the Group.\n· Operating cost savings of $245 million, higher than targeted reducing unit cash costs by 11c/lb and mining division operating costs by 8%.\n· EBITDA from continuing operations fell 58.4% to $890.7 million, as revenues declined \n· Net earnings from continuing operations fell to $5.5 million, from $422.4 million following lower prices and, lower taxes and minority interests. Including the profit from the water division net earnings were $608.2 million.\n· Consistent with the Group's dividend policy, 35% minimum payout achieved. Given the 3.1 cents per share interim dividend and the minimum payout of full year earnings p...