FULL YEAR RESULTS FOR THE YEAR ENDED 31.12.2024

About this update from Antofagasta Plc

[{"type":"text","content":"\n \n NEWS RELEASE, 18 FEBRUARY 2025 \n   \n   \n FULL YEAR RESULTS FOR THE YEAR ENDED 31 DECEMBER 2024 \n EBITDA UP 11% WITH HIGHER MARGINS AND FINAL DIVIDEND OF 23.5 PROPOSED \n   \n   \n Antofagasta plc CEO Iván Arriagada said : \"We have delivered another year of strong revenue growth and cash flow generation, and our EBITDA margin widened to 52%, maintaining our position at the top-end of our peer group of pure-play copper producers. \n \"Copper's unique role in energy security and electrification means that the world needs more of it, and our projects are on track to deliver industry-leading levels of responsible copper supply growth. Our strong balance sheet enables us to invest in profitable growth for the medium and long term. \n \"Our disciplined approach to capital allocation allows us to balance investments and shareholder returns, with the final dividend that we have proposed today taking total distributions in respect of 2024 to 50% of underlying earnings, reflecting our confidence in the future of our business. \n \"We are encouraged by the outlook for copper as demand remains strong and global constraints, such as grade decline, ore hardness and capex inflation, are steadily limiting existing supply expansions.\" \n \n \n \n \n YEAR ENDING 31 DECEMBER \n \n \n   \n \n \n 2024 \n \n \n 2023 \n \n \n % \n \n \n \n \n Revenue \n \n \n $m \n \n \n 6,613.4 \n \n \n 6,324.5 \n \n \n +5% \n \n \n \n \n EBITDA [1] \n \n \n $m \n \n \n 3,426.8 \n \n \n 3,087.2 \n \n \n +11% \n \n \n \n \n EBITDA margin 2 \n \n \n % \n \n \n 51.8% \n \n \n 48.8% \n \n \n +3.0pp \n \n \n \n \n Profit before tax (including exceptional items) \n \n \n $m \n \n \n 2,071.1 \n \n \n 1,965.5 \n \n \n +5% \n \n \n \n \n Cash flow from operations \n \n \n $m \n \n \n 3,276.2 \n \n \n 3,027.1 \n \n \n +8% \n \n \n \n \n Net debt / EBITDA 1 \n \n \n X \n \n \n 0.48 \n \n \n 0.38 \n \n \n +26% \n \n \n \n \n Earnings per share (including exceptional items) \n \n \n cents \n \n \n 84.1 \n \n \n 84.7 \n \n \n (1%) \n \n \n \n \n Underlying earnings per share (excluding exceptional items) 1 \n \n \n cents \n \n \n 62.8 \n \n \n 72.0 \n \n \n (13%) \n \n \n \n \n Dividend per share \n \n \n cents \n \n \n 31.4 \n \n \n 36.0 \n \n \n (13%) \n \n \n \n \n 2024 HIGHLIGHTS \n \n \n \n \n ● \n \n \n Continued strong safety performance, with no fatalities and the lost time injury frequency rate continuing at a level below 1.0. \n \n \n \n \n ● \n \n \n Revenue increased by 5% to $6.6 billion, reflecting the higher copper price, partly offset by lower sales volumes due to the rescheduling of vessels between periods following adverse weather conditions (sea swells) during December 2024 in the north of Chile. \n \n \n \n \n ● \n \n \n EBITDA 1 was $3.4 billion, 11% higher on stronger revenues and robust cost control, which helped to increase the Group's EBITDA margin [2] to 52%. \n \n \n \n \n ● \n \n \n Cash flow from operations increased by 8% to $3.3 billion, with the same drivers as described above. \n \n \n \n \n ● \n \n \n Full year capital expenditure was $2.4 billion in 2024, with major capital projects in line with plan and reflecting the impact from the depreciation of the Chilean peso during the year. \n \n \n \n \n ● \n \n \n The Competitiveness Programme generated savings and productivity improvements of $248 million in 2024 (2023: $135 million), exceeding the Group's original target of $200 million for the year. \n \n \n \n \n ● \n \n \n The balance sheet remains strong, with a cash, cash equivalents and liquid investment balance of $4.3bn, and the net debt to EBITDA ratio continues to be robust at 0. 48x (31 December 2023: 0.38x). \n \n \n \n \n ● \n \n \n Recommended final dividend of 23.5 cents per share, which if approved, would take full year distributions to the equivalent of a pay-out ratio of 50% of underlying net earnings per share, in line with the Company's dividend policy. \n \n \n \n \n ● \n \n \n Addition of the Encuentro sulphides pit to Centinela's Ore Reserve estimate as at 31 December 2024, adding 738 million tonnes grading 0.45% copper, which is higher in grade than Centinela's existing average Ore Reserves copper grade. Following this inclusion, the Ore Reserve estimate for the Centinela District has increased by 35% to 2.6 billion tonnes. \n \n \n \n \n ● \n \n \n The Group's guidance for 2025 remains unchanged, with production expected to be between 660,000 and 700,000 tonnes. Cash costs before by-product credits and net cash costs are expected to be between $2.25/lb and $2.45/lb and between $1.45/lb and $1.65/lb, respectively. \n \n \n \n \n ● \n \n \n The Group's capital expenditure for 2025 [3] is expected to be $3.9 billion, in line with prior directional guidance given in the Group's Full Year 2023 Announcement, as development expenditure peaks on the Centinela Second Concentrator and as we advance other growth projects at Los Pelambres and Centinela during the year. \n \n \n \n \n   \n A copy of the 2024 full year results presentation is available for download from the Company's website ( http://www.antofagasta.co.uk/investors/reports-presentations/ ).  \n There will be a presentation and Q&A at 9:00am (UK) today, which will be hosted by Iván Arriagada - Chief Executive Officer, Mauricio Ortiz - Chief Financial Officer and Alejandra Vial - Vice President Sustainability. Attendance can be in-person or virtual. Further details can be found here . \n   \n \n \n \n \n   \n Investors - London \n \n \n   \n \n \n   \n Media - London \n \n \n \n \n Rosario Orchard \n \n \n [email protected] \n \n \n Carole Cable \n \n \n [email protected] \n \n \n \n \n Robert Simmons \n \n \n [email protected] \n \n \n Telephone \n \n \n +44 20 7404 5959 \n \n \n \n \n Telephone \n \n \n +44 20 7808 0988 \n \n \n \n \n \n \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n   \n \n \n   \n \n \n Media - Santiago \n \n \n \n \n \n \n \n \n \n \n Pablo Orozco \n \n \n [email protected]   \n \n \n \n \n \n \n \n \n \n \n Carolina Pica \n \n \n [email protected] \n \n \n \n \n \n \n \n \n \n \n Telephone \n \n \n +56 2 2798 7000 \n \n \n \n \n \n   \n \n   \n Register on our website to receive our email alerts http://www.antofagasta.co.uk/investors/email-alerts/ \n   \n FINANCIAL AND OPERATING REVIEW \n FINANCIAL HIGHLIGHTS \n Revenue increased by 5% to $6,613.4 million, reflecting the higher copper price, partly offset by lower sales volumes due to the rescheduling of vessels between periods, as a consequence of adverse weather conditions (sea swells) in the north of Chile. \n The average realised copper price rose in 2024 by 7% to $4.18/lb. \n The Group's EBITDA was $3,426.8 million, 11% higher than 2023 on higher revenues, and an improved EBITDA margin of 52%, which reflects the higher copper price and demonstrates the impact of the Competitiveness Programme and cost discipline, which collectively served to deliver greater efficiency and operational performance across the business. \n Underlying profit before tax (excluding exceptional items) was $1,648.7 million, 8% lower than 2023, reflecting the positive underlying movements described above, offset by higher depreciation and amortisation. This increase is primarily related to the increase in amortisation of mine development and new mine fleet equipment at Centinela, along with the commencement of the Los Pelambres Phase 1 Expansion Project in 2024 . \n An exceptional fair value gain of $51.0 million was recognised in H1 2024 associated with the agreement to acquire up to an additional 30 million shares in Compañía de Minas Buenaventura S.A.A. (\"Buenaventura\"). A deferred tax expense of $12.7 million has also been recognised in respect of this gain, resulting in a post-tax impact of $38.3 million. \n An exceptional pre-tax gain of $371.4 million (post-tax impact of $257.4 million) has been recognised in relation to the reversal of previous impairments recognised at Antucoya. \n Profit before tax (including exceptional items) was $2,071.1 million, 5% higher than 2023 due the exceptional items, partly offset by higher depreciation and amortisation, as described above. \n Earnings per share for the year (including exceptional items) were 84.1 cents, a decrease of 1% compared with 2023, reflecting movements in profit before tax. \n Earnings per share for the year (excluding exceptional items) were 62.8 cents, a decrease of 13% compared with 2023, reflecting underlying movements in profit before tax. \n Cash flow from operations was $3,276.2 million, an 8% increase compared with last year, primarily as a result of the Group's higher EBITDA during the year, and a minor positive movement in working capital. \n The Group's balance of cash, cash equivalents and liquid investments increased by 48% to $4,316.3 million as at 31 December 2024 (31 December 2023: $2,919.4 million), reflecting strong cash flows from operations.   \n The Group's net debt to EBITDA ratio remained low at 0.48 as of 31 December 2024 (31 December 2023: 0.38), reflecting the factors described above. \n The Board of Directors of the Company has proposed a final dividend of 23.5 cents per share, equal to a 50% pay-out of underlying earnings per share, which represents a level in line with the Company's dividend policy. \n PRODUCTION AND CASH COSTS (AS PREVIOUSLY ANNOUNCED) \n Copper production during 2024 was 664,000 tonnes, 1% higher on a year-on-year basis, reflecting higher production at Centinela Cathodes and Los Pelambres, offset by lower grades at Centinela Concentrates. \n Gold production in full year 2024 decreased by 11% to 186,900 ounces, reflecting lower grades at Centinela Concentrates. \n Full year 2024 molybdenum production was 10,700 tonnes, in line with the prior year. \n Cash costs in 2024 were $2.37/lb, a year-on-year increase of 3%, following lower copper grades at Los Pelambres. \n Net cash costs were $1.64/lb for the year, broadly in line with 2023. \n COMPETITIVENESS PROGRAMME \n The Competitiveness Programme was implemented to reinforce the operational improvement and reduce the Group's cost base, improving its competitiveness within the industry. During 2024, the programme achieved improvements of $248 million in the Mining Division, exceeding the Group's original target of $200 million for the year. These gains were mainly related to operational efficiencies and throughput run time ($136m), contract management ($71 million), and other cost-saving initiatives ($41 million). \n A target of $100 million for the Competitiveness Programme has been set for 2025, reflecting the level of productivity improvements and cost savings expected during the year. \n EXPLORATION AND EVALUATION COSTS \n Exploration and evaluation costs decreased by $12 million to $53 million, with this decrease related to the completion of a phase of exploration work at Cachorro and other exploration properties in Chile. \n In early 2025, the Group submitted a Declaration of Environmental Impact (DIA) for further exploration work at the Cachorro Project in northern Chile. This next phase of work includes various forms of drilling, the construction of access roads, an exploration adit and an expansion of the existing exploration camp. \n TAXATION \n The effective tax rate for the period was 38.1% before exceptional items and 36.5% after exceptional items (being the reversal of the Antucoya impairment and the fair valuation in respect of the agreement to acquire up to 30 million shares in Buenaventura), which compares with 34.7% and 33.9% respectively in 2023. This increase is mainly due to the implementation of the new royalty for Los Pelambres. Centinela and Antucoya have tax stability agreements in place. Thus, the new royalty rates will only impact their royalty payments from 2030 onwards. \n The income tax expense for the year excluding exceptional items was $628.4 million, broadly in line with 2023 . Income tax paid during the year was $666.8 million, compared to $528.1 million in 2023. \n The ad-valorem element of the new royalty was $28.7 million in 2024, which is not included in the Group's effective tax rate. \n For more information on taxation, see page 20 in the Financial Review Section. \n CAPITAL EXPENDITURE \n Total capital expenditure in 2024 was $2,414.9 million (2023: $2,129.2 million), including $866.6 million of sustaining capital expenditure, $388.6 million of mine development activities and $1,159.7 million of growth expenditure. This overall increase of $285.7 million principally relates to increased expenditures at Centinela in growth projects and sustaining capital expenditure, offset by lower mine development expenditures. \n DEPRECIATION AND AMORTISATION \n Depreciation, amortisation and loss on disposals increased by $362.5 million to $1.6 billion (2023: $1.2 billion) mainly as a result of the increase in amortisation of mine development and new mine fleet equipment at Centinela, as well as the commencement of depreciation of the Los Pelambres Phase 1 Expansion Project, which went into operation as of March 2024 . \n CAPITAL ALLOCATION \n The Group's capital allocation framework is integral in the process to allocate investments for sustaining capex, development capex and shareholder returns. The Group remains committed to profitable growth in copper production and a prudent and consistent approach to capital allocation required to generate shareholder returns. \n Cash flow from operations was $3,276.2 million, an 8% increase compared with last year, primarily as a result of the Group's higher EBITDA during the year, and a minor positive movement in working capital. \n Net debt at the end of 2024 was $1,629.1 million (31 December 2023: $1,160.0 million), with this increase reflecting the financing of the Group's projects, partially offset by a strong operating cash generation. The net debt to EBITDA ratio at the end of the period was 0.48 times (31 December 2023: 0.38 times). \n In June 2024, the Group completed a water transportation agreement, involving Centinela's existing water supply and future water supply to the Centinela Second Concentrator Project. Under the terms of the agreement, Centinela's existing water transportation assets and rights were transferred to an international consortium, with Centinela receiving cash proceeds of $600 million during 2024. In addition, the planned expansion of the water transportation system will now be undertaken by the acquiring consortium, resulting in a reduction in the overall capital cost of the Centinela Second Concentrator Project by approximately $380 million, with this reduction to be realised over the course of the project's construction period. Following completion, the acquiring consortium will operate Centinela's existing water infrastructure. \n The Group is working on a financing associated with Los Pelambres' water assets. Through a structured financing solution, Los Pelambres seeks to secure a $2 billion facility with favourable financing terms including banks and a private placement bond with a 20-year term. \n The Board has recommended a final dividend of 23.5 cents per share, equivalent to $231.7 million and, if approved, would represent a total pay-out of 50% of underlying earnings per share, in line with the Company's dividend policy making the total dividend for the year 31.4 cents per share, equivalent to $309.6 million. \n LABOUR \n As previously reported, the Mining Division concluded an early labour negotiation at the end of May 2024 with one of the employees' unions at Centinela, resulting in a three-year contract. There were no other collective labour contract negotiations in the remainder of 2024. \n The Mining Division has four labour agreements due to expire in 2025, comprising of one agreement each at Zaldívar and Los Pelambres, and two at Antucoya. \n 2025 GUIDANCE (as previously announced) \n Group copper production in 2025 [4] is expected to be between 660,000 and 700,000 tonnes, with an incremental gain in production at Centinela Concentrates. Output of by-products is expected to be 210,000-230,000 ounces of gold and 15,000-16,500 tonnes of molybdenum. \n Group cash costs in 2025 before by-product credits are expected to be between $2.25/lb and $2.45/lb. \n Group net cash costs in 2025 are expected to be between $1.45/lb and $1.65/lb, with by-product credits expected to marginally increase year-on-year. \n In 2025, consolidated Group capital expenditure (which excludes Zaldívar) is expected to be $3.9 billion, in line with prior directional guidance given in the Group's Full Year 2023 Announcement, as development expenditure peaks on the Centinela Second Concentrator and as we advance other growth projects at Los Pelambres and Centinela during the year. \n   \n SUSTAINABILITY \n Health and safety \n The Group recorded another fatality-free year in 2024 (2023: zero), alongside historical low levels for lost time injury frequency rate [5] (2024: 0.57; 2023: 0.63) and total injury frequency rate [6] (2024: 1.62; 2023: 1.81). \n This result reflects a multi-year progression in developing a safety-first culture, and the implementation of a range of safety initiatives to promote awareness of safety-related risks. A key feature of the year has been the implementation of an updated Operational Excellence Management System (OEMS), which includes safety as a key component. Additional safety highlights include Zaldívar completing the year without a high-potential incident in 2024, which is a key leading indicator of safety, and the Transport Division reducing its full year lost time injury frequency rate by more than half to 0.42 (2023: 0.90). \n A further area of note in 2024 was the successful deployment of significant numbers of external contractors to the Group's major growth and development projects (see page 12), with over 8,000 contractors mobilised to the Centinela Second Concentrator Project alone. The Group's major growth and development projects completed the year with a lost time injury frequency rate either in line with or lower than the average for the Group, which is a significant achievement given the efforts required to integrate external contractors into our safety policies and procedures. \n Environment \n During 2024, the Group updated its Environmental Management Model, a tool that seeks to advance operational excellence and support the implementation of new projects. The revised model includes the pillars of Leadership, Reporting of Operational Events and Environmental Findings, Regulatory Risk Management, Operational Risk Management, and a fifth pillar related to the environmental assessment of projects. With the updated model, it is the intention to continue advancing the Group's efforts in minimising its environmental footprint. \n In 2024, the Group submitted an Environmental Impact Assessment (EIA) application for the Los Pelambres Development Options Project, with more information on page 12. In relation to Zaldívar's ongoing EIA application, which was submitted in 2023, the Group has continued to advance discussions with the relevant government and permitting authorities in respect of this process, as outlined on page 11 of this report. \n Communities \n In 2024, the Group marked 10 years of Somos Choapa, the principal community engagement programme at Los Pelambres. During this time, over 150 projects have been supported with a key focus on supporting the availability of water, healthcare, education and local economic development. The second cycle of this programme was launched in August 2024, with a focus on climate change resilience and fostering social improvement. \n During 2024, Los Pelambres has worked closely with Indigenous groups and has established more than 10 formal joint working agreements with communities in the Choapa Valley and surrounding areas. \n In the north of Chile, where three of the Group's four mining operations and Transport Division are located, social investment agreements were implemented with the communities of the Salar de Atacama (Peine, Socaire, Camar and Talabre). Through the \" Diálogos para el Desarrollo\" (Dialogues for Development) engagement programme, 48 initiatives were implemented in 2024, with a focus on the communities of María Elena, Sierra Gorda, and Michilla. \n Balanced workforce \n The Group continues to progress towards reaching its aspirational goal of 30% female representation by the end of 2025. As at the end of 2024, the Group's employee workforce included 26.6% female-representation, increasing from 23.6% as at the end of 2023. This continued progress reflects the programmes in place to improve the balance of recruitment, retention and promotion of high-potential individuals based on merit. \n During 2024, the Mining Division's Corporate Offices underwent an accreditation process for Chilean Rule No. 3262, which aims to promote equal working conditions, ensure equal opportunities and contribute to the balance between work and the personal responsibilities of workers. \n In line with our commitment to inclusion, we meet the minimum 1% required by Chile's Labour Inclusion Law. As of 2024, people with disabilities represented an average of 1.6% of our workforce. \n Decarbonisation \n In Q1 2024, the Group published its updated emissions targets, covering Scope 1, 2 and 3 emissions and Climate Action Plan. \n A key project for the year in respect of decarbonisation was the preparation for a trial of a trolley-assist system for haul trucks at Los Pelambres, with equipment beginning to arrive in December 2024. Test work is expected to begin in 2025, following the installation of this equipment along a haul ramp connecting the mine to a waste dump. \n In line with previous years, the Group will disclose independently verified emissions estimates, and associated commentary, as part of its Annual Report reporting suite, which will include the Annual Report, Sustainability Report and Sustainability Databook. \n As previously announced, the Group's Transport Division (FCAB) took delivery of a hydrogen-powered train in December 2024 for operation at FCAB's yards, representing the first of its kind in South America. This locomotive is expected to start operating in 2025 and is part of the Group's strategy to evaluate alternatives to replace diesel fuel and curb its carbon footprint.  \n Water \n The availability of water remains a key consideration for mining companies operating in Chile. The area in which Los Pelambres is located, the Coquimbo Region of central Chile, has experienced a drought for more than 10 years. During 2024, Los Pelambres completed the ramp-up of the desalination plant and water transport system, which is a dedicated facility on the coast, and as a result this facility commenced full operation during the year. Following the completion of the first phase of this project in 2024 with a capacity of 400 litres per second, in addition to greater installed ore processing capacity, Los Pelambres was able to increase ore processing rates by 22% year-on-year. Construction work is already underway to double desalination capacity to 800 litres per second, with this expanded facility expected to be operational in 2027 - see page 12 for more details. \n As previously announced, because of drought conditions and in accordance with the current Water Code regulations, a water redistribution agreement initially approved by the DGA (Chile's water administration department) in March 2024, has now taken effect. This agreement requires that, when there is drought, certain conditions be completed to enable Los Pelambres to extract up to 400 litres per second consistently with its water rights at the point of extraction in the Choapa river. A declaration of drought was issued by the DGA on 26 July 2024, but due to stronger precipitation during the year in 2024, water restrictions were only implemented in January 2025. \n Further to the above, in January 2025 the DGA approved an update to the water redistribution agreement and issued temporary water extraction permits for use during the aforementioned drought declaration. Los Pelambres continues to work with the water council or JVRCH (Junta de Vigilancia Rio Choapa) and the DGA to ensure an expeditious process is implemented.  \n In the north of Chile, Centinela and Antucoya operate on 100% raw seawater, with the last continental water wells closed in 2022. In 2023, Zaldívar submitted an Environmental Impact Assessment to undertake a transition to sea water (or third-party water) sources, which is currently under evaluation. Details of this application are provided on page 11. \n Suppliers \n The Group is committed to fostering development where it operates through engagement with local suppliers. During 2024, 95% of the Group's purchases by value were made with Chilean suppliers. \n The Group's Suppliers for a Better Future Programme, launched in December 2022, continues to make good progress in its efforts to align supplier best practices with the Group's vision and strategic framework. This workstream has now achieved a level of 16% of Group purchases coming from local suppliers based in the regions of Antofagasta and Coquimbo, increasing from a level of 12% as of early 2023, using the suppliers considered local under the programme. Contractor labour is now 50% local, meeting a key objective for the programme. \n   \n INNOVATION \n Cuprochlor-T® and other initiatives \n During 2024, the Group has continued to progress its proprietary technology for primary sulphide leaching, referred to as Cuprochlor-T®, with test work ongoing with third-party sites and a view to commercially validating this technology. \n The Group has developed a number of initiatives connected to optimisation at its SX-EW operations, such as consumption of sulphuric acid, which helped to contribute to a reduction in cash costs at Antucoya during 2024. These initiatives, such as Mineral Tracker 2.0, help to optimise metallurgical processes. \n   \n RESERVES AND RESOURCES \n The Group completed work during the year to include the Encuentro sulphides pit in Centinela's Ore Reserves as at 31 December 2024, adding 738 million tonnes grading 0.45% copper, which is higher in grade than Centinela's existing average copper Ore Reserves. Following this inclusion, the Ore Reserve estimate for the Centinela District has increased by 35% to 2.6 billion tonnes. \n In line with previous years, the Group will publish its reserves and resources in its Annual Report. \n   \n FUTURE OUTLOOK \n Copper continues to demonstrate robust medium-term market fundamentals, given its critical role for energy security and the transition to electrification. The IEA (International Energy Agency) estimates that growth in global electricity demand increased from 2.5% in 2023 to 4.0% in 2024, with this higher growth rate expected to be sustained into 2025, driven by increasing uptake of modern technologies such as battery electric vehicles, AI, data centres and heat pumps. [7] The global supply of copper continues to face the technical challenges of grade decline and rising ore hardness, and increasing capital intensities for new projects. Given the decline in output from the world's existing global portfolio of active copper mines, Wood Mackenzie estimates that the market requires project approvals with the combined equivalent of 790,000 tonnes of additional copper supply per year in order to balance the global copper market by 2034, either in the form of greenfield projects or brownfield expansions. [8] \n The Group has a significant Mineral Resource base of more than 21 billion tonnes of resources, including more than 6 billion tonnes at Los Pelambres and 5 billion tonnes at Centinela. \n The Group has a pipeline of projects already in construction that will deliver growth in annual production close to 900,000 tonnes in the medium-term, representing one of the highest levels of growth amongst pure-play copper producers. Having commenced construction on a range of projects to deliver this growth, and a platform for further growth, the Group is well-positioned to deliver responsibly produced copper to meet the world's growing needs. \n   \n   \n REVIEW OF OPERATIONS AND PROJECTS \n MINING DIVISION \n LOS PELAMBRES \n Financial performance \n EBITDA was $1,861.2 million, compared with $1,692.0 million in 2023, reflecting higher sales volumes, and higher realised prices for copper and by-products. \n Production \n Full year copper production was 319,600 tonnes, representing a 6% increase year-on-year, with this increase related to higher ore processing rates following completion of the Phase 1 Expansion Project, delivering additional water availability and ore processing capacity, more than compensating for the planned reduction in ore grades processed. \n As at year-end, Los Pelambres had transferred the full stockpile of material to its port at Los Vilos that had previously accumulated at the processing plant following pipeline maintenance in Q1 2024. \n Molybdenum production in 2024 was 8,400 tonnes, representing a 4% increase year-on-year, which was the result of higher throughput rates, offset by lower grades. Gold production in 2024 rose by 8%, reflecting a balance of higher ore processing rates and lower gold grades. \n Costs \n Full year cash costs before by-product credits of $2.09/lb were 9% higher than the prior year, impacted primarily by lower ore grades partially compensated by increased production, lower unit costs for key consumables such as diesel and electricity, grinding media and explosives, and depreciation of the Chilean peso. \n Full year 2024 net cash costs were 11% higher at $1.27/lb, as a result of higher underlying cash costs partly offset by stronger by-products credits increasing to 82c/lb. \n Capital expenditure \n Capital expenditure was $833.0 million ($897.1 million in 2023), including $547.9 million of sustaining capital expenditure which includes $247.6 million related to projects outlined on page 12 that are classified as sustaining, $136.2 million of mine development and $148.9 million of development capital expenditure. \n   \n CENTINELA \n Financial performance \n EBITDA at Centinela was $1,130.3 million in 2024, compared with $1,183.6 million in 2023, on lower copper sales volumes partially offset by lower unit net cash costs and higher realised copper prices. \n Production \n Total year copper production was 8% lower in 2024 compare with 2023, at 223,800 tonnes, with this decrease related to lower production at Centinela Concentrates due to lower grades, partially offset by higher output at Centinela Cathodes. \n Copper in concentrate production in 2024 was 121,800 tonnes, 25% below the prior year, primarily due to lower grades. Copper cathode production in 2024 was 102,000 tonnes, representing a 29% increase year-on-year driven by higher grades, an improved throughput rate and higher recoveries. \n Gold production during the year was 140,300 ounces, 15% lower than in 2023 due to lower gold grades (which are positively correlated to copper grades). Molybdenum production in 2024 was 2,400 tonnes, 17% lower than 2023 due to lower grades and recoveries. \n Costs \n Full year 2024 cash costs before by-product credits of $2.60/lb were 1% higher year-on-year, which was the result of lower production during the year, offset by lower costs for maintenance and input prices for key consumables, and depreciation of the Chilean peso. \n Full year net cash costs were 2% lower year-on-year at $1.60/lb, with this movement representing a balance of an increase in the underlying cash cost and a 6% increase in the by-product credit. \n Capital expenditure \n Capital expenditure was $1,414.0 million ($1,044.6 million in 2023), including $210.8 million of mine development, $240.1 million of sustaining capital expenditure and $963.1 million of development capital expenditure ($877.6 million related to Centinela Second Concentrator project) . \n   \n ANTUCOYA \n Financial performance \n EBITDA was $275.8 million, compared with $206.9 million in 2023, an increase of 33% reflecting mainly higher realised prices for copper, higher sales volumes and lower unit cost. \n Production \n Full year 2024 production rose by 3% to 80,400 tonnes, which reflected a record year for ore tonnes processed, with higher recoveries offset by lower grades on a year-on-year basis. \n Costs \n Cash costs in 2024 of $2.53/lb represented a 4% year-on-year decrease, representing higher production, lower unit costs for key consumables, and depreciation of the Chilean peso, with these factors mitigated by higher level of mining activities during the period. \n Capital expenditure \n Capital expenditure was $123.4 million (2023: $121.6 million), including $80.3 million on sustaining capital expenditure. \n   \n ZALDÍVAR \n Financial performance \n Attributable EBITDA at Zaldívar was $99.9 million in 2024, compared with $86.8 million in the same period last year, with this increase linked to higher realised copper prices and lower operating costs, partially offset by lower sales volumes. \n Production \n Full year copper production in 2024 was 1% lower than the previous year, with 40,100 tonnes produced, with a 15% year-on-year drop in copper grades in line with expectations, being partly compensated by higher ore throughput rates. \n Costs \n Full year cash costs of $3.02/lb in 2024 represent a level 2% higher than 2023, reflecting a balance of lower unit costs for key consumables such as sulphuric acid, depreciation of the Chilean peso, a reduction in costs associated with maintenance and the settlement of a three-year labour agreement in the prior period. These factors were balanced by lower production due to lower grade and an increase in costs associated with the utilisation of inventory from prior periods. \n Capital expenditure \n Attributable capital expenditure in 2024 was $42.2 million (2023: $43.8 million), of which $29.6 million was sustaining capital expenditure. \n   \n Other matters (as previously announced) \n In relation to the previously announced claim filed by the Consejo de Defensa del Estado (CDE), an independent governmental agency that represents the interests of the Chilean state, against Zaldívar, Minera Escondida and Albemarle regarding water extraction from the Monturaqui-Negrillar-Tilopozo aquifer, in December 2024 the parties reached a settlement agreement, which was thereafter approved by the Environmental Court in January 2025, thus putting an end to the proceeding. \n The operation at Zaldívar has rights to mine ore and extract water until May 2025. The mine life after May 2025 is, therefore, subject to the approval of an Environmental Impact Assessment (EIA). This EIA is under review by the relevant authorities, a process which contemplates up to three rounds of comments and reviews. \n Responses to the second round of comments made by government agencies in Chile were filed as planned in Q4 2024. In line with expectations, the third round of comments were received in January 2025. \n Separate to the above EIA, under local environmental regulations, if a permit allowing continuity of operations is not favourably resolved by the current permit expiry date in May 2025, Zaldívar will be required to have in place at that time an approved temporary closure plan. In line with this eventual regulatory condition being required, Zaldívar filed in December 2024 a temporary closure plan application with the mining authority. However, the Group's full year guidance for 2025 is presented based on 12-months of normal operations at Zaldívar - see page 35 for more details. \n   \n TRANSPORT DIVISION \n Financial performance \n EBITDA at the Transport Division reached $75.9 million, a 7% decrease compared to 2023, due to higher operational costs and lower results in the truck transport business. \n Transport volumes \n Total transportation volumes in 2024 remained broadly consistent with those of 2023, with 7.1 million tonnes of transported material. \n Rail volumes increased by 4% to 5.6 million tonnes following strong demand for rail services from key customers. Road transport volumes declined by 14% year-on-year, reflecting reduced levels of activity with customers that produce lithium brines. \n Capital expenditure \n Capital expenditure for the year was $37.4 million (2023: $50.4 million), a decrease of 26% compared with the same period in 2023. \n   \n OPERATIONS - KEY GROWTH PROJECTS AND OPPORTUNITIES \n \n \n \n \n Operation \n \n \n Description \n \n \n Capex \n (Total) \n \n \n Capex to date [9] \n \n \n Status (Scheduled completion) \n \n \n Comments \n \n \n \n \n Los Pelambres \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n Phase 1 Expansion \n \n \n Construction of a desalination plant (400 L/S) and additional concentrator line, facilitating plant capacity of 190kt per day. \n \n \n $2.3Bn \n \n \n Completed \n \n \n Operational (2024) \n \n \n Opening ceremony held in March 2024. \n \n \n \n \n Desalination plant expansion \n \n \n Key enabling project for future growth - project to double capacity of existing desalination plant to 800 l/s. \n \n \n Approx. $1Bn \n \n \n $176m \n \n \n Underway (2027) \n \n \n Progressing on schedule and on budget. \n Following a successful mobilisation of personnel and equipment, construction work is expected to commence in Q1 2025. \n \n \n \n \n Concentrate pipeline and El Mauro enclosures \n \n \n Key enabling project for future growth - installation of a new concentrate pipeline and development of certain planned facilities at the El Mauro tailings storage facility. \n \n \n Approx. $1Bn \n \n \n $156m \n \n \n Underway (2027) \n \n \n Progressing on schedule and on budget. \n Work focused on trench excavation work and the welding of pipe sections. \n \n \n \n \n Development Options Project \n \n \n Mine life extension beyond 2035, adding a minimum of 15 additional years by increasing El Mauro's capacity (1.2bt). The EIA will include the option to increase throughput to 205ktpd annual average (from 190ktpd) and the option to enable a modular increase of any water requirement for the enlarged capacity of this operation by up to 800 l/s, after the current expansion. \n \n \n Under study \n Approx. $2Bn \n \n \n N/A \n   \n \n \n Evaluation phase \n \n \n EIA submitted in December 2024. \n \n \n \n \n Centinela \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n Second Concentrator Project \n \n \n Brownfield development to add 170,000 tonnes of copper-equivalent production and lower Centinela District towards the first quartile of global cash cost curve. \n \n \n $4.4Bn [10] \n \n \n $1.0Bn \n \n \n Underway (2027) \n \n \n Progressing on schedule and on budget, with work focused on the camp facilities, ore delivery \n system, concentrator, tailings facility and primary crusher foundations. \n \n \n \n \n Encuentro mine development \n \n \n Mine development work to access sulphide ores below the existing Encuentro oxide pit. \n \n \n Approx. $1Bn \n \n \n N/A \n \n \n Not commenced (2027-2028) \n \n \n \n \n \n \n \n Zaldívar \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Ongoing EIA (Mine life extension and water transition) \n \n \n Mine life extension to 2051, to realise the full potential of the Zaldívar deposit, including a 3-year transition period prior to utilising sea water or third-party water sources. \n \n \n N/A (Associate) \n \n \n N/A \n \n \n Evaluation phase \n \n \n EIA submitted in H1 2023. Consultation period with Chilean authorities ongoing, with the third round of comments received in January 2025. \n \n \n \n \n   \n   \n DEVELOPMENT PROJECTS \n Twin Metals Minnesota (USA) \n Twin Metals Minnesota (Twin Metals) is a wholly owned copper, nickel, and platinum group metals (PGM) underground mining project, which holds copper, nickel/cobalt, and PGM deposits in north-eastern Minnesota, United States (US). The planned project is over a portion of the total resource and envisages mining and processing 18,000 tonnes of ore per day for 25 years to produce three separate concentrates - copper, nickel/cobalt and PGM. However, further development of the current project, as configured, is on hold whilst litigation takes place to challenge several actions taken by the US federal government to deter its development. \n In 2022, Twin Metals filed a lawsuit in the US District Court for the District of Columbia (District Court) challenging the administrative actions resulting in the rejection of Twin Metals' preference right lease applications (PRLAs), the cancellation of its federal mining leases 1352 and 1353, the rejection of its Mine Plan of Operation (MPO), and the dismissal of the administrative appeal of the MPO rejection. Twin Metals claimed that the government's actions were arbitrary and capricious, contrary to the law, and in violation of its rights. In September 2023, the District Court dismissed Twin Metals' suit on motion by the government. In November 2023, Twin Metals appealed the District Court's order to the US Court of Appeals for the District of Columbia Circuit (\"D.C. Circuit Court\"). In January 2025, oral arguments were held before the D.C. Circuit Court. This action is pending. \n   \n FINANCIAL REVIEW FOR THE YEAR ENDED 31 DECEMBER 2024 \n   \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n Year ended \n 31.12.2024 \n (Unaudited) \n \n \n \n \n \n \n \n \n Year ended \n 31.12.2023 \n (Audited) \n \n \n \n \n   \n \n \n Before exceptional items \n \n \n   \n Exceptional \n  items \n \n \n   \n Total \n   \n \n \n Before exceptional items \n \n \n   \n Exceptional \n Items \n \n \n Total \n   \n \n \n \n \n   \n \n \n $m \n \n \n $m \n \n \n $m \n \n \n $m \n \n \n $m \n \n \n $m \n \n \n \n \n Revenue \n \n \n 6,613.4 \n \n \n - \n \n \n 6,613.4 \n \n \n 6,324.5 \n \n \n - \n \n \n 6,324.5 \n \n \n \n \n EBITDA (including share of EBITDA from associates and joint ventures) [11] \n \n \n 3,426.8 \n \n \n - \n \n \n 3,426.8 \n \n \n 3,087.2 \n \n \n - \n \n \n 3,087.2 \n \n \n \n \n Total operating costs \n \n \n (4,976.1) \n \n \n 371.4 \n \n \n (4,604.7) \n \n \n (4,541.7) \n \n \n - \n \n \n (4,541.7) \n \n \n \n \n Operating profit from subsidiaries \n \n \n 1,637.3 \n \n \n 371.4 \n \n \n 2,008.7 \n \n \n 1,782.8 \n \n \n - \n \n \n 1,782.8 \n \n \n \n \n Net share of results from associates and joint ventures \n \n \n 76.2 \n \n \n - \n \n \n 76.2 \n \n \n (13.5) \n \n \n - \n \n \n (13.5) \n \n \n \n \n Operating profit from subsidiaries, and share of total results from associates and joint ventures \n \n \n 1,713.5 \n \n \n 371.4 \n \n \n 2,084.9 \n \n \n 1,769.3 \n \n \n - \n \n \n 1,769.3 \n \n \n \n \n Net finance (expense) / income \n \n \n (64.8) \n \n \n 51.0 \n \n \n (13.8) \n \n \n 29.1 \n \n \n 167.1 \n \n \n 196.2 \n \n \n \n \n Profit before tax \n \n \n 1,648.7 \n \n \n 422.4 \n \n \n 2,071.1 \n \n \n 1,798.4 \n \n \n 167.1 \n \n \n 1,965.5 \n \n \n \n \n Income tax expense \n \n \n (628.4) \n \n \n (126.7) \n \n \n (755.1) \n \n \n (624.3) \n \n \n (41.8) \n \n \n (666.1) \n \n \n \n \n Profit from continuing operations \n \n \n 1,020.3 \n \n \n 295.7 \n \n \n 1,316.0 \n \n \n 1,174.1 \n \n \n 125.3 \n \n \n 1,299.4 \n \n \n \n \n Profit for the year \n \n \n 1,020.3 \n \n \n 295.7 \n \n \n 1,316.0 \n \n \n 1,174.1 \n \n \n 125.3 \n \n \n 1,299.4 \n \n \n \n \n Attributable to: \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n Non-controlling interests \n \n \n 400.8 \n \n \n 85.8 \n \n \n 486.6 \n \n \n 464.3 \n \n \n - \n \n \n 464.3 \n \n \n \n \n Profit attributable to the owners of the parent \n \n \n 619.5 \n \n \n 209.9 \n \n \n 829.4 \n \n \n 709.8 \n \n \n 125.3 \n \n \n 835.1 \n \n \n \n \n   \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n Basic earnings per share \n \n \n Cents \n \n \n Cents \n \n \n Cents \n \n \n Cents \n \n \n cents \n \n \n Cents \n \n \n \n \n From continuing operations \n \n \n 62.8 \n \n \n 21.3 \n \n \n 84.1 \n \n \n 72.0 \n \n \n 12.7 \n \n \n 84.7 \n \n \n \n \n   \n   \n   \n The profit for the financial year attributable to the owners of the parent (including exceptional items) decreased from $835.1 million in 2023 to $829.4 million in the current year. Excluding exceptional items, the profit attributable to the owners of the parent decreased by $90.3 million to $619.5 million. \n   \n The full reconciliation of the profit attributable to the owners of the parent between 2023 and 2024, including exceptional items, is as follows:   \n   \n \n \n \n \n \n \n \n  $m \n \n \n \n \n   \n \n \n   \n \n \n \n \n Profit attributable to the owners of the parent in 2023 \n \n \n 835.1 \n \n \n \n \n Less: exceptional items - 2023 \n \n \n (125.3) \n \n \n \n \n Profit attributable to the owners of the parent in 2023 (excluding exceptional items) \n \n \n 709.8 \n \n \n \n \n   \n \n \n \n \n \n \n \n Increase in revenue \n \n \n 288.9 \n \n \n \n \n Increase in total operating costs (excluding exceptional items) \n \n \n (434.4) \n \n \n \n \n Increase in net share of results from associates and joint ventures (excluding exceptional items) \n \n \n 89.7 \n \n \n \n \n Increase in net finance expenses (excluding exceptional items) \n \n \n (93.9) \n \n \n \n \n Increase in income tax expense (excluding exceptional items) \n \n \n (4.1) \n \n \n \n \n Decrease in non-controlling interests (excluding exceptional items) \n \n \n 63.5 \n \n \n \n \n \n \n \n (90.3) \n \n \n \n \n \n \n \n   \n \n \n \n \n Profit attributable to the owners of the parent in 2024 (excluding exceptional items) \n \n \n 619.5 \n \n \n \n \n Exceptional items - 2024 (post tax) \n \n \n 209.9 \n \n \n \n \n Profit attributable to the owners of the parent in 2024 \n \n \n 829.4 \n \n \n \n \n   \n   \n Revenue \n   \n The $288.9 million increase in revenue from $6,324.5 million in 2023 to $6,613.4 million in the current year reflected the following factors: \n \n \n \n \n \n \n \n  $m \n \n \n \n \n   \n \n \n   \n \n \n \n \n Revenue in 2023 \n \n \n 6,324.5 \n \n \n \n \n   \n \n \n   \n \n \n \n \n Increase in realised copper price \n \n \n 386.2 \n \n \n \n \n Increase in treatment and refining charges \n \n \n 28.3 \n \n \n \n \n Decrease in copper sales volumes \n \n \n (156.6) \n \n \n \n \n Increase in gold revenue \n \n \n 39.9 \n \n \n \n \n Decrease in molybdenum revenue \n \n \n (16.0) \n \n \n \n \n Increase in silver revenue \n \n \n 8.1 \n \n \n \n \n Decrease in Transport division revenue \n \n \n (1.0) \n \n \n \n \n \n \n \n 288.9 \n \n \n \n \n \n \n \n \n \n \n \n \n Revenue in 2024 \n \n \n 6,613.4 \n \n \n \n \n   \n Revenue from the Mining division \n   \n Revenue from the Mining division increased by $289.9 million, or 4.7%, to $6,418.5 million, compared with $6,128.6 million in 2023. The increase reflected a $257.9 million increase in copper sales and a $32.0 million increase in by-product revenue. \n   \n Revenue from copper sales \n   \n Revenue from copper concentrate and copper cathode sales increased by $257.9 million, or 5.0%, to $5,405.3 million, compared with $5,147.4 million in 2023. The increase reflected the impact of $386.2 million from higher realised prices and a $28.3 million increase in revenue from lower treatment and refining charges, partly offset by a $156.6 million reduction due to lower sales volumes. \n   \n (i) Realised copper price \n   \n The average realised copper price increased by 7.4% to $4.18/lb in 2024 (2023 - $3.89/lb), resulting in a $386.2 million increase in revenue. This was mainly due to the higher LME average market price, which increased by 7.8 % to $4.15/lb in 2024 (2023 - $3.85/lb). The realised price was marginally higher than the LME average market price due to the impact of the timing of sales during the year and provisional pricing adjustments. \n   \n Realised copper prices are determined by comparing revenue (after adding back treatment and refining charges for concentrate sales) with sales volumes in the period. Realised copper prices differ from market prices mainly because, in line with industry practice, concentrate and cathode sales agreements generally provide for provisional pricing at the time of shipment with final pricing based on the average market price in future periods (normally around one month after delivery to the customer in the case of cathode sales and four months after delivery to the customer in the case of concentrate sales). \n   \n Further details of provisional pricing adjustments are given in Note 6 to the Full-year results announcement. \n   \n (ii) Treatment and refining charges \n   \n Treatment and refining charges (TC/RCs) for copper concentrate decreased by $28.3 million to $185.3 million in 2024, compared with $213.6 million in 2023 reflecting lower average TC/RC rates and to a lesser extent the decrease in concentrate sales volumes, due to lower grades at Centinela Concentrates. \n   \n With sales of concentrates at Los Pelambres and Centinela, which are sold to smelters and roasting plants for further processing into fully refined metal, the price of the concentrate invoiced to the customer reflects the market value of the fully refined metal less a \"treatment and refining charge\" deduction, to reflect the lower value of this partially processed material compared with the fully refined metal. For accounting purposes, the revenue amount reflects the invoiced price (which reflects the net of the market value of fully refined metal less the treatment and refining charges). However, under the standard industry definition of unit cash costs, treatment and refining charges are regarded as part of cash costs. \n   \n Accordingly, the decrease in these charges has had a positive impact on revenue in the year. \n   \n (iii) Copper volumes \n   \n Copper sales volumes reflected within revenue decreased by 2.9% from 625,300 tonnes in 2023 to 607,100 tonnes in 2024, decreasing revenue by $156.6 million. This decrease was mainly due to lower sales volumes at Centinela (35,400 tonne decrease), as a result of lower grades at Centinela Concentrates and temporary shipment delays at the year-end due to bad weather conditions at the port. \n   \n Revenue from molybdenum, gold and other by-product sales \n   \n Revenue from by-product sales (net of tolling charges) at Los Pelambres and Centinela relate mainly to molybdenum and gold and, to a lesser extent, silver. Revenue from by-products increased by $32.0 million or 3.3% to $1,013.2 million in 2024, compared with $981.2 million in 2023. This increase was mainly due to the higher gold realised price, partly offset by a decrease in gold and molybdenum sales volumes. \n   \n Revenue from gold sales (net of treatment and refining charges) was $446.8 million (2023 - $406.9 million), an increase of $39.9 million which reflected a higher realised price, partly offset by lower sales volumes. The realised gold price was $2,528.3/oz in 2024 compared with $1,989.5/oz in 2023, reflecting the average market price for 2024 of $2,387.1/oz (2023 - $1,943.1/oz) and a positive provisional pricing adjustment of $11.3 million. Gold sales volumes decreased by 13.6% from 204,900 ounces in 2023 to 177,000 ounces in 2024, reflecting lower grades at Centinela. \n   \n Revenue from molybdenum sales (net of treatment and refining charges) was $488.2 million (2023 - $504.2 million), a decrease of $16.0 million. The decrease was mainly due to the lower sales volumes of 10,900 tonnes (2023 - 11,100 tonnes) reflecting the lower production volumes mainly at Centinela. \n   \n Revenue from silver sales increased by $8.1 million to $78.2 million (2023 - $70.1 million) . The increase was due to a 25.0% higher realised silver price of $30.0/oz (2023 - $24.0/oz), partly offset by a lower sales volume of 2.6 million ounces (2023 - 3.0 million ounces). \n   \n Revenue from the Transport division \n   \n Revenue from the Transport division (FCAB) decreased by $1.0 million or 0.5% to $194.9 million (2023 - $195.9 million), mainly due to foreign exchange differences and lower truck transport volumes. \n   \n   \n Total operating costs \n   \n The $434.4 million increase in total operating costs from $4,541.7 million in 2023 to $4,976.1 million in the current year reflected the following factors: \n \n \n \n \n \n \n \n  $m \n \n \n \n \n   \n \n \n   \n \n \n \n \n Total operating costs in 2023 (excluding exceptional items) \n \n \n 4,541.7 \n \n \n \n \n   \n \n \n \n \n \n \n \n Increase in mine-site operating costs \n \n \n 67.6 \n \n \n \n \n Increase in closure provision and other mining expenses \n \n \n 8.8 \n \n \n \n \n Mining royalty ad-valorem element \n \n \n 28.7 \n \n \n \n \n Decrease in exploration and evaluation costs \n \n \n (12.2) \n \n \n \n \n Decrease in corporate costs \n \n \n (25.9) \n \n \n \n \n Increase in Transport division operating costs \n \n \n 4.9 \n \n \n \n \n Increase in depreciation, amortisation and loss on disposals \n \n \n 362.5 \n \n \n \n \n \n \n \n 434.4 \n \n \n \n \n \n \n \n \n \n \n \n \n Total operating costs in 2024 (excluding exceptional items) \n \n \n 4,976.1 \n \n \n \n \n   \n   \n Operating costs (excluding depreciation, amortisation and disposals) at the Mining division \n   \n Operating costs (excluding depreciation, amortisation, loss on disposals and impairments) at the Mining division increased by $67.0 million to $3,276.7 million in 2024, an increase of 2.1%. \n   \n Of this increase, $67.6 million was attributable to higher mine-site operating costs. This increase in mine-site costs reflected higher unit costs mainly due to lower copper grades at Los Pelambres and Centinela Concentrates and a lower mine development credit at Centinela, partially offset by cost savings from the Group's Cost and Competitiveness Programme, lower key input prices and depreciation of the Chilean peso . \n   \n On a unit cost basis, weighted average cash costs excluding treatment and refining charges and by-product revenues increased from $2.14/lb in 2023 to $2.21/lb in 2024. As detailed in the alternative performance measures section on page 63 of the Full-year results announcement, for accounting purposes by-product credits and treatment and refining charges both impact revenue and do not therefore affect operating expenses. \n   \n The Competitiveness Programme was implemented to reinforce the operational improvement and reduce the Group's cost base, improving its competitiveness within the industry. During 2024, the programme achieved benefits of $247.6 million in the Mining division, of which $210.5 million reflected cost savings and $37.1 million reflected the value of productivity improvements. Of the $210.5 million of cost savings, $176.0 million related to Los Pelambres, Centinela and Antucoya, and therefore impacted the Group's operating costs, and $34.5 million related to Zaldívar (on a 100% basis) and therefore impacted the share of results from associates and joint ventures. \n   \n Closure provisions and other mining expenses increased by $8.8 million, mainly reflecting increased medium and long-term drilling costs and evaluation expenses at Los Pelambres and Centinela . \n   \n In the current period, o perating costs at the Mining division include for the first time the \"ad valorem\" element of the new mining royalty at Los Pelambres, with an impact of $28.7 million. As the ad valorem element is based on revenue rather than profit, it does not meet the IAS 12 Income Taxes definition of a tax expense, and is therefore recorded as an operating expense. \n   \n Exploration and evaluation costs decreased by $12.2 million to $52.7 million (2023 - $64.9 million), reflecting decreased exploration and evaluation expenditure principally in respect of Chilean exploration.  \n   \n Operating costs (excluding depreciation, amortisation and loss on disposals) at the Transport division \n   \n Operating costs (excluding depreciation, amortisation and loss on disposals) at the Transport division increased by $4.9 million to $125.6 million (2023 - $120.7 million), mainly due to higher maintenance costs of rolling stock compensated by favourable foreign exchange differences. \n Depreciation, amortisation and disposals (excluding exceptional items) \n   \n The expense for depreciation, amortisation and loss on disposals increased by $362.5 million from $1,211.3 million in 2023 to $1,573.8 million. This increase was mainly due to higher increased IFRIC 20 amortisation at Centinela and the start of depreciation of the Los Pelambres Phase 1 Expansion Project, as well as depreciation of new assets at Los Pelambres and Centinela, partially offset by an increased amount of depreciation capitalised to inventory. \n   \n Operating profit from subsidiaries \n   \n As a result of the above factors, operating profit from subsidiaries decreased by $145.5 million or 8.2% in 2024 to $1,637.3 million (2023 - $1,782.8 million). \n   \n   \n Share of results from associates and joint ventures (excluding exceptional items) \n   \n The Group's share of results from associates and joint ventures (excluding exceptional items) increased by $89.7 million to a gain of $76.2 million in 2024, compared with a loss of $13.5 million in 2023. This reflected the contribution from Compañía de Minas Buenaventura S.A.A., which has been accounted for as an associate from March 2024 onwards, and also higher earnings from Zaldívar. \n   \n   \n EBITDA \n   \n EBITDA (earnings before interest, tax, depreciation and amortisation, and impairments) increased by $339.6 million or 11.0% to $3,426.8 million (2023 - $3,087.2 million). EBITDA includes the Group's proportional share of EBITDA from associates and joint ventures. \n   \n EBITDA from the Mining division increased by $345.2 million or 11.5% from $3,005.7 million in 2023 to $3,350.9 million this year. This reflected the higher revenue, mainly due to increased realised price, as well as higher EBITDA from associates and joint ventures, partially offset by the higher mine-site costs and lower sales volumes. \n   \n EBITDA at the Transport division decreased by $5.6 million to $75.9 million in 2024 ($81.5 million - 2023), due to higher operational costs and lower performance of the truck transport business. \n   \n Commodity price and exchange rate sensitivities \n   \n The following sensitivities show the estimated approximate impact on EBITDA for 2024 of a 10% movement in the average copper, molybdenum and gold prices and a 10% movement in the average US dollar / Chilean peso exchange rate. \n   \n The impact of the movement in the average commodity prices reflects the estimated impact on the relevant revenues during 2024, and the impact of the movement in the average exchange rate reflects the estimated impact on Chilean peso denominated operating costs during the year. These estimates do not reflect any impact in respect of provisional pricing or hedging instruments, any potential inter-relationship between commodity price and exchange rate movements, or any impact from the retranslation or changes in valuations of assets or liabilities held on the balance sheet at the year-end. \n   \n \n \n \n \n \n \n \n Average market commodity price / average exchange rate during the year ended 31.12.24 \n \n \n Impact of a 10% movement in the commodity price / exchange rate on EBITDA for the year ended 31.12.24 \n \n \n \n \n \n \n \n \n \n \n $m \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Copper price \n \n \n $4.15/lb \n \n \n 590 \n \n \n \n \n Molybdenum price \n \n \n $21.3/lb \n \n \n 51 \n \n \n \n \n Gold price \n \n \n $2,387/oz \n \n \n 42 \n \n \n \n \n US dollar / Chilean peso exchange rate \n \n \n 944 \n \n \n 157 \n \n \n \n \n   \n   \n Net finance income / (expense) (excluding exceptional items) \n   \n Net finance expense (excluding exceptional items) of $64.9 million reflected a variance of $93.9 million compared with the $29.1 million income in 2023. \n                                 \n \n \n \n \n \n \n \n Year ended 31.12.24 \n $m \n \n \n Year ended 31.12.23 \n $m \n \n \n \n \n Investment income \n \n \n 184.2 \n \n \n 138.1 \n \n \n \n \n Interest expense \n \n \n (312.2) \n \n \n (105.6) \n \n \n \n \n Other finance items \n \n \n 63.2 \n \n \n (3.4) \n \n \n \n \n Net finance (expense)/income \n \n \n (64.8) \n \n \n 29.1 \n \n \n \n \n   \n Interest income increased from $138.1 million in 2023 to $184.2 million in 2024, mainly due to higher average cash and liquid investment balances . \n   \n Interest expense increased from $105.6 million in 2023 to $312.2 million in 2024, primarily due to higher borrowings and the cessation of the capitalisation of interest on borrowings relating to Los Pelambres' Phase 1 Expansion Project following the completion of the project construction, the interest expense relating to Centinela's water transportation agreement, and interest relating to the issue of the Group's $750 million bond in May 2024. \n   \n Other finance items were a net gain of $63.2 million, compared with a net loss of $3.4 million in 2023, a variance of $66.6 million. This was mainly due to the foreign exchange impact of the retranslation of Chilean peso denominated assets and liabilities, which resulted in a $82.1 million gain in 2024 compared with a $12.5 million gain in 2023.   In addition, there was an expense of $18.8 million in respect of the unwinding of the discounting of provisions (2023 - expense of $15.8 million). \n   \n Profit before tax (excluding exceptional items) \n   \n As a result of the factors set out above, profit before tax (excluding exceptional items) decreased by 8.3% to $1,648.7 million (2023 - $1,798.4 million). \n   \n Income tax expense \n   \n The tax charge for 2024 excluding exceptional items increased by $4.1 million to $628.4 million (2023 - $624.3 million) and the effective tax rate for the year was 38.1% (2023 - 34.7%). Including exceptional items, the tax charge for 2024 was $755.1 million and the effective tax rate was 36.5%. \n   \n   \n \n \n \n \n \n \n \n \n \n \n Year ended \n Excluding exceptional items \n31.12.2024 \n \n \n   \n \n \n Year ended \n Including exceptional items \n31.12.2024 \n \n \n \n \n \n Year ended \n Excluding exceptional items \n31.12.2023 \n \n \n Year ended \n Including exceptional items \n31.12.2023 \n \n \n \n \n \n \n \n \n \n \n $m \n \n \n % \n \n \n   \n \n \n $m \n \n \n % \n \n \n \n \n \n $m \n \n \n % \n \n \n $m \n \n \n % \n \n \n \n \n Profit before tax \n \n \n \n \n \n 1,648.7 \n \n \n   \n \n \n \n \n \n 2,071.1 \n \n \n \n \n \n \n \n \n 1,798.4 \n \n \n \n \n \n 1,965.5 \n \n \n \n \n \n \n \n Profit before tax multiplied by Chilean corporate tax rate of 27% \n \n \n \n \n \n (445.1) \n \n \n 27.0 \n \n \n \n \n \n (559.2) \n \n \n 27.0 \n \n \n \n \n \n (485.6) \n \n \n 27.0 \n \n \n (530.7) \n \n \n 27.0 \n \n \n \n \n Mining Tax (royalty) \n \n \n \n \n \n (216.5) \n \n \n 13.1 \n \n \n \n \n \n (216.5) \n \n \n 10.5 \n \n \n \n \n \n (109.7) \n \n \n 6.1 \n \n \n (109.7) \n \n \n 5.6 \n \n \n \n \n Deduction of mining royalty as an allowable expense in determination of first category tax \n \n \n \n \n \n 55.8 \n \n \n (3.4) \n \n \n \n \n \n 55.8 \n \n \n (2.7) \n \n \n \n \n \n 29.5 \n \n \n (1.6) \n \n \n 29.5 \n \n \n (1.5) \n \n \n \n \n Adjustment to deferred tax in respect of mining royalty \n \n \n \n \n \n 67.1 \n \n \n (4.1) \n \n \n \n \n \n 67.1 \n \n \n (3.2) \n \n \n \n \n \n (34.3) \n \n \n 1.9 \n \n \n (34.3) \n \n \n 1.7 \n \n \n \n \n Items not deductible from first category tax \n \n \n \n \n \n (3.9) \n \n \n 0.2 \n \n \n \n \n \n (3.9) \n \n \n 0.2 \n \n \n \n \n \n (21.4) \n \n \n 1.2 \n \n \n (21.4) \n \n \n 1.1 \n \n \n \n \n Adjustment in respect of prior years \n \n \n \n \n \n 1.7 \n \n \n (0.1) \n \n \n \n \n \n 1.7 \n \n \n (0.1) \n \n \n \n \n \n 4.5 \n \n \n (0.3) \n \n \n 4.5 \n \n \n (0.2) \n \n \n \n \n Withholding tax \n \n \n \n \n \n (29.7) \n \n \n 1.8 \n \n \n \n \n \n (29.7) \n \n \n 1.4 \n \n \n \n \n \n (1.4) \n \n \n 0.1 \n \n \n (1.4) \n \n \n 0.1 \n \n \n \n \n Tax effect of (loss)/ profit of associates and joint ventures \n \n \n \n \n \n 20.0 \n \n \n (1.1) \n \n \n \n \n \n 20.0 \n \n \n (1.0) \n \n \n \n \n \n (3.6) \n \n \n 0.2 \n \n \n (3.6) \n \n \n 0.2 \n \n \n \n \n Impact of unrecognised tax losses \n \n \n \n \n \n (77.8) \n \n \n 4.7 \n \n \n \n \n \n (77.8) \n \n \n 3.8 \n \n \n \n \n \n (2.3) \n \n \n 0.1 \n \n \n (2.3) \n \n \n 0.1 \n \n \n \n \n Reversal of the provision against carrying value of assets (exceptional items) \n \n \n \n \n \n - \n \n \n - \n \n \n \n \n \n (13.7) \n \n \n 0.7 \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n \n \n Difference in overseas tax rate \n \n \n \n \n \n - \n \n \n - \n \n \n \n \n \n 1.1 \n \n \n    (0.1) \n \n \n \n \n \n - \n \n \n - \n \n \n 3.3 \n \n \n (0.2) \n \n \n \n \n Tax expense and effective tax rate for the Year ended \n \n \n \n \n \n (628.4) \n \n \n 38.1 \n \n \n \n \n \n (755.1) \n \n \n 36.5 \n \n \n \n \n \n (624.3) \n \n \n 34.7 \n \n \n (666.1) \n \n \n 33.9 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n The effective tax rate excluding exceptional items for the period was 38.1%, which compares with 34.7% in 2023. The complete reconciliation between the effective tax rate and the statutory tax rate reflects the following points: \n   \n The effective tax rate (excluding exceptional items) of 38.1% varied from the statutory rate principally due to: \n   \n ·    The mining tax (royalty) (net impact of $160.7 million / 9.7% including the deduction of the mining tax (royalty) as an allowable expense in the determination of first category tax) ; \n ·    The impact of unrecognised tax losses (impact of $77.8 million / 4.7%); \n ·    The withholding tax relating to the remittance of profits from Chile (impact of $29.7 million / 1.8%); \n ·    Adjustments to deferred tax in respect of the mining royalty (impact of $67.1 million / 4.1%); \n ·    Items not deductible for Chilean corporate tax purposes, principally the funding of expenses outside of Chile (impact of $3.9 million / 0.2%); \n ·    An offsetting impact of the recognition of the Group's share of results from associates and joint ventures, which are included in the Group's profit before tax net of their respective tax charges (impact of $20.0 million / 1.1%); \n ·    Adjustments in respect of prior years (impact of $1.7 million / 0.1%). \n   \n The new Chilean mining royalty has taken effect from 1 January 2024. The new royalty terms include a royalty ranging from 8% to 26% applied to the ''Mining Operating Margin'', depending on each mining operation's level of profitability, as well as a 1% ad valorem royalty on copper sales. As the ad valorem element is based on revenue rather than profit it does not meet the IAS 12 Income Taxes definition of a tax expense, and is therefore recorded as an operating expense. The new royalty terms have a cap, establishing that total taxation, which includes corporate income tax, the two components of the new mining royalty, and theoretical tax on dividends, should not exceed a rate of 46.5% on Mining Operating Margin less the royalty ad-valorem expense. \n   \n Los Pelambres has been subject to the new royalty since 1 January 2024. The impact of the new royalty for Los Pelambres in 2024 included the recognition of a $28.7 million expense within operating expenses in respect of the ad valorem element. Zaldívar (which as a joint venture is equity accounted for, and so its tax expense is not consolidated within the above Group tax expense line) was also subjected to the new royalty from 1 January 2024. Centinela and Antucoya have tax stability agreements in place, thus the new royalty rates will only impact their royalty payments from 2030 onwards. Until then, they continue to be subject to the previous royalty system, applying a rate from 5% to 14% of taxable operating profit, depending on the level of operating profit margin. \n   \n   \n Exceptional items \n   \n Exceptional items are material items of income and expense which result from one-off transactions or transactions outside the ordinary course of business of the Group. These are typically non-cash, including impairments and profits or losses on disposals. The classification of these types of items as exceptional is considered to be useful as it provides an indication of the earnings generated by the ongoing businesses of the Group . \n   \n Antucoya impairment reversal \n An exceptional pre-tax gain of $371.4 million (post-tax impact of $257.4 million) has been recognised in respect of the reversal of previous impairments recognised at Antucoya. Antucoya recognised impairments totalling $716 million in 2012 and 2016. Of the original impairment amounts, $371.4 million remained in effect unamortised as at 31 December 2024. It has been determined that there were indicators of a potential reversal of this remaining impairment as at 31 December 2024. Accordingly, an estimate of the recoverable amount of the Antucoya operation has been performed. The recoverable amount indicated by this assessment was $2,013 million, which was $583 million above the carrying value of Antucoya's relevant assets of $1,431 million. The predominant driver behind this positive headroom has been the increasingly positive copper price outlook. Given the level of headroom indicated by this valuation process it is appropriate to fully reverse the remaining $371.4 million element of the original impairments, resulting in an exceptional pre-tax gain of $371.4 million. A deferred tax expense of $114.0 million has been recognised in respect of this reversal, result in a post-tax impact of $257.4 million. \n   \n Compañía de Minas Buenaventura S.A.A. \n During 2023, the Group entered into an agreement to acquire up to an additional 30 million shares in Compañía de Minas Buenaventura S.A.A. An exceptional fair value gain of $51.0 million (2023 - $167.1 million) was recognised during 2024 in respect of this agreement. A deferred tax expense of $12.7 million (2023 - $41.8 million) has been recognised in respect of this gain, resulting in a post-tax impact of $38.3 million (2023 - $125.3 million). \n   \n   \n Non-controlling interests \n   \n Profit for 2024 attributable to non-controlling interests (excluding exceptional items) was $400.8 million, compared with $464.3 million in 2023, a decrease of $63.5 million. This reflected the decrease in earnings analysed above. \n   \n Earnings per share \n \n \n \n \n \n \n \n \n \n \n Year ended 31.12.24 \n \n \n Year ended \n 31.12.23 \n \n \n \n \n \n \n \n \n \n \n $ cents \n \n \n $ cents \n \n \n \n \n   \n Underlying earnings per share (excluding exceptional items) \n \n \n \n \n \n   \n 62.8 \n \n \n   \n 72.0 \n \n \n \n \n Earnings per share (exceptional items) \n \n \n \n \n \n 21.3 \n \n \n 12.7 \n \n \n \n \n Earnings per share (including exceptional items) \n \n \n \n \n \n 84.1 \n \n \n 84.7 \n \n \n \n \n   \n Earnings per share calculations are based on 985,856,695 ordinary shares.  \n   \n As a result of the factors set out above, the underlying profit attributable to equity shareholders of the Company (excluding exceptional items) was $619.5 million compared with $709.8 million in 2023, giving underlying earnings per share of 62.8 cents per share (2023 - 72.0 cents per share). The profit attributable to equity shareholders (including exceptional items) was $829.4 million (2023 - $835.1 million), resulting in earnings per share of 84.1 cents per share (2023 - 84.7 cents per share).  \n   \n Dividends \n   \n Dividends per share proposed in relation to the period are as follows: \n   \n \n \n \n \n \n \n \n \n \n \n Year ended 31.12.24 \n \n \n Year ended \n 31.12.23 \n \n \n \n \n \n \n \n \n \n \n $ cents \n \n \n $ cents \n \n \n \n \n Ordinary dividends: \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Interim \n \n \n \n \n \n 7.9 \n \n \n 11.7 \n \n \n \n \n Final \n \n \n \n \n \n 23.5 \n \n \n 24.3 \n \n \n \n \n Total dividends to ordinary shareholders \n \n \n \n \n \n 31.4 \n \n \n 36.0 \n \n \n \n \n   \n The Board determines the appropriate dividend each year based on consideration of the Group's cash balance, the level of free cash flow and underlying earnings generated during the year and significant known or expected funding commitments. It is expected that the total annual dividend for each year would represent a payout ratio based on underlying net earnings for that year of at least 35%. \n   \n The Board has recommended a final dividend for 2024 of 23.5 cents per ordinary share, which amounts to $231.7 million and will be paid on 12 May 2025 to shareholders on the share register at the close of business on 22 April 2025. \n   \n The Board declared an interim dividend for the first half of 2024 of 7.9 cents per ordinary share, which amounted to $77.9 million. \n   \n This gives total dividends proposed in relation to 2024 (including the interim dividend) of 31.4 cents per share or $309.6 million (2023 - 36.0 cents per ordinary share or $354.9 million in total) equivalent to a payout ratio of 50% of underlying earnings. \n   \n   \n Capital expenditure \n   \n Capital expenditure increased by $285.7 million from $2,129.2 million in 2023 to $2,414.9 million in the current year, mainly due to the start of the Centinela Second Concentrator project and the completion of the Los Pelambres Phase 1 Expansion project, and higher sustaining capex at Los Pelambres, partly offset by decreased IFRIC 20 mine development at Centinela and Los Pelambres. \n   \n Capital expenditure figures quoted in this report are on a cash flow basis, unless stated otherwise. \n   \n Derivative financial instruments \n   \n The Group periodically uses derivative financial instruments to reduce its exposure to commodity price, foreign exchange and interest rate movements. The Group does not use such derivative instruments for speculative trading purposes. At 31 December 2024, there were foreign exchange derivative financial instruments in place in respect of the Centinela Second Concentrator project capital expenditure, with a negative fair value at that point of $25.5 million (2023 - nil). \n   \n   \n Cash flows \n   \n The key features of the cash flow statement are summarised in the following table. \n \n \n \n \n \n \n \n \n \n \n   \n Year ended 31.12.24 \n \n \n   \n Year ended 31.12.23 \n \n \n \n \n \n \n \n   \n \n \n $m \n \n \n $m \n \n \n \n \n Cash flows from continuing operations \n \n \n \n \n \n 3,276.2 \n \n \n 3,027.1 \n \n \n \n \n Income tax paid \n \n \n \n \n \n (666.8) \n \n \n (528.1) \n \n \n \n \n Net interest paid \n \n \n \n \n \n (143.1) \n \n \n (48.8) \n \n \n \n \n Purchases of property, plant and equipment \n \n \n \n \n \n (2,414.9) \n \n \n (2,129.2) \n \n \n \n \n Dividends paid to equity holders of the Company \n \n \n \n \n \n (317.4) \n \n \n (613.2) \n \n \n \n \n Dividends paid to non-controlling interests \n \n \n \n \n \n (240.0) \n \n \n (388.0) \n \n \n \n \n Capital increase from non-controlling interest \n \n \n \n \n \n 156.7 \n \n \n - \n \n \n \n \n Dividends from associates and joint ventures \n \n \n \n \n \n 3.5 \n \n \n - \n \n \n \n \n Disposal of JV \n \n \n \n \n \n - \n \n \n 944.7 \n \n \n \n \n Investment in other financial assets \n \n \n \n \n \n - \n \n \n (290.1) \n \n \n \n \n Acquisition of equity investments \n \n \n \n \n \n - \n \n \n (60.7) \n \n \n \n \n Other items \n \n \n \n \n \n 0.2 \n \n \n (0.8) \n \n \n \n \n Changes in net debt relating to cash flows \n \n \n \n \n \n (345.6) \n \n \n (87.1) \n \n \n \n \n Other non-cash movements \n \n \n \n \n \n (141.6) \n \n \n (187.6) \n \n \n \n \n Effects of changes in foreign exchange rates \n \n \n \n \n \n 17.9 \n \n \n 0.7 \n \n \n \n \n Movement in net debt in the period \n \n \n \n \n \n (469.3) \n \n \n (274.0) \n \n \n \n \n (Net debt)/net cash at the beginning of the year \n \n \n \n \n \n (1,159.8) \n \n \n (885.8) \n \n \n \n \n Net debt at the end of the year \n \n \n \n \n \n (1,629.1) \n \n \n (1,159.8) \n \n \n \n \n   \n Cash flows from continuing operations were $3,276.2 million in 2024 compared with $3,027.1 million in 2023.  This reflected EBITDA from subsidiaries for the year of $3,211.1 million (2023 - $2,994.1 million) adjusted for the positive impact of a net working capital decrease of $65.9 million (2023 - posi tive impact of $47.5 million from a net working capital decrease ), partly offset by a non-cash decrease in provisions of $0.8 million (2023 - nega tive impact of a decrease in provisions of $14.5 million). \n   \n The $65.9 million working capital decrease of 2024 reflected a decrease in receivables, predominantly due to lower sales volumes in December 2024 compared with December 2023 (largely due to temporary shipment delays at Centinela at the 2024 year-end due to bad weather conditions at the port), offset by an increase of work in progress inventories at Centinela and a decrease in accounts payables. \n   \n The net cash outflow in respect of tax in 2024 was $666.8 million (2023 - $528.1 million). This amount differs from the current tax charge in the consolidated income statement (including exceptional items) of $662.9 million (2023 - $586.8 million) as the cash tax payments reflect payments on account for the current year based on prior periods' profit levels of $567.8 million (2023 - $544.3 million), the settlement of outstanding balances in respect of the previous year's tax charge of $49.2 million (2023 - $14.7 million) and withholding tax payments of $71.1 million (2023 - $2.1 million),  partly offset by the recovery of $21.3 million relating to prior years (2023 - $33.0 million). \n   \n Capital expenditure in 2024 was $2,414.9 million compared with $2,129.2 million in 2023. This included expenditure of $1,414.0 million at Centinela (2023 - $1,044.6 million), $833.0 million at Los Pelambres (2023 - $897.1 million), $123.4 million at Antucoya (2023 - $121.6 million), $7.1 million at the corporate centre (2023 - $15.5 million) and $37.4 million at the Transport division (2023 - $50.4 million). The increase in capital expenditure reflects the start of the Centinela Second Concentrator project, the completion of the Los Pelambres Phase 1 Expansion project, and increased sustaining capex at Los Pelambres, partly offset by decreased IFRIC 20 mine development at Centinela and Los Pelambres. \n   \n Dividends paid to equity holders of the Company were $317.4 million (2023 - $613.2 million) of which $239.6 million related to the payment of the previous year's final dividend and $77.9 million to the interim dividend declared in respect of the current year. \n   \n Dividends paid by subsidiaries to non-controlling shareholders were $240.0 million (2023 - $388.0 million). \n   \n A capital contribution of $156.7 million was received from Marubeni, the minority partner at Centinela, in respect of financing for the Centinela Second Concentrator project. \n   \n Dividends received from associates and joint ventures were $3.5 million for 2024 (2023 - nil) related to a dividend received from Compañía de Minas Buenaventura S.A.A. \n   \n In 2023, there was a $944.7 million cash inflow in respect of the Group's disposal of its 50% interest in the Tethyan joint venture. \n   \n In 2023, there was a $290.1 million cash outflow in respect of investment in other financial assets, related to the agreement to acquire up to 30 million shares in Compañía de Minas Buenaventura S.A.A. (''Buenaventura''). \n   \n Acquisitions of equity investments were nil in 2024 (2023 - $60.7 million). \n   \n Financial position \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n At 31.12.24 \n \n \n At 31.12.23 \n \n \n \n \n \n \n \n \n \n \n \n \n \n $m \n \n \n $m \n \n \n \n \n Cash, cash equivalents and liquid investments \n \n \n \n \n \n \n \n \n 4,316.3 \n \n \n 2,919.4 \n \n \n \n \n Total borrowings and other financial liabilities \n \n \n \n \n \n \n \n \n (5,945.4) \n \n \n (4,079.2) \n \n \n \n \n Net debt at the end of the period \n \n \n \n \n \n \n \n \n (1,629.1) \n \n \n (1,159.8) \n \n \n \n \n   \n At 31 December 2024, the Group had combined cash, cash equivalents and liquid investments of $4,316.3 million (31 December 2023 - $2,919.4 million). Excluding the non-controlling interest share in each partly-owned operation, the Group's attributable share of cash, cash equivalents and liquid investments was $3,513.5 million (31 December 2023 - $2,490.5 million). \n   \n Total Group borrowings and other financial liabilities at 31 December 2024 were $5,945.4 million , an increase of $1,866.2 million on the prior year (at 31 December 2023 - $ 4,079.2 million). The increase was mainly due to $741.7 million from the issue of the new corporate bond, $670.0 million in respect of short-term loans at Los Pelambres ($475.0 million) and Centinela ($195.0 million), $600.0 million from the other financial liability in respect of the water transportation agreement at Centinela, $536.1 million in respect of the project financing at Centinela, $182.2 million in respect of a senior loan at Los Pelambres, partly offset by a $559.0 million repayment of the senior loans at Los Pelambres ($370.7 million), Centinela ($133.3 million), Antucoya ($50.0 million) and the Transport division ($5.0 million), as well as a $265.0 million repayment of the short-term loan at Centinela and a $4.6 million repayment of the other financial liability at Centinela. \n   \n In June 2024, Centinela entered into a water transportation agreement, involving its existing water supply and future water supply to the Centinela Second Concentrator Project. Under the terms of the agreement, Centinela's existing water transportation assets and rights have been legally transferred to an international consortium for net cash proceeds of $600 million. For accounting purposes, the existing assets remain in the Group's balance sheet, with the cash receipt resulting in the recognition of the corresponding other financial liability balance. \n   \n Excluding the non-controlling interest share in each partly-owned operation, the Group's attributable share of the borrowings was $4,447.0 million (31 December 2023 - $2,948.3 million). \n   \n These movements resulted in net debt at 31 December 2024 of $1,629.1 million (31 December 2023 - net debt $1,159.8 million). Excluding the non-controlling interest share in each partly-owned operation, the Group had an attributable net debt position of $933.5 million (31 December 2023 - net debt $457.8 million). \n   \n Going concern \n   \n The consolidated financial information contained in this unaudited Full-year results announcement has been prepared on the going concern basis. Details of the factors which have been taken into account in assessing the Group's going concern status are set out in Note 1 to the Full-year results announcement . \n   \n   \n Cautionary statement about forward-looking statements \n   \n This Full-year results announcement contains certain forward-looking statements. All statements other than historical facts are forward-looking statements. Examples of forward-looking statements include those regarding the Group's strategy, plans, objectives or future operating or financial performance, reserve and resource estimates, commodity demand and trends in commodity prices, growth opportunities, and any assumptions underlying or relating to any of the foregoing. Words such as \"intend\", \"aim\", \"project\", \"anticipate\", \"estimate\", \"plan\", \"believe\", \"expect\", \"may\", \"should\", \"will\", \"continue\" and similar expressions identify forward-looking statements. \n   \n Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that are beyond the Group's control. Given these risks, uncertainties and assumptions, actual results could differ materially from any future results expressed or implied by these forward-looking statements, which apply only as at the date of this report. Important factors that could cause actual results to differ from those in the forward-looking statements include: global economic conditions, demand, supply and prices for copper and other long-term commodity price assumptions (as they materially affect the timing and feasibility of future projects and developments), trends in the copper mining industry and conditions of the international copper markets, the effect of currency exchange rates on commodity prices and operating costs, the availability and costs associated with mining inputs and labour, operating or technical difficulties in connection with mining or development activities, employee relations, litigation, and actions and activities of governmental authorities, including changes in laws, regulations or taxation. Except as required by applicable law, rule or regulation, the Group does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. \n   \n Past performance cannot be relied on as a guide to future performance. \n   \n Consolidated Income Statement \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n Year ended 31.12.2024 (Unaudited) \n \n \n \n \n \n \n \n \n Year ended 31.12.2023 (Audited) \n \n \n \n \n \n \n \n \n \n \n Excluding exceptional items \n \n \n Exceptional items \nnote 3 \n \n \n Total \n \n \n Excluding exceptional items \n \n \n Exceptional items \nnote 3 \n \n \n Total \n \n \n \n \n \n \n \n Notes \n \n \n $m \n \n \n $m \n \n \n $m \n \n \n $m \n \n \n $m \n \n \n $m \n \n \n \n \n Revenue \n \n \n 5,6 \n \n \n 6,613.4 \n \n \n - \n \n \n 6,613.4 \n \n \n                6,324.5 \n \n \n  - \n \n \n             6,324.5 \n \n \n \n \n Total operating costs \n \n \n 2,3 \n \n \n (4,976.1) \n \n \n 371.4 \n \n \n (4,604.7) \n \n \n (4,541.7) \n \n \n  - \n \n \n (4,541.7) \n \n \n \n \n Operating profit from subsidiaries \n \n \n 2,5 \n \n \n 1,637.3 \n \n \n 371.4 \n \n \n 2,008.7 \n \n \n                1,782.8 \n \n \n  - \n \n \n             1,782.8 \n \n \n \n \n Net share of results from associates and joint ventures \n \n \n 2,5 \n \n \n 76.2 \n \n \n - \n \n \n 76.2 \n \n \n (13.5) \n \n \n  - \n \n \n (13.5) \n \n \n \n \n Operating profit from subsidiaries, and share of results from associates and joint ventures \n \n \n \n \n \n 1,713.5 \n \n \n 371.4 \n \n \n 2,084.9 \n \n \n                1,769.3 \n \n \n  - \n \n \n             1,769.3 \n \n \n \n \n Investment income \n \n \n 8 \n \n \n 184.2 \n \n \n - \n \n \n 184.2 \n \n \n                   138.1 \n \n \n  - \n \n \n                138.1 \n \n \n \n \n Interest expense \n \n \n 8 \n \n \n (312.2) \n \n \n - \n \n \n (312.2) \n \n \n (105.6) \n \n \n  - \n \n \n   (105.6) \n \n \n \n \n Other finance items \n \n \n 3 \n \n \n 63.2 \n \n \n 51.0 \n \n \n 114.2 \n \n \n                     (3.4) \n \n \n             167.1 \n \n \n                163.7 \n \n \n \n \n Net finance (expense)/income \n \n \n 8 \n \n \n (64.8) \n \n \n 51.0 \n \n \n (13.8) \n \n \n                     29.1 \n \n \n             167.1 \n \n \n                196.2 \n \n \n \n \n Profit before tax \n \n \n \n \n \n 1,648.7 \n \n \n 422.4 \n \n \n 2,071.1 \n \n \n                1,798.4 \n \n \n             167.1 \n \n \n             1,965.5 \n \n \n \n \n Income tax expense \n \n \n 9 \n \n \n (628.4) \n \n \n (126.7) \n \n \n (755.1) \n \n \n (624.3) \n \n \n (41.8) \n \n \n (666.1) \n \n \n \n \n Profit for the year \n \n \n \n \n \n 1,020.3 \n \n \n 295.7 \n \n \n 1,316.0 \n \n \n                1,174.1 \n \n \n             125.3 \n \n \n             1,299.4 \n \n \n \n \n Attributable to: \n \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n Non-controlling interests \n \n \n \n \n \n 400.8 \n \n \n 85.8 \n \n \n 486.6 \n \n \n                   464.3 \n \n \n  - \n \n \n                464.3 \n \n \n \n \n Owners of the parent \n \n \n \n \n \n 619.5 \n \n \n 209.9 \n \n \n 829.4 \n \n \n                   709.8 \n \n \n             125.3 \n \n \n                835.1 \n \n \n \n \n \n \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n US cents   \n \n \n US cents   \n \n \n US cents   \n \n \n US cents   \n \n \n US cents   \n \n \n US cents   \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Basic and diluted EPS \n \n \n 10 \n \n \n 62.8 \n \n \n 21.3 \n \n \n 84.1 \n \n \n                     72.0 \n \n \n               12.7 \n \n \n                  84.7 \n \n \n \n \n   \n All earnings in all the periods presented are from continuing operations. \n   \n Consolidated Statement of Comprehensive Income \n \n \n \n \n \n \n \n Notes \n \n \n Year ended 31.12.2024 (Unaudited) \n \n \n Year ended 31.12.2023 (Audited) \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n   \n \n \n $m \n \n \n $m \n \n \n \n \n Profit for the year \n \n \n 5 \n \n \n 1,316.0 \n \n \n             1,299.4 \n \n \n \n \n Items that may be or were subsequently reclassified to profit or loss: \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n Losses on cash flow hedging (cost of hedging) \n \n \n 7 \n \n \n (25.5) \n \n \n - \n \n \n \n \n Tax effects arising on cash flow hedges \n \n \n   \n \n \n 6.9 \n \n \n - \n \n \n \n \n Currency translation adjustment \n \n \n   \n \n \n (1.2) \n \n \n (0.5) \n \n \n \n \n Total items that may be or were subsequently reclassified to profit or loss  \n \n \n \n \n \n (19.8) \n \n \n (0.5) \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Items that will not be subsequently reclassified to profit or loss: \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Actuarial (losses)/gains on defined benefit plans \n \n \n  18 \n \n \n (12.2) \n \n \n   10.7 \n \n \n \n \n Gains on fair value of equity investments \n \n \n 15 \n \n \n 29.7 \n \n \n                137.0 \n \n \n \n \n Tax on items recognised directly in other comprehensive income \n \n \n  20 \n \n \n (5.9) \n \n \n   (40.8) \n \n \n \n \n Share of other comprehensive losses of associates and joint ventures, net of tax \n \n \n   \n \n \n (1.4) \n \n \n                 (0.6) \n \n \n \n \n Total items that will not be subsequently reclassified to profit or loss \n \n \n   \n \n \n 10.2 \n \n \n               106.3 \n \n \n \n \n \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n Total other comprehensive (expense)/ income \n \n \n   \n \n \n (9.6) \n \n \n                105.8 \n \n \n \n \n \n \n \n   \n \n \n   \n \n \n    \n \n \n \n \n Total comprehensive income for the year \n \n \n   \n \n \n 1,306.4 \n \n \n             1,405.2 \n \n \n \n \n Attributable to: \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n Non-controlling interests \n \n \n   \n \n \n 478.7 \n \n \n                467.6 \n \n \n \n \n Owners of the parent \n \n \n   \n \n \n 827.7 \n \n \n                937.6 \n \n \n \n \n   \n Consolidated Statement of Changes in Equity \n                        \n For the year ended 31.12.2024 (Unaudited) \n   \n \n \n \n \n \n \n \n Share       capital \n \n \n Share premium \n \n \n Other reserves (Note 22) \n \n \n Retained earnings (Note 22)   \n \n \n Equity attributable to owners of the parent \n \n \n Non- controlling interests \n \n \n Total equity \n \n \n \n \n \n \n \n $m \n \n \n $m \n \n \n $m \n \n \n $m \n \n \n $m \n \n \n $m \n \n \n $m \n \n \n \n \n Balance at 1 January 2024 \n \n \n      89.8 \n \n \n       199.2 \n \n \n       104.5 \n \n \n         8,558.4 \n \n \n           8,951.9 \n \n \n           3,096.5 \n \n \n      12,048.4 \n \n \n \n \n Profit for the year \n \n \n - \n \n \n - \n \n \n - \n \n \n 829.4 \n \n \n 829.4 \n \n \n 486.6 \n \n \n 1,316.0 \n \n \n \n \n Other comprehensive income/(expense) for the year \n \n \n - \n \n \n - \n \n \n 7.7 \n \n \n (9.4) \n \n \n (1.7) \n \n \n (7.9) \n \n \n (9.6) \n \n \n \n \n Total comprehensive income for the year \n \n \n - \n \n \n - \n \n \n 7.7 \n \n \n 820.0 \n \n \n 827.7 \n \n \n 478.7 \n \n \n 1,306.4 \n \n \n \n \n Reclassification 1 \n \n \n - \n \n \n - \n \n \n (130.4) \n \n \n 130.4 \n \n \n - \n \n \n - \n \n \n - \n \n \n \n \n Capital increase 2 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 156.8 \n \n \n 156.8 \n \n \n \n \n Dividends \n \n \n - \n \n \n - \n \n \n - \n \n \n (317.4) \n \n \n (317.4) \n \n \n (240.0) \n \n \n (557.4) \n \n \n \n \n Balance at 31 December 2024 \n \n \n 89.8 \n \n \n 199.2 \n \n \n (18.2) \n \n \n 9,191.4 \n \n \n 9,462.2 \n \n \n 3,492.0 \n \n \n 12,954.2 \n \n \n \n \n 1 Relates to the reclassification of the fair value gain relating to the equity investment in Buenaventura from the Equity investment revaluation reserve to Retained earnings, following the completion of the transaction detailed in Notes 14 and 15 in March 2024, which resulted in the derecognition of the equity investment and the Group's interest in Buenaventura being accounted for as an investment in associate from that point. \n 2 Related  to Marubeni's capital contribution of $156.8 million in Centinela and Barrick's capital contribution declared in the previous year and recognised in this year by $0.1 million In Encierro. \n   \n For the year ended 31.12.2023 (Audited) \n   \n \n \n \n \n \n \n \n Share capital \n \n \n Share premium \n \n \n Other reserves (Note 22) \n   \n \n \n Retained earnings (Note 22) \n   \n \n \n Equity attributable to equity owners of the parent \n \n \n Non- controlling interests \n \n \n Total \n equity \n \n \n \n \n \n \n \n $m \n \n \n $m \n \n \n $m \n \n \n $m \n \n \n $m \n \n \n $m \n \n \n $m \n \n \n \n \n Balance at 1 January 2023 \n \n \n  89.8 \n \n \n  199.2 \n \n \n  5.0 \n \n \n  8,333.5 \n \n \n  8,627.5 \n \n \n  3,016.9 \n \n \n  11,644.4 \n \n \n \n \n Profit for the year \n \n \n             - \n \n \n               - \n \n \n               - \n \n \n 835.1 \n \n \n            835.1 \n \n \n         464.3 \n \n \n  1,299.4 \n \n \n \n \n Other comprehensive income/(expense) for the year \n \n \n             - \n \n \n               - \n \n \n          99.5 \n \n \n        3.0 \n \n \n             102.5 \n \n \n      3.3 \n \n \n     105.8 \n \n \n \n \n Total comprehensive income for the year \n \n \n             - \n \n \n               -...

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