Business
HALF YEAR RESULTS
HALF YEAR RESULTS.
About this update from Antofagasta Plc
[{"type":"text","content":"\n \n \n HALF YEAR RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2024 \n RESILIENT FINANCIAL PERFORMANCE CONTINUES WITH STRONG BALANCE SHEET, CASH FLOW GENERATION AND EBITDA MARGINS \n Antofagasta plc CEO Iván Arriagada said : \"Antofagasta demonstrated its resilience in the first half of the year, maintaining EBITDA margins, generating savings and productivity improvements of $130 million and advancing with key projects that provide a strong platform for future growth. In terms of financial results, revenue rose by 2% and EBITDA increased by 5% during the first half of 2024. \n \"Importantly, our growth plan remains on track, with the Centinela Second Concentrator moving forward ahead of schedule and initial work starting at new Los Pelambres projects. \n \"With a strong balance sheet, EBITDA margins and cash flow generation to fund our expansion plans and sustaining capex, the board of directors has approved an interim dividend representing 35% of net earnings, in line with the Company's dividend policy.\" \n \n \n \n \n UNAUDITED RESULTS SIX MONTHS ENDED 30 JUNE \n \n \n \n \n \n H1 2024 \n \n \n H1 2023 \n \n \n % \n \n \n \n \n Revenue 1 \n \n \n $m \n \n \n 2,955.2 \n \n \n 2,890.1 \n \n \n +2.3% \n \n \n \n \n EBITDA \n \n \n $m \n \n \n 1,394.4 \n \n \n 1,331.0 \n \n \n +4.8% \n \n \n \n \n EBITDA margin 2 \n \n \n % \n \n \n 47.2 \n \n \n 46.1 \n \n \n +1.1pp \n \n \n \n \n Profit before tax (including exceptional items) \n \n \n $m \n \n \n 712.6 \n \n \n 764.5 \n \n \n (6.8%) \n \n \n \n \n Cash flow from operations \n \n \n $m \n \n \n 1,483.9 \n \n \n 1,296.4 \n \n \n +14.5% \n \n \n \n \n Net debt / EBITDA 1 \n \n \n X \n \n \n 0.46 \n \n \n 0.27 \n \n \n +70% \n \n \n \n \n Earnings per share (including exceptional items) \n \n \n cents \n \n \n 26.3 \n \n \n 33.5 \n \n \n (21.5%) \n \n \n \n \n Underlying earnings per share (excluding exceptional items) 1 \n \n \n cents \n \n \n 22.4 \n \n \n 33.5 \n \n \n (33.1%) \n \n \n \n \n Dividend per share \n \n \n cents \n \n \n 7.9 \n \n \n 11.7 \n \n \n (32.5%) \n \n \n \n \n \n 1 Non-IFRS measures. Refer to the alternative performance measures section on page 56 in the half-year financial report below. \n \n \n 2 Calculated as EBITDA/Revenue. If Associates and JVs' revenue is included, EBITDA Margin was 44.5% in HY 2024 and 43.2% in HY 2023. \n \n \n HIGHLIGHTS \n ● Continued strong safety performance recorded in H1 2024, with no fatalities and an injury frequency rate continuing at a level below 1.0. \n ● Copper production was 284,700 tonnes, 4% lower year-on-year, principally representing a balance of lower production at Centinela concentrates, and higher production at both Centinela Cathodes and Los Pelambres. \n ● Cash costs before and after by-product credits were $2.65/lb and $1.94/lb, 7% and 11% higher than H1 2023, due to lower ore grade and recoveries at Centinela concentrates and lower grades at Los Pelambres.1 \n ● EBITDA was $1,394.4 million, 5% higher than in H1 2023 on higher revenues, maintaining our strong EBITDA margin [2] of 47.2%. Cash flow from operations increased by 14% to $1,483.9 million. \n ● The balance sheet remained robust with a net debt to EBITDA ratio of 0.46x, after supporting shareholder distributions and investment in future production, in line with the Company's capital allocation framework. \n ● As previously announced, total production for 2024 is expected to be at the low end of the Company's 670-710,000 tonne guidance range. \n ● Given projected production for the full year, cash costs before by-product credits are expected to be $2.40/lb and net cash costs expected to be $1.70/lb (based on current spot prices). \n ● The Competitiveness Programme generated savings and productivity improvements of $130.0 million in H1 2024, equivalent to 20.7c/lb of unit cash costs, in line with our plan. \n ● The Company's growth programme remains on track, with construction of the Centinela Second Concentrator currently ahead of schedule and initial groundworks commencing at Los Pelambres' desalination plant expansion, concentrate pipeline and El Mauro enclosures. \n ● Interim dividend of 7.9 cents per share announced, equivalent to a pay-out ratio of 35% of underlying net earnings in line with the Company's capital allocation framework. \n \n A recording and copy of the 2024 Half Year Results presentation is available for download from the Company's website www.antofagasta.co.uk . \n There will be a Q&A video conference call at 2:00pm (UK) today hosted by Iván Arriagada - Chief Executive Officer, Mauricio Ortiz - Chief Financial Officer and Alejandra Josefina Vial - Vice President Sustainability. Participants can join the conference call via the following link: \n https://antofagasta-2024-hy-results.open-exchange.net/registration \n \n \n Investors - London Media - London \n Rosario Orchard [email protected] Carole Cable [email protected] \n Robert Simmons [email protected] Telephone +44 20 7404 5959 \n Telephone +44 20 7808 0988 \n Media - Santiago \n Pablo Orozco [email protected] \n Carolina Pica [email protected] \n Telephone +56 2 2798 7000 \n \n \n \n \n Register on our website to receive our email alerts http://www.antofagasta.co.uk/investors/email-alerts/ \n \n \n FINANCIAL AND OPERATING REVIEW \n FINANCIAL HIGHLIGHTS \n Revenue for the first half of 2024 was $2,955.2 million, 2% higher than in the same period last year, as a result of realised prices for copper and gold being higher by 10% and 16% respectively, partially offset by 6% lower copper and 23% lower gold sales volumes. \n The average realised copper price rose by 10% in H1 2024 to $4.40/lb. \n EBITDA during the first six months of 2024 was $1,394.4 million, 5% higher than in the same period in 2023, mainly reflecting the Company's higher revenue. \n EBITDA margin remained robust in H1 2024 at 47.2%, compared with 46.1% in H1 2023. \n Profit before tax (excluding exceptional items) was $661.6 million, 13% lower than the same period in 2023, reflecting the movements described above offset by higher depreciation and amortisation, mainly as a result of the commencement of depreciating the assets at the Los Pelambres Phase 1 Expansion project, which is now in operation. \n An exceptional fair value gain of $51.0 million was recognised in H1 2024 in respect of 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 been recognised in respect of this gain, resulting in a post-tax impact of $38.3 million. \n Profit before tax (including exceptional items) was $712.6 million, 7% lower than in the same period in 2023. \n Earnings per share for the year (including exceptional items) were 26.3 cents, a decrease of 21% compared with H1 2023. \n Cash flow from operations was $1,483.9 million, a 14% increase compared with the same period last year, following a positive movement in creditor balances. \n The Board of Directors of the Company has declared an interim ordinary dividend of 7.9 cents per share, equal to a 35% pay-out of underlying earnings per share, which represents a level in line with the Company's dividend policy. \n PRODUCTION AND CASH COSTS \n Group total ore throughput increased in comparison with H1 2023, resulting from the Los Pelambres Phase 1 expansion project (44%) and operational improvements in our copper cathodes plants at Centinela (11%), Antucoya (6%) and Zaldívar (16%). \n Copper production in H1 2024 was 284,700 tonnes, 4% lower year-on-year, principally representing a balance of lower production from Centinela concentrates, and higher production at Centinela cathodes and Los Pelambres, with the latter happening despite the inventory build-up at Los Pelambres in February 2024. \n For the first six months of the year, gold production decreased by 22% to 66,900 ounces, reflecting lower gold grades at Centinela. \n Molybdenum production in H1 2024 was 5,200 tonnes, 6% higher than in the same period last year due to higher ore processing rates at Los Pelambres. \n Cash costs in H1 2024 were $2.65/lb, a year-on-year increase of 7% due to lower ore grades and recoveries at Centinela concentrates and lower grades at Los Pelambres. \n Net cash costs were $1.94/lb for the first half of the year, 11% higher than the same period in 2023, with this increase driven by the increase in the underlying cash costs before by-product credits. \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 the first half of 2024, the programme achieved improvements of $130 million in the mining division, mainly related to operational efficiencies ($74m), throughput run time ($34 million) and contract management ($22 million). \n EXPLORATION AND EVALUATION COSTS \n Exploration and Evaluation costs were $26.8 million. This expenditure is mainly related to exploration activities in Cachorro and Encierro projects (Chile) as well as in international pre-feasibility stage explorations at Twin Metals Minnesota (USA). \n TAXATION \n The effective tax rate for H1 2024, excluding exceptional items, was 43.3%, compared to 30.0% in H1 2023, which in turn included a one-off adjustment to the provision for deferred withholding tax that reduced the effective tax rate in H1 2023. Including exceptional items (being the fair valuation of the Company's investment in Buenaventura), the effective tax rate for H1 2024 was 42.0%. \n The ad-valorem element of the new royalty was $13.0 million in H1 2024, which is not included in the Company's effective tax rate. \n For more information, please see the Financial Review Section of this report. \n The income tax expense for H1 2024 was $299.5 million compared to $229.3 million in H1 2023. \n CAPITAL EXPENDITURE AND DEPRECIATION & AMORTISATION \n Capital expenditure in H1 2024 was $1,059.5 million (H1 2023: $1,021.9 million), including $340.5 million of sustaining capital expenditure, $202.1 million on mine development, $497.6 million of growth expenditure and $19.3 million within the Transport division. \n Group capital expenditure for the full year is expected to be $2.7 billion, in line with stated guidance. \n Depreciation and amortisation increased by $135.9 million to $647.2 million, primarily driven by higher depreciation at Los Pelambres following completion of the Phase 1 Expansion project, alongside increased amortisation of IFRIC 20 mine development stripping assets. \n CAPITAL ALLOCATION \n The Company's capital allocation framework is integral in the process to allocate investments for sustaining capex, development capex and shareholder returns. Whilst the Company remains committed to copper production, which retains a positive long-term outlook, a prudent and consistent approach to capital allocation is required to generate shareholder returns. \n Cash flow from operations increased to $1,483.9 million in H1 2024, compared with $1,296.4 million in H1 2023. \n Net debt at the end of the period was $1,438.6 million (31 December 2023: $1,159.8 million), with this increase reflecting the operating cash generation being offset by capital expenditure and dividend. The Net debt to EBITDA ratio at the end of the period was 0.46 times (31 December 2023: 0.38 times). \n The Board has declared an interim dividend of 7.9 cents per share, equivalent to $77.9 million and a pay-out of 35% of underlying earnings per share, consistent with the Company's policy and previous interim dividends. Any distribution of excess cash for the year, as defined under the policy, will be made as part of the final dividend. \n LABOUR \n In the Mining division, an early labour negotiation with one of the employees' unions at Centinela was successfully concluded by the end of May 2024, resulting in a 3-year contract with a one-off payment fully expensed in Q2 2024. There are no further collective labour contract negotiations scheduled for the remainder of this year. \n The Group is well-placed to move forward with the implementation of changes that came into force with respect to updated labour legislation in Chile, with changes pertaining to working hours, work-life balance, and the prevention of labour and sexual harassment and violence in the workplace. \n \n SUSTAINABILITY \n Health and safety \n The wellbeing of our workforce is a key aspect of the Company's strategy. Integrating physical and mental health into our business is pivotal to maintain our operational excellence. The Company implements a wide range of control strategies to promote a safety-first production culture, emphasising the planning and supervision of high-risk tasks as central to the prevention of occupational injuries and illnesses. \n The Company is pleased to report another fatality-free period in H1 2024 (H1 2023: zero), with injury frequency rates continuing in line with the strong performance recorded in 2023 - including a lost time injury frequency rate of 0.67 in H1 2024 (FY 2023: 0.63) and a total injury frequency rate of 1.85 in H1 2024 (FY 2023: 1.81). \n Reporting and understanding organisational causes of all high potential incidents (HPIs) is reinforced to capture all lessons learnt and then shared amongst all operations avoiding repetitions. As a result of an analysis conducted during H1 2024, all light vehicles and heavy equipment are in the process of being equipped with fatigue and distraction monitors, to help reinforce safe-driving behaviours. As a key leading indicator of health and safety, the Company was pleased to record a further improvement in HPIs in 2024, with 13 incidents recorded during the first half of the year (FY 2023: 34). Accordingly, the incidence rate for HPIs in H1 2024 was 0.08 (FY 2023: 0.10). \n The Company's growth and development projects are a key area of focus, with large numbers of external contractors mobilised to each operation, which requires careful oversight to ensure the successful integration within the Company's health and safety procedures. Year-to-date performance at the Centinela Second Concentrator, and Los Pelambres' desalination plant expansion, installation of the concentrate pipeline and El Mauro enclosures has recorded zero lost time injuries, with this result recorded within the Company's overall safety performance. \n Environment \n The integration of environmental management with the Company's business model is key to maintaining the Company's operational excellence. In H1 2024, the Company strengthened its environmental management model that promotes a culture of prevention, with a focus on the timely identification, management, and control of our environmental risks, based on a reliable system and the leadership of those responsible for each process. \n During the first half of 2024, no operational events with serious environmental consequences have been recorded. In addition, the Company made progress in H1 2024 in developing the strategy for implementing the necessary environmental controls to comply with new Chilean regulations on environmental economic offences. \n Communities \n As part of its business strategy, the Company is committed to partnering with local communities on a journey that fosters their development and well-being. By maintaining proactive engagement through transparent dialogue, the Company aims to gain a deeper understanding of each communities' needs, enabling effective collaboration on social projects. \n In central Chile, near Los Pelambres, recent community engagement efforts in the Province of Choapa included the following: \n ● Somos Choapa: We delivered 155 initiatives jointly with the community over the first phase of this programme. These initiatives include the restoration of 550 sqm of public stairways in Los Vilos; the completion of the In Action Programme, which is focused on strengthening neighbourhood organisations and Tesoros del Choapa heritage recovery, among other initiatives. \n · Suppliers for a Better Future Programme: In May 2024, the Company hosted a closing ceremony for the 2023 iteration of this programme, which has helped to support approximately 100 local suppliers connected to the Company's accommodation, transportation, logistics, minor works, maintenance, and other services. The programme has provided training to local suppliers to develop their own internal business and compliance capabilities as part of becoming eligible for the Los Pelambres supply chain. At the end of this process, 40% of the participants were awarded a service contract to work with Los Pelambres or its contracting companies. \n \n Community engagement highlights in the north of Chile include: \n ● Social Enablement Strategy at Zaldívar: \n § Heritage Preservation - Ancestral Recipes: Jointly with the Municipality of San Pedro, and with over 3,000 participants from the indigenous communities of the Salar, the publication of the \"Ancestral Recipe\" book was launched. This initiative seeks to preserve the traditional foods, recipes, and family histories of Peine, which will later be documented in a film. \n § Education - Salar Scholarships: In May, we hosted the awarding ceremony of higher education scholarships to indigenous communities of the Salar de Atacama, which benefited 31 youths from the localities of Camar, Socaire, and Peine. \n · Employability and Supply Strategy - Centinela Second Concentrator Project: With a focus on local employment, Centinela has hosted a number of job fairs and information sessions, receiving more than 2,300 resumes from residents of the local communities of Sierra Gorda, Mejillones, María Elena, and Tocopilla. In parallel, in conjunction with the Association of Industrialists of Antofagasta, Centinela organised a Business Roundtable, bringing together more than 300 regional suppliers. \n Diversity and inclusion \n The Company continues to promote diversity within its workforce, as it sees the tangible benefits to leadership and decision-making, increasing female representation from 8.8% at the point of launching our Diversity and Inclusion Strategy in 2018, to over 23% at the end of 2023 and 24.5% as of June 2024. The Company's aim is to achieve a level of 30% female representation within the workforce by the end of 2025. \n Progress in improving diversity and inclusion is achieved by attracting, recruiting, developing and retaining the right individuals for the role at hand. Recruitment across the Company in 2023 achieved gender parity, with women representing 52% of the 1,102 individuals recruited. \n The Company's diversity and inclusion programme at Antofagasta includes attracting and retaining people with disabilities (both seen and unseen) throughout our business. Across the Group, 1.5% of those working for Antofagasta have a registered disability, exceeding a regulatory-mandated minimum in Chile of 1.0%. \n Climate change and emissions \n Following the publication of the Company's new emissions reduction targets in February 2024 (shown below) and the Climate Action Plan in March 2024, the Company is undertaking a series of initiatives to help progress a further reduction of its emissions footprint. \n · Scope 1 and 2 (combined): targeting a 50% reduction by 2035 against a baseline year of 2020 (on the basis of absolute emissions). \n · Scope 3: targeting a 10% reduction by 2030 (relative to a no-action scenario of projected emissions). \n · In addition, the Company maintains its carbon-neutral target for 2050. \n Examples of initiatives being advanced at the current time include the trial of trolley assist technology at Los Pelambres and a fuel efficiency programme that is being jointly implemented through the Company's innovation, decarbonisation and advanced analytics teams. Diesel consumption represents approximately 90% of the Company's Scope 1 emissions and is therefore a key focal point for decarbonisation efforts. \n The Company's Transport division expects to take delivery of a hydrogen-powered locomotive in H2 2024, which will be an important milestone in the Company decarbonisation journey and commitment to test and develop alternatives to fossil fuels. \n Water \n The effects of climate change are evident in Chile through the changing availability of water. The Company's operations are located in the Regions of Antofagasta and Coquimbo, where water consumption is a key consideration. \n At Los Pelambres, on 26 July 2024 a new declaration of severe drought condition was issued, for a new one-year period. Consequently, the water redistribution agreement approved by the DGA (Chile's water administration department) in March 2024 took effect again and certain conditions are required to be completed to enable Los Pelambres to extract up to 400 l/s. Los Pelambres is working with the JVRCH (Junta de Vigilancia Río Choapa) and the DGA to expedite this process. \n Following the construction of the Company's inaugural desalination plant for Los Pelambres, approximately half of the water withdrawal at this operation is now from sea water. Work is already underway to double the capacity of this facility (from 400 l/s to 800 l/s), which would largely remove Los Pelambres from continental water sources, and further details of this project are available on page 12 of this report. \n In the north of Chile, Centinela and Antucoya operate on 100% raw seawater. Zaldívar has submitted an Environmental Impact Assessment Study 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 of this report. \n With the Los Pelambres desalination plant commissioned, the past year represented the first year whereby water withdrawals from seawater exceeded continental water sources, increasing to 60% in 2023 and 64% in H1 2024 (2022: 45%). \n Further operational improvement initiatives underway to reduce water use and increase water recovery, which are included in our annual water usage efficiency programmes, include pilot projects to increase water recovery from tailings at Centinela and Los Pelambres, and initiatives to cover operational water ponds at Centinela and Antucoya. \n Suppliers \n The Company continues to develop its Suppliers for a Better Future Programme, launched in December 2022, aiming to align supplier best practices with the Group's vision and strategic framework. Following this purpose, in June 2024, the Company signed a collaboration agreement with 20 key suppliers with a clear focus on promoting gender diversity in its contractor workforce and enhancing competitiveness and productivity at a supplier level. \n To maintain progress in improving suppliers' capabilities, jointly with Alta Ley Corporation, the Company has implemented a training and guidance programme on the calculation of greenhouse gas emissions for a group of suppliers, as part of the copper sector's Scope 3 emissions measurement working group. In addition, the Company has commenced a second edition of our regional supplier development sub-programme in partnership with the Universidad Católica del Norte (UCN), with 60 new participants, with a focus on the promotion of high standards in sustainability and innovation. \n The Company continues to strengthen its relationships with local stakeholders through the organisation of business roundtables, in collaboration with our partner SICEP (Supplier qualification system) of the Antofagasta Industrial Association (AIA). During Exponor 2024, the Company held business roundtables with more than 500 national and international suppliers. \n INNOVATION \n Cuprochlor-T® \n During H1 2024, the Company progressed in trial test work with samples provided by third-party mine sites, with a view to commercially validating Cuprochlor-T in the market. In parallel, a pre-feasibility study based on Cuprochlor-T to extend the life of the Zaldívar mine is currently being finalised, following the heap-leach heating pilot conducted in 2023. \n 2024 GUIDANCE (as previously announced) \n As previously disclosed in the Q2 2024 Production Report, total production for 2024 is expected to be in the lower end of the Company's 670-710,000 tonne guidance range. At Los Pelambres, given that the existing concentrate pipeline is currently operating with enhanced parameters for safety and maintenance, which are periodically reviewed by the Company, combined with the high throughput rates that are being achieved at the processing plant, the drawdown of the inventory accumulated in February 2024 is now expected to be completed in the next 2-3 quarters. In the case of Centinela, following lower grades in H1 2024, the clay and fines content in ore fed to the concentrator plant, which has impacted recoveries, is expected to reduce towards the end of the year, thereby increasing recoveries over the second half of the year. \n Following projected production for the full year, cash cost guidance, both before and after by-product credits, is expected to be $2.40/lb and $1.70/lb respectively (based on current spot prices). \n Capital expenditure guidance is unchanged at $2.7 billion. \n FUTURE OUTLOOK \n Rising demand for copper is primarily driven by the energy transition, with electric vehicles, renewable power and related infrastructure providing support to global copper prices. Demand is forecast to grow by between 2% and 3% per annum through to 2030. On the supply-side, fundamental technical challenges are grade decline and rising ore hardness, while increasing permitting delays, infrastructure challenges and rising mine construction costs suggest a likely contraction or very measured growth in existing mine supply in the medium- to long-term. The gradually shifting balance of global copper demand and supply is therefore supportive of copper's fundamental value. \n The Company has a significant Mineral Resource base of more than 21 billion tonnes of resources, including more than 6 billion tonnes and 5 billion tonnes at Los Pelambres and Centinela respectively. \n The Company has a range of growth projects being implemented throughout our portfolio that will provide incremental growth in the medium-term, including the construction of the Centinela Second Concentrator Project, which is expected to provide a pathway to grow output to approximately 900,000 tonnes of copper production. The Company will continue to evaluate opportunities to accelerate the execution of selected development projects. \n \n \n REVIEW OF OPERATIONS AND PROJECTS \n MINING DIVISION \n LOS PELAMBRES \n Financial performance \n EBITDA at Los Pelambres was $885.1 million in the first half of 2024, a 17% increase compared with $756.4 million in the first six months of 2023. This increase was mainly due to higher copper revenue (3% higher sales and 13% higher price), which was partially offset by higher operating costs during the period (11% increase). \n Production \n Copper production in H1 2024 was 132,500 tonnes, representing a year-on-year increase of 3%. This movement reflects a balance between the higher level of ore processing in 2024 following the completion of the Phase 1 Expansion Project, offset by the accumulation of concentrate inventories due to extended maintenance in Q1 2024 at the concentrate pipeline and lower grades . \n As referenced above, pipeline maintenance in Q1 2024 resulted in an inventory of concentrate being stockpiled at the processing plant. The Company is seeking to transfer this material to the Company's port at Los Vilos over the course of the next 2-3 quarters, where it will be recorded as production. \n Molybdenum production for the first six months of the year increased by 24% to 4,200 tonnes (from 3,400 in H1 2023), due to higher throughput. Gold production in H1 2024 decreased by 4% to 18,900 oz (from 19,600 oz H1 2023), due to lower grades, offset by higher throughput rates. \n Costs \n Cash costs before by-product credits rose by 6% in H1 2024 on a year-on-year basis to $2.16/lb, reflecting 17% lower ore grades, compensated by increased throughput from the Los Pelambres Phase 1 Expansion project, the depreciation of the Chilean peso and lower unit costs for key consumables, such as diesel, grinding media and explosives. \n Net cash costs in H1 2024 were 3% higher than H1 2023, primarily as a result of the increase in underlying cash costs, with an increase in the by-product credit to 95c/lb (H1 2023: 87c/lb) serving to partially mitigate this increase. \n Capital expenditure \n Total capital expenditure at Los Pelambres in the first six months of 2024 was $355.1 million, of which $189.5 million was sustaining capital expenditure, $80.2 million was mine development and $73.0 million was on the Los Pelambres Expansion project. \n Compared with H1 2023, total capital expenditure decreased by 27%, with this decrease including a $164.7 million decrease in expenditure on the Los Pelambres Expansion, a $16.2 million decrease in mine development and a $43.7 million increase in sustaining capital expenditure. \n CENTINELA \n Financial performance \n EBITDA for the first six months of 2024 was $329.9 million, a decrease of 30% compared with the first half of 2023. This decrease was principally due to lower copper concentrates sales volumes (44% decrease), partially offset by higher copper cathodes sales volumes (27% increase) and the higher realised copper price compared with the same period last year. \n Production \n Total copper production in H1 2024 was 15% lower on a year-on-year basis at 93,000 tonnes, with this movement primarily driven by lower grades at the concentrator. \n Copper in concentrate production in H1 2024 was 41% below the same period in 2023, with 43,600 tonnes produced. This year-on-year decrease in output reflects the lower grades and harder ores mined in Q1 2024, in line with the mine plan, and lower copper grades and lower recoveries in Q2 2024, partially offset by an increase in ore throughput rates. \n Cathode production in H1 2024 of 49,400 tonnes represents a level 41% higher than the same period in 2023 and reflects an increase in the factors discussed above for Q2 2024, as well as higher recovery rates. \n Gold production in H1 2024 was 48,000 ounces, representing a level 28% lower than the same period in 2023, and this year-on-year change is primarily the result of lower gold grades within the ores processed, as well as lower recoveries. \n Molybdenum production in H1 2024 decreased by 33% to 1,000 tonnes (from 1,500 tonnes in H1 2023), due to lower grades. \n Costs \n Cash costs before by-product credits in H1 2024 were $3.31/lb, 17% higher on a year-on-year basis due to lower production, driven by lower grades, offset by depreciation of the Chilean peso. \n Net cash costs in H1 2024 were 32% higher at $2.48/lb, with this increase reflected in movements in the underlying cash cost and lower by-product credits because of lower gold production. \n Capital expenditure \n Capital expenditure in the first six months of 2024 was $631.3 million, of which $118.9 million was sustaining capex, $107.5 million was mine development and $404.9 million was development capex, of which $345.0 million was on the Centinela Second Concentrator project (H1 2023: $51.7 million). \n Compared with H1 2023, total capital expenditure at Centinela increased by 38% in H1 2024, as a result of $334.4 million higher expenditure on development capital expenditure partially offset by a $176.8 million decrease in mine development. \n ANTUCOYA \n Financial performance \n For the first half of the year, EBITDA was $133.9 million, an increase of 31% compared with $102.2 million in the same period last year, due to the higher realised copper price and higher sales volumes. \n Production \n Copper production in H1 2024 of 40,300 tonnes represents a level 6% above the same period in 2023, reflecting higher throughput rates. \n Costs \n Cash costs in H1 2024 of $2.58/lb were 5% lower as a result of depreciation of the Chilean peso and reduced unit costs for key consumables . \n Capital expenditure \n Capital expenditure in the first six months of the year was $52.0 million, of which $37.1 million was sustaining capex, $14.4 million was mine development and $0.6 million was development capex. \n Compared with H1 2023, capital expenditure increased by 26% in H1 2024, which was due to an increase of $6.3 million in sustaining capital expenditure and $4.6 million on mine development. \n ZALDÍVAR \n Financial performance \n Attributable EBITDA at Zaldívar was $50.9 million in the first half of 2024, compared with $42.5 million in the same period last year because of the higher realised copper price, partially offset by lower sales volumes. \n Production \n Total attributable copper production of 18,900 tonnes in H1 2024 at Zaldívar was 5% lower than the same period in 2023, as a result of lower grades and recoveries, with these factors partially offset by an increase in ore throughput rates . \n \n Costs \n During H1 2024, cash costs of $2.97/lb were in line with the same period in 2023, reflecting a balance of depreciation of the Chilean peso, lower unit costs for key consumables and a reduction in costs associated with planned maintenance, offset by an increase in costs associated with the utilisation of inventory from prior periods and consumption rates. \n Capital expenditure \n In the first six months of 2024, attributable capital expenditure was $16.5 million, of which $10.3 million was sustaining capital expenditure and $6.3 million was development capital expenditure. \n Compared with H1 2023, capital expenditure was 17% lower, mainly due to a decrease of $4.7 million in sustaining capital expenditure partially offset by an increase of $1.4 million on growth expenditure. \n Other matters \n In early 2024, approval was received from the authorities for the DIA (Declaration of Environmental Impact) to extend the mining permit and, therefore, align the water and mining permits at Zaldívar. This approval ensures that the operation has rights to mine ore and extract water until 2025. The mine life after 2025 is, therefore, subject to the approval of and Environmental Impact Assessment (EIA). \n With 9 months to the current permit's expiry date (Sept 2024-May 2025), the formal process for reviewing the EIA submitted for Zaldívar continues, with responses to the second round of queries raised by various government agencies in Chile currently being prepared by the Company for planned submission in Q4 2024. For reference, the Company had responded to the first round of queries in Q1 2024, and a summary of the EIA submitted and the application process to date was provided in the Company's Q1 2024 Production Report. The process envisages up to three rounds of comments and responses. \n Under local environmental regulations if the EIA 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. \n Separate to the above permits, and as previously reported, the Company (as well as other named defendants) submitted a response contradicting the allegations made by the Consejo de Defensa del Estado (CDE), an independent governmental agency that represents the interests of the Chilean state, who previously filed a claim against Minera Escondida, Albemarle and Zaldívar, alleging that their extraction of water from the Monturaqui-Negrillar-Tilopozo aquifer over the years has impacted the underground water level. The evidentiary record is now closed, and a decision from the Court is pending. However, conversations regarding a potential settlement are continuing. \n TRANSPORT DIVISION \n Financial performance \n EBITDA at the Transport Division was $42.5 million in the first half of 2024, a 9% improvement on the same period last year due to lower operating costs. \n Transport volumes \n The total volume transported in H1 2024 result was 3.5 million tonnes representing a 1% decrease year-on-year. Rail volumes performed ahead of the prior period as a result of higher demand for the transportation of concentrates and sulphuric acid. Road volumes in H1 2024 were lower, predominantly as a result of reduced levels of activity related to customers producing lithium brines. \n Capital expenditure \n Capital expenditure for the first half of the year was $19.3 million, a decrease of 22% compared with the same period in 2023. \n \n \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 \n Capex to date 1 \n \n \n Status \n(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 210kt per day. \n \n \n $2.3Bn \n \n \n Completed \n \n \n Operational (2024) \n \n \n Operational. Commissioning began in H2 2023, with 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 and effectively decouple the operation from continental water sources. \n \n \n Approx. $1Bn \n \n \n $98m \n \n \n Underway (2027) \n \n \n EIA approval received in late 2023. Purchase orders of key filtration equipment executed. \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 enclosures at the El Mauro tailings storage facility. \n \n \n Approx. $1Bn \n \n \n $61m \n \n \n Underway (2027) \n \n \n EIA approval received in late 2023. Construction work commenced H1 2024. 100% of the required piping received. \n \n \n \n \n Development options \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 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 in preparation. \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 2 \n \n \n $400m \n \n \n Underway (2027) \n \n \n Full construction commenced in April 2024. $600m received for the transfer of water assets. \n \n \n \n \n Encuentro mine development \n \n \n Mine development work to access sulphide ores below at 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 \n \n 1 Figures provided are estimates and as at 30 June 2024. \n \n \n 2 Figure quoted here ($4.4Bn) has been reduced by $380m following the completion of the process to outsource Centinela's existing and planned water infrastructure. \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. This action is pending. \n \n FINANCIAL REVIEW FOR THE SIX MONTHS ENDED 30 JUNE 2024 \n \n Results (unaudited) \n \n \n \n \n \n \n \n \n \n \n \n \n \n Six months ended \n 30.06.2024 \n \n \n Six months ended \n 30.06.2023 \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 \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 \n \n Revenue \n \n \n 2,955.2 \n \n \n - \n \n \n 2,955.2 \n \n \n 2,890.1 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n EBITDA (including share of EBITDA from associates and joint ventures) 1 \n \n \n 1,394.4 \n \n \n - \n \n \n 1,394.4 \n \n \n 1,331.0 \n \n \n \n \n Total operating costs \n \n \n (2,283.9) \n \n \n - \n \n \n (2,283.9) \n \n \n (2,116.4) \n \n \n \n \n Operating profit from subsidiaries \n \n \n 671.3 \n \n \n - \n \n \n 671.3 \n \n \n 773.7 \n \n \n \n \n Net share of results from associates and joint ventures \n \n \n 17.2 \n \n \n - \n \n \n 17.2 \n \n \n (0.4) \n \n \n \n \n Total profit from operations, associates and joint ventures \n \n \n 688.5 \n \n \n - \n \n \n 688.5 \n \n \n 773.3 \n \n \n \n \n Net finance expense \n \n \n (26.9) \n \n \n 51.0 \n \n \n 24.1 \n \n \n (8.8) \n \n \n \n \n Profit before tax \n \n \n 661.6 \n \n \n 51.0 \n \n \n 712.6 \n \n \n 764.5 \n \n \n \n \n Income tax expense \n \n \n (286.8) \n \n \n (12.7) \n \n \n (299.5) \n \n \n (229.3) \n \n \n \n \n Profit for the year \n \n \n 374.8 \n \n \n 38.3 \n \n \n 413.1 \n \n \n 535.2 \n \n \n \n \n Attributable to: \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Non-controlling interests \n \n \n 153.5 \n \n \n - \n \n \n 153.5 \n \n \n 204.8 \n \n \n \n \n Profit attributable to the owners of the parent \n \n \n 221.3 \n \n \n 38.3 \n \n \n 259.6 \n \n \n 330.4 \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 \n \n Basic earnings per share from continuing operations \n \n \n 22.4 \n \n \n 3.9 \n \n \n 26.3 \n \n \n 33.5 \n \n \n \n \n \n 1 EBITDA refers to Earnings Before Interest, Tax, Depreciation and Amortisation. EBITDA is calculated by adding back depreciation, amortisation, profit or loss on disposals and impairment charges to operating profit. This comprises 100% of the EBITDA from the Group´s subsidiaries, and the Group´s proportional share of the EBITDA of its associates and joint ventures. \n \n The $70.8 million decrease in the profit for the financial period attributable to the owners of the parent (including exceptional items) from $330.4 million in the first six months of 2023 to $259.6 million in the current period reflected the following factors: \n \n \n \n \n \n \n \n \n $m \n \n \n \n \n Profit for the financial period attributable to the owners of the parent in H1 2023 \n \n \n 330.4 \n \n \n \n \n \n \n \n \n \n \n \n \n Increase in revenue \n \n \n 65.1 \n \n \n \n \n Increase in total operating costs \n \n \n (167.5) \n \n \n \n \n Increase in net share of results from associates and joint ventures \n \n \n 17.6 \n \n \n \n \n Increase in net finance expenses \n \n \n (18.1) \n \n \n \n \n Increase in income tax expense \n \n \n (57.5) \n \n \n \n \n Decrease in non-controlling interests \n \n \n 51.3 \n \n \n \n \n \n \n \n (109.1) \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 221.3 \n \n \n \n \n Exceptional items - 2024 (post tax) \n \n \n 38.3 \n \n \n \n \n Profit for the financial period attributable to the owners of the parent in H1 2024 \n \n \n 259.6 \n \n \n \n \n \n \n Revenue \n \n The $65.1 million increase in revenue from $2,890.1 million in the first six months of 2023 to $2,955.2 million in the current period 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 the first six months of 2023 \n \n \n 2,890.1 \n \n \n \n \n \n \n \n \n \n \n \n \n Increase in realised copper price \n \n \n 232.9 \n \n \n \n \n Decrease in copper sales volumes \n \n \n (139.8) \n \n \n \n \n Increase in treatment and refining charges \n \n \n (2.9) \n \n \n \n \n Decrease in gold revenue \n \n \n (15.9) \n \n \n \n \n Decrease in molybdenum revenue \n \n \n (6.2) \n \n \n \n \n Decrease in silver revenue \n \n \n (2.5) \n \n \n \n \n Decrease in transport division revenue \n \n \n (0.5) \n \n \n \n \n \n \n \n 65.1 \n \n \n \n \n \n \n \n \n \n \n \n \n Revenue in the first six months of 2024 \n \n \n 2,955.2 \n \n \n \n \n \n \n Revenue from the Mining division \n \n Revenue in the first half of 2024 from the Mining division increased by $65.6 million, or 2%, to $2,857.2 million, compared with $2,791.6 million in the first six months of 2023. The increase reflected a $90.2 million increase in copper sales, partly offset by a $24.6 million decrease in by-product revenues. \n \n \n Revenue from copper sales \n \n Revenue from copper concentrate and copper cathode sales increased by $90.2 million, or 3.9%, to $2,423.0 million, compared with $2,332.8 million in the first six months of 2023. The increase reflected the impact of $232.9 million from higher realised prices, partly offset by a $139.8 million reduction due to lower sales volumes and a $2.9 million reduction in revenue from higher treatment and refining charges. \n \n (i) Realised copper price \n \n The average realised price increased by 10.3% to $4.40/lb in the first six months of 2024 (first half of 2023 - $3.99/lb), resulting in a $232.9 million increase in revenue. The LME average market price increased by 4.6% in H1 2024 to $4.13/lb (first half of 2023 - $3.95/lb). In the first half of 2024 there was a $118.9 million positive impact from provisional pricing adjustments, mainly as a result of a positive impact in the settlement of sales invoiced in the current year. \n \n Realised copper prices are determined by comparing revenue (before 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 condensed consolidated interim financial statements. \n \n \n (ii) Copper volumes \n \n Copper sales volumes reflected within revenue decreased by 5.8% from 275,100 tonnes in 2023 to 259,200 tonnes in 2024, decreasing revenue by $139.8 million. This decrease was mainly due to lower production at Centinela (16,200 tonne decrease), as a result of lower copper grades and harder ores mined. \n \n (iii) Treatment and refining charges \n \n Treatment and refining charges (TC/RCs) for copper concentrate increased by $2.9 million to $90.7 million in the first half of 2024, compared with $87.8 million in the first six months of 2023, reflecting higher rates, partially offset by decreased concentrate sales volumes at Centinela. \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 increase in these charges has had a negative impact on revenue in the year. \n \n \n Revenue from molybdenum, gold and other by-product sales \n \n Revenue from by-product sales at Los Pelambres and Centinela relate mainly to molybdenum and gold and, to a lesser extent, silver. Revenue from by-products decreased by $24.6 million or 5.4% to $434.2 million in the first half of 2024, compared with $458.8 million in the first six months of 2023. This decrease was mainly due to the lower gold sales volumes and molybdenum realised price, partly offset by an increase in molybdenum sales volumes and a higher gold realised price. \n \n Revenue from molybdenum sales (net of roasting charges) was $266.0 million (first half of 2023 - $272.2 million), a decrease of $6.2 million. The decrease was due to the lower realised price of $22.8/lb (first half of 2023 - $25.0/lb), partially offset by higher sales volumes of 5,600 tonnes (first half of 2023 - 5,200 tonnes). \n \n Revenue from gold sales (net of treatment and refining charges) was $140.8 million (first half of 2023 - $156.7 million), a decrease of $15.9 million which reflected a decrease in gold sales volumes, partially offset by a higher realised price. Gold sales volumes decreased by 22.7% from 78,900 ounces in the first half of 2023 to 61,000 ounces in the first six months of 2024, mainly due to lower production at Centinela, primarily the result of lower gold grades within the ores processed, as well as lower recoveries. The realised gold price was $2,313.8/oz in the first half of 2024 compared with $1,989.4/oz in the first six months of 2023, reflecting the average market price for 2024 of $2,205.1/oz (first half of 2023 - $1,931.6/oz) and a positive provisional pricing adjustment of $3.3 million. \n \n Revenue from silver sales decreased by $2.5 million to $27.4 million (first six months of 2023 - $29.9 million). The decrease was due to lower sales volumes of 1.0 million ounces (first half of 2023 - 1.2 million ounces), partially offset by a higher realised silver price of $27.6/oz (first six months of 2023 - $24.9/oz). \n \n \n \n Revenue from the Transport division \n \n Revenue from the Transport division (FCAB) decreased by $0.5 million or 0.5% to $98.0 million (first six months of 2023 - $98.5 million), mainly due to lower transport volumes in the truck business. \n \n \n Total operating costs \n \n The $167.5 million increase in total operating costs from $2,116.4 million in the first half of 2023 to $2,283.9 million in the first six months of 2024 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 the first half of 2023 \n \n \n 2,116.4 \n \n \n \n \n \n \n \n \n \n \n \n \n Increase in mine-site operating costs \n \n \n 20.9 \n \n \n \n \n Increase in closure provision and other mining expenses \n \n \n 26.2 \n \n \n \n \n Decrease in exploration and evaluation costs \n \n \n (2.5) \n \n \n \n \n Decrease in corporate costs \n \n \n (9.3) \n \n \n \n \n Decrease in Transport division operating costs \n \n \n (3.7) \n \n \n \n \n Increase in depreciation, amortisation and loss on disposals \n \n \n 135.9 \n \n \n \n \n \n \n \n 167.5 \n \n \n \n \n \n \n \n \n \n \n \n \n Total operating costs in the first six months of 2024 \n \n \n 2,283.9 \n \n \n \n \n \n \n Operating costs (excluding depreciation, amortisation and loss on disposals) at the Mining division \n \n Operating costs (excluding depreciation, amortisation, loss on disposals and impairments) at the Mining division increased by $35.3 million to $1,577.5 million in the first half of 2024, an increase of 2.3%. \n \n Of this increase, $20.9 million was attributable to higher mine-site operating costs. This increase in mine-site costs reflected higher unit costs mainly due to lower ore grade and recoveries at Centinela concentrates and lower grades at Los Pelambres, partially offset by lower key input prices, depreciation of the Chilean peso, decreased sales volumes in the period and the cost savings from the Group's Cost and Competitiveness Programme. \n \n On a unit cost basis, weighted average cash costs excluding treatment and refining charges and by-product revenues increased from $2.32/lb in the first six months of 2023 to $2.48/lb in the first six months of 2024. As detailed in the alternative performance measures section on page 56 of the half-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 the first half of 2024, the programme achieved benefits of $130.0 million in the mining division, of which $49.3 million reflected cost savings and $80.7 million reflected the value of productivity improvements. Of the $49.3 million of cost savings, $46.8 million related to Los Pelambres, Centinela and Antucoya, and therefore impacted the Group's operating costs, and $2.5 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 $26.2 million. In the current period these costs include $13 million in respect of the \"ad valorem\" element of the new mining royalty at Los Pelambres. 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 increase in these expenses also reflected additional expenditure on project evaluation costs at Los Pelambres. \n \n Exploration and evaluation costs decreased by $2.5 million to $26.8 million (2023 - $29.3 million), reflecting decreased exploration and evaluation expenditure principally in respect of Chile exploration. \n \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 decreased by $3.7 million to $59.2 million (first half of 2023 - $62.9 million), mainly due a weaker Chilean peso and lower diesel price. \n \n \n Depreciation, amortisation and disposals \n \n The depreciation and amortisation charge increased by $135.9 million in the first half of 2024 to $647.2 million (first half of 2023 - $511.3 million). This increase was mainly due to higher depreciation at Los Pelambres following completion of the Phase 1 Expansion Project as well as the acquisition of other additional assets, and also increases at Centinela in respect of the amortisation of IFRIC 20 stripping costs and the depreciation of additional leased assets . \n \n \n Operating profit from subsidiaries \n \n As a result of the above factors, operating profit from subsidiaries decreased by $102.4 million or 13.2% in 2024 to $671.3 million (first half of 2023 - $773.7 million). \n \n \n Share of results from associates and joint ventures \n \n The Group's share of results from associates and joint ventures increased by $17.6 million to a gain of $17.2 million in the first six months of 2024, compared with a loss of $0.4 million in the first half of 2023. This reflected higher earnings from Zaldívar and also the contribution from Compañía de Minas Buenaventura S.A.A., which has been accounted for as an associate from March 2024 onwards. \n \n \n EBITDA \n \n EBITDA (earnings before interest, tax, depreciation and amortisation) increased by $63.4 million or 4.8% to $1,394.4 million (first half of 2023 - $1,331.0 million). EBITDA includes the Group's proportional share of EBITDA from associates and joint ventures. \n \n EBITDA from the Mining division increased by $60.0 million or 4.6% from $1,291.9 million in the first six months of 2023 to $1,351.9 million this half year. This reflected the higher revenue explain above and higher EBITDA from associates and joint ventures, partially offset by higher mine-site costs. \n \n EBITDA at the Transport division increased by $3.4 million to $42.5 million in 2024 ($39.1 million - first half of 2023), mainly due to lower operating costs. \n \n Commodity price and exchange rate sensitivities \n \n The following sensitivities show the estimated approximate impact on EBITDA for the first six months of 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 the first six months of 2024, and the impact of the movement in the average exchange rate reflects the estimated impact on Chilean peso denominated operating costs during the period. 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 period-end. \n \n \n \n \n \n \n \n \n Average market commodity price / average exchange rate during the six months ended 30.06.24 \n \n \n Impact of a 10% movement in the commodity price / exchange rate on EBITDA \nfor the six months ended 30.06.24 \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 $4.13/lb \n \n \n 252 \n \n \n \n \n Molybdenum price \n \n \n $20.9/lb \n \n \n 26 \n \n \n \n \n Gold price \n \n \n $2,205.1/oz \n \n \n 13 \n \n \n \n \n US dollar / Chilean peso exchange rate \n \n \n 941 \n \n \n 85 \n \n \n \n \n \n \n Net finance expense (excluding exceptional items) \n \n Net finance expense (excluding exceptional items) of $26.9 million reflected an increase of $18.1 million compared with the $8.8 million expense in H1 2023. \n \n \n \n \n \n \n \n \n Six months ended 30.06.24 \n $m \n \n \n Six months ended 30.06.23 \n $m \n \n \n \n \n Investment income \n \n \n 73.5 \n \n \n 72.1 \n \n \n \n \n Interest expense \n \n \n (132.1) \n \n \n (50.9) \n \n \n \n \n Other finance items \n \n \n 31.7 \n \n \n (30.0) \n \n \n \n \n Net finance expense \n \n \n (26.9) \n \n \n (8.8) \n \n \n \n \n \n \n Investment income increased marginally from $72.1 million in the first six months of 2023 to $73.5 million in H1 2024. \n \n Interest expense increased from $50.9 million in 2023 to $132.1 million in 2024, reflecting mainly the start of expensing of the interest on the borrowing in respect Los Pelambres' Phase 1 Expansion Project following the completion of the project construction, as well as to a lesser extent, an increase in the average borrowing balances and an increase in average interest rates. \n \n Other finance items were a net gain of $31.7 million, compared with a net loss of $30.0 million in 2023, a variance of $61.7 million. This was mainly due to the foreign exchange impact of the retranslation of Chilean peso denominated assets and liabilities, which resulted in a $41.5 million gain in 2024 compared with a $22.0 million loss in 2023. In addition, there was an expense of $9.7 million in respect of the unwinding of the discounting of provisions (first half of 2023 - expense of $7.9 million). \n \n \n Profit before tax (excluding exceptional items) \n \n As a result of the factors set out above, profit before tax decreased by 13.5% to $661.6 million in the first half of 2024 (first half of 2023 - $764.5 million). \n \n \n Income tax expense \n \n The tax charge in the first half of 2024 excluding exceptional items increased by $57.5 million to $286.8 million (first half of 2023 - $229.3 million) and the effective tax rate for the period was 43.3% (first half of 2023 - 30.0%). Including exceptional items, the tax charge in the first half of 2024 was $299.5 million and the effective tax rate was 42.0%. \n \n \n \n \n \n \n \n \n \n \n \n Six months \n \n \n \n \n \n \n \n \n Six months \n \n \n \n \n \n Six months \n \n \n \n \n \n \n \n \n \n \n \n \n \n ended \n \n \n \n \n \n \n \n \n ended \n \n \n \n \n \n ended \n \n \n \n \n \n \n \n \n \n \n \n \n \n 30.06.2024 \n Excluding \n exceptional \n items \n \n \n \n \n \n \n \n \n 30.06.2024 \n Including \n exceptional \n items \n \n \n \n \n \n 30.06.2023 \n \n \n \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 \n \n \n \n \n Profit before tax \n \n \n \n \n \n 661.6 \n \n \n \n \n \n \n \n \n 712.6 \n \n \n \n \n \n \n \n \n 764.5 \n \n \n \n \n \n \n \n \n \n \n Tax at the Chilean corporate tax rate of 27% \n \n \n \n \n \n (178.7) \n \n \n 27.0 \n \n \n \n \n \n (192.4) \n \n \n \n \n \n 27.0 \n \n \n \n \n \n (206.4) \n \n \n 27.0 \n \n \n \n \n \n \n \n Mining Tax (royalty) \n \n \n \n \n \n (117.0) \n \n \n 17.7 \n \n \n \n \n \n (117.0) \n \n \n \n \n \n 16.4 \n \n \n \n \n \n (47.1) \n \n \n 6.2 \n \n \n \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 30.6 \n \n \n (4.6) \n \n \n \n \n \n 30.6 \n \n \n \n \n \n (4.3) \n \n \n \n \n \n 13.2 \n \n \n (1.7) \n \n \n \n \n \n \n \n Withholding tax \n \n \n \n \n \n (13.5) \n \n \n 2.0 \n \n \n \n \n \n (13.5) \n \n \n \n \n \n 1.9 \n \n \n \n \n \n 19.7 \n \n \n (2.6) \n \n \n \n \n \n \n \n Items not deductible from first category tax \n \n \n \n \n \n (5.6) \n \n \n 0.8 \n \n \n \n \n \n (5.6) \n \n \n \n \n \n 0.8 \n \n \n \n \n \n (6.9) \n \n \n 0.9 \n \n \n \n \n \n \n \n Adjustment in respect of prior years \n \n \n \n \n \n (3.8) \n \n \n 0.6 \n \n \n \n \n \n (3.8) \n \n \n \n \n \n 0.5 \n \n \n \n \n \n (0.9) \n \n \n 0.1 \n \n \n \n \n \n \n \n Difference in overseas tax rates \n \n \n \n \n \n - \n \n \n - \n \n \n \n \n \n 1.0 \n \n \n \n \n \n (0.1) \n \n \n \n \n \n - \n \n \n - \n \n \n \n \n \n \n \n Tax effect of share of profit of associates and joint ventures \n \n \n \n \n \n 2.0 \n \n \n (0.3) \n \n \n \n \n \n 2.0 \n \n \n \n \n \n (0.3) \n \n \n \n \n \n (0.1) \n \n \n - \n \n \n \n \n \n \n \n Impact of unrecognised tax losses on current tax \n \n \n \n \n \n (0.8) \n \n \n 0.1 \n \n \n \n \n \n (0.8) \n \n \n \n \n \n 0.1 \n \n \n \n \n \n (0.8) \n \n \n 0.1 \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 \n \n \n \n \n \n \n \n \n Tax expense and effective tax rate for the period \n \n \n \n \n \n (286.8) \n \n \n 43.3 \n \n \n \n \n \n (299.5) \n \n \n 42.0 \n \n \n \n \n \n (229.3) \n \n \n 30.0 \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 The effective tax rate excluding exceptional items for the period was 43.3%, which compares with 30.0% in 2023 (partly reflecting a one-off adjustment to the provision for deferred withholding tax). 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 43.3% varied from the statutory rate principally due to: \n · The mining tax (royalty) (net impact of $ 86.4 million / 13.1% including the deduction of the mining tax (royalty) as an allowable expense in the determination of first category tax); \n · The withholding tax relating to the remittance of profits from Chile (impact of $13.5 million / 2.0%); \n · Items not deductible for Chilean corporate tax purposes, principally the funding of expenses outside of Chile (impact of $5.6 million / 0.8%); \n · Adjustments in respect of prior years (impact of $3.8 million / 0.6%), and the impact of previously unrecognized tax losses (impact of $0.8 million / 0.1%); \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 $2.0 million / 0.3%). \n \n The new Chilean mining royalty had 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 from 1 January 2024. The impact of the new royalty for Los Pelambres in the first six months of 2024 included the recognition of a $13 million expenses within operating expenses in respect of the ad valorem element. Centinela and Antucoya have tax stability agreements in place, and so 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 are non-regular or non-operating and 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 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 (six months ended 30 June 2023 - nil) was recognised during the first six months of 2024 in respect of this agreement. A deferred tax expense of $12.7 million (six months ended 30 June 2023 - nil) has been recognised in respect of this gain, resulting in a post-tax impact of $38.3 million (six months ended 30 June 2023 - nil). \n \n \n Non-controlling interests \n \n Profit for the first half of the year attributable to non-controlling interests was $153.5 million, compared with $204.8 million in the first half of 2023, a decrease of $51.3 million. This reflected the decrease in earnings analysed above. \n \n \n Earnings per share \n \n \n \n \n \n \n \n \n \n \n Six months ended 30.06.24 \n \n \n Six months ended \n 30.06.23 \n \n \n \n \n \n \n \n \n \n \n $ cents \n \n \n $ cents \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Underlying earnings per share (excluding exceptional items) \n \n \n \n \n \n 22.4 \n \n \n 33.5 \n \n \n \n \n Earnings per share (exceptional items) \n \n \n \n \n \n 3.9 \n \n \n - \n \n \n \n \n Earnings per share (including exceptional items) \n \n \n \n \n \n 26.3 \n \n \n 33.5 \n \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, profit attributable to equity shareholders of the Company (excluding exceptional items) was $221.3 million, compared with $330.4 million in the first half of 2023, and underlying earnings per share (excluding exceptional items) were 22.4 cents for the first half of 2024 (first half of 2023 - 33.5 cents per share). The profit attributable to equity shareholders (including exceptional items) was $259.6 million, resulting in earnings per share (including exceptional items) of 26.3 cents per share for the first half of 2024. \n \n \n Dividends \n \n Dividends per share declared in relation to the period are as follows: \n \n \n \n \n \n \n \n \n \n \n \n Six months ended 30.06.24 \n \n \n Six months ended \n 30.06.23 \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 Total dividends to ordinary shareholders \n \n \n \n \n \n 7.9 \n \n \n 11.7 \n \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 declared an interim dividend for the first half of 2024 of 7.9 cents per ordinary share, which amounts to $77.9 million. The interim dividend will be paid on 30 September 2024 to ordinary shareholders that are on the register at the close of business on 6 September 2024. \n \n \n Capital expenditure \n \n Capital expenditure increased by $37.6 million from $1,021.9 million in the first half of 2023 to $1,059.5 million in the current period, mainly due to the start of the Centinela Second Concentrator project and 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. \n \n Capital expenditure figures quoted in this report are on a cash flow basis, unless stated otherwise. \n \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 30 June 2024 there were foreign exchange derivative financial instruments in place in respect of the Centinela Second Concentrator project capex, with a negative fair value of $15.7 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 Six months ended 30.06.24 \n \n \n \n Six months ended 30.06.23 \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 1,483.9 \n \n \n 1,296.4 \n \n \n \n \n Income tax paid \n \n \n \n \n \n (316.8) \n \n \n (323.2) \n \n \n \n \n Net interest paid \n \n \n \n \n \n (77.3) \n \n \n (18.2) \n \n \n \n \n Purchases of property, plant and equipment \n \n \n \n \n \n (1,059.5) \n \n \n (1,021.9) \n \n \n \n \n Dividends paid to equity holders of the Company \n \n \n \n \n \n (239,6) \n \n \n (497.9) \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 Dividends from associates and joint ventures \n \n \n \n \n \n 3.5 \n \n \n - \n \n \n \n \n Capital increase from non-controlling interest \n \n \n \n \n \n 39.7 \n \n \n - \n \n \n \n \n Acquisition of equity investments \n \n \n \n \n \n - \n \n \n (8.4) \n \n \n \n \n Other items \n \n \n \n \n \n 0.1 \n \n \n (0.1) \n \n \n \n \n Changes in net (debt)/cash relating to cash flows \n \n \n \n \n \n (166.0) \n \n \n 81.3 \n \n \n \n \n Other non-cash movements \n \n \n \n \n \n (124.1) \n \n \n (14.8) \n \n \n \n \n Effects of changes in foreign exchange rates \n \n \n \n \n \n 11.3 \n \n \n (2.0) \n \n \n \n \n Movement in net (debt)/cash in the period \n \n \n \n \n \n (278.8) \n \n \n 64.5 \n \n \n \n \n Net (debt)/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 period \n \n \n \n \n \n (1,438.6) \n \n \n (821.3) \n \n \n \n \n \n \n Cash flows from continuing operations were $1,483.9 million in the first half of 2024 compared with $1,296.4 million in the first half of 2023. This reflected EBITDA from subsidiaries for the period of $1,318.5 million (first half of 2023 - $1,285.0 million) adjusted for the positive impact of a net working capital decrease of $171.9 million (first half of 2023 - negative impact of $12.2 million from a net working capital increase), partly offset by a non-cash decrease in provisions of $6.5 million (first half of 2023 - positive impact of an increase in provisions of $23.6 million). \n \n The $171.9 million working capital decrease in the first six months of 2024 reflected a decrease in receivables, predominantly due to lower sales volumes at June 2024 compared with December 2023, and an increase in accounts payable, partly offset by an increase of work in progress inventories at Los Pelambres. \n \n The net cash outflow in respect of tax in the first half of 2024 was $316.8 million (first half of 2023 - $323.2 million). This amount differs from the current tax charge in the consolidated income statement (including exceptional items) of $394.0 million (first half of 2023 - $284.3 million) mainly because cash tax payments for corporate tax and the mining tax include payments on account for the current year (based on prior periods' profit levels) of $218.8 million (first half of 2023 - $311.0 million), withholding tax payments of $66.5 million (first half of 2023 - $0.1 million), the settlement of outstanding balances in respect of the previous year's tax charge of $49.3 million (first half of 2023 - $14.6 million), as well as the recovery of $17.8 million relating to prior years (first half of 2023 - recovery of $2.6 million). \n \n Capital expenditure in the first half of 2024 was $1,059.5 million compared with $1,021.9 million in the first half of 2023. This included expenditure of $631.3 million at Centinela (first half of 2023 - $459.0 million), $355.1 million at Los Pelambres (first half of 2023 - $486.6 million), $52.1 million at Antucoya (first half of 2023 - $41.2 million), $19.3 million at the Transport division (first half of 2023 - $24.6 million) and $1.7 million at Corporate (first half of 2023 - $10.5 million). The increase in capital expenditure reflects the start of the Centinela Second Concentrator project and 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. \n \n Dividends paid to equity holders of the Company in the first half of 2024 were $239.6 million (first half of 2023 - $497.9 million), related to the payment of the final dividend declared in respect of 2023. \n Dividends received from associates and joint ventures of $3.5 million (six months ended 30 June 2023 - nil) related to a dividend received from Compañía de Minas Buenaventura S.A.A. \n \n A capital contribution of $39.7 million was received from Marubeni, the minority partner at Centinela, in respect of financing for the Centinela Second Concentrator project. \n \n \n Financial position \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n At 30.06.24 \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 4,432.2 \n \n \n 2,919.4 \n \n \n \n \n Total borrowings \n \n \n \n \n \n \n \n \n (5,870.8) \n \n \n (4,079.2) \n \n \n \n \n Net cash/(debt) at the end of the period \n \n \n \n \n \n \n \n \n (1,438.6) \n \n \n (1,159.8) \n \n \n \n \n \n \n At 30 June 2024, the Group had combined cash, cash equivalents and liquid investments of $4,432.2 million (31 December 2023 - $ 2,919.4 ). Excluding the non-controlling interest share in each partly-owned operation, the Group's attributable share of cash, cash equivalents and liquid investments was $3,572.2 million (31 December 2023 - $ 2,490.5 million). \n \n Total Group borrowings and other financial liabilities at 30 June 2024 were $5,870.8 million, an increase of $1,791.6 million on the prior year (at 31 December 2023 - $ 4,079.2 million). The increase was mainly due to $742.0 million from the issue of the new corporate bond, $600.0 million from the other financial liabilities at Centinela, $475.0 million in respect of a short-term loan at Los Pelambres, $209.8 million in respect of the first tranche of the project financing at Centinela, partly offset by a $270.3 million repayment of the senior loans at Los Pelambres ($185.3 million), Centinela ($55.0 million), Antucoya ($25.0 million) and the Transport division ($5.0 million). \n \n In June 2024 the Group announced completion of the process whereby Minera Centinela (\"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 transferred to an international consortium for net cash proceeds of $600 million, which was received as of late June 2024. 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 \n Excluding the non-controlling interest share in each partly-owned operation, the Group's attributable share of the borrowings was $4,394.0 million (31 December 2023 - $ 2,948.3 million). \n \n This resulted in net debt at 30 June 2024 of $1,438.6 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 $ 821.8 million (31 December 2023 - net debt $ 457.8 million). \n \n \n Going concern \n \n The financial information contained in this half-year financial report 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 half-year results announcement. \n \n Principal risks and uncertainties \n \n There are a number of potential risks and uncertainties which could have a material impact on the Group's performance over the remaining six months of the financial year and could cause actual results to differ materially from expected and historical results. The principal risks and uncertainties which were disclosed in the 2023 Annual Report are as follows: \n \n · Talent management \n · Labour relations \n · Safety and health \n · Environmental management \n · Climate change \n · Community relations \n · Political, legal and regulatory \n · Corruption \n · Operations \n · Tailing storage \n · Strategic resources \n · Cyber security \n · Liquidity \n · Commodity prices and exchange rates \n · Growth of mineral resource base and opportunities \n · Project development and execution \n · Innovation and digitisation \n · External risks \n \n There have been no changes to the above categories of key risks in the first six months of 2024. \n \n A detailed explanation of the risks summarised above can be found in the Risk Management section of the 2023 Annual Report, which is available at www.antofagasta.co.uk. \n \n Cautionary statement about forward-looking statements \n \n This half-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: natural events, 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 Condensed Consolidated Income Statement \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Six months ended 30.06.2024 (Unaudited) \n \n \n Six months ended 30.06.2023 (Unaudited) \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 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 \n \n Revenue \n \n \n 5,6 \n \n \n 2,955.2 \n \n \n - \n \n \n 2,955.2 \n \n \n 2,890.1 \n \n \n \n \n Total operating costs \n \n \n 2 \n \n \n (2,283.9) \n \n \n - \n \n \n (2,283.9) \n \n \n (2,116.4) \n \n \n \n \n Operating profit \n \n \n 2,5 \n \n \n 671.3 \n \n \n - \n \n \n 671.3 \n \n \n 773.7 \n \n \n \n \n Net share of results from associates and joint ventures \n \n \n 2,5 \n \n \n 17.2 \n \n \n - \n \n \n 17.2 \n \n \n (0.4) \n \n \n \n \n Operating profit from subsidiaries, and share of total results from associates and joint ventures \n \n \n \n \n \n 688.5 \n \n \n - \n \n \n 688.5 \n \n \n 773.3 \n \n \n \n \n Investment income \n \n \n 8 \n \n \n 73.5 \n \n \n - \n \n \n 73.5 \n \n \n 72.1 \n \n \n \n \n Interest expense \n \n \n 8 \n \n \n (132.1) \n \n \n - \n \n \n (132.1) \n \n \n (50.9) \n \n \n \n \n Other finance items \n \n \n 3,8,14 \n \n \n 31.7 \n \n \n 51.0 \n \n \n 82.7 \n \n \n (30.0) \n \n \n \n \n Net finance income/(expense) \n \n \n 8 \n \n \n (26.9) \n \n \n 51.0 \n \n \n 24.1 \n \n \n (8.8) \n \n \n \n \n Profit before tax \n \n \n \n \n \n 661.6 \n \n \n 51.0 \n \n \n 712.6 \n \n \n 764.5 \n \n \n \n \n Income tax expense \n \n \n 3,9 \n \n \n (286.8) \n \n \n (12.7) \n \n \n (299.5) \n \n \n (229.3) \n \n \n \n \n Profit for the period \n \n \n \n \n \n 374.8 \n \n \n 38.3 \n \n \n 413.1 \n \n \n 535.2 \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 Non-controlling interests \n \n \n \n \n \n 153.5 \n \n \n - \n \n \n 153.5 \n \n \n 204.8 \n \n \n \n \n Owners of the parent \n \n \n \n \n \n 221.3 \n \n \n 38.3 \n \n \n 259.6 \n \n \n 330.4 \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 \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 1 \n \n \n 10 \n \n \n 22.4 \n \n \n 3.9 \n \n \n 26.3 \n \n \n 33.5 \n \n \n \n \n 1. All earnings in all the periods presented are from continuing operations. \n \n \n Condensed Consolidated Statement of Comprehensive Income \n \n \n \n \n \n \n \n Notes \n \n \n Six months ended 30.06.2024 (Unaudited) \n \n \n Six months ended 30.06.2023 (Unaudited) \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 period \n \n \n 5 \n \n \n 413.1 \n \n \n 535.2 \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 hedges \n \n \n \n \n \n (15.9) \n \n \n - \n \n \n \n \n Tax effects arising on cash flow hedges deferred in reserves \n \n \n \n \n \n 4.3 \n \n \n - \n \n \n \n \n Currency translation adjustment \n \n \n \n \n \n (0.8) \n \n \n 0.4 \n \n \n \n \n Total items that may be or were subsequently reclassified to profit or loss \n \n \n \n \n \n (12.4) \n \n \n 0.4 \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 \n \n \n (0.3) \n \n \n (1.5) \n \n \n \n \n Gains on fair value of equity investments \n \n \n 14 \n \n \n 33.1 \n \n \n 0.6 \n \n \n \n \n Tax on items recognised directly in equity that will not be reclassified \n \n \n \n \n \n (7.6) \n \n \n 0.2 \n \n \n \n \n Share of other comprehensive losses of associates and joint ventures, net of tax \n \n \n \n \n \n (1.9) \n \n \n (0.9) \n \n \n \n \n Total items that will not be subsequently reclassified to profit or loss \n \n \n \n \n \n 23.3 \n \n \n (1.6) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Total other comprehensive income \n \n \n \n \n \n 10.9 \n \n \n (1.2) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Total comprehensive income for the period \n \n \n \n \n \n 424.0 \n \n \n 534.0 \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 149.9 \n \n \n 204.5 \n \n \n \n \n Owners of the parent \n \n \n \n \n \n 274.1 \n \n \n 329.5 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Total comprehensive income for the period - continuing operations \n \n \n \n \n \n 424.0 \n \n \n 534.0 \n \n \n \n \n \n \n \n \n \n \n 424.0 \n \n \n 534.0 \n \n \n \n \n \n \n Condensed Consolidated Statement of Changes in Equity \n \n \n For the six months ended 30.06.2024 (Unaudited) \n \n \n \n \n \n \n \n \n Share capital \n \n \n Share premium \n \n \n Other reserves \n \n \n Retained earnings \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 Capital increase \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 39.7 \n \n \n 39.7 \n \n \n \n \n Profit for t...