Antofagasta slashes annual dividend after profit falls

Chilean miner Antofagasta on Tuesday more than halved its annual dividend and said its full-year profit dropped 39%, as high input costs, reduced copper grades, and a drought in Chile hit its copper production.

The group’s earnings before interest, tax, depreciation, and amortisation for 2022 was $2.9 billion, compared with $4.84 billion a year ago.

Antofagasta declared a final dividend of 50.5 cents per share for investors, bringing the total payout to 59.7 cents in 2022.

The company had made a record shareholder payout of 142.5 cents per share in 2021, amounting to $1.4 billion, when surging copper prices had helped it post its highest-ever profit.

The miner on Tuesday also reiterated its forecast for copper production and capital expenditure in 2023.

Usage of copper, a metal often used as a gauge of global economic health, is expected to increase as countries around the world look to make a big shift towards green energy.

(By Muhammed Husain; Editing by Uttaresh.V)