REG - Antofagasta PLC - FULL YEAR RESULTS FOR THE YEAR ENDED 31.12.2024
18/02/2025 07:15
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RNS Number : 4264X Antofagasta PLC 18 February 2025
NEWS RELEASE, 18 FEBRUARY 2025
FULL YEAR RESULTS FOR THE YEAR ENDED 31 DECEMBER 2024
EBITDA UP 11% WITH HIGHER MARGINS AND FINAL DIVIDEND OF 23.5 PROPOSED
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.
"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.
"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.
"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."
YEAR ENDING 31 DECEMBER 2024 2023 %
Revenue $m 6,613.4 6,324.5 +5%
EBITDA(( 1 (#_ftn1) )) $m 3,426.8 3,087.2 +11%
EBITDA margin(2) % 51.8% 48.8% +3.0pp
Profit before tax (including exceptional items) $m 2,071.1 1,965.5 +5%
Cash flow from operations $m 3,276.2 3,027.1 +8%
Net debt / EBITDA(1) X 0.48 0.38 +26%
Earnings per share (including exceptional items) cents 84.1 84.7 (1%)
Underlying earnings per share (excluding exceptional items)(1) cents 62.8 72.0 (13%)
Dividend per share cents 31.4 36.0 (13%)
2024 HIGHLIGHTS
● Continued strong safety performance, with no fatalities and the lost time
injury frequency rate continuing at a level below 1.0.
● 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.
● 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 (#_ftn2) ))
to 52%.
● Cash flow from operations increased by 8% to $3.3 billion, with the same
drivers as described above.
● 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.
● 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.
● 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).
● 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.
● 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.
● 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.
● The Group's capital expenditure for 2025 3 (#_ftn3) 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.
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/
(http://www.antofagasta.co.uk/investors/reports-presentations/) ).
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
(https://antofagasta-2024-fy-results.open-exchange.net/registration) .
Investors - London Media - London
Rosario Orchard rorchard@antofagasta.co.uk (mailto:rorchard@antofagasta.co.uk) Carole Cable antofagasta@brunswickgroup.com (mailto:antofagasta@brunswickgroup.com)
Robert Simmons rsimmons@antofagasta.co.uk (mailto:rsimmons@antofagasta.co.uk) Telephone +44 20 7404 5959
Telephone +44 20 7808 0988
Media - Santiago
Pablo Orozco porozco@aminerals.cl (mailto:porozco@aminerals.cl)
Carolina Pica cpica@aminerals.cl (mailto:cpica@aminerals.cl)
Telephone +56 2 2798 7000
Register on our website to receive our email alerts
http://www.antofagasta.co.uk/investors/email-alerts/
(https://www.antofagasta.co.uk/investors/news/email-alerts/)
FINANCIAL AND OPERATING REVIEW
FINANCIAL HIGHLIGHTS
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.
The average realised copper price rose in 2024 by 7% to $4.18/lb.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
PRODUCTION AND CASH COSTS (AS PREVIOUSLY ANNOUNCED)
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.
Gold production in full year 2024 decreased by 11% to 186,900 ounces,
reflecting lower grades at Centinela Concentrates.
Full year 2024 molybdenum production was 10,700 tonnes, in line with the prior
year.
Cash costs in 2024 were $2.37/lb, a year-on-year increase of 3%, following
lower copper grades at Los Pelambres.
Net cash costs were $1.64/lb for the year, broadly in line with 2023.
COMPETITIVENESS PROGRAMME
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).
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.
EXPLORATION AND EVALUATION COSTS
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.
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.
TAXATION
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.
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.
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.
For more information on taxation, see page 20 in the Financial Review Section.
CAPITAL EXPENDITURE
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.
DEPRECIATION AND AMORTISATION
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.
CAPITAL ALLOCATION
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.
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.
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).
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.
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.
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.
LABOUR
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.
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.
2025 GUIDANCE (as previously announced)
Group copper production in 2025(( 4 (#_ftn4) )) 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.
Group cash costs in 2025 before by-product credits are expected to be between
$2.25/lb and $2.45/lb.
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.
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.
SUSTAINABILITY
Health and safety
The Group recorded another fatality-free year in 2024 (2023: zero), alongside
historical low levels for lost time injury frequency rate 5 (#_ftn5) (2024:
0.57; 2023: 0.63) and total injury frequency rate 6 (#_ftn6) (2024: 1.62;
2023: 1.81).
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).
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.
Environment
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.
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.
Communities
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.
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.
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.
Balanced workforce
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.
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.
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.
Decarbonisation
In Q1 2024, the Group published its updated emissions targets, covering Scope
1, 2 and 3 emissions and Climate Action Plan.
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.
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.
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.
Water
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.
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.
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.
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.
Suppliers
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.
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.
INNOVATION
Cuprochlor-T® and other initiatives
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.
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.
RESERVES AND RESOURCES
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.
In line with previous years, the Group will publish its reserves and resources
in its Annual Report.
FUTURE OUTLOOK
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 (#_ftn7) 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 (#_ftn8)
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.
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.
REVIEW OF OPERATIONS AND PROJECTS
MINING DIVISION
LOS PELAMBRES
Financial performance
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.
Production
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.
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.
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.
Costs
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.
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.
Capital expenditure
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.
CENTINELA
Financial performance
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.
Production
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.
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.
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.
Costs
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.
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.
Capital expenditure
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).
ANTUCOYA
Financial performance
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.
Production
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.
Costs
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.
Capital expenditure
Capital expenditure was $123.4 million (2023: $121.6 million), including $80.3
million on sustaining capital expenditure.
ZALDÍVAR
Financial performance
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.
Production
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.
Costs
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.
Capital expenditure
Attributable capital expenditure in 2024 was $42.2 million (2023: $43.8
million), of which $29.6 million was sustaining capital expenditure.
Other matters (as previously announced)
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.
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.
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.
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.
TRANSPORT DIVISION
Financial performance
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.
Transport volumes
Total transportation volumes in 2024 remained broadly consistent with those of
2023, with 7.1 million tonnes of transported material.
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.
Capital expenditure
Capital expenditure for the year was $37.4 million (2023: $50.4 million), a
decrease of 26% compared with the same period in 2023.
OPERATIONS - KEY GROWTH PROJECTS AND OPPORTUNITIES
Operation Description Capex Capex to date(( 9 (#_ftn9) )) Status (Scheduled completion) Comments
(Total)
Los Pelambres
Phase 1 Expansion Construction of a desalination plant (400 L/S) and additional concentrator $2.3Bn Completed Operational (2024) Opening ceremony held in March 2024.
line, facilitating plant capacity of 190kt per day.
Desalination plant expansion Key enabling project for future growth - project to double capacity of Approx. $1Bn $176m Underway (2027) Progressing on schedule and on budget.
existing desalination plant to 800 l/s.
Following a successful mobilisation of personnel and equipment, construction
work is expected to commence in Q1 2025.
Concentrate pipeline and El Mauro enclosures Key enabling project for future growth - installation of a new concentrate Approx. $1Bn $156m Underway (2027) Progressing on schedule and on budget.
pipeline and development of certain planned facilities at the El Mauro
tailings storage facility. Work focused on trench excavation work and the welding of pipe sections.
Development Options Project Mine life extension beyond 2035, adding a minimum of 15 additional years by Under study N/A Evaluation phase EIA submitted in December 2024.
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 Approx. $2Bn
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.
Centinela
Second Concentrator Project Brownfield development to add 170,000 tonnes of copper-equivalent production $4.4Bn 10 (#_ftn10) $1.0Bn Underway (2027) Progressing on schedule and on budget, with work focused on the camp
and lower Centinela District towards the first quartile of global cash cost facilities, ore delivery
curve.
system, concentrator, tailings facility and primary crusher foundations.
Encuentro mine development Mine development work to access sulphide ores below the existing Encuentro Approx. $1Bn N/A Not commenced (2027-2028)
oxide pit.
Zaldívar
Ongoing EIA (Mine life extension and water transition) Mine life extension to 2051, to realise the full potential of the Zaldívar N/A (Associate) N/A Evaluation phase EIA submitted in H1 2023. Consultation period with Chilean authorities
deposit, including a 3-year transition period prior to utilising sea water or ongoing, with the third round of comments received in January 2025.
third-party water sources.
DEVELOPMENT PROJECTS
Twin Metals Minnesota (USA)
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.
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.
FINANCIAL REVIEW FOR THE YEAR ENDED 31 DECEMBER 2024
Year ended Year ended
31.12.2024 31.12.2023
(Unaudited) (Audited)
Before exceptional items Before exceptional items Total
Exceptional Total Exceptional
items Items
$m $m $m $m $m $m
Revenue 6,613.4 - 6,613.4 6,324.5 - 6,324.5
EBITDA (including share of EBITDA from associates and joint ventures) 11 3,426.8 - 3,426.8 3,087.2 - 3,087.2
(#_ftn11)
Total operating costs (4,976.1) 371.4 (4,604.7) (4,541.7) - (4,541.7)
Operating profit from subsidiaries 1,637.3 371.4 2,008.7 1,782.8 - 1,782.8
Net share of results from associates and joint ventures 76.2 - 76.2 (13.5) - (13.5)
Operating profit from subsidiaries, and share of total results from associates 1,713.5 371.4 2,084.9 1,769.3 - 1,769.3
and joint ventures
Net finance (expense) / income (64.8) 51.0 (13.8) 29.1 167.1 196.2
Profit before tax 1,648.7 422.4 2,071.1 1,798.4 167.1 1,965.5
Income tax expense (628.4) (126.7) (755.1) (624.3) (41.8) (666.1)
Profit from continuing operations 1,020.3 295.7 1,316.0 1,174.1 125.3 1,299.4
Profit for the year 1,020.3 295.7 1,316.0 1,174.1 125.3 1,299.4
Attributable to:
Non-controlling interests 400.8 85.8 486.6 464.3 - 464.3
Profit attributable to the owners of the parent 619.5 209.9 829.4 709.8 125.3 835.1
Basic earnings per share Cents Cents Cents Cents cents Cents
From continuing operations 62.8 21.3 84.1 72.0 12.7 84.7
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.
The full reconciliation of the profit attributable to the owners of the parent
between 2023 and 2024, including exceptional items, is as follows:
$m
Profit attributable to the owners of the parent in 2023 835.1
Less: exceptional items - 2023 (125.3)
Profit attributable to the owners of the parent in 2023 (excluding exceptional 709.8
items)
Increase in revenue 288.9
Increase in total operating costs (excluding exceptional items) (434.4)
Increase in net share of results from associates and joint ventures (excluding 89.7
exceptional items)
Increase in net finance expenses (excluding exceptional items) (93.9)
Increase in income tax expense (excluding exceptional items) (4.1)
Decrease in non-controlling interests (excluding exceptional items) 63.5
(90.3)
Profit attributable to the owners of the parent in 2024 (excluding exceptional 619.5
items)
Exceptional items - 2024 (post tax) 209.9
Profit attributable to the owners of the parent in 2024 829.4
Revenue
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:
$m
Revenue in 2023 6,324.5
Increase in realised copper price 386.2
Increase in treatment and refining charges 28.3
Decrease in copper sales volumes (156.6)
Increase in gold revenue 39.9
Decrease in molybdenum revenue (16.0)
Increase in silver revenue 8.1
Decrease in Transport division revenue (1.0)
288.9
Revenue in 2024 6,613.4
Revenue from the Mining division
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.
Revenue from copper sales
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.
(i) Realised copper price
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.
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).
Further details of provisional pricing adjustments are given in Note 6 to the
Full-year results announcement.
(ii) Treatment and refining charges
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.
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.
Accordingly, the decrease in these charges has had a positive impact on
revenue in the year.
(iii) Copper volumes
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.
Revenue from molybdenum, gold and other by-product sales
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.
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.
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.
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).
Revenue from the Transport division
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.
Total operating costs
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:
$m
Total operating costs in 2023 (excluding exceptional items) 4,541.7
Increase in mine-site operating costs 67.6
Increase in closure provision and other mining expenses 8.8
Mining royalty ad-valorem element 28.7
Decrease in exploration and evaluation costs (12.2)
Decrease in corporate costs (25.9)
Increase in Transport division operating costs 4.9
Increase in depreciation, amortisation and loss on disposals 362.5
434.4
Total operating costs in 2024 (excluding exceptional items) 4,976.1
Operating costs (excluding depreciation, amortisation and disposals) at the
Mining division
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%.
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.
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.
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.
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.
In the current period, operating 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.
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.
Operating costs (excluding depreciation, amortisation and loss on disposals)
at the Transport division
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.
Depreciation, amortisation and disposals (excluding exceptional items)
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.
Operating profit from subsidiaries
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).
Share of results from associates and joint ventures (excluding exceptional
items)
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.
EBITDA
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.
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.
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.
Commodity price and exchange rate sensitivities
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.
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.
Average market commodity price / average exchange rate during the year ended Impact of a 10% movement in the commodity price / exchange rate on EBITDA for
31.12.24 the year ended 31.12.24
$m
Copper price $4.15/lb 590
Molybdenum price $21.3/lb 51
Gold price $2,387/oz 42
US dollar / Chilean peso exchange rate 944 157
Net finance income / (expense) (excluding exceptional items)
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.
Year ended 31.12.24 Year ended 31.12.23
$m $m
Investment income 184.2 138.1
Interest expense (312.2) (105.6)
Other finance items 63.2 (3.4)
Net finance (expense)/income (64.8) 29.1
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.
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.
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).
Profit before tax (excluding exceptional items)
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).
Income tax expense
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%.
Year ended Year ended Year ended Year ended
Excluding exceptional items Including exceptional items Excluding exceptional items Including exceptional items
31.12.2024
31.12.2024
31.12.2023
31.12.2023
$m % $m % $m % $m %
Profit before tax 1,648.7 2,071.1 1,798.4 1,965.5
Profit before tax multiplied by Chilean corporate tax rate of 27% (445.1) 27.0 (559.2) 27.0 (485.6) 27.0 (530.7) 27.0
Mining Tax (royalty) (216.5) 13.1 (216.5) 10.5 (109.7) 6.1 (109.7) 5.6
Deduction of mining royalty as an allowable expense in determination of first 55.8 (3.4) 55.8 (2.7) 29.5 (1.6) 29.5 (1.5)
category tax
Adjustment to deferred tax in respect of mining royalty 67.1 (4.1) 67.1 (3.2) (34.3) 1.9 (34.3) 1.7
Items not deductible from first category tax (3.9) 0.2 (3.9) 0.2 (21.4) 1.2 (21.4) 1.1
Adjustment in respect of prior years 1.7 (0.1) 1.7 (0.1) 4.5 (0.3) 4.5 (0.2)
Withholding tax (29.7) 1.8 (29.7) 1.4 (1.4) 0.1 (1.4) 0.1
Tax effect of (loss)/ profit of associates and joint ventures 20.0 (1.1) 20.0 (1.0) (3.6) 0.2 (3.6) 0.2
Impact of unrecognised tax losses (77.8) 4.7 (77.8) 3.8 (2.3) 0.1 (2.3) 0.1
Reversal of the provision against carrying value of assets (exceptional items) - - (13.7) 0.7 - - - -
Difference in overseas tax rate - - 1.1 (0.1) - - 3.3 (0.2)
Tax expense and effective tax rate for the Year ended (628.4) 38.1 (755.1) 36.5 (624.3) 34.7 (666.1) 33.9
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:
The effective tax rate (excluding exceptional items) of 38.1% varied from the
statutory rate principally due to:
· 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);
· The impact of unrecognised tax losses (impact of $77.8 million /
4.7%);
· The withholding tax relating to the remittance of profits from Chile
(impact of $29.7 million / 1.8%);
· Adjustments to deferred tax in respect of the mining royalty (impact
of $67.1 million / 4.1%);
· Items not deductible for Chilean corporate tax purposes, principally
the funding of expenses outside of Chile (impact of $3.9 million / 0.2%);
· 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%);
· Adjustments in respect of prior years (impact of $1.7 million /
0.1%).
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.
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.
Exceptional items
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.
Antucoya impairment reversal
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.
Compañía de Minas Buenaventura S.A.A.
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).
Non-controlling interests
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.
Earnings per share
Year ended 31.12.24 Year ended
31.12.23
$ cents $ cents
Underlying earnings per share (excluding exceptional items) 62.8 72.0
Earnings per share (exceptional items) 21.3 12.7
Earnings per share (including exceptional items) 84.1 84.7
Earnings per share calculations are based on 985,856,695 ordinary shares.
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).
Dividends
Dividends per share proposed in relation to the period are as follows:
Year ended 31.12.24 Year ended
31.12.23
$ cents $ cents
Ordinary dividends:
Interim 7.9 11.7
Final 23.5 24.3
Total dividends to ordinary shareholders 31.4 36.0
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%.
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.
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.
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.
Capital expenditure
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.
Capital expenditure figures quoted in this report are on a cash flow basis,
unless stated otherwise.
Derivative financial instruments
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).
Cash flows
The key features of the cash flow statement are summarised in the following
table.
Year ended 31.12.24 Year ended 31.12.23
$m $m
Cash flows from continuing operations 3,276.2 3,027.1
Income tax paid (666.8) (528.1)
Net interest paid (143.1) (48.8)
Purchases of property, plant and equipment (2,414.9) (2,129.2)
Dividends paid to equity holders of the Company (317.4) (613.2)
Dividends paid to non-controlling interests (240.0) (388.0)
Capital increase from non-controlling interest 156.7 -
Dividends from associates and joint ventures 3.5 -
Disposal of JV - 944.7
Investment in other financial assets - (290.1)
Acquisition of equity investments - (60.7)
Other items 0.2 (0.8)
Changes in net debt relating to cash flows (345.6) (87.1)
Other non-cash movements (141.6) (187.6)
Effects of changes in foreign exchange rates 17.9 0.7
Movement in net debt in the period (469.3) (274.0)
(Net debt)/net cash at the beginning of the year (1,159.8) (885.8)
Net debt at the end of the year (1,629.1) (1,159.8)
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 -
positive 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 - negative
impact of a decrease in provisions of $14.5 million).
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.
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).
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.
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.
Dividends paid by subsidiaries to non-controlling shareholders were $240.0
million (2023 - $388.0 million).
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.
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.
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.
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'').
Acquisitions of equity investments were nil in 2024 (2023 - $60.7 million).
Financial position
At 31.12.24 At 31.12.23
$m $m
Cash, cash equivalents and liquid investments 4,316.3 2,919.4
Total borrowings and other financial liabilities (5,945.4) (4,079.2)
Net debt at the end of the period (1,629.1) (1,159.8)
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).
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.
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.
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).
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).
Going concern
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.
Cautionary statement about forward-looking statements
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.
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.
Past performance cannot be relied on as a guide to future performance.
Consolidated Income Statement
Year ended 31.12.2024 (Unaudited) Year ended 31.12.2023 (Audited)
Excluding exceptional items Exceptional items Total Excluding exceptional items Exceptional items Total
note 3
note 3
Notes $m $m $m $m $m $m
Revenue 5,6 6,613.4 - 6,613.4 6,324.5 - 6,324.5
Total operating costs 2,3 (4,976.1) 371.4 (4,604.7) (4,541.7) - (4,541.7)
Operating profit from subsidiaries 2,5 1,637.3 371.4 2,008.7 1,782.8 - 1,782.8
Net share of results from associates and joint ventures 2,5 76.2 - 76.2 (13.5) - (13.5)
Operating profit from subsidiaries, and share of results from associates and 1,713.5 371.4 2,084.9 1,769.3 - 1,769.3
joint ventures
Investment income 8 184.2 - 184.2 138.1 - 138.1
Interest expense 8 (312.2) - (312.2) (105.6) - (105.6)
Other finance items 3 63.2 51.0 114.2 (3.4) 167.1 163.7
Net finance (expense)/income 8 (64.8) 51.0 (13.8) 29.1 167.1 196.2
Profit before tax 1,648.7 422.4 2,071.1 1,798.4 167.1 1,965.5
Income tax expense 9 (628.4) (126.7) (755.1) (624.3) (41.8) (666.1)
Profit for the year 1,020.3 295.7 1,316.0 1,174.1 125.3 1,299.4
Attributable to:
Non-controlling interests 400.8 85.8 486.6 464.3 - 464.3
Owners of the parent 619.5 209.9 829.4 709.8 125.3 835.1
US cents US cents US cents US cents US cents US cents
Basic and diluted EPS 10 62.8 21.3 84.1 72.0 12.7 84.7
All earnings in all the periods presented are from continuing operations.
Consolidated Statement of Comprehensive Income
Notes Year ended 31.12.2024 (Unaudited) Year ended 31.12.2023 (Audited)
$m $m
Profit for the year 5 1,316.0 1,299.4
Items that may be or were subsequently reclassified to profit or loss:
Losses on cash flow hedging (cost of hedging) 7 (25.5) -
Tax effects arising on cash flow hedges 6.9 -
Currency translation adjustment (1.2) (0.5)
Total items that may be or were subsequently reclassified to profit or loss (19.8) (0.5)
Items that will not be subsequently reclassified to profit or loss:
Actuarial (losses)/gains on defined benefit plans 18 (12.2) 10.7
Gains on fair value of equity investments 15 29.7 137.0
Tax on items recognised directly in other comprehensive income 20 (5.9) (40.8)
Share of other comprehensive losses of associates and joint ventures, net of (1.4) (0.6)
tax
Total items that will not be subsequently reclassified to profit or loss 10.2 106.3
Total other comprehensive (expense)/ income (9.6) 105.8
Total comprehensive income for the year 1,306.4 1,405.2
Attributable to:
Non-controlling interests 478.7 467.6
Owners of the parent 827.7 937.6
Consolidated Statement of Changes in Equity
For the year ended 31.12.2024 (Unaudited)
Share capital Share premium Other reserves (Note 22) Retained earnings (Note 22) Equity attributable to owners of the parent Non- controlling interests Total equity
$m $m $m $m $m $m $m
Balance at 1 January 2024 89.8 199.2 104.5 8,558.4 8,951.9 3,096.5 12,048.4
Profit for the year - - - 829.4 829.4 486.6 1,316.0
Other comprehensive income/(expense) for the year - - 7.7 (9.4) (1.7) (7.9) (9.6)
Total comprehensive income for the year - - 7.7 820.0 827.7 478.7 1,306.4
Reclassification(1) - - (130.4) 130.4 - - -
Capital increase(2) - - - - - 156.8 156.8
Dividends - - - (317.4) (317.4) (240.0) (557.4)
Balance at 31 December 2024 89.8 199.2 (18.2) 9,191.4 9,462.2 3,492.0 12,954.2
(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.
(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.
For the year ended 31.12.2023 (Audited)
Share capital Share premium Other reserves (Note 22) Retained earnings (Note 22) Equity attributable to equity owners of the parent Non- controlling interests Total
equity
$m $m $m $m $m $m $m
Balance at 1 January 2023 89.8 199.2 5.0 8,333.5 8,627.5 3,016.9 11,644.4
Profit for the year - - - 835.1 835.1 464.3 1,299.4
Other comprehensive income/(expense) for the year - - 99.5 3.0 102.5 3.3 105.8
Total comprehensive income for the year - - 99.5 838.1 937.6 467.6 1,405.2
Dividends - - - (613.2) (613.2) (388.0) (1,001.2)
Balance at 31 December 2023 89.8 199.2 104.5 8,558.4 8,951.9 3,096.5 12,048.4
Consolidated Balance Sheet
At 31.12.2024 (Unaudited) At 31.12.2023 (Audited)
Non-current assets Notes $m $m
Property, plant and equipment 12 13,917.0 12,678.7
Inventories 16 707.8 457.0
Investments in associates and joint ventures 14 1,776.1 891.1
Trade and other receivables 7 54.4 68.5
Equity investments 15 11.6 288.6
Deferred tax assets 20 9.7 72.0
16,476.6 14,455.9
Current assets
Inventories 16 925.1 671.0
Trade and other receivables 7 899.5 1,117.8
Other financial assets 14 - 457.2
Current tax assets 17.4 25.9
Liquid investments 24 2,127.1 2,274.7
Cash and cash equivalents 24 2,189.2 644.7
6,158.3 5,191.3
Total assets 22,634.9 19,647.2
Current liabilities
Short-term borrowings and other financial liabilities 17 (1,322.5) (901.9)
Trade and other payables 7 (1,320.3) (1,171.5)
Derivative financial instruments 7 (20.4) -
Short-term decommissioning and restoration provisions 19 (5.9) (15.2)
Current tax liabilities (106.4) (100.7)
(2,775.5) (2,189.3)
Non-current liabilities
Medium and long-term borrowings and other financial liabilities 17 (4,622.9) (3,177.3)
Trade and other payables 7 (10.2) (9.8)
Derivative financial instruments 7 (5.1) -
Long - term post-employment benefit obligations 18 (152.2) (139.9)
Decommissioning and restoration provisions 19 (422.1) (425.9)
Deferred tax liabilities 20 (1,692.7) (1,656.6)
(6,905.2) (5,409.5)
Total liabilities (9,680.7) (7,598.8)
Net assets 12,954.2 12,048.4
Equity
Share capital 21 89.8 89.8
Share premium 21 199.2 199.2
Other reserves 22 (18.2) 104.5
Retained earnings 22 9,191.4 8,558.4
Equity attributable to owners of the parent 9,462.2 8,951.9
Non-controlling interests 3,492.0 3,096.5
Total equity 12,954.2 12,048.4
The consolidated financial statements were approved by the Board of
Directors on 17 February 2025
Consolidated Cash Flow Statement
At 31.12.2024 (Unaudited) At 31.12.2023
(Audited)
Notes $m $m
Cash flows from operations 23 3,276.2 3,027.1
Interest paid (324.1) (166.0)
Income tax paid (666.8) (528.1)
Net cash from operating activities 2,285.3 2,333.0
Investing activities
Capital contributions to associates and joint ventures - (0.6)
Dividends from associates and joint ventures 25 3.5 -
Investments in other financial assets - (290.1)
Acquisition of equity investments 15 - (60.7)
Proceeds from disposal of investment in joint venture 13 - 944.7
Proceeds from sale of property plant and equipment 0.3 -
Purchases of property, plant and equipment (2,414.9) (2,129.2)
Net decrease/ (increase) in liquid investments 24 148.5 (674.2)
Interest received 181.0 117.1
Net cash used in investing activities (2,081.6) (2,093.0)
Financing activities
Dividends paid to owners of the parent (317.4) (613.2)
Dividends paid to preference shareholders of the Company (0.1) (0.1)
Capital increase from non-controlling interest(1) 156.7 -
Dividends paid to non-controlling interests (240.0) (388.0)
Proceeds from other financial liabilities 24 598.6 -
Proceeds from issue of new borrowings 24 2,222.9 1,062.2
Repayment of borrowings 24 (917.0) (381.7)
Principal elements of lease payments 24 (152.7) (81.2)
Repayment of other financial liabilities 24 (4.6)
Net cash from/(used in) financing activities 1,346.4 (402.0)
Net increase/(decrease) in cash and cash equivalents 24 1,550.1 (162.0)
Cash and cash equivalents at beginning of the year 644.7 810.4
Net increase/(decrease) in cash and cash equivalents 24 1,550.1 (162.0)
Effect of foreign exchange rate changes 24 (5.6) (3.7)
Cash and cash equivalents at end of the year 24 2,189.2 644.7
( )
(1) Related to Marubeni's capital contribution of $156.7 million in Centinela.
Notes
1. General information and accounting policies
a) General information
While the financial information included in this preliminary announcement has
been prepared in accordance with the recognition and measurement criteria of
International Financial Reporting Standards, this announcement does not itself
contain sufficient information to comply with those standards. The Group
expects to publish full financial statements that comply with International
Financial Reporting Standards in March 2025.
The consolidated financial information has been prepared under the accounting
policies as set out in the statutory accounts for the year ended 31 December
2023, subject to the new accounting standards as detailed in note 1(b) below
(which as noted had no material impact on the amounts reported in this
financial information).
The consolidated financial information has been prepared on the going concern
basis.
The financial information set out above does not constitute the Group's
statutory accounts for the years ended 31 December 2024 or 2023 but is derived
from those accounts. Statutory accounts for 2023 have been delivered to the
Registrar of Companies and those for 2024 will be delivered following the
Company's annual general meeting. The auditors have reported on those
accounts: their reports were unqualified, did not draw attention to any
matters by way of emphasis and did not contain statements
under s498(2) or (3) of the Companies Act 2006.
The information contained in the Alternative performance measures and the
Production and sales statistics sections of this consolidated financial
information is not derived from the statutory accounts for the years ended 31
December 2024 and 2023 and is accordingly not covered and will not be covered
by the auditors' reports.
Going concern
The Directors have assessed the going concern status of the Group, considering
a period of at least 12 months from the expected date of approval of the 31
December 2024 Annual Report and Accounts.
The Group's business activities, together with those factors likely to affect
its future performance, are set out in the Financial and Operating Review.
Details of the cash flows of the Group during the period, along with its
financial position at the period-end, are set out in the Financial Review. The
consolidated financial statements include details of the Group's cash, cash
equivalents and liquid investment balances in Note 24, and details of
borrowings are set out in Note 17.
When assessing the going concern status of the Group, the Directors have
considered in particular its financial position, including its significant
balance of cash, cash equivalents and liquid investments and the terms and
remaining durations of the borrowing facilities in place. The Group had a
strong financial position as at 31 December 2024, with combined cash, cash
equivalents and liquid investments of $4,316.3 million. Total liabilities from
financing activities were $5,945.4 million, resulting in a net debt position
of $1,629.1 million. Of the total borrowings, only 22% is repayable within one
year, and an additional 11% repayable between one and two years. In addition,
the Group has an undrawn revolving credit facility ("RCF") of $500 million
which expires in December 2028 and therefore covers all of the going concern
review period, which could provide additional liquidity if required.
When assessing the prospects of the Group, the Directors have considered the
Group's copper price forecasts, the Group's expected production levels,
operating cost profile and capital expenditure. These forecasts are based on
the Group's budgets and life-of-mine models, which are also used when
assessing relevant accounting estimates, including depreciation, deferred
stripping and closure provisions, and accounting judgements including
potential indicators of impairment. This analysis has focused on the existing
asset base of the Group, without factoring in potential development projects,
which is considered appropriate for an assessment of the Group's ability to
manage the impact of a depressed economic environment. The analysis has only
included the drawdown of existing committed borrowing facilities and has not
assumed that any new borrowing facilities will be put in place. The Directors
have assessed the key risks which could impact the prospects of the Group over
the going concern period and consider the most relevant to be risks to the
copper price outlook, as this is the factor most likely to result in
significant volatility in earnings and cash generation. Accordingly, a robust
downside sensitivity analysis has been performed, assessing the impact of a
significant deterioration in the future copper price forecasts by an average
of 10% throughout the going concern period combined with the impact of a
shutdown of any one of the Group's operations for a period of one month. This
downside analysis included the impacts of conservative assumptions in respect
of possible deferrals to planned and committed capital expenditure which could
be implemented in such a scenario.
The stability of tailings storage facilities represents a potentially
significant operational risk for mining operations globally. The
Group's tailings storage facilities are designed to international
standards, constructed using downstream methods, subject to rigorous
monitoring and reporting, and reviewed regularly by an international panel of
independent experts. Given these standards of design, development, operations
and review, the impact of a potential tailings dam failure has not been
included in the sensitivity analysis.
We have considered the risk of capital expenditure overruns in respect of the
Second Concentrator Project at Centinela and the Desalination Plant Expansion
and Concentrate pipeline and El Mauro enclosures Project at Los Pelambres and
concluded that this is not likely to result in a significant impact during the
going concern review period.
Based on their assessment of the Group's prospects and viability, the
Directors have formed a judgement that there are no material uncertainties
that the Directors are aware of that cast doubt on the Group's going concern
status and that there is a reasonable expectation that the Group has adequate
resources to continue in operational existence for a period of at least 12
months from the expected date of approval of the 31 December 2024 Annual
Report and Accounts. The Directors therefore consider it appropriate to adopt
the going concern basis of accounting in preparing the consolidated financial
statements.
b) Adoption of new accounting standards
The following accounting standards, amendments and interpretations became
effective in the current reporting period but the application of these
standards and interpretations had no material impact on the amounts reported
in these consolidated financial statements:
Amendments Effective date
Classification of Liabilities as Current or Non-Current (Amendments to IAS 1) Annual periods beginning on or after 1 January 2024.
Lease Liability in a Sale and Leaseback (Amendments to IFRS 16) Annual periods beginning on or after 1 January 2024.
Non-current Liabilities with Covenants (Amendments to IAS 1) Annual periods beginning on or after 1 January 2024.
Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7) Annual periods beginning on or after 1 January 2024.
c) Accounting standards issued but not yet effective
At the date of authorisation of these financial statements, the following
standards and interpretations, which have not been applied in these financial
statements, were in issue but not yet effective. It is expected that where
applicable, these standards and amendments will be adopted on each respective
effective date. None of these standards are expected to have a significant
impact on the Group, except IFRS 18 for which is expected to introduce changes
in the presentation structure of the statement of comprehensive income, by
clearly separating operating, investing and financing activities.
IFRS 18 introduces new requirements to:
· present specified categories and defined subtotals in the
statement of profit or loss
· provide disclosures on management-defined performance measures
(MPMs) in the notes to the financial statements
· improve aggregation and disaggregation.
Standards Effective date
IFRS S1 General Requirements for Disclosure of Sustainability-related No earlier than 1 January 2026.
Financial Information
IFRS S2 Climate-related Disclosures No earlier than 1 January 2026.
IFRS 18 Presentation and Disclosures in Financial Statements (1) Annual periods beginning on or after 1 January 2027.
IFRS 19 Subsidiaries without Public Accountability: Disclosures (1) Annual periods beginning on or after 1 January 2027.
Amendments to IFRS Effective date
Lack of Exchangeability (Amendments to IAS 21)(1) Annual periods beginning on or after 1 January 2025.
Amendments to the Classification and Measurement of Financial Instruments Annual periods beginning on or after 1 January 2026.
(Amendments to IFRS 9 and IFRS 7)(1)
Contracts Referencing Nature-dependent Electricity (Amendments to IFRS 9 and Annual periods beginning on or after 1 January 2026.
IFRS 7)(1)
(1) These amendments are still subject to UK endorsement.
d) Critical accounting judgements and key sources of
estimation uncertainty
The critical accounting judgements and key estimates applied in this
announcement are set out below.
Judgements
· Non-financial assets impairment indicators and reversal of
impairment: The Group reviews the carrying value of its intangible assets and
property, plant and equipment, as well as the assets of its associates and
joint ventures, to determine whether there is an indication that those assets
are impaired, or an indication that there has been a reversal of previous
impairments. As at 31 December 2024 the following assessments have been
performed.
Antucoya: It has been determined that, as of 31 December 2024, there were
indicators of a potential reversal of previous impairments. Accordingly, as
detailed in Note 3, an estimate of the recoverable amount of the Antucoya
operation has been performed.
Buenaventura: It has been determined that, as of 31 December 2024, there were
indicators of a potential impairment in relation to the Group's investment in
associate balance in respect of Compañía de Minas Buenaventura S.A.A.
(''Buenaventura''). Accordingly, as detailed in Note 14, an estimate of the
recoverable amount of the Buenaventura investment in associate balance has
been performed.
Other operations: As detailed in Note 4, there were no indicators of potential
impairment for the Group's other mining operations (i.e. Los Pelambres,
Centinela and Zaldívar) as at 31 December 2024. However, whether or not an
impairment indicator exists is considered a critical judgement at 31 December
2024 for Zaldívar, given the ongoing permitting process and the other factors
set out in Note 4.
· Accounting for investment in Buenaventura: As detailed in Note
14, taking into account relevant factors including the Group's approximately
19% interest in Buenaventura's issued share capital and the Group's
representation on Buenaventura's Board, the Group is considered to have
significant influence (in accordance with the IAS 28 Investments in Associates
and Joint Ventures definition) over Buenaventura from March 2024 onwards.
Accordingly, the Group's interest in Buenaventura has been accounted for as an
investment in associate from that point.
Estimates
The Group makes estimates and assumptions concerning the future. The resulting
accounting estimates will, by definition, seldom equal the related actual
results. The Group has not identified estimates and assumptions which are
considered to have a significant risk of causing a material adjustment to the
carrying amounts of assets and liabilities within the next financial year.
2. Operating profit from subsidiaries, and share of profit from associates
and joint ventures
Year ended 31.12.2024 (Unaudited) Year ended 31.12.2023 (Audited)
$m $m
Revenue 6,613.4 6,324.5
Cost of sales (4,109.0) (3,666.4)
Gross profit 2,504.4 2,658.1
Administrative and distribution expenses (581.3) (618.5)
Other operating income 48.2 50.8
Other operating expenses (1) (334.0) (307.6)
Operating profit from subsidiaries 1,637.3 1,782.8
Net share of results from associates and joint ventures 76.2 (13.5)
Total operating profit from subsidiaries, and share of profit from associates 1,713.5 1,769.3
and joint ventures
(1) Other operating expenses comprise $52.7 million of exploration and
evaluation expenditure (year ended 31 December 2023 - $64.9 million), $25.4
million in respect of the employee severance provision (year ended 31 December
2023 - $25.7 million), $0.8 million in respect of the closure provision (year
ended 31 December 2023 - $12.8 million), and $255.1 million of other expenses
(including Medium-term and long-term drilling costs & evaluation of $98.9
million (year ended 31 December 2023 - $76.2 million), costs of community
programmes of $44.9 million (year ended 31 December 2023 - $44.6 million),
the "ad valorem" element of the new mining royalty of $28.7 million (year
ended 31 December 2023 - nil), and other expenses of $82.6 million (year ended
31 December 2023 - $83.4 million).
3. Exceptional items
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.
Reversal of Antucoya impairment
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 in respect of the Antucoya operation.
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, with a quantitative analysis
based on Antucoya's life-of-mine model indicating that the headroom exceeded
the valuation benefit arising from the passage of time since the impairment.
Accordingly, an estimate of the recoverable amount of the Antucoya operation
has been performed. This estimate has been based on the fair value less costs
of disposal for the operation, reflecting the net amount the Group would
expect to receive from the sale of the operation in an orderly transaction
between market participants.
This value has been estimated based on a discounted cash flow model, based on
Antucoya's life-of-mine model. This reflects a Level 3 fair value measurement
per the IFRS 13 fair value hierarchy. The key assumptions used in this
estimation are listed below.
• The copper price forecasts (representing the Group's estimates
of the assumptions that would be used by independent market participants in
valuing the assets) are based on consensus analyst forecasts. A long-term
copper price of $4.15/lb (reflecting 2024 real terms) has been used in the
model.
• Assumptions in respect of future production levels, operating
costs and sustaining and development capital expenditure are consistent with
the Group's internal life-of-mine model for Antucoya.
• A long-term exchange rate of Ch$850/$1 has been used in the
model.
• A real post-tax discount rate of 8%, calculated using relevant
market data, has been used in the model.
• Within the Annual Report, the Group discloses in line with the
recommendations of the Task Force on Climate-related Financial Disclosures
("TCFD"). This process includes scenario analyses assessing the potential
future impact of transition and physical risks. The results of this scenario
analysis have been considered as part of this valuation assessment.
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, resulting in a post-tax impact of $257.4 million.
The assumption to which the estimation of the recoverable amount is most
sensitive is the future long-term copper price. A down-side sensitivity was
performed with a long-term copper price of $3.74/lb, reflecting a 10%
reduction in the long-term price forecast. This sensitivity indicated a
recoverable amount which was above the carrying value of Antucoya's relevant
assets, after reflecting the impact of the impairment reversal.
Compañía de Minas Buenaventura S.A.A
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 (see Note 8), resulting in a post-tax impact of $38.3 million (2023 -
$125.3 million).
4. Asset sensitivities
As explained in Note 3, indicators of a potential reversal of the previous
impairments at Antucoya were identified as at 31 December 2024. Accordingly,
an estimate of the recoverable amount of the Antucoya operation has been
performed, which has resulted in the full reversal of remaining element of the
original impairments.
There were no indicators of potential impairment, or reversal of previous
impairments, for the Group's non-current assets associated with its other
mining operations (Los Pelambres, Centinela, and Zaldivar), as at 31 December
2024, and accordingly no impairment tests have been performed. The impairment
indicator assessment included consideration of the potential indicators set
out in IAS 36 Impairment of Assets, which included quantitative analysis based
on the operations' life-of-mine models as adjusted for certain assumptions
(including potential future development opportunities) ("the models"). These
models provide indicative valuations and do not represent, or comply with, a
formal impairment assessment prepared in accordance with IAS 36.
As noted above, no qualitative indicators of potential impairment were
identified. Similarly, no quantitative indicators of impairment were
identified, with the models used within the impairment indicator assessment
continuing to indicate positive headroom for the operations, with the
indicated value of the assets in excess of their carrying value.
Relevant aspects of this process are detailed below.
Copper price outlook
The assumption to which the value of the assets is most sensitive is the
future long-term copper price. The copper price forecasts (representing the
Group's estimates of the assumptions that would be used by independent market
participants in valuing the assets) are based on consensus analyst forecasts.
A long-term copper price of $4.15/lb (reflecting 2024 real terms) has been
used in the models considered as part of the impairment indicator assessment,
which has increased from $3.70/lb (reflecting 2023 real terms) at the prior
year-end. As an additional down-side sensitivity, an indicative valuation
(based on the models) was performed with a long-term copper price of $3.74/lb,
reflecting a 10% reduction in the long-term price forecast. Los Pelambres and
Centinela still showed positive headroom in their models in this alternative
down-side scenario. However, the Zaldívar valuation indicated a potential
deficit of $40.0 million (on a 50% basis) (2023 - potential deficit of $60
million). This was a simple sensitivity exercise, looking at an illustrative
change in the forecast long-term copper price in isolation. A deterioration in
the long-term copper price environment is likely to result in corresponding
improvements in a range of input cost factors. In particular, given that
copper exports account for over 50% of Chile's exports, historically there has
often been a correlation between movements in the copper price and the US
dollar/Chilean peso exchange rate, and a decrease in the copper price may
therefore result in a weakening of the Chilean peso, with a resulting
reduction in the Group's operating costs and capital expenditure in US$ terms.
These likely cost reductions, as well as potential operational changes which
could be made in a weaker copper price environment, could partly mitigate the
impact of the lower copper price modelled in these estimated potential
sensitivities.
The US dollar/Chilean peso exchange rate
The value of the assets is also sensitive to movements in the US
dollar/Chilean peso exchange rate. A long-term exchange rate of Ch$850/$1 has
been used in the models considered as part of the impairment indicator
assessment. This compares with the long-term exchange rate of CH$785/$1 used
in 2023. As noted above, historically there has often been a correlation
between movements in the copper price and the US dollar/Chilean peso exchange
rate, and so a strengthening of the Chilean peso may often reflect a stronger
copper price environment, which could mitigate the impact of a stronger
exchange rate.
Discount rate
A real post-tax discount rate of 8% (31 December 2023 - 8%), calculated using
relevant market data, has been used in the impairment indicator assessment.
Climate risks
The assessments reflect the Group's estimates of potential future
climate-related impacts. Within the Annual Report, the Group provides
disclosures in line with the recommendations of the Task Force on
Climate-related Financial Disclosures ("TCFD"). This process includes scenario
analyses assessing the potential future impact of transition and physical
risks. The results of this scenario analysis have been considered as part of
these assessments.
Other relevant assumptions
In addition to the impact of the future copper price, the US dollar/Chilean
peso exchange rate, the discount rate and climate-related impacts, the models
used in the impairment indicator assessment are sensitive to the assumptions
in respect of future production levels, operating costs and sustaining and
development capital expenditure.
In the case of Zaldívar, in addition to the assumptions made in respect of
the factors outlined above, the conclusion that there are no impairment
indicators reflects certain operational assumptions to which the model is
sensitive, as noted below.
· Currently, Zaldívar is permitted to extract water and mine until
May 2025. The mine life after May 2025 is subject to an EIA application which
was filed in June 2023 to extend the mining and water environmental permits to
2051. The EIA application includes a proposal to develop the primary sulphide
ore deposit, extending the current life of mine, which requires estimated
investments over the mine life of $1.2 billion, and to convert the water
source for Zaldívar to either seawater or water from third parties, following
a transition period during which the current continental water extraction
permit is extended from 2025 to 2028. The impairment indicator assessment
assumes that the EIA will be granted, reflecting the positive progress to
date, to, to enable the continued operation of the mine without interruption.
However, if this is not the case, this is likely to be considered an indicator
of a potential impairment, requiring an IAS 36 impairment assessment at that
point.
· Zaldívar's final pit phase, which represents approximately 20%
of current ore reserves, impacts a portion of Minera Escondida's mine
property, as well as infrastructure owned by third parties. Mining of the
phase will be subject to agreements or easements to access these areas and
relocate the infrastructure, as well as related permits. During 2023,
Zaldívar reached an agreement with Escondida with respect to mining matters
and certain cost sharing arrangements. The impairment indicator assessment
assumes that the remaining necessary agreements, easements and permits will be
obtained to allow the mining of the final pit phase.
The carrying value of the Group's investment in Zaldívar as at 31 December
2024 was $895.1 million. (31 December 2023 − $881.3 million). Down-side
sensitivities were performed in respect of the above factors, which indicated
recoverable amounts which were above this carrying value.
5. Segmental analysis
The Group's reportable segments, which are the same as its operating segments,
are as follows:
● Los Pelambres
● Centinela
● Antucoya
● Zaldívar
● Exploration and evaluation
● Corporate and other items
● Transport division
For management purposes, the Group is organised into two business divisions
based on their products - Mining and Transport. The mining division is split
further for management reporting purposes to show results by mine and
exploration activity. Los Pelambres produces primarily copper concentrate and
molybdenum as a by-product. Centinela produces copper concentrate containing
gold as a by-product, copper cathodes and molybdenum concentrates. Antucoya
and Zaldívar produce copper cathodes. The transport division provides rail
and road cargo transport together with a number of ancillary services. All the
operations are based in Chile. The Exploration and evaluation segment incurs
exploration and evaluation expenses. "Corporate and other items" comprises
costs incurred by the Company, Antofagasta Minerals S.A., the Group's mining
corporate centre and other entities, that are not allocated to any individual
business segment. Consistent with its internal management reporting, the
Group's corporate and other items are included within the mining division.
The Chief Operating decision-maker (the Group's Chief Executive Officer)
monitors the operating results of the business segments separately for the
purpose of making decisions about resources to be allocated and assessing
performance. Segment performance is evaluated based on the operating profit of
each of the segments.
a) Segment revenues and results
For the year ended 31-12-2024 (Unaudited)
Los Pelambres Centinela Antucoya Zaldívar Exploration and evaluation(2) Corporate and other items Total Mining Transport division Total
$m $m $m $m $m $m $m $m $m
Revenue 3,326.7 2,359.2 732.6 - - - 6,418.5 194.9 6,613.4
Operating costs excluding depreciation and loss on disposals(2) (1,465.5) (1,228.9) (456.8) - (52.7) (72.8) (3,276.7) (125.6) (3,402.3)
Depreciation (544.1) (854.9) (117.7) - - (10.2) (1,526.9) (41.3) (1,568.2)
Loss on disposals (3.6) (1.9) - - - (0.1) (5.6) - (5.6)
Reversal of the provision against carrying value of assets (exceptional items) - - 371.4 - - - 371.4 - 371.4
Operating profit/(loss) 1,313.5 273.5 529.5 - (52.7) (83.1) 1,980.7 28.0 2,008.7
Net share of results from associates and joint ventures - - - 15.1 - 61.4 76.5 (0.3) 76.2
Total operating profit from subsidiaries, and share of total results from 1,313.5 273.5 529.5 15.1 (52.7) (21.7) 2,057.2 27.7 2,084.9
associates and joint ventures
Investment income 46.7 40.1 11.0 - - 85.3 183.1 1.1 184.2
Interest expense (138.0) (75.0) (30.3) - - (68.4) (311.7) (0.5) (312.2)
Other finance items (Excluding exceptional items) 23.5 30.2 7.9 - - 4.2 65.8 (2.6) 63.2
Fair value gain on other financial assets - exceptional items (3) - - - - - 51.0 51.0 - 51.0
Profit/(loss) before tax 1,245.7 268.8 518.1 15.1 (52.7) 50.4 2,045.4 25.7 2,071.1
Tax (432.0) (67.1) (30.9) - - (91.8) (621.8) (6.6) (628.4)
Tax - exceptional items - - (114.0) - - (12.7) (126.7) - (126.7)
Profit/(loss) for the year 813.7 201.7 373.2 15.1 (52.7) (54.1) 1,296.9 19.1 1,316.0
Non-controlling interests 327.8 52.1 108.0 - - (1.3) 486.6 - 486.6
Profit/(losses) attributable to the owners of the parent 485.9 149.6 265.2 15.1 (52.7) (52.8) 810.3 19.1 829.4
EBITDA(1) 1,861.2 1,130.3 275.8 99.9 (52.7) 36.4 3,350.9 75.9 3,426.8
Capital Expenditure (cash basis)(4) 833.0 1,414.0 123.4 - - 7.1 2,377.5 37.4 2,414.9
Segment assets and liabilities
Segment assets 7,886.3 8,145.7 2,281.2 - - 2,110.5 20,423.7 435.1 20,858.8
Investments in associates and joint ventures - - - 895.1 - 872.0 1,767.1 9.0 1,776.1
Segment liabilities (4,076.8) (2,877.1) (591.9) - - (2,064.3) (9,610.1) (70.6) (9,680.7)
(1) EBITDA refers to Earnings Before Interest, Tax, Depreciation and
Amortisation. EBITDA is calculated by adding back depreciation, amortisation,
profit or loss on disposal and impairment charges and reversals 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.
( )
(2) Operating cash outflow in the exploration and evaluation segment was $51.3
million.
In order to better reflect the Group's internal reporting, the Group has
changed the classification of certain evaluation costs incurred by the
individual mining operations, which were previously included in the
Exploration and evaluation segment and are now included within the individual
mine segments.
(3) An exceptional fair value gain of $51.0 million has been recognised in
respect of an agreement under which the Group has now acquired 30 million
shares in Compañia de Minas Buenaventura S.A.A. (see Note 14).
(4) In order to better reflect the Group's internal reporting, the Group has
changed the basis of its capital expenditure segment measure to be on a cash
basis rather than an accruals basis.
For the year ended 31.12.2023 (Audited)
Los Pelambres Centinela Antucoya Zaldívar Exploration and evaluation(2) Corporate and other items Total Mining Transport division Total
$m $m $m $m $m $m $m $m $m
Revenue 2,923.8 2,532.5 672.3 - - - 6,128.6 195.9 6,324.5
Operating costs excluding depreciation(2) (1,231.8) (1,348.9) (465.4) - (64.9) (98.7) (3,209.7) (120.7) (3,330.4)
Depreciation (318.6) (727.3) (109.4) - - (24.3) (1,179.6) (31.7) (1,211.3)
Operating profit/(loss) 1,373.4 456.3 97.5 - (64.9) (123.0) 1,739.3 43.5 1,782.8
Net share of results from associates and joint ventures - - - (15.4) - - (15.4) 1.9 (13.5)
Total operating profit from subsidiaries, and share of total results from 1,373.4 456.3 97.5 (15.4) (64.9) (123.0) 1,723.9 45.4 1,769.3
associates and joint ventures.
Investment income 38.0 20.3 6.8 - - 72.2 137.3 0.8 138.1
Interest expense (4.3) (20.3) (30.7) - - (49.2) (104.5) (1.1) (105.6)
Other finance items (Excluding exceptional items) (0.2) (0.2) (0.4) - - (1.9) (2.7) (0.7) (3.4)
Fair value gain on other financial assets - exceptional items (3) - - - - - 167.1 167.1 - 167.1
Profit/(loss) before tax 1,406.9 456.1 73.2 (15.4) (64.9) 65.2 1,921.1 44.4 1,965.5
Tax (465.2) (143.1) (14.6) - - 13.7 (609.2) (15.1) (624.3)
Tax - exceptional items - - - - - (41.8) (41.8) - (41.8)
Profit/(loss) for the year 941.7 313.0 58.6 (15.4) (64.9) 37.1 1,270.1 29.3 1,299.4
Non-controlling interests 372.5 89.5 5.5 - - (3.2) 464.3 - 464.3
Profit/(loss) attributable to the owners of the parent 569.2 223.5 53.1 (15.4) (64.9) 40.3 805.8 29.3 835.1
EBITDA(1) 1,692.0 1,183.6 206.9 86.8 (64.9) (98.7) 3,005.7 81.5 3,087.2
Capital Expenditure (cash basis)(4) 897.1 1,044.6 121.6 - - 15.5 2,078.8 50.4 2,129.2
Segment assets and liabilities
Segment assets 7,414.0 6,533.6 1,732.7 - - 2,657.6 18,337.9 418.2 18,756.1
Investments in associates and joint ventures - - - 881.3 - - 881.3 9.8 891.1
Segment liabilities (3,829.1) (1,857.0) (535.2) - - (1,304.7) (7,526.0) (72.8) (7,598.8)
(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 and reversals 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.
( )
(2) Operating cash outflow in the exploration and evaluation segment was $61.8
million.
In order to better reflect the Group's internal reporting, the Group has
changed the classification of certain evaluation costs incurred by the
individual mining operations of $76.2 million, which were previously included
in the Exploration and evaluation segment and are now included within the
individual mine segments as follow: Los Pelambres $32.6 million, Centinela
$35.4 million and Antucoya $8.2 million.
(3) An exceptional fair value gain of $167.1 million has been recognised in
respect of an agreement under which the Group has now acquired 30 million
shares in Compañia de Minas Buenaventura S.A.A. (see Note 14).
(4) In order to better reflect the Group's internal reporting, the Group has
changed the basis of its capital expenditure segment measure to be on a cash
basis rather than an accruals basis, The restated amount changed from $2,307.9
million to $2,129.2 million, reflecting a decrease of $178.7 million as
follow: Los Pelambres $17.2 million, Centinela $137.8 million, Antucoya $19.1
million, Corporate $3.5 million and Transport division $1.1 million.
b) Group wide disclosures
Revenue by product
Year ended Year ended 31.12.2023
31.12.2024
$m $m
Copper
- Los Pelambres 2,710.0 2,381.1
- Centinela concentrates 970.5 1,309.8
- Centinela cathodes 896.1 692.6
- Antucoya 726.0 666.1
Provision of shipping services
- Los Pelambres 64.4 50.3
- Centinela concentrates 24.3 35.3
- Centinela cathodes 7.4 6.0
- Antucoya 6.6 6.2
Gold
- Los Pelambres 110.3 83.5
- Centinela concentrates 336.5 323.4
Molybdenum
- Los Pelambres 387.4 373.2
- Centinela concentrates 100.8 131.0
Silver
- Los Pelambres 54.6 35.7
- Centinela concentrates 23.6 34.4
Total Mining 6,418.5 6,128.6
Transport division 194.9 195.9
6,613.4 6,324.5
( )
Revenue by location of customer
Year ended Year ended 31.12.2023
31.12.2024
$m $m
Europe
- United Kingdom 23.8 22.8
- Switzerland 367.8 386.5
- Spain 82.9 -
- Germany 160.8 200.0
- Rest of Europe 170.7 89.9
Latin America
- Chile 366.9 399.5
- Rest of Latin America 289.7 133.0
North America
- United States 470.1 441.7
Asia Pacific
- Japan 1,961.4 1,989.6
- China 1,292.2 1,417.3
- Singapore 336.2 450.2
- South Korea 436.7 391.1
- Hong Kong 236.2 204.7
- Rest of Asia 418.0 198.2
6,613.4 6,324.5
Information about major customers
In the year ended 31 December 2024, the Group´s mining revenue included
$860.5 million related to one large customer that individually accounted for
more than 10% of the Group's revenue (year ended 31 December 2023 - one large
customer representing $1,081.0 million).
6. Revenue
Copper and molybdenum concentrate sale contracts and copper cathode sale
contracts generally provide for provisional pricing of sales at the time of
shipment, with final pricing being based on the monthly average London Metal
Exchange copper price or monthly average molybdenum price for specified future
periods. This normally ranges from one to four months after shipment to the
customer. For sales contracts which contain provisional pricing mechanisms,
the total receivable balance is measured at fair value through profit or loss.
Gains and losses from the mark-to-market of open sales are recognised through
adjustments to revenue in the income statement and to trade receivables in the
balance sheet. The Group determines mark-to-market prices using forward prices
at each period-end for copper concentrate and cathode sales, and period-end
month average prices for molybdenum concentrate sales due to the limited
futures market for that commodity.
With sales of concentrates, which are sold to smelters and roasting plants for
further processing into fully refined metal, the price of the concentrate
(which is the amount recorded as revenue) 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.
The Group sells a significant proportion of its products on Cost, Insurance
& Freight (CIF) Incoterms, which means that the Group is responsible for
shipping the product to a destination port specified by the customer. The
shipping service represents a separate performance obligation and is
recognised separately from the sale of the material over time as the shipping
service is provided.
The total revenue from contracts with customers and the impact of provisional
pricing adjustments in respect of concentrate and cathode sales is as follows:
Year ended 31.12.2024 Year ended
31.12.2023
$m $m
Revenue from contracts with customers
Sale of products 6,306.4 6,016.2
Provision of shipping services associated with the sale of products 102.7 97.8
Transport division (1) 194.9 195.9
Provisional pricing adjustments in respect of copper, gold and molybdenum 9.4 14.6
Total revenue 6,613.4 6,324.5
(1)The transport division provides rail and road cargo transport together with
a number of ancillary services.
The categories of revenue which are principally affected by different economic
factors are the individual product types. A summary of revenue by product is
set out in Note 5(b).
The following tables set out the impact of provisional pricing adjustments,
and treatment and refining charges for the more significant products. The
revenue from these products, which includes, for the sale of copper, revenue
associated with the provision of shipping services, is reconciled to total
revenue in Note 5(b).
For the year ended 31 December 2024
$m $m $m $m $m $m $m $m $m $m $m
Los Pelambres Centinela Centinela Antucoya Los Pelambres Centinela Los Pelambres Centinela Los Pelambres Centinela
Total
Copper concentrate Copper concentrate Copper cathodes Copper cathodes Gold in concentrate Gold in concentrate Molybdenum concentrate Molybdenum concentrate Silver concentrate Silver concentrate
Provisionally priced sales of products 2,851.1 1,023.1 899.7 725.9 106.3 330.0 408.8 104.0 54.7 23.4 6,527.0
Revenue from freight services 64.4 24.3 7.4 6.6 - - - - - - 102.7
2,915.5 1,047.4 907.1 732.5 106.3 330.0 408.8 104.0 54.7 23.4 6,629.7
Effects of pricing adjustments to previous year invoices
Reversal of mark-to-market adjustments at the end of the previous year (45.1) (16.2) (0.3) (0.2) - (2.6) 1.0 0.4 - - (63.0)
Settlement of sales invoiced in the previous year 62.5 27.0 (1.0) (0.9) (0.3) 1.6 3.4 0.7 (0.6) - 92.4
Total effect of adjustments to previous year invoices in the current year 17.4 10.8 (1.3) (1.1) (0.3) (1.0) 4.4 1.1 (0.6) - 29.4
Effects of pricing adjustments to current year invoices
Settlement of sales invoiced in the current year 10.8 14.7 (0.9) 2.6 4.5 8.5 2.8 5.1 1.1 0.6 49.8
Mark-to-market adjustments at the end of the current year (40.1) (22.0) (1.4) (1.4) - (0.4) (4.0) (0.5) - - (69.8)
Total effect of adjustments to current year invoices (29.3) (7.3) (2.3) 1.2 4.5 8.1 (1.2) 4.6 1.1 0.6 (20.0)
Total pricing adjustments (11.9) 3.5 (3.6) 0.1 4.2 7.1 3.2 5.7 0.5 0.6 9.4
Revenue before deducting treatment & refining charges 2,903.6 1,050.9 903.5 732.6 110.5 337.1 412.0 109.7 55.2 24.0 6,639.1
Treatment and refining charges (129.2) (56.1) - - (0.2) (0.6) (24.6) (8.9) (0.6) (0.4) (220.6)
Revenue net of tolling charges
2,774.4 994.8 903.5 732.6 110.3 336.5 387.4 100.8 54.6 23.6 6,418.5
For the year ended 31 December 2023
$m $m $m $m $m $m $m $m $m $m $m
Los Pelambres Centinela Centinela Antucoya Los Pelambres Centinela Los Pelambres Centinela Los Pelambres Centinela
Total
Copper concentrate Copper concentrate Copper cathodes Copper cathodes Gold in concentrate Gold in concentrate Molybdenum concentrate Molybdenum concentrate Silver concentrate Silver concentrate
Provisionally priced sales of products 2,465.4 1,363.1 689.5 663.9 79.2 319.3 455.4 161.1 35.6 34.3 6,266.8
Revenue from freight services 50.3 35.3 6.0 6.2 - - - - - - 97.8
2,515.7 1,398.4 695.5 670.1 79.2 319.3 455.4 161.1 35.6 34.3 6,364.6
Effects of pricing adjustments to previous year invoices
Reversal of mark-to-market adjustments at the end of the previous year (38.0) (19.9) (0.8) (0.8) - (2.7) (12.6) (7.6) - - (82.4)
Settlement of sales invoiced in the previous year 90.9 52.9 10.3 7.7 2.9 1.0 40.0 15.9 0.3 0.4 222.3
Total effect of adjustments to previous year invoices in the current year 52.9 33.0 9.5 6.9 2.9 (1.7) 27.4 8.3 0.3 0.4 139.9
Effects of pricing adjustments to current year invoices
Settlement of sales invoiced in the current year (52.2) (19.0) (6.7) (4.9) 1.5 3.9 (84.1) (27.3) 0.3 0.2 (188.3)
Mark-to-market adjustments at the end of the current year 45.1 16.2 0.3 0.2 - 2.6 (1.0) (0.4) - - 63.0
Total effect of adjustments to current year invoices (7.1) (2.8) (6.4) (4.7) 1.5 6.5 (85.1) (27.7) 0.3 0.2 (125.3)
Total pricing adjustments 45.8 30.2 3.1 2.2 4.4 4.8 (57.7) (19.4) 0.6 0.6 14.6
Revenue before deducting treatment & refining charges 2,561.5 1,428.6 698.6 672.3 83.6 324.1 397.7 141.7 36.2 34.9 6,379.2
Treatment and refining charges (130.1) (83.5) - - (0.1) (0.7) (24.5) (10.7) (0.5) (0.5) (250.6)
Revenue net of tolling charges
2,431.4 1,345.1 698.6 672.3 83.5 323.4 373.2 131.0 35.7 34.4 6,128.6
(i) Copper concentrate
The typical period for which sales of copper concentrate remain open until
settlement occurs is a range of approximately three to four months from
shipment date.
At 31.12.2024 At 31.12.2023
Sales provisionally priced at the balance sheet date Tonnes 157,300 181,400
Average mark-to-market price $/lb 3.96 3.87
Average provisional invoice price $/lb 4.14 3.72
(ii) Copper cathodes
The typical period for which sales of copper cathodes remain open until
settlement occurs is approximately one month from shipment date.
At 31.12.2024 At 31.12.2023
Sales provisionally priced at the balance sheet date Tonnes 11,600 16,400
Average mark-to-market price $/lb 3.94 3.85
Average provisional invoice price $/lb 4.05 3.84
(iii) Gold in concentrate
The typical period for which sales of gold in concentrate remain open until
settlement is approximately one month from shipment date.
At 31.12.2024 At 31.12.2023
Sales provisionally priced at the balance sheet date Ounces 25,400 32,400
Average mark-to-market price $/oz 2,634 2,072
Average provisional invoice price $/oz 2,650 1,992
(iv) Molybdenum concentrate
The typical period for which sales of molybdenum remain open until settlement
is approximately two months from shipment date.
At 31.12.2024 At 31.12.2023
Sales provisionally priced at the balance sheet date Tonnes 2,700 2,600
Average mark-to-market price $/lb 21.40 18.50
Average provisional invoice price $/lb 22.00 18.80
As detailed above, the effects of gains and losses from the marking-to-market
of open sales are recognised through adjustments to revenue in the income
statement and to trade receivables in the balance sheet. The effect of
mark-to-market adjustments on the balance sheet at the end of each period are
as follows.
Effect on debtors of year end
mark-to-market adjustments
Year Year
ended Ended
31.12.2024 31.12.2023
$m $m
Los Pelambres - copper concentrate (40.1) 45.1
Los Pelambres - molybdenum concentrate (4.0) (1.0)
Centinela - copper concentrate (22.0) 16.2
Centinela - molybdenum concentrate (0.5) (0.4)
Centinela - gold in concentrate (0.4) 2.6
Centinela - copper cathodes (1.4) 0.3
Antucoya - copper cathodes (1.4) 0.2
(69.8) 63.0
7. Financial instruments and financial risk management
a) Categories of financial instruments
The carrying value of financial assets and financial liabilities is shown
below:
For the year ended 31.12.2024
At fair value through profit and loss At fair value through other comprehensive income Derivative instruments at fair value, designated as hedges Held at amortised cost Total
$m $m $m $m $m
Financial assets
Equity investments - 11.6 - - 11.6
Trade and other receivables 669.1 - - 129.3 798.4
Cash and cash equivalents 124.3 - - 2,064.9 2,189.2
Liquid investments 2,127.1 - - - 2,127.1
2,920.5 11.6 - 2,194.2 5,126.3
Financial liabilities
Derivative financial instruments - - (25.5) - (25.5)
Trade and other payables - - - (1,293.6) (1,293.6)
Other financial liabilities - - - (594.0) (594.0)
Borrowings - - - (5,351.4) (5,351.4)
- - (25.5) (7,239.0) (7,264.5)
For the year ended 31.12.2023
At fair value through profit and loss At fair value through other comprehensive income Derivative instruments at fair value, designated as hedges Held at amortised cost Total
$m $m $m $m $m
Financial assets
Equity investments - 288.6 - - 288.6
Trade and other receivables 916.5 - - 157.1 1,073.6
Other financial assets 457.2 - - - 457.2
Cash and cash equivalents 1.1 - - 643.6 644.7
Liquid investments 2,274.7 - - - 2,274.7
3,649.5 288.6 - 800.7 4,738.8
Financial liabilities
Trade and other payables - - - (1,154.3) (1,154.3)
Borrowings - - - (4,079.2) (4,079.2)
- - - (5,233.5) (5,233.5)
The fair value of the fixed rate bonds included within the "Borrowings"
category was $1,630.5 million at 31 December 2024 compared with their carrying
value of $1,729.0 million (year ended 31 December 2023 - fair value of $908.3
million compared with their carrying value of $986.8 million), this fair value
was calculated using market rates at the period end. These are level 2 inputs
as described below. The fair value of all other financial assets and financial
liabilities carried at amortised cost approximates the carrying value
presented above.
The fair value of the fixed rate borrowings included within the "Other loans"
category was $700.5 million at 31 December 2024 compared with their carrying
value of $670.0 million; this fair value was calculated using market rates at
the period end.
The fair value of the fixed rate other financial liabilities balance was
$756.9 million at 31 December 2024 compared with its carrying value of $594.0
million; this fair value was calculated using market rates at the period end.
The following tables reconcile between the total trade and other receivables
and trade and other payables balances on the balance sheet with the financial
instrument amounts included in this note.
Year ended Year ended
31.12.2024 31.12.2023
Financial assets
Trade and other receivables (non-current) per balance sheet 54.4 68.5
Trade and other receivables (current) per balance sheet 899.5 1,117.8
Total trade and other receivables per balance sheet 953.9 1,186.3
Less: non-financial assets (including prepayments and VAT receivables) (155.5) (112.7)
Total trade and other receivables 798.4 1,073.6
Financial liabilities
Trade and other payables (current) per balance sheet (1,320.3) (1,171.5)
Trade and other payables (non-current) per balance sheet (10.2) (9.8)
Total trade and other payables per balance sheet (1,330.5) (1,181.3)
Less: non-financial liabilities (including VAT payables) 36.9 27.0
Total trade and other payables (1,293.6) (1,154.3)
Fair value of financial instruments
An analysis of financial assets and financial liabilities measured at fair
value is presented below:
For the year ended 31.12.2024
Level 1 Level 2 Level 3 Total
$m $m $m $m
Financial assets
Equity investments (a) 11.6 - - 11.6
Trade and other receivables (b) - 669.1 - 669.1
Cash and cash equivalents (d) 124.3 - - 124.3
Liquid investments (e) - 2,127.1 - 2,127.1
135.9 2,796.2 - 2,932.1
Financial liabilities
Derivatives financial instruments (f) - (25.5) - (25.5)
- (25.5) - (25.5)
For the year ended 31.12.2023
Level 1 Level 2 Level 3 Total
$m $m $m $m
Financial assets
Equity investments (a) 288.6 - - 288.6
Trade and other receivables (b) - 916.5 - 916.5
Other financial assets (c) - 457.2 - 457.2
Cash and cash equivalents (d) 1.1 - - 1.1
Liquid investments (e) - 2,274.7 - 2,274.7
289.7 3,648.4 - 3,938.1
Recurring fair value measurements are those that are required in the balance
sheet at the end of each reporting period.
a) Equity investments are investments in shares on active markets and
are valued using unadjusted quoted market values of the shares at the
financial reporting date. These are level 1 inputs as described below.
b) Provisionally priced metal sales for the period are
marked-to-market at the end of the period. Gains and losses from the
marking-to-market of open sales are recognised through adjustments to revenue
in the income statement and trade receivables in the balance sheet. Forward
prices at the end of the period are used for copper sales while period-end
average prices are used for molybdenum concentrate sales. These are level 2
inputs as described below.
c) The other financial asset related to the agreement the Group
entered into during 2023 to acquire up to 30 million shares in Compañía de
Minas Buenaventura S.A.A. (''Buenaventura'') (as detailed in Note 14). The
fair value of the other financial assets was calculated using observable
market data. These were level 2 inputs.
d) The element of cash and cash equivalents measured at fair value
relates to money market funds, which are valued reflecting market prices at
the period end. These are level 1 inputs as described below.
e) Liquid investments are highly liquid current asset investments that
are valued reflecting market prices at the period end. These are level 2
inputs as described below.
f) Derivatives are valued using a discounted cash flow analysis
valuation model, which includes observable credit spreads and using the
applicable yield curve for the duration of the instruments for non-optional
derivatives, and option pricing models for optional derivatives. These are
level 2 inputs as described below. As at 31 December 2024, derivatives relate
to foreign exchange option contracts.
The inputs to the valuation techniques described above are categorised into
three levels, giving the highest priority to unadjusted quoted prices in
active markets (level 1) and the lowest priority to unobservable inputs (level
3 inputs):
· Level 1 fair value measurement inputs are unadjusted quoted
prices in active markets for identical assets or liabilities,
· Level 2 fair value measurement inputs are derived from inputs
other than quoted market prices included in level 1 that are observable for
the asset or liability, either directly or indirectly, and
· Level 3 fair value measurement inputs are unobservable inputs for
the asset or liability.
The degree to which inputs into the valuation techniques used to measure the
financial assets and liabilities are observable and the significance of these
inputs in the valuation are considered in determining whether any transfers
between levels have occurred. In the year ended 31 December 2024 and 31
December 2023, there were no transfers between levels in the hierarchy.
b) Derivative financial instruments
The Group periodically uses derivative financial instruments to
reduce exposure to foreign exchange, interest rate and commodity price
movements. The Group does not use such derivative instruments for trading
purposes. The Group has applied the hedge accounting provisions of IFRS 9
Financial Instruments. The effective portion of changes in the fair value of
derivative financial instruments that are designated and qualify as hedges of
future cash flows have been recognised directly in equity, with such amounts
subsequently recognised in profit or loss in the period when the hedged item
affects profit or loss. For non-financial hedged items, the amount is removed
directly from equity and included as an adjustment to the initial cost of the
hedged item. Any ineffective portion is recognised immediately in profit or
loss. The time value element of changes in the fair value of derivative
options is recognised within other comprehensive income. For non-financial
hedged items, on initial recognition of the hedged item, the time value is
removed from equity and included as an adjustment to the initial cost of the
hedged item.
Nominal Carrying amount Line item in the statement of financial position where the hedging instrument Change in the value of hedging instrument recognised in OCI Costs of hedging recognised in OCI Amount removed from hedging reserve to initial cost of hedged item Amount removed from cost of hedging reserve to initial cost of hedged item Line item in balance sheet affected by the removal
is included
Amount Assets Liabilities
$m $m $m $m $m $m $m
Foreign currency risk
Forward exchange option contract 847.0 - (25.5) Derivative financial Instruments (liabilities) -
Property, plant and equipment
25.5 - -
This relates to hedging of costs associated with the Nueva Centinela project,
which relates to the construction of new property, plant and equipment for a
period up to June 2026, with an average put rate of Ch$850.0/$1 and an average
call rate of Ch$1,017.4/$1.
No hedge ineffectiveness was recognised.
8. Net finance (expense)/income
Year ended Year ended
31.12.2024 31.12.2023
$m $m
Investment income
Interest income 73.0 43.1
Gains on liquid investments held at fair value through profit or loss 111.2 95.0
184.2 138.1
Interest expense
Interest expense (312.2) (105.6)
(312.2) (105.6)
Other finance items
Unwinding of discount on provisions and adjustment to provision discount rates (18.8) (15.8)
Exceptional fair value gains (see note 3) 51.0 167.1
Effects of changes in foreign exchange rates 82.1 12.5
Preference dividends (0.1) (0.1)
114.2 163.7
Net finance (expense)/income (13.8) 196.2
In the year ended 31 December 2024, amounts capitalised and consequently not
included within the above table were as follows: $30.2 million at Los
Pelambres (year ended 31 December 2023 - $104.2 million) and $36.9 million at
Centinela (year ended 31 December 2023 - $7.9 million). The average
interest rate for the interest capitalised was 6.42% (2023 - 6.0%).
The interest expense shown above includes $17.1million in respect of leases
(year ended 31 December 2023 - $10.5 million) and $41.6 million (year ended 31
December 2023 - nil) of interest expense in respect of the other financial
liability balance relating to the Centinela water transportation agreement, as
detailed in Note 17.
9. Taxation
The tax charge for the period comprised the following:
Year ended Year ended
31.12.2024 31.12.2023
$m $m
Current tax charge
Corporate tax (principally first category tax in Chile) (385.8) (472.8)
Mining tax (royalty) (206.0) (109.3)
Withholding tax (71.1) (4.5)
Exchange rate - (0.2)
(662.9) (586.8)
Deferred tax
Corporate tax (principally first category tax in Chile) (83.3) (3.7)
Mining tax (royalty) 76.4 (2.7)
Adjustment to deferred tax attributable to changes in tax rates - (34.3)
Exceptional items (126.7) (41.8)
Withholding tax 41.4 3.2
(92.2) (79.3)
Total tax charge (755.1) (666.1)
The rate of first category (i.e. corporate) tax in Chile is 27.0% (2023 -
27.0%).
In addition to first category tax, the Group incurs withholding taxes on any
remittance of profits from Chile. Withholding tax is levied on remittances of
profits from Chile at 35% less first category (i.e. corporation) tax already
paid in respect of the profits to which the remittances relate.
The Group's mining operations are also subject to a mining tax (royalty).
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.
Los Pelambres has been subject to the new royalty from 1 January 2024. The
impact of the new royalty for Los Pelambres in 2024 included the recognition
of a $28.7 million (see note 2) 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, 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 of between from 5% to 14% of taxable operating profit,
depending on the level of operating profit margin.
The following table provides a numerical reconciliation between the accounting
profit before tax multiplied by the applicable statutory tax rate and the
total tax expense (including both current and deferred tax).
Year ended Year ended Year ended Year ended
Excluding exceptional items Including exceptional items Excluding exceptional items Including exceptional items
31.12.2024
31.12.2024
31.12.2023
31.12.2023
$m % $m % $m % $m %
Profit before tax 1,648.7 2,071.1 1,798.4 1,965.5
Profit before tax multiplied by Chilean corporate tax rate of 27% (445.1) 27.0 (559.2) 27.0 (485.6) 27.0 (530.7) 27.0
Mining Tax (royalty) (216.5) 13.1 (216.5) 10.5 (109.7) 6.1 (109.7) 5.6
Deduction of mining (royalty) as an allowable expense in determination of 55.8 (3.4) 55.8 (2.7) 29.5 (1.6) 29.5 (1.5)
first category tax
Items not deductible from first category tax (3.9) 0.2 (3.9) 0.2 (21.4) 1.2 (21.4) 1.1
Adjustment in respect of prior years 1.7 (0.1) 1.7 (0.1) 4.5 (0.3) 4.5 (0.2)
Adjustment to deferred tax in respect of mining royalty 67.1 (4.1) 67.1 (3.2) (34.3) 1.9 (34.3) 1.7
Withholding tax (29.7) 1.8 (29.7) 1.4 (1.4) 0.1 (1.4) 0.1
Tax effect of (loss)/ profit of associates and joint ventures 20.0 (1.1) 20.0 (1.0) (3.6) 0.2 (3.6) 0.2
Impact of unrecognised tax losses (77.8) 4.7 (77.8) 3.8 (2.3) 0.1 (2.3) 0.1
Reversal of the provision against carrying value of assets (exceptional items) - - (13.7) 0.7 - - - -
Difference in overseas tax rates - - 1.1 (0.1) - - 3.3 (0.2)
Tax expense and effective tax rate for the Year ended (628.4) 38.1 (755.1) 36.5 (624.3) 34.7 (666.1) 33.9
The effective tax rate (excluding exceptional items) of 38.1% varied from the
statutory rate principally due to:
· 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);
· The withholding tax relating to the remittance of profits from
Chile (impact of $29.7 million / 1.8%);
· Adjustments to deferred tax in respect of the mining royalty
(impact of $67.1 million / 4.1%);
· Items not deductible for Chilean corporate tax purposes,
principally the funding of expenses outside of Chile (impact of $3.9 million /
0.2%);
· Adjustments in respect of prior years (impact of $1.7 million /
0.1%);
· The impact of unrecognised tax losses (impact of $77.8 million /
4.7%); and
· 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%).
The effective tax rate (including exceptional items) of 36.5% varied from the
statutory rate due to the factors outlined above, and due to the impact of the
difference in the overseas tax rate which applied to the exceptional item (tax
effect of 25% in the UK versus the 27% Chilean rate).
The main factors which could impact the sustainability of the Group's existing
effective tax rate are:
· The level of future distributions made by the Group's Chilean
subsidiaries out of Chile, which could result in increased withholding tax
charges. When determining whether it is likely that distributions will be made
in the foreseeable future, and what is the appropriate foreseeable future
period for this purpose, the Group considers factors such as the
predictability of the likely future Group dividends, taking into account the
Group's dividend policy and the level of potential volatility of the Group's
future earnings, as well as the current level of distributable reserves at the
Antofagasta plc entity level.
· The impact of expenses which are not deductible for Chilean first
category tax. Some of these expenses are fixed costs, and so the relative
impact of these expenses on the Group's effective tax rate will vary depending
on the Group's total profit before tax in a particular year.
· The potential applicability of the mining royalty cap, as
described above.
OECD Pillar two model rules
The Group falls within the scope of the OECD Pillar two model rules, which
introduces a minimum effective tax rate of 15% for multinational companies.
The rules were substantively enacted in the UK in 2023 and became effective
from 1 January 2024. Currently, the Antofagasta Group operates in Chile and is
subject to the Chilean first category (corporate) tax rate of 27%, plus
withholding taxes on any profits distributed from Chile.
The Group has evaluated the impact of these rules on its tax expense, which
has indicated no effect on the Group's 2024 tax expense.
The Group applied the mandatory exception to recognising and disclosing
information about the deferred tax assets and liabilities related to Pillar 2
income taxes in accordance with the amendments to IAS 12 adopted by the UK
Endorsement Board on 19 July 2023.
In relation to the analysis of the controlling interest and identification of
the Group's Ultimate Parent Entity ("UPE") for Pillar 2 purposes, management
conducted several analyses and confirmed that the 'deemed' consolidation rule
in section (b) of the controlling interest definition should apply to the E
Abaroa Foundation. This would recognize the E Abaroa Foundation as holding a
controlling interest in both Metalinvest and Antofagasta plc. Consequently,
the E Abaroa Foundation should be considered the UPE of the Multinational
Enterprise ("MNE") Group for Pillar Two purposes.
Additionally, based on 2023 data and adjustments for material changes in 2024,
the Group is confident that all jurisdictions within the Antofagasta plc Group
will meet at least one of the Transitional Country-by-Country Reporting Safe
Harbour tests ("TCSH") and, as such, will qualify for TCSH.
Minera Centinela tax claims and queries
In the context of an administrative review, the Chilean Internal Revenue
Service (IRS) has raised claims and queries with Minera Centinela in respect
of approximately $85 million of tax deductions recognised in relation to the
amortisation of start-up costs relating to the Encuentro pit. The Group
considers the tax treatment adopted by Minera Centinela to be correct and
appropriate, has robust arguments to support its position, and expects its
position to be upheld by the review processes. If the Group is unsuccessful in
supporting its position, this amount (plus potential interest and penalties)
would fall due.
10. Earnings per share
Year ended 31.12.2024 Year ended
31.12.2023
$m $m
Profit for the year attributable to owners of the parent (excluding 619.5 709.8
exceptional items)
Exceptional Items 209.9 125.3
Profit for the year attributable to owners of the parent (including 829.4 835.1
exceptional items) from operations
Number Number
Ordinary shares in issue throughout each year 985,856,695 985,856,695
Year ended 31.12.2024 Year ended 31.12.2023
US cent US cent
Basic earnings per share (excluding exceptional items) from operations 62.8 72.0
Basic earnings per share (exceptional items) from operations 21.3 12.7
Basic earnings per share (including exceptional items) from operations 84.1 84.7
Basic earnings per share are calculated as profit after tax and
non-controlling interests, based on 985,856,695 (2023: 985,856,695) ordinary
shares.
There was no potential dilution of earnings per share in either year set out
above, and therefore diluted earnings per share did not differ from basic
earnings per share as disclosed above.
11. Dividends
The Board has recommended a final dividend of 23.5 cents per ordinary share or
$231.7 million in total (2023 - 24.3 cents per ordinary share or $239.6
million in total). The interim dividend of 7.9 cents per ordinary share or
$77.9 million in total was paid on 30 September 2024 (2023 interim dividend of
11.7 cents per ordinary share or $115.3 million in total). This gives total
dividends proposed in relation to 2024 (including the interim dividend) of
31.4 cents per share or $309.6 million in total (2023 - 36.0 cents per share
or $354.9 million in total).
Dividends per share actually paid in the year and recognised as a deduction
from net equity under IFRS were 32.2 cents per ordinary share or $317.4
million in total (2023 - 62.2 cents per ordinary share or $613.2 million in
total) being the interim dividend for the year and the final dividend proposed
in respect of the previous year.
Further details of the currency election timing and process (including the
default currency of payment) are available on the Antofagasta plc website
(www.antofagasta.co.uk) or from the Company's registrar, Computershare
Investor Services PLC on +44 370 702 0159.
12. Property, plant and equipment
Mining Railway and other transport At At 31.12.2023
31.12.2024
$m $m $m $m
Balance at the beginning of the year 12,363.5 315.2 12,678.7 11,543.5
Additions 2,682.2 43.9 2,726.1 2,307.9
Additions - depreciation capitalised(1) 87.9 - 87.9 90.3
Reclassifications 0.8 (1.8) (1.0) (0.4)
Capitalisation of interest 67.1 - 67.1 112.1
Adjustment to capitalised decommissioning provisions (13.0) - (13.0) (31.9)
Depreciation expensed in the period (1,526.9) (41.3) (1,568.2) (1,211.3)
Depreciation capitalised in PP&E (1) (87.9) - (87.9) (90.3)
Depreciation capitalised in inventories (338.5) - (338.5) (41.2)
Write off (5.5) - (5.5) -
Asset disposals - (0.1) (0.1) -
Reversal of the provision against carrying value of assets (exceptional items) 371.4 - 371.4 -
Balance at the end of the period 13,601.1 315.9 13,917.0 12,678.7
( )
(1) Depreciation capitalised in property, plant and equipment of $87.9 million
related to the depreciation of assets used in mine development (capitalised as
stripping costs) at Centinela, Los Pelambres and Antucoya (year ended 31
December 2023 - $90.3 million).
During the year ended 31 December 2024, the total effect of depreciation
capitalised within Property, plant and equipment or inventories in respect of
assets relating to Los Pelambres, Centinela and Antucoya is $426.4 million
(year ended 31 December 2023 - $131.5 million), and has accordingly been
excluded from the depreciation charge recorded in the income statement as
shown in Note 5.
On 31 December 2024, the Group had entered into contractual commitments for
the acquisition of property, plant and equipment amounting to $3,773.3 million
(31 December 2023 - $978.3 million).
13. Disposal of investment in Tethyan joint venture
In May 2023 the Group received the $944.7 million cash proceeds associated
with its agreement to exit its 50% interest in the Tethyan joint venture,
which was a joint venture with Barrick Gold Corporation ("Barrick") in respect
of the Reko Diq project in Pakistan.
14. Investments in associates and joint ventures
The investments which are included in the $1,776.1 million balances at 31
December 2024 are set out below:
At At
31.12.2024 31.12.2023
$m $m
Buenaventura 872.0 -
Zaldívar 895.1 881.3
ATI 9.0 9.8
Total 1,776.1 891.1
Investments in associates
● Buenaventura - The Group has an 18.9% interest in Buenaventura.
Buenaventura is Peru's largest, publicly traded precious and base metals
company and a major holder of mining rights in Peru. During 2023, the Group
entered into an agreement to acquire up to 30 million shares in Buenaventura,
representing approximately 12% of Buenaventura's issued share capital. In
addition, the Group held as of 31 December 2023 an existing holding of
approximately 18.1 million shares in Buenaventura, representing approximately
7% of Buenaventura's issued share capital (see note 15). As at 31 December
2023, an "other financial asset" balance was recognised on the balance sheet
in respect of the agreement, at its fair value of $457.2 million. A fair value
gain of $167.1 million was recognised during 2023 in respect of this asset
(see Note 3). In March 2024, the transaction pursuant to the agreement
completed, resulting in the Group holding approximately 48.1 million shares in
Buenaventura, representing approximately 19% of Buenaventura's issued share
capital. Iván Arriagada and Andrónico Luksic Lederer were elected to
Buenaventura's Board in March 2024. Taking into account relevant factors
including the Group's approximately 19% interest in Buenaventura's issued
share capital and the associated rights to propose directors for election to
Buenaventura's Board and to vote in favour of the election of those
individuals accordingly, the Group is considered for accounting purposes to
have significant influence (in accordance with the IAS 28 Investments in
Associates and Joint Ventures definition) over Buenaventura from March 2024
onwards. Accordingly, the Group's interest in Buenaventura has been accounted
for as an investment in associate from that point (see Note 1).
Immediately prior to the transaction completing in March 2024, the Group's
existing 7% equity interest was carried at a fair value of $305.9m and the
financial asset relating to the agreement to acquire the 12% interest was
carried at a fair value of $508.2m, with both valuations being based on the
quoted share price of Buenaventura on that date. On completion, these two
assets were de-recognised and the investments in associate was initially
recognised at an equivalent value of $814.1m with no gain or loss arising.
A fair value gain of $51.0 million in respect of the "other financial asset"
balance recognised in respect of the transaction was recognised between 1
January 2024 and the completion of the agreement in March 2024.
The Group has undertaken an exercise to recognise the identifiable assets and
liabilities effectively included within the investments in associate balance
at their acquisition-date fair values. No goodwill or gain on bargain purchase
has been recognised as a result of this exercise.
Impairment review
An impairment review has been performed as at 31 December 2024 in respect of
the carrying value of the investment in associate balance relating to
Buenaventura. This review concluded that the recoverable amount of the
investment balance is above its carrying value, and accordingly no impairment
is required or appropriate.
As explained above, the initial carrying value of the investment in associate
balance was recorded in March 2024 at a value equivalent to the fair value of
the shares, reflecting their market value at that date. Between that date and
31 December 2024, the Buenaventura share price decreased by approximately 30%.
This has been assessed as an indicator of a potential impairment of the
investment in associate balance, and accordingly an impairment review has been
performed as at 31 December 2024.
This review has been based on the fair value less costs of disposal for the
investment balance, reflecting the net amount the Group would expect to
receive from the sale of the operation in an orderly transaction between
market participants. This value has been estimated based on a discounted cash
flow model in respect of Buenaventura's directly and indirectly held
operations, investments and projects, as well as the valuation of additional
mineral resources based on resource multiples. This reflects a Level 3 fair
value measurement per the IFRS 13 fair vale hierarchy. The key assumptions
used in this estimation are listed below.
• The forecasts of future metal prices (representing the Group's
estimates of the assumptions that would be used by independent market
participants in valuing the assets) are based on consensus analyst forecasts.
A long-term copper price of $4.15/lb and a long-term gold price of $2,056/oz
(both reflecting 2024 real terms) have been used in the model; however, no
assurances can be given that these prices will be maintained in 2025 or future
years.
• Assumptions in respect of future production levels, operating
costs and sustaining and development capital expenditure are generally based
on publicly available results, forecasts and technical reports in respect of
Buenaventura's directly and indirectly held operations, minority interest
investments and projects.
• Discount rates calculated using relevant market data have been
used in the model.
The recoverable amount indicated by this assessment was above the carrying
value of the investment in associate balance, and accordingly no impairment is
required or appropriate as at 31 December 2024.
The assumptions to which the estimation of the recoverable amount is most
sensitive are the future metal prices. Down-side sensitivities were performed
with a long-term copper price of $3.74/lb and a long-term gold price of
$1,850/oz, each reflecting a 10% reduction in the long-term price forecast.
These sensitivities each continued to indicate a recoverable amount above the
carrying value of the investment in associate balance.
· ATI - The Group has a 30% interest in Antofagasta Terminal
Internacional ("ATI"), which operates a concession to manage installations in
the port of Antofagasta.
Investments in joint ventures
· Zaldívar - The Group has a 50% interest in Minera Zaldívar SpA
("Zaldívar"). Zaldívar is an open-pit, heap-leach copper mine which produces
copper cathodes using the solvent extraction and electrowinning (SX-EW)
process. The mine is 3,000 metres above sea level, approximately 1,400 km
north of Santiago and 175 km south-east of the city of Antofagasta.
Summarised financial information for the joint ventures at December 2024 is as
follows:
Minera Minera
Zaldívar Zaldívar
31.12.2024 31.12.2023
$m $m
Revenue 719.9 718.6
Depreciation and amortisation (181.3) (164.4)
Other operating costs (518.8) (550.3)
Operating profit 19.8 3.9
Finance expense 5.1 (6.2)
Income tax (0.1) (28.4)
Profit after tax 24.8 (30.7)
Other comprehensive (expense)/income (3.7) (1.2)
Total comprehensive income 21.1 (31.9)
Non-current assets 1,418.9 1,595.9
Current assets(1) 779.2 664.5
Current liabilities (189.3) (229.1)
Non-current liabilities (218.6) (268.7)
Net assets 1,790.2 1,762.6
Assets and liabilities above include:
Cash and cash equivalents 96.7 38.4
Current financial liabilities (189.3) (57.8)
Non-current financial liabilities (218.6) (38.1)
(1) The current assets includes cash and cash equivalents.
The above summarised financial information is based on the amounts included in
the IFRS financial statements of the joint venture (100% of the results or
balances of the joint venture, rather than the Group's proportionate share),
after the Group's fair value adjustments and applying the Group's accounting
policies.
15. Equity investments
At 31.12.2024 At 31.12.2023
$m $m
Balance at the beginning of the year 288.6 90.5
Acquisition - 60.7
Movements in fair value(1) 29.7 137.0
Reallocation to associates (305.9) -
Foreign currency exchange difference (0.8) 0.4
Balance at the end of the year 11.6 288.6
( )
(1) A deferred tax expense of $7.7 million has been recognised in respect of
the movements in the fair value of equity investments (pre-tax gain of $29.7
million), resulting in a post-tax gain of $22.0 million (see Note 20).
Equity investments represent those investments which are not subsidiaries,
associates or joint ventures and are not held for trading purposes. Because
the Group intends to hold these investments for long-term strategic purposes,
at initial recognition they were designated at Fair Value through Other
Comprehensive Income ("FVTOCI"). The fair value of all equity investments is
based on quoted market prices.
Of the total equity investment balance on 31 December 2023, $275.2 million
related to a holding of approximately 18.1 million shares in Compañia de
Minas Buenaventura S.A.A. ("Buenaventura"), representing approximately 7% of
Buenaventura's issued share capital. As detailed in Note 14, during 2023 the
Group entered into an agreement to acquire an additional holding of up to 30
million shares in Buenaventura, representing approximately 12% of
Buenaventura's issued share capital. In March 2024, the transaction pursuant
to the agreement completed and the Group's interest in Buenaventura has been
accounted for as an investment in associate from that date, resulting in the
derecognition of the equity investment with the fair value of these shares at
that time forming part of the initial investment in associate balance.
At the date of the reallocation of the equity investment in Buenaventura into
the investment in associates balance, the fair value of the equity investment
balance was $305.9 million and the accumulated gain on revaluation of this
investment within equity was $130.4 million. This amount was transferred from
the equity investment revaluation reserve to retained earnings. A fair value
gain of $30.7 million was recognised between 1 January 2024 and reallocation
to the investment in associates balance in March 2024.
16. Inventories
At 31.12.2024 At 31.12.2023
$m $m
Current:
Raw materials and consumables 266.6 231.0
Work in progress 499.7 375.4
Finished goods 158.8 64.6
925.1 671.0
Non-current:
Work in progress 707.8 457.0
Total current and non-current inventories 1,632.9 1,128.0
During 2024, there were no net realisable value ("NRV") adjustments (2023 -
$6.0 million). Non-current work-in-progress represents inventory expected to
be processed more than 12 months after the balance sheet date.
17. Borrowings and other financial liabilities
At At
31.12.2024 31.12.2023
$m $m
Borrowings
Los Pelambres
- Senior loan (i) (1,887.6) (2,067.2)
- Other loans (ii) (475.0) -
Centinela
- Senior loan (iii) (572.6) (166.3)
- Other loans (iv) (195.0) (265.0)
Antucoya
- Senior loan (v) (124.6) (174.1)
- Subordinated debt (vi) (205.5) (187.6)
Railway and other transport services
- Senior loan - (5.0)
(3,460.3) (2,865.2)
Bonds
Corporate and other items (vii) (1,729.0) (986.8)
(1,729.0) (986.8)
Other financial liabilities
Centinela (xiv) (594.0) -
(594.0) -
Leases
Los Pelambres (viii) (19.2) (45.2)
Centinela (ix) (114.1) (142.8)
Antucoya (x) (13.4) (17.4)
Corporate and other items (xi) (12.1) (18.4)
Railway and other transport services (xii) (0.9) (0.9)
(159.7) (224.7)
Preference shares
Corporate and other items (xiii) (2.4) (2.5)
(2.4) (2.5)
Total (5,945.4) (4,079.2)
At 31 December 2024, $3,155.1 million (December 2023 - $1,219.0 million) of
the borrowings and other financial liabilities has fixed rate interest and
$2,790.3 million (December 2023 - $2,860.2 million) has floating rate
interest.
(i) The senior loans at Los Pelambres represent:
· An initial $910 million US dollar denominated syndicated loan divided in three
tranches. The first tranche has a remaining duration of 1 year and has an
interest rate of Term SOFR six-month rate plus an all-in margin of 1.48%. The
second tranche has a remaining duration of 4 years and has an interest rate of
Term SOFR six-month rate plus an all-in margin of 1.28%. The third tranche has
a remaining duration of 3.5 years and has an interest rate of Term SOFR
six-month rate plus an all-in margin of 1.53%. An additional $185 million US
dollar denominated bullet loan was issued in September 2024, with a 3 year
remaining duration and an interest rate of Term SOFR six-month rate + 1.40%.
The loans are subject to financial covenants requiring the maintenance of
specified net debt to EBITDA and EBITDA to finance expense ratios, which have
been met. The outstanding amount at the end of the period is $1,077.6 million.
· three US dollar denominated senior loans issued in December 2023 for a total
amount of $810 million. The first loan is a $200 million bullet with a
remaining duration of 2 years and an interest rate of Term SOFR six-month rate
plus 1.60%. The second loan is a $200 million bullet with a remaining duration
of 4 years and an interest rate of Term SOFR six-month rate plus 1.69%. The
third loan is a $410 million amortising balance with a remaining duration of 4
years and an interest rate of Term SOFR six-month rate plus 1.70%. The amount
outstanding at the end of the period is $810.0 million.
(ii) In April 2024, Los Pelambres issued two short-term loans for a total amount of
$185 million, with a remaining duration of less than1 year. In May 2024, Los
Pelambres issued three short-term loans for a total amount of $290 million,
with a remaining duration of less than 1 year.
(iii) The senior loans at Centinela represent:
· Centinela has a US dollar denominated senior loan with an amount outstanding
of $33 million with a duration of less than 1 year and an interest rate of
Term SOFR six-month rate plus an all-in margin of 1.38%. The loans are subject
to financial covenants requiring the maintenance of specified net debt to
EBITDA and EBITDA to finance expense ratios, which have been met.
· Centinela's project finance in respect of the Second Concentrator Project,
which has a committed amount of $2.5 billion. During 2024 there were three
debt disbursements totalling $619.5 million. The borrowing has a remaining
11-year duration and is divided in six different tranches with interest rates
of Term SOFR six-month rate plus margins of between 0.85% and 1.90%.
(iv) In March 2024, Centinela issued a short-term loan for a total amount of $45
million and a remaining duration of less than 1 year. In July 2024, Centinela
issued a short-term loan for a total amount of $150 million. This loan has a
remaining term of less than 1 year.
(v) The senior loan at Antucoya represents a US dollar denominated syndicated loan
with an amount outstanding of $125 million. This loan has a remaining duration
of 2.5 years and has an interest rate of Term SOFR six-month rate plus 1.40%.
The loan is subject to financial covenants requiring the maintenance of
specified net debt to EBITDA and EBITDA to finance expense ratios, which have
been met.
(vi) Subordinated debt at Antucoya is US dollar denominated, provided to Antucoya
by Marubeni Corporation with a remaining duration of 2.5 years and an interest
rate of Term SOFR six-month rate plus an all-in margin of 4.08%. The
outstanding amount at the end of the period is $206 million. Subordinated debt
provided by Group companies to Antucoya has been eliminated on consolidation.
(vii) Antofagasta plc in October 2020 issued a corporate bond for $500 million with
a 10-year tenor with a coupon rate of 2.375%. In May 2022, Antofagasta plc
issued a new corporate bond for $500 million with a 10-year tenor with a
coupon rate of 5.625%. In May 2024, Antofagasta plc issued a new corporate
bond for $750 million with a 10-year tenor with a coupon rate of 6.250%.
(viii) Los Pelambres: equipment leases embedded within wider service contracts,
denominated in UF (Unidad de Fomento - i.e. inflation-linked Chilean pesos),
Chilean pesos and dollars.
(ix) Centinela: equipment leases embedded within wider service contracts,
denominated in UF (Unidad de Fomento - i.e. inflation-linked Chilean pesos),
Chilean pesos and dollars.
(x) Antucoya: equipment leases embedded within wider service contracts,
denominated in UF (Unidad de Fomento - i.e. inflation-linked Chilean pesos),
Chilean pesos and dollars.
(xi) Financial Leases at Corporate and other items which are denominated in
Unidades de Fomento (i.e. inflation-linked Chilean pesos) and have a remaining
duration of 2.0 years and are at fixed rates with an average interest rate of
5.2%; and property lease agreements and equipment leases embedded within wider
service contracts at Corporate and other items, which are denominated in
different currencies
(xii) Transport division: equipment leases embedded within wider service contracts,
denominated in UF (Unidad de Fomento - i.e. inflation-linked Chilean pesos)
and Chilean pesos.
(xiii) The preference shares are Sterling-denominated and issued by Antofagasta plc.
There are 2 million shares of £1 each authorised, issued and fully paid. The
preference shares are non-redeemable and are entitled to a fixed cumulative
dividend of 5% per annum. On winding up they are entitled to repayment and any
arrears of dividend in priority to ordinary shareholders but are not entitled
to participate further in any surplus. Each preference share carries 100 votes
in any general meeting of the Company.
(xiv) In June 2024 Centinela entered into an 18-year 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 have been legally transferred to an
international consortium for net cash proceeds of $598.6 million. For
accounting purposes, it has been determined that Centinela continues to
control the assets, as it will continue to obtain substantially all the
remaining benefits from the assets. Accordingly, the existing assets remain in
Centinela's balance sheet, with the cash receipt resulting in the recognition
of the corresponding other financial liability balance, which will be repaid
over the 18-year agreement term.
At 31.12.2024 At 31.12.2023
$m $m
Short-term borrowings (1,322.5) (901.9)
Medium and long-term borrowings (4,622.9) (3,177.3)
Total (5,945.4) (4,079.2)
On 30 December 2022, Antofagasta plc agreed a revolving credit facility "RCF"
of $500 million with a group of six banks and where the Canadian Imperial Bank
of Commerce "CIBC" has the role of Administrative Agent. This revolving credit
facility has a term of three years, which expires on 30 December 2025.
Subsequent to 31 December 2024, the RCF was extended for a further three
years, and now expires on 30 December 2028.
Drawn Undrawn
Facility available
31 December 31 December 31 December 31 December 31 December 31 December
2024 2023 2024 2023 2024 2023
$m $m $m $m $m $m
Revolving credit facility 500.0 500.0 - - 500.0 500.0
The maturity profile of the Group's borrowings is as follows:
At 31 December 2024 Within 1 year Between 1-2 years Between 2-5 years After 5 years 2024
Total
$m $m $m $m $m
Senior loans (549.9) (596.9) (908.1) (529.9) (2,584.8)
Bond - - - (1,729.0) (1,729.0)
Other loans (670.0) - (205.5) - (875.5)
Other financial liabilities (6.1) (12.2) (47.3) (528.4) (594.0)
Leases (96.6) (28.4) (34.5) (0.2) (159.7)
Preference shares - - - (2.4) (2.4)
(1,322.6) (637.5) (1,195.4) (2,789.9) (5,945.4)
At 31 December 2023 Within 1 year Between 1-2 years Between 2-5 years After 5 years 2023
Total
$m $m $m $m $m
Senior loans (529.1) (570.9) (1,287.6) (25.0) (2,412.6)
Bond - - - (986.8) (986.8)
Other loans (265.0) - (187.6) - (452.6)
Leases (107.8) (73.0) (42.6) (1.3) (224.7)
Preference shares - - - (2.5) (2.5)
(901.9) (643.9) (1,517.8) (1,015.6) (4,079.2)
18. Post-employment benefit obligations
At 31.12.2024 At 31.12.2023
$m $m
Balance at the beginning of the year (139.9) (137.3)
Current service cost (25.4) (25.7)
Unwinding of discount on provisions (8.1) (7.2)
Actuarial (losses)/gains (12.2) 10.7
Paid in the year 16.3 16.0
Foreign currency exchange difference 17.1 3.6
Balance at the end of the year (152.2) (139.9)
The post-employment benefit obligation relates to the provision for severance
indemnities which are payable when an employment contract comes to an end, in
accordance with normal employment practice in Chile and other countries in
which the Group operates. The severance indemnity obligation is treated as
an unfunded defined benefit plan, and the calculation is based on valuations
performed by an independent actuary.
19. Decommissioning and restoration provisions
At 31.12.2024 At 31.12.2023
$m $m
Balance at the beginning of the year (441.1) (488.2)
Charge to operating profit in the year (0.8) (12.8)
Unwinding of discount to net interest in the year (10.8) (10.2)
Adjustment to provision discount rates 0.1 1.6
Capitalised adjustment to provision 13.0 31.9
Utilised in the year 10.7 36.8
Foreign currency exchange difference 0.9 (0.2)
Balance at the end of the year (428.0) (441.1)
At 31.12.2024 At 31.12.2023
$m $m
Short-term provisions (5.9) (15.2)
Long-term provisions (422.1) (425.9)
Total (428.0) (441.1)
Decommissioning and restoration costs relate to the Group's mining operations.
Costs are estimated on the basis of a formal closure plan and are subject to
regular independent formal review by Sernageomin, the Chilean government
agency which regulates the mining industry in Chile. During 2023, the
Centinela provisions were updated to reflect new plans approved by Sernageomin
during the year. The provision balance reflects the present value of the
forecast future cash flows expected to be incurred in line with the closure
plans, discounted using Chilean real interest rates with durations
corresponding with the timings of the closure activities. At 31 December 2024,
the real discount rates ranged from 2.43% to 2.58% (31 December 2023: 2.29% to
2.41%). It is estimated that the provision will be utilised from 2025 until
2058 based on current mine plans, with approximately 15% of the total
provision balance expected to be utilised between 2025 and 2034, approximately
55% between 2035 and 2044, approximately 30% between 2045 and 2054 and
approximately 1% between 2054 and 2058.
Given the long-term nature of these balances, it is possible that future
climate risks could impact the appropriate amount of these provisions, both in
terms of the nature of the decommissioning and site rehabilitation activities
that are required, or the costs of undertaking those activities. In its Annual
Report and Accounts, the Group discloses in line with the recommendations of
the Task Force on Climate-related Financial Disclosures ("TCFD"). This process
included scenario analyses assessing the impact of transition and physical
risks. As a simple high-level sensitivity, we have considered whether the
level of estimated costs relating to the potential future risks identified
under the scenario analysis could indicate a general level of future cost
increases as a consequence of climate risks which could indicate a significant
potential impact on these provision balances. This analysis did not indicate a
significant potential impact on the decommissioning and restoration provision
balances. However, more detailed specific analysis of the potential impacts of
climate risks in future periods could result in adjustments to these provision
balances. When future updates to the closure plans are prepared and submitted
to Sernageomin for review and approval, it is possible that additional
consideration of potential climate risk impacts may need to be incorporated
into the plan assumptions. In addition, Sernageomin may introduce new
regulations or guidance in respect of climate risks which may need to be
addressed in future updates to the Group's closure plans.
20. Deferred tax assets and liabilities
At 31.12.2024 At 31.12.2023
$m $m
Net deferred tax position at the beginning of the year (1,584.6) (1,464.8)
Charge to tax on profit in year (79.5) (2.9)
Deferred tax recognised directly in equity(1) (5.9) (40.8)
Tax on exceptional items (2) (12.7) (41.8)
Exchange differences (0.3) -
Adjustment due to introduction of new royalty - (34.3)
Net deferred tax position at the end of the year (1,683.0) (1,584.6)
Analysed between:
Net deferred tax assets 9.7 72.0
Net deferred tax liabilities (1,692.7) (1,656.6)
Net deferred tax position (1,683.0) (1,584.6)
( )
(1) The $5.9 million of deferred tax recognised directly in equity relates to
a $(7.7) million deferred tax expense in respect of the movements in the fair
value of equity investments (see Note 15) and a $1.8 million deferred tax
expense in respect of actuarial gains on defined benefit plans.
(2) A deferred tax expense of $12.7 million has been recognised in respect of
the exceptional fair value gain of $51.0 million in respect of the agreement
under which the Group acquired an additional 30 million shares in Compañia de
Minas Buenaventura S.A.A. (see Note 3).
At 31 December 2024, the Group had unused tax losses of $661.4 million in
respect of which no deferred tax asset has been recognised, as the relevant
entities are currently loss-making, $141.1 million (2023 - $24.8 million) of
these tax losses relate to Chilean entities where the tax losses can be
carried forward indefinitely. $520.3 million (2023 - $496.8 million) relate to
entities outside of Chile, predominantly in respect of the Twin Metals
project. A portion of the Twin Metals tax losses expire in the period from
2030 - 2037, and the remainder can be carried forward indefinitely.
The value of the undistributed earnings of subsidiaries for which deferred tax
liabilities have not been recognised, because the Group is in a position to
control the timing of the distributions and it is likely that distributions
will not be made in the foreseeable future, was $7,317.6 million (31 December
2023 - $7,101.1 million).
At 31 December 2024, the Group has recognised a $99.2 million deferred tax
liability in respect of fair value gains in relation to the Group's interests
in Buenaventura, prior to the Group accounting for its interest in
Buenaventura as an investment in associate from March 2024 onwards. In March
2025, if the Group maintains its existing interest in Buenaventura, it will
qualify for the UK Substantial Shareholding Exemption in respect of its
holding in Buenaventura, as it will have held an interest of more than 10% in
Buenaventura for a period of 12 months, exempting the Group from UK capital
gains tax in respect of its investment. Accordingly, it is expected that in
March 2025 the Group will de-recognise its existing deferred tax liability.
Temporary differences arising in connection with interests in associates are
insignificant.
The deferred tax balance of $1,683.0 million (2023 - $1,584.6 million)
includes $1,680.2 million (2023 - $1,567.2 million) due in more than one year.
All amounts are shown as non-current on the face of the balance sheet as
required by IAS 12 Income Taxes.
21. Share capital and share premium
There was no change in share capital or share premium in the year ended 2024
or 2023. Details are shown in the Consolidated Statement of Changes in Equity.
22. Other reserves and retained earnings
At 31.12.2024 At 31.12.2023
$m $m
Share premium
At 1 January and 31 December 199.2 199.2
Hedging reserve - cost of hedging
Net cost of hedging (1) (17.9) -
Tax on the above 4.8 -
(13.1) -
Equity investment revaluation reserve ((2))
At 1 January 108.4 8.4
Gains on equity investment 22.0 100.0
Reclassification((5)) (130.4) -
At 31 December - 108.4
Foreign currency translation reserve ((3))
At 1 January (3.9) (3.4)
Currency translation adjustment (1.2) (0.5)
At 31 December (5.1) (3.9)
Total other reserves per balance sheet (18.2) 104.5
Retained earnings
At 1 January 8,558.4 8,333.5
Parent and subsidiaries' profit for the year 753.2 848.6
Equity accounted units' (loss)/profit after tax for the year 76.2 (13.5)
Actuarial (losses)/gains ((4)) (9.4) 3.0
Reclassification((5)) 130.4 -
Total comprehensive income for the year 950.4 838.1
Dividends paid (317.4) (613.2)
At 31 December 9,191.4 8,558.4
(1) Hedging reserve - cost of hedging is net of the non-controlling interest
impacts of $7.6 million.
(2) The equity investment revaluation reserves record fair value gains or
losses relating to equity investments, as described in Note 16.
(3) Exchange differences arising on the translation of the Group's net
investment in foreign-controlled companies are taken to the foreign currency
translation reserve.
(4) Actuarial gains or losses relate to long-term employee benefits, as
described in Note 18 and these figures are net of the non-controlling interest
impacts.
(5) Corresponds to the reclassification of the fair value gain relating to the
Buenaventura shares from the "Equity investment revaluation reserve" to
Retained earnings, as explained in note 15.
23. Reconciliation of profit before tax to net cash flow from
operating activities
At At
31.12.2024 31.12.2023
$m $m
Profit before tax 2,071.1 1,965.5
Depreciation and amortisation 1,568.2 1,211.3
Net gain on disposals 5.6 -
Net finance expense/(income) - excluding exceptional items 64.8 (29.1)
Net share of (profit) /loss of associates and joint ventures (76.2) 13.5
Exceptional items (422.4) (167.1)
(Increase) in inventories (166.5) (31.6)
Decrease/(increase) in debtors 243.1 (57.9)
Increase/(decrease) in creditors (10.7) 137.0
(Decrease)/increase in provisions (0.8) (14.5)
Cash flow generated from operations 3,276.2 (3,027.1)
24. Analysis of changes in net debt
For the period ended 31 December 2024
At 31.12.2023 Cash flows Fair value gain New leases Amortisation of finance costs Capitalisation of interest Reclassification Exchange At 31.12.2024
$m $m $m $m $m $m $m $m $m
Cash and cash equivalents 644.7 1,550.1 - - - - - (5.6) 2,189.2
Liquid investments 2,274.7 (148.5) 0.9 - - - - - 2,127.1
Total cash and cash equivalents and liquid investments 2,919.4 1,401.6 0.9 - - - - (5.6) 4,316.3
Borrowings due within one year (794.1) 154.0 - - - - (579.8) - (1,219.9)
Borrowings due after one year (3,057.9) (1,459.9) - - (13.5) (17.9) 579.8 - (3,969.4)
Other financial liabilities due within one year - 4.6 - - - - (10.7) - (6.1)
Other financial liabilities due after one year - (598.6) - - - - 10.7 - (587.9)
Leases due within one year (107.8) 152.7 - - - - (141.4) - (96.5)
Leases due after one year (116.9) - - (111.1) - - 141.4 23.4 (63.2)
Preference shares (2.5) - - - - - - 0.1 (2.4)
Total liabilities from financing activities (4,079.2) (1,747.2) - (13.5) (17.9) - 23.5 (5,945.4)
(111.1)
Net debt (1,159.8) (345.6) 0.9 (111.1) (13.5) (17.9) - 17.9 (1,629.1)
For the period ended 31 December 2023
At 31.12.2022 Cash flows Fair value gains New leases Amortisation of finance costs Capitalisation of interest Other Reclassification Foreign exchange At 31.12.2023
$m $m $m $m $m $m $m $m $m $m
Cash and cash equivalents 810.4 (162.0) - - - - - - (3.7) 644.7
Liquid investments 1,580.8 674.2 19.7 - - - - - - 2,274.7
Total cash and cash equivalents and liquid investments 2,391.2 512.2 19.7 - - - - - (3.7) 2,919.4
Borrowings due within one year (377.4) 116.7 - - - - - (533.4) - (794.1)
Borrowings due after one year (2,765.4) (797.2) - - (12.7) (16.0) - 533.4 - (3,057.9)
Leases due within one year (55.1) 81.2 - - - - - (133.9) - (107.8)
Leases due after one year (76.6) - - (178.6) - - - 133.9 4.4 (116.9)
Preference shares (2.5) - - - - - - - - (2.5)
Total liabilities from financing activities (3,277.0) (599.3) - (178.6) (12.7) (16.0) - - 4.4 (4,079.2)
Net debt (885.8) (87.1) 19.7 (178.6) (12.7) (16.0) - - 0.7 (1,159.8)
Net debt
Net debt at the end of each period was as follows.
At At
31.12.2024 31.12.2023
$m $m
Cash, cash equivalents and liquid investments 4,316.3 2,919.4
Total liabilities from financing activities (5,945.4) (4,079.2)
Net debt (1,629.1) (1,159.8)
25. Related party transactions
Transactions between the Company and its subsidiaries, which are related
parties, have been eliminated on consolidation and are not disclosed in this
note. Transactions between the Group and its associates and joint ventures are
disclosed below.
The transactions entered into with related parties who are not members of the
Group are set out below. There are no guarantees given or received and no
provisions for doubtful debts related to the amount of outstanding balances.
a) Quiñenco SA
Quiñenco SA ("Quiñenco") is a Chilean financial and industrial conglomerate,
the shares of which are traded on the Santiago Stock Exchange. The Group and
Quiñenco are both under the control of the Luksic family, and two Directors
of the Company, Jean-Paul Luksic and Andronico Luksic, who are also directors
of Quiñenco. The following transactions took place between the Group and the
Quiñenco group of companies, all of which were on normal commercial terms at
market rates.
- The Group earned interest income of $1.0 million (2023 - $0.9
million) during the year on investments with BanChile AGF, a subsidiary of
Quiñenco. Investment balances at the end of the year were $30.5 million
(2023: nil).
- The Group made purchases of fuel from ENEX SA, a subsidiary of
Quiñenco, of $318.4 million (2023 - $337.8 million). The balance due to ENEX
SA at the end of the year was $17.9 million (2023 - $13.3 million).
- The Group purchased shipping services from Hapag Lloyd, an
associate of Quiñenco, for $13.2 million (2023 - $9.0 million). The balance
due to Hapag Lloyd at the end of the year was nil (2023 -nil).
- The Group made purchases of technology services from ARTIKOS CHILE
SA, a subsidiary of Quiñenco, of $0.3 million (2023 - $0.2 million). The
balance due to ARTIKOS CHILE SA at the end of the year was nil (2023: nil).
b) Compañía de Inversiones Adriático SA
In 2024, the Group leased office space on normal commercial terms from
Compañía de Inversiones Adriático SA, a company in which members of the
Luksic family have an interest, at a cost of $0.6 million (2023 - $0.8
million)
c) Associates
The Group has a 18.9% interest in Compañía de Minas Buenaventura S.A.A,
which is an associate. During the year ended 31 December 2024, the Group has
received dividends from Buenaventura of $3.5 million.
d) Other related parties
The immediate parent company of the Group is Metalinvest Establishment and the
ultimate parent company is the E. Abaroa Foundation, in which members of the
Luksic family are interested. The Group's subsidiaries, in the ordinary course
of business, enter into various sale and purchase transactions with companies
also controlled by members of the Luksic family, including Banco de Chile
S.A., BanChile Corredores de Bolsa S.A., ENEX S.A. and Compañía de
Inversiones Adriático S.A. These transactions were all on normal commercial
terms.
The Group holds a 51% interest in Antomin 2 Limited ("Antomin 2") and Antomin
Investors Limited ("Antomin Investors"), which own a number of copper
exploration properties. The Group originally acquired its 51% interest in
these properties for a nominal consideration from Mineralinvest Establishment
("Mineralinvest"), a company controlled by the Luksic family, which continues
to hold the remaining 49% of Antomin 2 and Antomin Investors. The Group is
responsible for any exploration costs relating to the properties held by these
entities. During the year ended 31 December 2024, the Group incurred $0.1
million (31 December 2023 - $0.1 million) of exploration costs at these
properties (see note 27). As detailed in Note 27, subsequent to the year end,
in January 2025 the Group entered into an agreement with Mineralinvest to
acquire its 49% interest in Antomin Investors.
e) Compañía Minera Zaldívar SpA
The Group has a 50% interest in Zaldívar, which is a joint venture with
Barrick Gold Corporation. Antofagasta is the operator of Zaldívar. The
balance due from Zaldívar to Group companies at the end of the year was $2.2
million (2023 - $6.7 million). During 2024, Zaldívar declared dividends of
nil to the Group (2023 - nil).
26. Litigation and contingent liabilities
The Group is subject from time to time to legal proceedings, claims,
complaints and investigations arising out of the ordinary course of business.
The Group cannot predict the outcome of individual legal actions or claims or
complaints or investigations. As a result, the Group may become subject to
liabilities that could affect the Group's business, financial position and
reputation. Litigation is inherently unpredictable, and large judgments may at
times occur. The Group may incur, in the future, judgments or enter into
settlements of claims that could lead to material cash outflows. The Group
does not expect a material loss from the legal proceedings, claims, complaints
and investigations that the Group is currently subject to. A provision is
recognized for legal claims where the Group has a present obligation as a
result of past events, it is probable that an outflow of resources embodying
economic benefits will be required to settle the obligation, and a reliable
estimate can be made of the amount of the obligation.
Any relevant potential tax contingencies, including litigation, are detailed
in Note 9.
27. Post Balance Sheet Events
Antomin Investors Limited
As detailed in Note 25, the Group holds a 51% interest in Antomin Investors,
which owns a number of copper exploration properties. The Group originally
acquired its 51% interest in these properties for a nominal consideration from
Mineralinvest, a company in which members of the Luksic family are interested,
which continues to hold the remaining 49% of Antomin Investors. In January
2025, the Group entered into an agreement with Mineralinvest to acquire its
49% interest in Antomin Investors' copper exploration properties in the
Centinela District for $80 million. Properties currently held by Antomin
Investors that are outside the Centinela District will be demerged into a new
entity, held 51% by the Group and 49% by Mineralinvest. The acquisition of
Antomin Investors is expected to complete later in 2025, following that
demerger. This transaction further consolidates the Group's mining property
interests in the Centinela District providing flexibility for future growth
options. This transaction was overseen and approved by a committee of
independent Directors who sought and received confirmation from a financial
adviser, a major international investment bank with extensive experience in
advising UK issuers on such matters, that the terms of the transaction were
fair and reasonable as far as the shareholders of the companies were
concerned.
28. Currency translation
Assets and liabilities denominated in foreign currencies are translated into
US dollars and sterling at the year-end rates of exchange. Results denominated
in foreign currencies have been translated into US dollars at the average rate
for each year.
2024 2023
Year-end rate $1 $1.254=£1; $1 = Ch$996.57 $1 $1.275=£1; $1 = Ch$877.17
Average rates h$7$1.277=£1; $1 = Ch$944.18 h$7$1.244=£1; $1 = Ch$839.28
29. Distribution
The Annual Report and Financial Statements for the year ended 31 December
2024, once finalised, together with the Notice of the 2025 Annual General
Meeting, will be posted to all shareholders in April 2025.
Alternative performance measures (not subject to audit or review)
This consolidated financial information includes a number of alternative
performance measures, in addition to amounts in accordance with UK-adopted
International Accounting Standards. These measures are included because they
are considered to provide relevant and useful additional information to users
of the accounts. Set out below are definitions of these alternative
performance measures, explanations as to why they are considered to be
relevant and useful, and reconciliations to the IFRS figures.
a) Underlying earnings per share
Underlying earnings per share is earnings per share from continuing
operations, excluding exceptional items. This measure is reconciled to
earnings per share from continuing and discontinued operations (including
exceptional items) on the face of the income statement. This measure is
considered to be useful as it provides an indication of the earnings generated
by the ongoing businesses of the Group, excluding the impact of exceptional
items which are one-off transactions or transactions outside the ordinary
course of business of the Group.
EBITDA
EBITDA is calculated by adding back depreciation, amortisation, profit or loss
on disposals and impairment charges or reversals 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.
EBITDA is considered to provide a useful and comparable indication of the
current operational earnings performance of the business, excluding the impact
of the historical cost of property, plant & equipment or the particular
financing structure adopted by the business.
For the year ended 31 December 2024
Los Pelambres Centinela Antucoya Zaldívar Exploration and evaluation Corporate and other items Mining Railway and other transport services Total
$m $m $m $m $m $m $m $m $m
Operating profit/(loss) 1,313.5 273.5 529.5 - (52.7) (83.1) 1,980.7 28.0 2,008.7
Depreciation and amortisation 544.1 854.9 117.7 - - 10.2 1,526.9 41.3 1,568.2
Loss on disposals 3.6 1.9 - - - 0.1 5.6 - 5.6
Reversal of impairment - - (371.4) - - - (371.4) - (371.4)
EBITDA from subsidiaries 1,861.2 1,130.3 275.8 - (52.7) (72.8) 3,141.8 69.3 3,211.1
Proportional share of the EBITDA from associates and JVs - - - 99.9 - 109.2 209.1 6.6 215.7
Total EBITDA 1,861.2 1,130.3 275.8 99.9 (52.7) 36.4 3,350.9 75.9 3,426.8
For the year ended 31 December 2023
Los Pelambres Centinela Antucoya Zaldívar Exploration and evaluation(1) Corporate and other items Mining Railway and other transport services Total
$m $m $m $m $m $m $m $m $m
Operating profit/(loss) 1,373.4 456.3 97.5 - (64.9) (123.0) 1,739.3 43.5 1,782.8
Depreciation and amortisation 318.6 727.3 109.4 - - 24.3 1,179.6 31.7 1,211.3
EBITDA from subsidiaries 1,692.0 1,183.6 206.9 - (64.9) (98.7) 2,918.9 75.2 2,994.1
Proportional share of the EBITDA from associates and JVs - - - 86.8 - - 86.8 6.3 93.1
Total EBITDA 1,692.0 1,183.6 206.9 86.8 (64.9) (98.7) 3,005.7 81.5 3,087.2
(1)In order to better reflect the Group's internal reporting, the Group has
changed the classification of certain evaluation costs incurred by the
individual mining operations in $76.2 million, which were previously included
in the Exploration and evaluation segment and are now included within the
individual mine segments.
b) Cash costs
Cash costs are a measure of the cost of operational production expressed in
terms of cents per pound of payable copper produced.
This is considered to be a useful and relevant measure as it is a standard
industry measure applied by most major copper mining companies which reflects
the direct costs involved in producing each pound of copper. It therefore
allows a straightforward comparison of the unit production cost of different
mines and allows an assessment of the position of a mine on the industry cost
curve. It also provides a simple indication of the profitability of a mine
when compared against the price of copper (per lb).
With sales of concentrates at Los Pelambres and Centinela, which are sold to
smelters and roasting plants for further processing into fully refined metal,
the price of the concentrate invoiced to the customer reflects the market
value of the fully refined metal less a "treatment and refining charge"
deduction, to reflect the lower value of this partially processed material
compared with the fully refined metal. For accounting purposes, the revenue
amount reflects the invoiced price (the net of the market value of fully
refined metal less the treatment and refining charges). Under the standard
industry definition of cash costs, treatment and refining charges are regarded
as part of the total cash cost figure.
At 31.12.2024 At 31.12.2023
Reconciliation of cash costs excluding treatment & refining charges and
by-product revenue:
Total Group operating costs (Note 5) ($m) 4,976.1 4,541.7
Zaldívar operating costs (attributable basis - 50%) 267.6 263.1
Less:
Depreciation and amortisation (Note 5) ($m) (1,568.2) (1,211.3)
Loss on disposal (Note 5) ($m) (5.6) -
Corporate and other items - Total operating cost (excluding depreciation) (72.8) (98.7)
(Note 5) ($m)
Exploration and evaluation - Total operating cost (excluding depreciation) (52.7) (64.9)
(Note 5) ($m)(2)
Transport division - Total operating cost (excluding depreciation) (Note 5) (125.6) (120.7)
($m)
Closure provision and other expenses not included within cash costs ($m) (117.5) (102.7)
Inventories variation 39.9 (13.6)
Medium and long-term drilling costs & evaluation(2) (98.9) (76.2)
Total cost relevant to the mining operations' cash costs ($m) 3,242.3 3,116.7
Copper production volumes (tonnes)(1) 663,950 660,600
Cash costs excluding treatment & refining charges and by-product revenue 4,883 4,718
($/tonne)
Cash costs excluding treatment & refining charges and by-product revenue 2.21 2.14
($/lb)
Reconciliation of cash costs before deducting by-products revenue:
Treatment & refining charges - copper and by-products - Los Pelambres ($m) 154.7 155.3
Treatment & refining charges - copper and by-products - Centinela ($m) 65.9 95.4
Treatment & refining charges - copper - total ($m) 220.6 250.7
Copper production volumes (tonnes)(1) 663,950 660,600
Treatment & refining charges ($/tonne) 332.2 379.4
Treatment & refining charges ($/lb) 0.16 0.17
Cash costs excluding treatment & refining charges and by-product revenue 2.21 2.14
($/lb)
Treatment & refining charges ($/lb) 0.16 0.17
Cash costs before deducting by-product revenue (S/lb) 2.37 2.31
(1)The 663,950 tonnes includes 40,100 tonnes of production at Zaldívar on a
50% attributable basis.
(2) In order to better reflect the Group's internal reporting, the Group has
changed the classification of certain evaluation costs incurred by the
individual mining operations, which were previously included in the
Exploration and evaluation segment and are now included within the individual
mine segments.
( )
At 31.12.2024 At 31.12.2023
Reconciliation of cash costs (net of by-product revenue):
Gold revenue - Los Pelambres ($m) 110.5 83.6
Gold revenue - Centinela ($m) 337.1 324.2
Molybdenum revenue - Los Pelambres ($m) 412.0 397.6
Molybdenum revenue - Centinela ($m) 109.7 141.7
Silver revenue - Los Pelambres ($m) 55.2 36.2
Silver revenue - Centinela ($m) 23.9 34.9
Total by-product revenue ($m) 1,048.4 1,018.2
Copper production volumes (tonnes)(2) 663,950 660,600
By-product revenue ($/tonne) 1,579.2 1,541.3
By-product revenue ($/lb) 0.73 0.70
Cash costs before deducting by-product revenue (S/lb) 2.37 2.31
By-product revenue ($/lb) (0.73) (0.70)
Cash costs (net of by-product revenue) ($/lb) 1.64 1.61
(2)The 663,950 tonnes includes 40,100 tonnes of production at Zaldívar on a
50% attributable basis.
The totals in the tables above may include some small apparent differences as
the specific individual figures have not been rounded.
c) Attributable cash, cash equivalents & liquid investments,
borrowings and net debt
Attributable cash, cash equivalents & liquid investments, borrowings and
net debt reflects the proportion of those balances which are attributable to
the equity holders of the Company, after deducting the proportion attributable
to the non-controlling interests in the Group's subsidiaries.
This is considered to be a useful and relevant measure as the majority of the
Group's cash tends to be held at the corporate level and therefore 100%
attributable to the equity holders of the Company, whereas the majority of the
Group's borrowings tend to be at the level of the individual operations, and
hence only a proportion is attributable to the equity holders of the Company.
December 2024 December 2023
Total Attributable Attributable Total Attributable share Attributable
amount
share
amount
amount
amount
$m $m $m $m
Cash, cash equivalents and liquid investments:
Los Pelambres 887.2 60% 532.3 587.0 60% 352.2
Centinela 1,148.1 70% 803.7 516.9 70% 361.8
Antucoya 345.0 70% 241.5 129.9 70% 90.9
Corporate 1,895.0 100% 1,895.0 1,668.3 100% 1,668.3
Transport division 41.0 100% 41.0 17.3 100% 17.3
Total 4,316.3 3,513.5 2,919.4 2,490.5
Borrowings:
Los Pelambres (Note 17) (2,381.8) 60% (1,429.1) (2,112.4) 60% (1,267.4)
Centinela (Note 17) (1,475.7) 70% (1,033.0) (574.1) 70% (401.9)
Antucoya (Note 17) (343.5) 70% (240.5) (379.1) 70% (265.4)
Corporate (Note 17) (1,743.5) 100% (1,743.5) (1,007.7) 100% (1,007.7)
Transport division (Note 17) (0.9) 100% (0.9) (5.9) 100% (5.9)
Total (Note 17) (5,945.4) (4,447.0) (4,079.2) (2,948.3)
Net debt (1,629.1) (933.5) (1,159.8) (457.8)
Production and Sales Statistics (not subject to audit or review)
a) Production and sales volumes for copper, gold and molybdenum
Production Sales
Year ended Year ended Year ended 31.12.2024 Year ended
31.12.2024 31.12.2023 31.12.2023
Copper 000 tonnes 000 tonnes 000 tonnes 000 tonnes
Los Pelambres 319.6 300.3 315.4 299.0
Centinela 223.8 242.0 212.5 247.9
Antucoya 80.5 77.8 79.1 78.4
Zaldívar (attributable basis - 50%) 40.1 40.5 38.5 41.9
Group total 664.0 660.6 645.5 667.2
Gold 000 ounces 000 ounces 000 ounces 000 ounces
Los Pelambres 46.6 43.3 43.8 42.1
Centinela 140.3 165.8 133.2 162.8
Group total 186.9 209.1 177.0 204.9
Molybdenum 000 tonnes 000 tonnes 000 tonnes 000 tonnes
Los Pelambres 8.3 8.1 8.6 8.1
Centinela 2.4 2.9 2.3 3.0
Group total 10.7 11.0 10.9 11.1
Silver 000 ounces 000 ounces 000 ounces 000 ounces
Los Pelambres 1,970.3 1,613.5 1,847.8 1,509.2
Centinela 853.5 1,461.0 791.1 1,469.9
Group total 2,823.8 3,074.5 2,638.9 2,979.1
b) Cash costs per pound of copper produced and realised prices per
pound of copper and molybdenum sold
Net Cash costs Realised prices
Year ended 31.12.2024 Year ended 31.12.2023 Year ended 31.12.2024 Year ended 31.12.2023
$/lb $/lb $/lb $/lb
Copper
Los Pelambres 1.26 1.14 4.18 3.89
Centinela 1.60 1.63 4.17 3.89
Antucoya 2.53 2.63 4.19 3.89
Zaldívar (attributable basis - 50%) 3.02 2.95 -
Group weighted average (net of by-products) 1.64 1.61 4.18 3.89
Group weighted average (before deducting by-products) 2.37 2.31
Group weighted average (before deducting by-products and excluding treatment 2.22 2.14
& refining charges from concentrate)
Cash costs at Los Pelambres comprise:
On-site and shipping costs 1.87 1.69
Treatment & refining charges for concentrates 0.22 0.23
Cash costs before deducting by-product credits 2.09 1.92
By-product credits (principally molybdenum) (0.83) (0.78)
Cash costs (net of by-product credits) 1.26 1.14
Cash costs at Centinela comprise:
On-site and shipping costs 2.46 2.40
Treatment & refining charges for concentrates 0.14 0.17
Cash costs before deducting by-product credits 2.60 2.57
By-product credits (principally gold) (1.00) (0.94)
Cash costs (net of by-product credits) 1.60 1.63
LME average copper price 4.15 3.85
Gold $/oz $/oz
Los Pelambres 2,523 1,983
Centinela 2,530 1,991
Group weighted average 2,528 1,990
Market average price 2,387 1,943
Molybdenum $/lb
Los Pelambres 21.8 22.0
Centinela 21.7 21.7
Group weighted average 21.8 22.0
Market average price 21.3 24.1
Silver $/oz $/oz
Los Pelambres 29.8 24.1
Centinela 30.3 23.8
Group weighted average 30.0 24.0
Market average price 28.2 23.4
Notes to the production and sales statistics
(i) For the Group's subsidiaries, the production and
sales figures reflect the total amounts produced and sold by the mine, not the
Group's share of each mine. The Group owns 60% of Los Pelambres, 70% of
Centinela and 70% of Antucoya. For the Zaldívar joint venture, the production
and sales figures reflect the Group's proportional 50% share. The figures in
the tables above do not include Compañía de Minas Buenaventura S.A.A.
(ii) Los Pelambres produces copper and molybdenum
concentrates, Centinela produces copper concentrate, copper cathodes and
molybdenum concentrate, and Antucoya and Zaldívar produce copper cathodes.
The figures for Los Pelambres and Centinela are expressed in terms of payable
metal contained in concentrate and in cathodes. Los Pelambres and Centinela
are also credited for the gold and silver contained in the copper concentrate
sold. Antucoya and Zaldívar produce cathodes with no by-products.
(iii) Cash costs are a measure of the cost of operational
production expressed in terms of cents per pound of payable copper produced.
Cash costs are stated net of by-product credits. Cash costs exclude
depreciation, financial income and expenses, hedging gains and losses,
exchange gains and losses and corporate tax for all four operations. 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"
(TC/RC) 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 (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 an expense and part of cash costs.
(iv) Realised copper prices are determined by comparing
revenue from copper sales (after adding back treatment and refining charges
for concentrates) with sales volumes for each mine in the period. Realised
molybdenum and gold prices are calculated on a similar basis. Realised prices
reflect mark-to-market adjustments for sales contracts which contain
provisional pricing mechanisms and gains and losses on commodity derivatives,
which are included within revenue.
(v) The totals in the tables above may include some small
apparent differences as the specific individual figures have not been rounded.
The production information and the cash cost information are derived from the
Group's production report for the fourth quarter of 2024, published on 16
January 2025.
1 (#_ftnref1) Non-IFRS measures. Refer to the alternative performance
measures section on page 63 in the full year financial report below.
2 (#_ftnref2) Calculated as EBITDA/Revenue. Excluding Associates and JVs'
EBITDA, EBITDA Margin was 48.6% in 2024 and 47.3% in 2023.
3 (#_ftnref3) Excluding Zaldívar
4 (#_ftnref4) Range based on 12 months of copper production from Los
Pelambres, Centinela, Antucoya and Zaldívar. Production range provided does
not include copper production attributable from the Group's 19% holding in
Compañía de Minas Buenaventura S.A.A. (Buenaventura).
5 (#_ftnref5) Number of lost time incidents in the year per million hours
worked.
6 (#_ftnref6) Recorded fatalities, lost time injuries, cases or alternate
work and other injuries requiring medical treatment in the year per million
hours worked.
7 (#_ftnref7) Source: International Energy Agency (IEA), accessed January
2025 (link
(https://www.iea.org/news/global-electricity-demand-set-to-rise-strongly-this-year-and-next-reflecting-its-expanding-role-in-energy-systems-around-the-world)
).
8 (#_ftnref8) Source: Wood Mackenzie Global copper investment horizon
outlook Q4 2024 (December 2024)
9 (#_ftnref9) Figures provided are estimates and as at 31 December 2024.
Capex to date figures presented here are on an accrual basis (cost capex).
10 (#_ftnref10) Figure quoted here ($4.4Bn) is the figure provided on
announcement in December 2023, and was subsequently reduced by $380 million
following the completion in H1 2024 of the process to outsource Centinela's
existing and planned water infrastructure.
11 (#_ftnref11) 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/reversals 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.
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. END FR PKOBBKBKBBBDRecent news on Antofagasta
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