Antofagasta has capped a “landmark year” for the London-listed Chilean copper miner by lifting its final dividend by almost 400 per cent.
The company has been one of the beneficiaries of a surging copper price which has gained 46 per cent over the course of 2010. Antofagasta has also upped production to 521,100 tonnes over the course of 12 months to December 31, 2010, leading to a 55 per cent increase in revenue to $4.6 billion (£2.8 billion) during a year when its cashflow doubled. Pre-tax profits roses from $1.4 billion in 2009 to $2.5 billion.
The miner subsequently upped its dividend from 23.4 cents in 2009 when the market was in decline to 116 cents a share - more than double analyst estimates.
Antofagasta’s chief executive Marcelo Awad said: “Market fundamentals remain positive and while the high level of volatility that has characterised commodity prices in recent years is expected to continue, consensus estimates are for copper prices to remain favourable in 2011. Supply constraints and underlying demand could keep the copper market in deficit in the medium term.”
Antofagasta, which takes its name from the town where it is based in the Atacama desert, is 65 per cent controlled by the Luksic family in Chile.
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The company also said that Duluth Metals has completed its acquisition of Franconia Minerals this week and has issued 7.6 million shares to Sierra Gorda, a unit of Antofagasta, as part of the transaction which subsequently owns 11 per cent of the Toronto-listed company.
Shares in the miner, which hit £16 in January, opened flat at £14.20.