Antofagasta soothes quake fears

9th Mar 2010 07:29

Lower copper prices hit Chile-based miner and railway owner Antofagasta's earnings last year and some shareholders are moaning about the small dividend.The firm also took the opportunity to calm fears about the impact of the recent earthquake, which it said is expected to have only a "limited" impact on its business.Commissioning of the Los Pelambres plant expansion will now complete during the second quarter and commissioning of Esperanza will be later in the fourth quarter, but group production forecasts for 2010 remain unchanged. .Net earnings fell to $668m compared with $843m in 2008 excluding one-offs on sales of $2.96bn, down from $3.37bn. Copper production was 442,500 tonnes, ahead of the original forecast for the year of 433,000 tonnes. As the copper price appreciated through the year, the group benefited from significant positive pricing adjustments on concentrate sales which offset the effect of lower market prices for copper as compared with 2008.Total dividends for the year including special payouts were a disappointing 23.4c per share, much lower than the 60c paid in 2008 following an exceptional gain on the Marubeni sale.The total ordinary dividend for 2009 increased by 4% to 9.4c following a 6c final dividend and 14c special."With the commissioning of Esperanza expected to commence by the end of 2010, group copper production in 2011 is expected to be over 700,000 tonnes. The group's exploration results also continue to show encouraging results, with significant resources and long-term prospects in both the Sierra Gorda and Pelambres districts," it said.