Tuesday preview: Antofagasta reports annual results

17th Mar 2014 14:23

Antofagasta is expected to report a drop in annual revenues and earnings on Tuesday due to lower metal prices and higher costs.Numis predicts the miner will post a 34% year-on-year drop in earnings per share to $0.85 and revenue of $5.95bn.Lower sales volumes are projected to have offset higher production in the year. Production was previously recorded at 721,000 tonnes copper at a cash cost of $1.36 per pound net. "We forecast earnings before interest, tax, depreciation and amortisation (EBITDA) of $2.73bn (2012 $3.8bn, consensus 2.69bn) and net cash of $1.83bn," Numis said. "We expect the dividend to be maintained. We expect full year 2014 guidance to be maintained at circa 700,000, 270,000 ounces gold and 7,500 tonnes molybdenum at net cash cost of $1.45 per pound."The broker also expects the Antucoya mine to remain on time and budget and said it will "look for a steer on the Los Pelambres expansion".In tomorrow's earning session investors will also be eyeing a trading update from Sainsbury after supermarket peer Morrison posted a profit warning and announced a price war against its rivals. On the macro-economic front, the Federal Reserve begins its two-day policy meeting. The US central bank is widely tipped to announce a further winding back of monthly asset purchases. Not to be missed either, all eyes will be on a speech due to be delivered by Russian President Vladimir Putin. Market commentary is still divided as to whether or not he will pursue what some in Ukraine call the "nuclear option" of annexing Crimea.Tuesday March 18thINTERIMSQuoramINTERNATIONAL ECONOMIC ANNOUNCEMENTSBalance of Trade (EU) (10:00)Building Permits (US) (12:30)Consumer Price Index (US) (12:30)Housing Starts (US) (12:30)New Car Registrations (EU) (10:00)Wholesale Price Index (GER) (07:00)ZEW Survey (EU) (10:00)ZEW Survey (GER) (10:00)Central bank Policy Meeting (Turkey) (12:00)FINALSAntofagasta, Bango, Bioquell, Cairn Energy, Capital Drilling Ltd. (DI), Charlemagne Capital Ltd., Clarke (T.), Gem Diamonds Ltd. (DI), Mears Group, Mecom Group, Resolution Ltd., SDL, Source BioScience, UTV Media, Xaar, ZotefoamsANNUAL REPORTDialight, Foreign and Colonial Inv Trust, Ladbrokes, Taylor Wimpey, Vitec Group, William HillIMSSBerkeley Group Holdings (The), IG Group HoldingsEGMSHiscox LtdAGMSBrunner Inv Trust, Ground Rents Income Fund, Wynnstay GroupTRADING ANNOUNCEMENTSSainsbury (J), Asos, Sainsbury, Spirit Pub CompanyRD