Miner Antofagasta'sAntofagasta's profit slumped due to costs, drought LONDON Reuters -- Antofagasta posted a half-year profit on Thursday, as higher costs, lower grades and a persistent drought in Chile hit the miner's copper production.
It said it would reduce its interim dividend to 9.2 cents per share, from a record 23.6 cents last year, joining fellow miners like Rio Tinto and Anglo American in lowering payouts after last year's bonanza.
Mining firms have warned about future returns due to the fact that slower growth or recession in key markets could affect commodity demand in the next few months.
The London-listed Antofagasta, majority owned by Chile's wealthy Luksic family, saw its earnings before interest, tax, depreciation, and amortisation EBITDA fall to $1.24 billion for the first six months, compared to $2.4 billion last year.
Antofagasta's profit increased to its highest ever in 2021, when copper prices reached record levels, allowing it to make a record shareholder payout of $1.4 billion for the year.
It said it remains on track to produce its revised guidance of 640,000 -- 660,000 tons of copper for the full year.
The remainder of the year will look very different from the first half as production improves quarter-on-quarter, Chief Executive Iv n Arriagada said.