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• Revenue Growth: Increased by 5% in 2024.

• EBITDA Growth: Increased by 11% in 2024.

• EBITDA Margin: Increased by 300 basis points to 52%.

• Net Debt to EBITDA Ratio: Below 0.5 times.

• Final Dividend: $23.5 per share, totaling $31.4 per share or 50% payout ratio on 2024 net earnings.

• Production Increase: 1% increase in production.

• Cost Savings: $248 million in savings achieved through productivity improvements.

• Ore Reserves at Centinela: Increased by 35% to 2.6 billion tons.

• Long-term Committed Financing: More than $6 billion for growth portfolio development.

• Warning! GuruFocus has detected 4 Warning Signs with PLSQF.

Release Date: February 18, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Antofagasta PLC (ANFGF) reported strong financial results for 2024, with revenue and EBITDA growth of 5% and 11% respectively, and margins increasing by 300 basis points to 52%.

• The company maintained a robust balance sheet with low net debt metrics and announced a final dividend equating to 50% of net earnings.

• Antofagasta PLC (ANFGF) achieved a record year in safety, with no fatalities and a significant reduction in high potential incidents.

• The company is well-positioned in the copper market with high-quality assets and a growth pipeline, including the Centinela Second Concentrator project, which is expected to increase production capacity.

• Sustainability is a core focus, with significant progress in decarbonization, water management, and community engagement initiatives, such as the Somos Choapa program.

Negative Points

• Global copper supply faces challenges, including geological and technical constraints, rising capital intensities, and permitting delays, which could impact future production.

• The company is in a two-year lower grade window at Los Pelambres, which may affect short-term production levels.

• Antofagasta PLC (ANFGF) faces competition for capital allocation, with significant investments required for ongoing projects like Centinela and Pelambres.

• The Zaldivar operation is awaiting permit renewal, which poses a risk if not granted, potentially impacting future production plans.

• The company is navigating complex regulatory environments, such as the Twin Metals project in the US, which faces legal and permitting challenges.

Q & A Highlights

Q: How do we think about the path to 900,000 tons of copper production? Is it gradual or back-end loaded? A: Ivan Arriagada, CEO: The buildup involves securing water availability at Pelambres and increasing grades expected in 2026. The Centinela project will add 170,000 tons by 2028. Zaldivar's permit renewal and production growth are also key. The aspiration is to reach close to 900,000 tons by the end of the decade.