Antofagasta plc (ANTO.L) | Investment Case

1. Company Snapshot

1.a. Company Description

Antofagasta plc operates as a mining company.It operates through Los Pelambres, Centinela, Antucoya, Zaldívar, Exploration and Evaluation, and Transport Division segments.The company holds a 60% interest in the Los Pelambres mine, a 70% interest in the Centinela mine, a 70% interest in the Antucoya mine, and a 50% interest in the Zaldívar mine located in Chile.

Its mines produce copper cathodes and copper concentrates, as well as molybdenum, gold, and silver by-products.The company also has exploration projects in various countries.In addition, it provides rail and road cargo services to mining customers in northern Chile.

The company was founded in 1888 and is headquartered in London, the United Kingdom.Antofagasta plc is a subsidiary of Metalinvest Establishment.

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1.b. Last Insights on ANTO

Recent developments have bolstered Antofagasta's outlook, with a modest upward revision in consensus analyst price target to £25.84 per share. The precious metals sector has gained momentum, driven by hopes of a US Federal Reserve interest rate cut. Additionally, the company's peers have made strategic moves, such as London BTC's entry into gold ventures and Allergy Therapeutics' new management hires, which may indicate a favorable industry trend.

1.c. Company Highlights

Last Price	3992
Change Percentage	3.02%
Open	3877
Previous Close	3875
Market Cap ( Millions)	39355
Volume	1410819
Year High	4176
Year Low	1278
M A 50	3506.66
M A 200	2575.14

FCF Yield	-0.47%
Dividend Yield	0.75%
ROE	10.67%
Debt / Equity	74.56%
Net Debt / EBIDTA	122.44%
Price To Book	5.13
Price Earnings Ratio	49.63
Price To FCF	-214.51
Price To sales	7.89
EV / EBITDA	14.21

2. Copper Producer's Strong Financials and Growth Pipeline

The company's financial performance in 2025 was impressive, with revenue increasing by 30% to $8.6 billion and EBITDA rising 52% to a record $5.2 billion. The EBITDA margin was 60%, placing the company at the top end of its peer group. Earnings per share (EPS) came in at $0.604, slightly below estimates of $0.613. Analysts are expecting revenue growth of 1.2% next year.

Publication Date: Feb -18

                                    📋 Highlights
                                    Consecutive Fatality-Free Safety Record::
                                                Achieved 4th year with metrics ahead of industry benchmarks.
Record Financial Performance::
                                                Revenue rose 30% to $8.6B; EBITDA surged 52% to $5.2B.
30% Growth Pipeline::
                                                Fully financed growth with projects like Centinela concentrator and Los Pelambres.
Strong Balance Sheet::
                                                $4B cash reserves and net debt-to-EBITDA ratio maintained flat year-on-year.
Top EBITDA Margin::
                                                60% margin, driven by higher copper/gold prices and disciplined cost control.

                                

Operational Highlights

The company's operational performance was supported by higher realized pricing for copper and gold, improved sales volume, and disciplined cost control. Mauricio Ortiz highlighted the company's ability to balance rising external cost pressures with a decrease in controllable costs. The company's net debt-to-EBITDA ratio remained broadly flat year-on-year.

Growth Pipeline and Capital Allocation

The company has a fully financed growth pipeline, with projects in construction, such as the Centinela concentrator and Los Pelambres growth enabling projects. Iván Herrera emphasized the company's rigorous assessment of opportunities against their capital allocation framework, aiming to identify lower-risk options with attractive IRRs and lower capital intensities. The company is well-positioned to deliver attractive returns to shareholders, with $4 billion in cash on their balance sheet.

Valuation Metrics

The company's valuation metrics suggest that the market is pricing in a certain level of growth and profitability. The P/E Ratio is 45.11, P/B Ratio is 4.66, and EV/EBITDA is 13.02. The Dividend Yield is 0.83%, and the ROIC is 7.53%. These metrics indicate that the company's strong financial performance and growth pipeline are reflected in its valuation.

Future Prospects

The company's future prospects look promising, with a significant pipeline of projects, including the Centinela second concentrator expansion. Iván Herrera mentioned that they are exploring opportunities in the Centinela district, including bringing satellite deposits into production quickly. The company's ability to innovate and adapt to changing market conditions will be crucial in maintaining its competitiveness.