Tuesday preview: Antofagasta reveals annual results

Copper mining company Antofagasta unveils its 2012 financial results on Tuesday, following its strong fourth-quarter production released earlier in the year.

Copper mining company Antofagasta unveils its 2012 financial results on Tuesday, following its strong fourth-quarter production released earlier in the year.

The company's output increased 7.8% to 193,800 tonnes quarter-on-quarter, driven by production at Los Pelambres and Esperanza, according to a trading update on January 30th.

However, analysts at Investec warned in February that the firm faces "near-term declining production and rising costs".

"[...]we feel that with declining production and falling grades leading to rising costs the company is fundamentally overvalued," the broker said last month, issuing a 'sell' rating for the company's stocks and a target price of 958p.

Investec estimates revenues of $6.58bn compared to $6.0bn in 2011. Pre-tax profits are pegged at $3.3bn, up from $3.0bn. Earnings per share are expected to come in at $1.41, up from $1.26 previously.

"The company has a strong balance sheet and does not face financial distress," Investec added.

"However, we need to see a clearer path to growth to justify a higher valuation. Although should copper prices rally, then [Antofagasta] will respond similarly. [Antofagasta] is thus heavily dependent on the copper price to deliver share price upside."

Shares rose in Monday afternoon trading ahead of the results.

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Consumer Price Index (GER) (07:00)

Treasury Budget Statement (US) (19:00)

GMS

Namakwa Diamonds Ltd. (DI)

FINALS

Antofagasta, Greka Drilling Ltd (DI), SDL, Stadium Group, Tyman

ANNUAL REPORT

Ladbrokes

EGMS

Atlantis Japan Growth Fund Ltd.

AGMS

Interbulk Group

TRADING ANNOUNCEMENTS

Inchcape

UK ECONOMIC ANNOUNCEMENTS

Industrial Production (09:30)

Manufacturing Production (09:30)

UK Trade (09:30)

RD

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

The bitcoin bubble will burst: here’s how to play it
Bitcoin

The bitcoin bubble will burst: here’s how to play it

The cryptocurrency’s price has soared far beyond its fundamentals, says Matthew Partridge. Here, he looks at how to short bitcoin.
12 Apr 2021
Properties for sale for around £400,000
Houses for sale

Properties for sale for around £400,000

From a converted church in Banffshire with views towards the Cairngorms National Park, to a period property in the Georgian market town of Beverley, e…
2 Apr 2021
US inflation is rising – but it’s not enough to rattle markets yet
Inflation

US inflation is rising – but it’s not enough to rattle markets yet

The latest US inflation figures showed that consumer prices are rising more rapidly than expected. But markets shrugged. John Stepek asks why, and wha…
14 Apr 2021