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

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

Why we won’t see a house-price crash in 2021
House prices

Why we won’t see a house-price crash in 2021

Lockdown sent house prices berserk as cooped up home-workers fled for bigger properties in the country. And while they won’t rise quite as much this y…
18 Jan 2021
Prepare for the end of the epic bubble in US stocks
US stockmarkets

Prepare for the end of the epic bubble in US stocks

US stocks are as expensive as they’ve ever been. How can you prepare your portfolio for a bubble bursting?
18 Jan 2021
The best investment trusts to buy for 2021
Investment trusts

The best investment trusts to buy for 2021

Sectors ranging from emerging markets to student accommodation look poised to do well this year, says David Stevenson, as he picks the best investment…
19 Jan 2021