Equity, Bottom-up Analyst, Investics Research

Sameer Taneja

Equity, Bottom-up Analyst

Investics Research

It is important to note that the information provided by Investics Research is based on publicly available data and own knowledge, which has been gathered and analyzed from a variety of sources. While every effort has been made to ensure the accuracy and completeness of the information provided, it is not guaranteed to be free from errors or omissions. All forecasts and estimates are based on information that has been obtained from public sources that are considered to be reliable. The sources include but are not limited to, company announcements, exchange filings, presentations, etc. Investics does not guarantee the accuracy and completeness of the forecasts, estimates, and/or other information.

Equity Bottom-up Research

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/antofagasta-plc" target="_blank" data-smartkarma-citation="entities:21814:1" rel="noopener">Antofagasta PLC (ANTO LN)</a>  delivered robust 2024 results, showcasing an 11% EBITDA increase to $3.4 billion and significantly expanded margins to 52%, exceeding many industry peers.</li>
<li>Antofagasta's 2025 capital expenditure is projected to increase to $3.9 billion (from $2.4 billion in 2024), supporting production growth to 900,000 tons (vs current 660k tons) by 2029-30. </li>
<li>Antofagasta's valuation, at 27.2x P/E and 7.2x EV/EBITDA, appears elevated. Southern Copper (SCCO US), offering superior return on capital employed (ROCE), presents a more attractive investment profile.</li>
</ul>



Antofagasta PLC (ANTO LN)  delivered robust 2024 results, showcasing an 11% EBITDA increase to $3.4 billion and significantly expanded margins to 52%, exceeding many industry peers.
Antofagasta's 2025 capital expenditure is projected to increase to $3.9 billion (from $2.4 billion in 2024), supporting production growth to 900,000 tons (vs current 660k tons) by 2029-30. 
Antofagasta's valuation, at 27.2x P/E and 7.2x EV/EBITDA, appears elevated. Southern Copper (SCCO US), offering superior return on capital employed (ROCE), presents a more attractive investment profile.


Antofagasta (ANTO LN): Good Set of Results, Capex Acceleration of >50%

First Quantum Minerals / Equity Bottom-Up

<ul>
<li>Total copper production, excluding Cobre Panamá, was 431,000 tonnes—14% higher than the previous year and exceeding guidance of 420,000 tonnes. Gold production also surpassed guidance at 139,000 ounces.</li>
<li>Management believes the ICC's five-month arbitration delay for the Cobre Panama mine, now set for February 2026, is unlikely to affect the pace of negotiations.</li>
<li>The company trades at an EV-EBITDA of 9.4x, which is more expensive than some of its peers. However, Cobre Panama's option value materializing makes it attractive (4.7x EV-EBITDA).</li>
</ul>


Total copper production, excluding Cobre Panamá, was 431,000 tonnes—14% higher than the previous year and exceeding guidance of 420,000 tonnes. Gold production also surpassed guidance at 139,000 ounces.
Management believes the ICC's five-month arbitration delay for the Cobre Panama mine, now set for February 2026, is unlikely to affect the pace of negotiations.
The company trades at an EV-EBITDA of 9.4x, which is more expensive than some of its peers. However, Cobre Panama's option value materializing makes it attractive (4.7x EV-EBITDA).


First Quantum Minerals (FM CN): Better Than Expected Results, But Cobre Panama Arbitration Delayed

<ul>
<li>Copper prices closed above $9,000 per ton once more and are poised for short-term gains as the outlook on China's economic recovery becomes more favorable.</li>
<li>The COMEX spread has hit a 12-week high, nearly reaching $1,000 per ton, as traders expressed concerns about copper potentially being included in the Trump administration's blanket levies.</li>
<li>We favor <a href="https://www.smartkarma.com/entities/southern-copper-corp" target="_blank" data-smartkarma-citation="entities:16279:1" rel="noopener">Southern Copper (SCCO US)</a>  and <a href="https://www.smartkarma.com/entities/antofagasta-plc" target="_blank" data-smartkarma-citation="entities:21814:1" rel="noopener">Antofagasta PLC (ANTO LN)</a>  due to their greater copper exposure, higher ROCEs, and robust long-term expansion strategies.</li>
</ul>


Copper prices closed above $9,000 per ton once more and are poised for short-term gains as the outlook on China's economic recovery becomes more favorable.
The COMEX spread has hit a 12-week high, nearly reaching $1,000 per ton, as traders expressed concerns about copper potentially being included in the Trump administration's blanket levies.
We favor Southern Copper (SCCO US)  and Antofagasta PLC (ANTO LN)  due to their greater copper exposure, higher ROCEs, and robust long-term expansion strategies.


Copper Tracker 10th Feb 2025: Comex Spreads Bullish, Commentary on China Improving

<ul>
<li><span>This is a follow-up to our initiation on <a href="https://www.smartkarma.com/entities/antofagasta-plc" target="_blank" rel="noopener">Antofagasta PLC (ANTO LN)</a>: <a href="https://www.smartkarma.com/insights/antofagasta-anto-ln-an-initiation-on-a-mid-sized-copper-miner" target="_blank" rel="noopener">Antofagasta (ANTO LN): An Initiation on a Mid-Sized Copper Miner</a>, in which we provide some positive updates. </span></li>
<li>The company guided a full-year copper production of 660-700k for FY25 (in line with expectations) and slightly higher gross YoY costs at the upper end (but better than street expectations).</li>
<li>The long-term production plan of 900,000 tons by 2027 puts it under 5x EV-EBITDA for FY27 at spot prices (vs. the current 7.8x).</li>
</ul>


This is a follow-up to our initiation on Antofagasta PLC (ANTO LN): Antofagasta (ANTO LN): An Initiation on a Mid-Sized Copper Miner, in which we provide some positive updates. 
The company guided a full-year copper production of 660-700k for FY25 (in line with expectations) and slightly higher gross YoY costs at the upper end (but better than street expectations).
The long-term production plan of 900,000 tons by 2027 puts it under 5x EV-EBITDA for FY27 at spot prices (vs. the current 7.8x).


Antofagasta (ANTO LN) Updates: Good Set Up For 2025

<ul>
<li>Copper prices finished up over 9000 USD/ton again this week after hovering around 3-5% of that level for close to a month. </li>
<li>The COMEX spread has reached a 10-week high, while the Yangshan premium shows signs of investor bullishness as it closes in on the 80 USD/ton. </li>
<li>With better TSF numbers from China and a slightly more optimistic picture of demand, we head into 2025 feeling better about copper pricing. </li>
</ul>


Copper prices finished up over 9000 USD/ton again this week after hovering around 3-5% of that level for close to a month. 
The COMEX spread has reached a 10-week high, while the Yangshan premium shows signs of investor bullishness as it closes in on the 80 USD/ton. 
With better TSF numbers from China and a slightly more optimistic picture of demand, we head into 2025 feeling better about copper pricing. 


Copper Tracker 20th Jan 2025: Encouraging China TSF Numbers To Boost Future Demand?

United Kingdom

Antofagasta plc is a Chilean multinational conglomerate primarily focused on copper mining, with operations concentrated in Chile. The company operates four copper mines, producing copper cathodes and concentrates, along with gold, silver, and molybdenum as by-products. Additionally, it has a transport division providing rail and road cargo services for mining customers in northern Chile. Antofagasta was incorporated in London in 1888 and is headquartered in London, England.

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Antofagasta (ANTO LN)