Antofagasta

Website: Antofagasta
Index: FTSE 100
EPIC: ANTO
Supersector: Basic Resources
Sector: Mining
Subsector: General Mining
Market Cap: £34.99B
Payout Frequency: Semi-Annual

Antofagasta Dividend Analysis and Summary

Headline dividend details

Final dividend (FY25): 48.0¢ per share (US cents), subject to approval.
Interim dividend (paid 30 Sep 2025): 16.6¢ per share.
Total FY25 dividend: 64.6¢ per share (up 106% year-on-year from 31.4¢).
Payout ratio: 50% of underlying EPS (policy minimum =35%).
Underlying EPS: 129.3¢ (+106% y/y) ? dividend cover by earnings ~2.0x.
Ex-dividend date: 16/04/2026 (derived from record date).
Record date: 17/04/2026.
Payment date: 11/05/2026.
Currency/elections: Dividend declared in US cents; currency election process available via registrar.

Context from results

Revenue $8.62bn (+30%); EBITDA $5.20bn (+52%); EBITDA margin 60.3%.
Operating cash flow $4.25bn (+30%); net debt/EBITDA 0.53x (from 0.48x).
Capex peaked at $3.68bn in 2025; guidance $3.4bn for 2026; expected decline from 2027.
2026 copper production guidance: 650–700kt; net cash costs guided at $1.15–$1.35/lb.
Total FY25 dividends: $636.9m vs cash from operations $4.25bn.

Assessment: sustainability and growth trajectory

Coverage and policy: The 50% payout aligns with policy and is well covered by underlying EPS (~2.0x). Cash basis support is solid at the operating cash flow level (dividends ~15% of CFO), though 2025 free cash flow after interest, tax and peak capex was tight.
Cash generation and balance sheet: Strong EBITDA/cash generation and a modest 0.53x net debt/EBITDA provide headroom to support the recommended final dividend despite elevated investment.
Capex cycle: Growth capex peaked in 2025 and remains high in 2026, but management expects a decline from 2027 as projects (Centinela Second Concentrator, Los Pelambres enabling works) complete. This should improve free cash flow and underpin medium-term dividend capacity.
Earnings drivers: Higher realised copper, robust by-product credits and cost control lifted margin and EPS, enabling the 106% DPS increase. With 2026 production guidance broadly flat to slightly higher and net cash cost guidance steady, near-term dividend support looks adequate, albeit sensitive to copper prices.

Structural or policy-relevant developments

Funding secured: Los Pelambres water-infrastructure financing ($2.0bn) and a new corporate bond ($600m Sep-25) help fully fund the growth programme, supporting liquidity while maintaining low leverage.
Asset/portfolio moves: Acquisition of the remaining 49% of Antomin Investors (Centinela district) and demerger of Antomin Volcanes; immaterial to dividend capacity but incrementally simplifies growth options.
No share consolidation, demerger of core units, or M&A impacting dividend policy indicated.
Dividend policy unchanged: Board reiterates payout based on underlying earnings with a =35% floor; FY25 at 50%.

Risks and flags for dividend stability

Commodity sensitivity: Earnings and cash flows remain highly geared to copper prices; mark-to-market effects on receivables drove a large working capital outflow in 2025 that could reverse but adds volatility.
Capex intensity: 2026 capex of $3.4bn will continue to weigh on post-tax/interest free cash flow until projects roll off; however, leverage remains low and projects are stated as fully funded.
Fiscal/regulatory: Chile’s revised mining royalty (including a 1% ad valorem) and a high effective tax rate (34–36%) reduce through-cycle cash conversion.
Operational/labour: Four labour agreements expire in 2026 (three at Centinela, one at Zaldívar) — potential for disruption or cost pressure.
Cost and FX: Chilean peso strength can lift local-currency costs; sustaining strong by-product credits is important for maintaining low net cash costs.

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
17/04/2025	12/05/2025	Final	23.50¢	USX
04/09/2025	30/09/2025	Interim	16.60¢	USX

Total (Annual Dividends Per Share): 29.52p (Using exchange rate on 30/04/2026 $ = £0.73627)

Dividend Yield = Annual Dividends Per Share (29.52p) ÷ Share Price (3551p) = 0.83%

Ex Dividend Date	Payment Date	Type	Amount	Currency
16/04/2026	11/05/2026	Final	48.00¢	USX
04/09/2025	30/09/2025	Interim	16.60¢	USX
17/04/2025	12/05/2025	Final	23.50¢	USX
05/09/2024	30/09/2024	Interim	7.90¢	USX
18/04/2024	10/05/2024	Final	24.30¢	USX
31/08/2023	29/09/2023	Interim	11.70¢	USX
20/04/2023	12/05/2023	Final	50.50¢	USX
01/09/2022	30/09/2022	Interim	9.20¢	USX
21/04/2022	13/05/2022	Final	118.90¢	USX
02/09/2021	01/10/2021	Interim	23.60¢	USX
22/04/2021	14/05/2021	Final	48.50¢	USX
03/09/2020	02/10/2020	Interim	6.20¢	USX
23/04/2020	22/05/2020	Final	23.40¢	USX
23/04/2020	27/05/2020	Final	7.10¢	USX
05/09/2019	04/10/2019	Interim	10.70¢	USX
25/04/2019	24/05/2019	Final	37.00¢	USX
06/09/2018	05/10/2018	Interim	6.80¢	USX
26/04/2018	25/05/2018	Final	40.60¢	USX
07/09/2017	06/10/2017	Interim	10.30¢	USX
27/04/2017	26/05/2017	Final	15.30¢	USX
08/09/2016	30/09/2016	Interim	3.10¢	USX
17/09/2015	08/10/2015	Interim	3.10¢	USX
23/04/2015	22/05/2015	Final	9.80¢	USX
17/09/2014	09/10/2014	Interim	11.70¢	USX
23/04/2014	23/05/2014	Final	86.10¢	USX
18/09/2013	10/10/2013	Interim	8.90¢	USX

Year	Interim	Final	Currency	Total	Change
2024	7.900	24.300	USX	32.200	-48.230
2023	11.700	50.500	USX	62.200	-51.440
2022	9.200	118.900	USX	128.100	77.660
2021	23.600	48.500	USX	72.100	96.450
2020	6.200	30.500	USX	36.700	-23.060
2019	10.700	37.000	USX	47.700	0.630
2018	6.800	40.600	USX	47.400	85.150
2017	10.300	15.300	USX	25.600	725.800
2016	3.100		USX	3.100	-75.960
2015	3.100	9.800	USX	12.900	-86.800
2014	11.700	86.100	USX	97.800	998.870
2013	8.900		USX	8.900

Number of Shares:

Payment	Paid	Amount
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