LSE:ANTO

Stock Analysis Report

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Executive Summary

Antofagasta plc, through its subsidiaries, primarily engages in the exploration, evaluation, development, and mining of copper properties in Chile.


Snowflake Analysis

Excellent balance sheet and slightly overvalued.


Similar Companies

Share Price & News

How has Antofagasta's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ANTO's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.6%

ANTO

2.9%

GB Metals and Mining

2.0%

GB Market


1 Year Return

12.0%

ANTO

-5.2%

GB Metals and Mining

-12.8%

GB Market

Return vs Industry: ANTO exceeded the UK Metals and Mining industry which returned -5.1% over the past year.

Return vs Market: ANTO exceeded the UK Market which returned -12.5% over the past year.


Shareholder returns

ANTOIndustryMarket
7 Day6.6%2.9%2.0%
30 Day12.4%13.3%5.7%
90 Day13.0%5.4%-8.2%
1 Year14.0%12.0%2.1%-5.2%-8.6%-12.8%
3 Year19.5%8.9%40.3%16.7%-6.2%-17.6%
5 Year33.4%18.9%70.9%31.4%12.7%-12.5%

Price Volatility Vs. Market

How volatile is Antofagasta's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Antofagasta undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ANTO (£8.76) is trading below our estimate of fair value (£18.52)

Significantly Below Fair Value: ANTO is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ANTO is poor value based on its PE Ratio (21.3x) compared to the Metals and Mining industry average (7.7x).

PE vs Market: ANTO is poor value based on its PE Ratio (21.3x) compared to the UK market (14.7x).


Price to Earnings Growth Ratio

PEG Ratio: ANTO is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: ANTO is overvalued based on its PB Ratio (1.4x) compared to the GB Metals and Mining industry average (1.1x).


Next Steps

Future Growth

How is Antofagasta forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

10.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ANTO's forecast earnings growth (10% per year) is above the savings rate (1.2%).

Earnings vs Market: ANTO's earnings (10% per year) are forecast to grow slower than the UK market (20.3% per year).

High Growth Earnings: ANTO's earnings are forecast to grow, but not significantly.

Revenue vs Market: ANTO's revenue (2.2% per year) is forecast to grow slower than the UK market (3.6% per year).

High Growth Revenue: ANTO's revenue (2.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ANTO's Return on Equity is forecast to be low in 3 years time (5.2%).


Next Steps

Past Performance

How has Antofagasta performed over the past 5 years?

30.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ANTO has high quality earnings.

Growing Profit Margin: ANTO's current net profit margins (10.1%) are lower than last year (10.4%).


Past Earnings Growth Analysis

Earnings Trend: ANTO's earnings have grown significantly by 30.2% per year over the past 5 years.

Accelerating Growth: ANTO's earnings growth over the past year (1.8%) is below its 5-year average (30.2% per year).

Earnings vs Industry: ANTO earnings growth over the past year (1.8%) underperformed the Metals and Mining industry 9.8%.


Return on Equity

High ROE: ANTO's Return on Equity (9%) is considered low.


Next Steps

Financial Health

How is Antofagasta's financial position?


Financial Position Analysis

Short Term Liabilities: ANTO's short term assets ($3.6B) exceed its short term liabilities ($1.5B).

Long Term Liabilities: ANTO's short term assets ($3.6B) do not cover its long term liabilities ($3.7B).


Debt to Equity History and Analysis

Debt Level: ANTO's debt to equity ratio (26.7%) is considered satisfactory.

Reducing Debt: ANTO's debt to equity ratio has reduced from 29% to 26.7% over the past 5 years.

Debt Coverage: ANTO's debt is well covered by operating cash flow (83.2%).

Interest Coverage: ANTO's interest payments on its debt are well covered by EBIT (21.1x coverage).


Balance Sheet


Next Steps

Dividend

What is Antofagasta's current dividend yield, its reliability and sustainability?

1.65%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ANTO's dividend (1.65%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (2.03%).

High Dividend: ANTO's dividend (1.65%) is low compared to the top 25% of dividend payers in the UK market (5.68%).


Stability and Growth of Payments

Stable Dividend: ANTO's dividend payments have been volatile in the past 10 years.

Growing Dividend: ANTO's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35%), ANTO's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ANTO's dividends in 3 years are forecast to be covered by earnings (56% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.6yrs

Average management tenure


CEO

Iván Arriagada Herrera (55yo)

4yrs

Tenure

US$2,733,000

Compensation

Mr. Iván Arriagada Herrera has been the Chief Executive Officer of Antofagasta Minerals S.A. since February 16, 2015 and Antofagasta plc since April 8, 2016. He joined Antofagasta plc in February 16, 2015. ...


CEO Compensation Analysis

Compensation vs Market: Iván's total compensation ($USD2.73M) is below average for companies of similar size in the UK market ($USD4.73M).

Compensation vs Earnings: Iván's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Iván Arriagada Herrera
Chief Executive Officer4yrsUS$2.73mno data
Mauricio Ortiz
Group Chief Financial Officer0.17yrno datano data
Hernán Menares
Vice President of Operations9.33yrsno datano data
Patricio Enei
Vice President of Legal6.17yrsno datano data
Gonzalo Sanchez
Vice President of Sales16.33yrsno datano data
Ana María Rabagliati Grünwald
Vice-President of Human Resources7.33yrsno datano data
Nelson Pizarro
Chief Executive Officer of Corporation Nacional Del Cobre De Chile 5.58yrsno datano data
Julian Anderson
Company Secretary5.33yrsno datano data
Andrew Lindsay
Director of London Officeno datano datano data
Diego Hernandez Cabrera
Adviser to the Board4yrsUS$1.53mno data

5.6yrs

Average Tenure

63yo

Average Age

Experienced Management: ANTO's management team is seasoned and experienced (5.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Andrónico Mariano Luksic Craig
Non-Executive Director7yrsUS$264.00kno data
Jean-Paul Luksic Fontbona
Non Executive Chairman16.33yrsUS$1.01m4.26% $367.8m
Manuel Lino De Sousa-Oliveira
Senior Independent Director3.75yrsUS$405.00kno data
Tony Jensen
Independent Non-Executive Director0.17yrno datano data
Juan Gonzlez Claro
Non-Executive Director15.33yrsUS$282.00kno data
Ramon F. Jara
Non-Executive Director17.33yrsUS$950.00k0.00053% $45.8k
A. Edward Anglin
Independent Non-Executive Director1yrUS$222.00kno data
Vivianne Blanlot Soza
Independent Non-Executive Director6.17yrsUS$312.00kno data
Jorge Bande
Independent Non-Executive Director5.42yrsUS$306.00kno data
Francisca Castro Fones
Independent Non-Executive Director3.42yrsUS$303.00kno data

5.8yrs

Average Tenure

64.5yo

Average Age

Experienced Board: ANTO's board of directors are considered experienced (5.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Antofagasta plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Antofagasta plc
  • Ticker: ANTO
  • Exchange: LSE
  • Founded: 1888
  • Industry: Copper
  • Sector: Materials
  • Market Cap: UK£8.640b
  • Shares outstanding: 985.86m
  • Website: https://www.antofagasta.co.uk

Number of Employees


Location

  • Antofagasta plc
  • Cleveland House
  • 33 King Street
  • London
  • Greater London
  • SW1Y 6RJ
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ANFG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 1994
FG1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 1994
ANTOLSE (London Stock Exchange)YesOrdinary SharesGBGBPJun 1994
ANTOLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJun 1994
ANTO NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJun 1994

Biography

Antofagasta plc, through its subsidiaries, primarily engages in the exploration, evaluation, development, and mining of copper properties in Chile. It operates through Los Pelambres, Centinela, Antucoya, Zaldívar, Exploration and Evaluation, and Transport segments. The company produces copper concentrates containing by-products, such as molybdenum, gold, and silver; and copper cathodes. It holds a 60% interest in the Los Pelambres mine; a 70% interest in the Centinela mine; a 50% interest in the Zaldívar mine; and a 70% interest in the Antucoya mine located in Chile. The company also provides rail and road cargo, and other ancillary services in Chile. It transports goods and materials, such as sulphuric acid and copper cathodes to and from mines in the Antofagasta region. The company was founded in 1888 and is based in London, the United Kingdom. Antofagasta plc is a subsidiary of Metalinvest Anstalt. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/31 21:05
End of Day Share Price2020/05/29 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.