Quality, Focus and Experience

Mining is our core business, representing over 96% of our revenue and EBITDA. We operate four copper mines in Chile, two of which produce significant volumes of by-products. We also have a portfolio of growth opportunities located mainly in Chile. In addition to mining, our Transport division provides rail and road cargo services in northern Chile predominantly to mining customers, which include some of our own operations.

Our investment case is based on quality, focus and experience:

  • Quality of existing assets and growth pipeline, strong capital returns and a stable and favourable geography, all underpinned by our sustainable approach to development
  • Focus on copper and up-stream mining activities
  • Experience of our management team in the mining industry building on a track record of organic growth

2019 Highlights 

  • Safety
    Record safety performance with no fatal accidents and a LTIFR of 1.0.
  • Copper production
    Record copper production of 770,000 tonnes. An increase of 6.2% on 2018 on higher production at Los Pelambres, Centinela and Zaldívar.
  • Net cash costs
    Net cash costs were $1.22/lb, 5.4% lower than in 2018 due to higher production, tight cost control and the weaker Chilean peso.
  • EBITDA
    EBITDA increased by 9.5% to $2,439 million and a margin of 49%, reflecting strong copper production and lower cash costs.
  • Earnings per share
    EPS from continuing operations of 50.9 cents per share, 1.2% lower than the previous year on higher EBITDA, offset by higher depreciation and amortisation, and tax.
  • Dividend per share
    Total dividend of 34.1 cents per share, equivalent to a 67% pay-out ratio.
  • Projects
    Los Pelambres Expansion project under construction. Zaldívar Chloride Leach and Esperanza Sur pit projects approved.

 

Net Debt*
$563m

Why it is important

This is a measure that reflects liquidity of the Group.

Performance in 2019

Net debt remained low and decreased by 5.5% in 2019 to $563 million.

*Non-IFRS measures, refer to the alternative performance measures section on page 206 of the Annual Report 2019.

Ebitda*
$2,439m

Why it is important

This is a measure of the Group’s underlying profitability.

Performance in 2019

EBITDA was $2,439 million, 9.5% higher than the previous year on higher sales volumes and lower unit costs, partially offset by lower realised prices.

*Non-IFRS measures, refer to the alternative performance measures section on page 206 of the Annual Report 2019.

Earnings per share
50.9 cents

Why it is important

This is a measure of the profit attributable to shareholders.

Performance in 2019

Earnings per share from continuing operations of 50.9 cents per share, a 1.2% decrease on 2018, as higher EBITDA was offset by higher tax, and depreciation and amortisation.

Copper production*
770.0k tonnes

Why it is important

Copper is our main product and largest source of revenue.

Performance in 2019

We had a record year of production, producing 770,000 tonnes. This was a 6.2% increase on 2018, with higher production at Los Pelambres, Centinela and Zaldívar.

* 100% of Los Pelambres, Centinela and Antucoya, and 50% of Zaldívar’s production

Net cash costs*
$1.22/lb

Why it is important

This is a key indicator of operating efficiency and profitability.

Performance in 2019

Net cash costs of $1.22/lb, 5.4% lower than in 2018 due to higher production, tight cost control and the weaker Chilean peso.

* Non-IFRS measures, refer to the alternative performance measures section on page 206.

Mineral resources*
19.1 billion tonnes

Why it is important

Expansion of the Group’s mineral resources base supports its strong organic growth pipeline.

Performance in 2019

Mineral resources at Zaldívar increased as its primary sulphides were included for the first time.

* Mineral resources (including ore reserves) relating to the Group’s subsidiaries on a 100% basis and Zaldívar on a 50% basis.

Safety
1.0 LTIFR

Why it is important

Safety is our top priority, with fatalities and the LTIFR4 being two of the principal measures of performance.

Performance in 2019

Safety is our top priority, with fatalities and the LTIFR4 being two of the principal measures of performance.

Water Consumption
60.8mm³

Why it is important

Water is a precious resource and the Group is focused on using the most sustainable sources and maximising its efficient use.

Performance in 2019

Our consumption of continental water and sea water decreased by 12% and 7% respectively mainly due to a decrease in material processed.

CO2 EMISSIONS INTENSITY*
3.10 tonnes

Why it is important

We recognise the risks and opportunities arising from climate change and the need to measure and mitigate greenhouse gas (GHG) emissions.

Performance in 2019

CO2 emission intensity decreased by 7% compared to 2019 mainly because of higher copper production and energy efficiency improvements.

*Mining division only