Mobius pick Antofagasta enjoys 28% profit hike

Chilean miner Antofagasta, a top position of Mark Mobius’ Templeton Latin America fund, has reported a 28% jump in nine-month profits.

Mark Mobius
Mark Mobius

Antofagasta’s earnings before interest, tax, depreciation and amortisation for the nine months to September 30 amounted to $2.5 billion (£1.6 billion), up from $1.96 billion a year before and driven by higher copper prices.

The miner’s revenues also rose by 31.7% to $4.17 billion. The company says revenues benefited from increased copper and gold sales in the first nine months of the year.

Antofagasta accounts for 4.21% of Mobius’ £2.12 billion Templeton Latin America fund. It also makes up 2.52% of Dean Newman’s £407.83m Invesco Perpetual Latin American fund.

The company has seen its share price bounce around over the course of 2011 as concerns over global growth caused commodity prices to fluctuate frequently. The company’s share price was up 1.56% to 1,044p at 1218 GMT on the back of the financial results.

Nick Raynor, an investment adviser at The Share Centre, notes that Antofagasta’s performance has been affected by strikes by employees demanding better working conditions in addition to commodity price movements.

“Although we don’t believe this will have too much of an effect on the results, we still prefer other copper miners in the sector,” he comments.

The Share Centre currently lists Antofagasta as a sell.

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