Financial performance
Final dividend of 86.1 cents per share,representing a significant return of capital to shareholders and a pay-out ratio for the year of 142%
Revenue 11.4% lower, at $5,971.6 million, following the average LME market price of copper falling by 7.9% and realised copper prices falling by 10.6% as prices trended downwards during the period.
EBITDA fell 30.1% to $2,702.2 million, with increased production offset by the decrease in realised metal prices and the increase in cash costs.
EBITDA margin remains strong at 45.3%, though down on last year's margin of 57.3%.
Net earnings fell 36.4% to $659.6 million,primarily impacted by the decrease in EBITDA and the increase in withholding tax related to this year's dividend.
Operating cash flow generation of $2,659.2 million in the period, compared with $3,826.0 million in 2012.
Balance sheet remainsstrong with Group attributable net cash at 31 December of $1,472.3 million.
Operational performance
Record copper production of 721,200 tonnes, 1.6% increase on 2012 mainly due to higher plant throughput at Esperanza.
Group cash costs (before by-product credits) were in-line with expectations at $1.79/lb, 9.8% higher than 2012 primarily due to expected higher energy costs at Los Pelambres.
Group net cash costs were slightly lower than expectations at $1.36/lb, up 32.0% compared to 2012 reflecting lower molybdenum volumes and lower molybdenum and gold prices.
Ongoing review of costs across supply chain, procurement and work practices.
Investing through the cycle
Antucoya project progressing on-schedule and on-budget, $650 million project financing completed in December with ramp-up expected in the first half of 2015
Primary focus on brownfield growth to deliver greatest returns, including increasing throughput at Esperanza to 105ktpd and commencement of feasibility studies on the Los Pelambres marginal expansion and Encuentro Oxides projects.
Longer term growth options advancedwith current focus in the Centinela Mining District on the joint development of Esperanza Sur and Encuentro Sulphides, and ongoing work at the Twin Metals project.
Reviewing options for reducing the capital cost of the projects, including the impact of using fewer EPCM contractors and more Chinese-sourced equipment.
Group production expected to rise to nearly 900,000 tonnes per annum by 2018 on capital investment of $3 billion
