Antofagasta is trading at £8.05; the stock is down 5.5% since it announced its full-year figures for 2013 in March. The profits missed estimates but the dividend exceeded analysts’ forecasts.
Last financial year, the miner posted record productions levels but the slump in the price of copper affected its bottom line. It has been difficult for the mining sector as metal prices are not what they once were and costs continue to climb; last year the cost of extracting copper rose by 10%.
In March, the company outlined its full-year copper production target for 2014 of 700,000 tonnes. With the hopes of ramping it up to 900,000 tonnes by 2018, dealers will be wondering if this guidance is maintained.
Analysts are a touch on the bearish side when it comes to Antofagasta’s outlook. Out of the 31 recommendations, six are buys, 15 are holds and 10 are sells.
If the share price drops below £8 the next level to watch for is £7.60. However, if the full-year guidance is upped the stock could target £8.40.