Antofagasta said group turnover fell 12.2% to $2.962bn in the year to end-December 2009. Cash flows from operations tumbled 54% to $1.167bn and net earnings dropped 60.9% to $667.7m, down 20% excluding exceptionals.

The copper miner reported earnings per share of 67.7 cents, down from 173.1 cents.

Total dividends for the year including special dividends were 23.4 cents per share. This represents a payout ratio of 35% (2008 – 35%) and compares with 60 cents in 2008 (when profits included the exceptional gain on the Marubeni transaction). The total ordinary dividend for 2009 was increased by 4.4% to 9.4 cents. The final dividend proposed for 2009 is 20 cents, comprising an ordinary dividend of 6 cents and a special dividend of 14 cents.

Antofagasta said copper production was 442,500 tonnes, ahead of the original forecast for the year of 433,000 tonnes. The expected decrease compared with the 2008 production of 477,700 tonnes was mainly because of lower plant throughput at Los Pelambres due to a higher proportion of harder primary ore under the mine plan.

Weighted average cash costs excluding by-product credits reduced from 129.3 cents per pound in 2008 to 120.3 cents. The decrease partly reflected the cost reduction programme implemented from the start of 2009 as well as a general easing of market related input prices such as energy, sulphuric acid and exchange rates, although some cost pressures began to return in the second half of the year.

The miner said the LME copper price recovered from under 130 cents at the end of 2008 to 333 cents at the end of 2009 and while prices could remain volatile, the medium term outlook remains positive and consensus views are for the market to move into deficit in 2011.

Marcelo Awad, CEO, commented: "2009 was a successful year for the Group, in what were initially extremely challenging circumstances. We responded to the global economic crisis by reducing our costs and modifying our production plans as necessary. Our strong financial position enabled us to continue paying special dividends while furthering our growth strategy. We incurred a significant level of capital expenditure in 2009 as planned and increased exploration spend, and we should benefit from additional production in 2010 and also 2011. Market conditions have improved through the second half of last year, although this has also brought a return of some cost pressures. We remain well-placed to progress with our existing development plans, longer-term prospects and continued search for attractive opportunities.

"The recent earthquake near Concepcion is not expected to have any material effect on our operations. Los Pelambres suffered a brief stoppage to production as a result of interruption to power supply, and operations were restarted late the following day with normal operating capacity being reached 72 hours later. Repairs are required to facilities which provide the power requirements for the additional production at the plant expansion, and accordingly we now expect to reach the 175,000 tonnes per day level in the second quarter of this year. Los Pelambres currently expects to be able to make up production in the second half of the year and accordingly our forecast Group copper production of 543,000 tonnes remains unchanged. Fortunately, none of our employees or contractors have suffered injury at our sites as a result of the earthquake. However, some employees and many contractors at both the Los Pelambres and Esperanza projects have families in the affected areas of the south of Chile and during the past week we have assisted them in temporarily returning home. Supply of some key steel structures for Esperanza fabricated in the damaged zone may also be affected. These factors may delay some of the construction activities at Esperanza but we still expect to start commissioning the mine by the end of this year. The earthquake has clearly caused great loss to some of our stakeholders in the country and we are working with them to provide support where possible through this time."