SANTIAGO – Chile iron-ore and steel producer CAP more than doubled its earnings in 2017 over the previous year, the company said in a year-end earnings report on Thursday, boosted by rising iron prices even as its total exports of the metal dropped.
CAP reported profits of $130.3-million in 2017, more than double its earnings of $60.3-million in 2016.
"This is explained by an increase of 24.8% in the average price of iron exported in 2017 versus 2016, despite a reduction in tonnage," the company said in a statement.
Iron exports dropped slightly in 2017 to 16.1-million tonnes, from 16.8-million tonnes the previous year, the company said.
Following the earnings report, shares in CAP surged more than 3% in mid-day trading, to 8 085 pesos ($13.53), on Chile's IPSA blue chip stock exchange.
Erick Weber, the miner's GM, said a strong 2017 bodes well for future investment.
"Given the positive scenario and projections, we are evaluating and prioritising our investment plans for future growth and diversification," he said in the statement.