The board of Chilean copper producer Antofagasta has lowered its 2019 final dividend recommendation, citing uncertainty created by the Covid-19 crisis.
The London-listed company said on Tuesday that while its operations were not affected by the quarantine measures in the Greater Santiago area of Chile, the increase in the number of new Covid-19 cases in the last week had created additional uncertainty.
“The evolution of the health emergency in Chile could result in an increased risk of an escalation in quarantine provisions which could restrict the company’s ability to move its workforce to and from its operations,” Antofagasta said in a statement.
The board lowered its 2019 final dividend recommendation to 7.1c a share, or a total of $70-million, compared with the previous recommendation of 16.3c a share, or a total of $160.7-million.
The total dividend payment for 2019, therefore, would be 17.8c a share, which amounted to $175.5-million, equal to a 35% pay-out of net earnings and in line with Antofagasta’s dividend policy.
This revised amount would be recommended by the board to shareholders for approval at the company’s annual general meeting on May 20 and would be paid on May 22.