Operating Margin

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Price: 3 726 GBX -1.3% Market Closed

Market Cap: £36.7B

41.1%

Improving

by 2.2%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

41.1%

Operating Income

$2.3B

Revenue

$7.5B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

41.1%

Operating Income

GBX2.3B

Revenue

$7.5B

Peer Comparison

Country		Company	Market Cap	Operating Margin
UK		Antofagasta PLC LSE:ANTO	36.5B GBP	Loading...
US		Southern Copper Corp NYSE:SCCO	157.3B USD	Loading...
US		Freeport-McMoRan Inc NYSE:FCX	89.2B USD	Loading...
CN		Jiangxi Copper Co Ltd SSE:600362	210.6B CNY	Loading...
CA		First Quantum Minerals Ltd TSX:FM	35.1B CAD	Loading...
CA		Lundin Mining Corp TSX:LUN	30.2B CAD	Loading...
PL		KGHM Polska Miedz SA WSE:KGH	68.4B PLN	Loading...
CN		Tongling Nonferrous Metals Group Co Ltd SZSE:000630	103.9B CNY	Loading...
DE	A	Aurubis AG XETRA:NDA	6.8B EUR	Loading...
CN	Y	Yunnan Copper Co Ltd SZSE:000878	50.4B CNY	Loading...
AU		OZ Minerals Ltd ASX:OZL	9.4B AUD	Loading...

Market Distribution

Min	-195 650%
30th Percentile	0%
Median	0.1%
70th Percentile	0.2%
Max	4 630.7%

Other Profitability Ratios

Antofagasta PLC
Glance View

Market Cap

36.7B GBX

Industry

Metals & Mining

Antofagasta PLC, rooted in the mineral-rich landscapes of Chile, is a shining beacon in the world of mining, particularly through its commanding focus on copper. Established in the late 19th century, the company has evolved from its railway origins into a powerhouse within the copper industry, weaving its success around the global and incessant demand for this reddish-brown metal, crucial in electrical applications and construction. Mining is an intricate dance of extraction and refinement, and Antofagasta has mastered this, operating some of the most productive mines in the Andes Mountains, such as Los Pelambres. Here, the metal is carefully pried from the earth before undergoing a sophisticated process of crushing, grinding, and flotation to produce a concentrate that is then shipped across the world. What sets Antofagasta apart is not just its impressive portfolio of mines, but its strategic agility and balance in the face of the ever-fluctuating commodities market. The company's financial vitality is sustained by its ability to boost operational efficiencies and manage costs effectively, which are crucial in maintaining profitability when copper prices dip. Furthermore, Antofagasta diversifies its operations with interests in transportation and water distribution, leveraging its historical roots while supporting its core mining interest. This diversification strategy helps alleviate the oscillating nature typical of resource-based businesses, providing stability and a steady stream of revenues that flow concurrently with its primary copper operations. Through these concerted strategies and its entrenched commitment to sustainable practices, Antofagasta PLC has secured its status as a resilient player in the global mining industry.

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ANTO Intrinsic Value

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What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

Antofagasta PLC
LSE:ANTO

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Antofagasta PLC
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Antofagasta PLC LSE:ANTO