...April 26, 2024 Despite Antofagasta's significant investments ahead, we expect its credit metrics will remain in line with the rating amid its robust operating performance and strong and light balance sheet. The company announced an ambitious investment plan that includes the construction of a second concentrator at Centinela mine and the expansion at Los Pelambres, which includes doubling the desalination water capacity and constructing a new concentrate pipeline. Considering these investments, we now forecast capital expenditure (capex) of $2.7 billion in 2024 and $3.5 billion-$3.9 billion in 2025. This should result in free operating cash flow (FOCF) deficits in the coming two years. The company has already made significant progress in obtaining the financing. It signed a $2.5 billion term loan facility with a four-year drawdown period to finance the Centinela project in March 2024. Additionally, the company has recently announced the issuance of senior unsecured notes for up to $750...
