Antofagasta closing in on a feasibility study of expansion of Los Pelambres

Big names reporting include Antofagasta, Hikma and Robert Walters.

Proactive Published 10/03/2017

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Copper producer Antofagasta reports full-year results on Tuesday, with analysts keen to learn of progress on the expansion of the Los Pelambres asset.

The company is planning a phased expansion to spread the financial cost. It expects to complete the feasibility study for the expansion by the end of this year.

“We expect serious investment to start in 2018 after a decision later this year. In the current capital environment, we will be looking for capital cost savings from the US$1.1bn pre-feasibility cost estimates,” said broker Peel Hunt.

The broker is on the optimistic side with its forecast of US$1.06bn adjusted pre-tax profit versus the market consensus of US$980mln.

It is tipping sales of US$3.7bn versus market expectations of US$3.6bn.

Hikma Pharmaceuticals PLC (LON:HIK) has pulled out of the slump it suffered last year after releasing disappointing half-year results in August.

The shares are up 12.4% year-to-date and the company served up a taster ahead of results next week by launching a generic version of the anti-depressant drug Pristiq.

The group had some delayed launches in the second half of the financial year so there will be some repair work to be done on the reputation.

The devaluation of the Egyptian pound against the US dollar is likely to have an impact on numbers, which are reported in dollars.

“In the last trading update it reduced its guidance for the Generics business for 2016 but kept a positive outlook for 2017. Investors will therefore be keen for an update here and a guidance of what drug launches are likely to be made. It also reported difficulties due to the weakness of the Egyptian pound,” noted Graham Spooner at The Share Centre.

The market is expecting adjusted profit before tax of around US$300mln on sales of around US$1.9bn.