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Mining

Antofagasta changes its mind and cuts dividend payments by a total of US$160.7mln

Antofagasta is the London market's go-to copper company

Antofagasta PLC (LON:ANTO) has revised its recommendation in respect of the 2019 final dividend because of an increase in the number of new coronavirus infections in Chile, where the company has its major copper operations.

On 15 May the Chilean Government imposed a total quarantine over the Greater Santiago area. While these latest restrictions are not expected to have an impact on the company's current operations, it has 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.

The final dividend recommendation has accordingly been cut to US$0.071 cents per ordinary share, or a total of US$70.0mln.

That’s a reduction of US$0.163 cents per share, or a total of US$160.7mln.

UK shareholders will not, of course, be allowed to attend an AGM to protest, since large gatherings in the UK are still banned.

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