Antofagasta Mines Copper & Gets Gold In Chile

Every New York stock exchange trading day I'm posting a daily dividend stock or fund review. I'll share the three chief qualities of just one equity or fund that could be selected for a dividend stock portfolio I've named the Safari to Sweet Success.

This week the latest portfolio I'm building (my Safari To Sweet Success portfolio) seeks a high-yield and growing stock in the basic materials sector. That sector includes thirteen industries all tied to mined or manufactured commodities. Basic Materials Industries include: agricultural inputs, aluminum; building materials, chemicals, coal, copper, gold, industrial metals, lumber & wood, paper, silver, specialty chemicals, and steel. 

Today I'm reviewing a Large Cap UK-based industrial metals and minerals firm operating as the third largest copper producer in Chile, and eight largest in the world. The company's name is Antofagasta plc. Its trading ticker symbol is ANFGF

Antofagasta plc produces copper concentrates containing by-products, such as molybdenum, gold, and silver; and copper cathodes. The company also provides rail and road cargo, and other ancillary services in Chile. It transports goods and materials, such as sulphuric acid and copper cathodes to and from mines in the Antofagasta region.

The company was founded in 1888 and is based in London, the United Kingdom. Antofagasta plc is a subsidiary of Metalinvest Establishment. 

I use three key data points gauge the value of any dividend equity or fund like Antofagasta plc (ANFGF): 

(1) Price

(2) Dividends

(3) Returns

After those three, four more keys will finally unlock an equity or fund in which to invest.

However, it's those first three primary traits that best tell whether a company has made, is making, and will make money. 

ANFGF Price

Antofagasta's price was $13.20 per share at yesterday's market close. A year ago its price was $10.29 for a gain of $2.91 per share in the past year.

Assuming ANFGF's price will trade in the range of $10.00 to $18.00 next year, its price could grow another $2.91 from $13.20 to $16.11 by early May, 2019. 

ANFGF Dividends

Antofagasta's most recent variable semi-annual dividend was $0.41 declared in March and payable May 25th. The total annual dividend for 2018 is estimated at $0.51 per share for a yield of 3.9% at yesterday's $13.20 stock price.

Gains For ANFGF?

The $2.91 estimated year over year price gain plus an anticipated dividend of  $0.51 makes a projected gross annual gain of $3.42 per share, which will be reduced by costs to trade those shares.  

$1,000.00 invested today at the $13.20 price buys 76 shares. 

A $10 broker fee paid half at purchase and half at sale subtracts about $0.13 per share. Taking that $0.13 brokerage cost out of the estimated $3.42 gross gain per share leaves a net gain of $3.29 X 76 shares = $250.04 or a 25% potential net gain on a $1,003.20 investment.

Therefore, Antofagasta plc (whose ticker symbol is ANFGF), now shows a possible 25% net gain including a 3.9% dividend yield. 

No analysts cover this stock. Furthermore, Y Charts shows "insufficient data" to rate the stock for value, fundamentals, or historical valuation.

However, you could look at all the numbers like this: Antofagasta plc (ANFGF) has made money, is making money, and could net a  25% net gain next year including  3.9% dividend yield. It could be more, it could be less.

Those forward-looking numbers were conjecture based on past year performance. Actual results remain to be seen. They could turn out to be far higher or lower. More study is required for you to determine if Antofagasta plc (ANFGF) is worth your time and money.

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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