Entain, Antofagasta and M&G stand out on heavy day for company news

Thursday brings another busy morning of company news, including Ladbrokes owner hearfund manager M&G, plus a smattering of real estate news from Derwen, Savills and RICS housing market data.

The figures from copper miner Antofagasta PLC (LSE:ANTO) will also be instructive for more than its own shareholders, as a firm copper price is often seen as a good sign for the health of the global economy due to its many uses. industrial.

However, fears of a global slowdown are weighing on the price of Dr Copper, which has fallen from $10,000 a tonne to below $8,000, and therefore also on the Chilean copper miner and member of the FTSE 100.

“On Antofagasta specifically, shareholders will be looking for confirmation of three sets of numbers, following the disappointing second quarter update released in late July,” said analyst Danni Hewson at AJ Bell.

Alongside February’s full-year results for 2021, he said output this year would drop around 6% at the midpoint of the forecast, although a July update revealed the first half fell by around 6%. around 26% due to an incident at the Los Pelambres Mine and drought in Chile.

Expenses are also critical, with net cash costs up 5% to $1.20/lb last year, with further increases likely in 2022 and guidance pointing to a jump to $1.55/lb initially. the production shortfall should now bring it to $1.65. per pound or $3,650 per metric ton.

Along with capital expenditure, which is expected to increase from US$1.8 billion in 2021 to US$1.9 billion for 2022, this will share how earnings and cash flow come in.

“Analysts and investors will look to management for any comment on the political situation in Chile,” Hewson said, as Chairman Gabriel Boric failed in his bid to nationalize key copper, lithium and gold assets. after Parliament rejected it, but potentially considering new, higher mining royalty payments.

Across the pond, many early investors in electric vehicle startups Rivian Automobile Inc. (NASDAQ:RIVN) looks sadly at its IPO price of US$78.

Major stakeholders Ford and Amazon have suffered huge write-downs on their stakes in the company over the past six months, with shares hitting a low of just under US$20 following the announcement of their results from the first trimester.

Production got underway however, with 2,553 vehicles built in the first quarter and 1,227 delivered, with management confident that this would see 4,000 vehicles produced in the second.

With revenues of US$95 million below expectations of US$131.2 million in the first quarter and losses of US$1.6 billion or C$1.43 on a share basis, the investment in a new plant means losses are expected to increase to C$1.60 in share for the second quarter.

Earnings of Illumina Inc. (NASDAQ:ILMN), the specialist in the analysis of genetic variation and biological function, is also important to UK investors, particularly those backing Scottish Mortgage Investment Trust PLC (LSE:SMT), as it this is his fourth largest appearance.

In the first quarter, the genomics group announced a nearly halving of its earnings per share to US$0.55 due to a large operating loss linked to its acquisition of GRAIL, the maker of the blood test Galleri , which he bought last August.

Boss Francis deSouza said the fundamentals of the group’s core business are “robust”, with record orders and a record order book, with GRAIL gaining “ground”.

Illumina is expected to post earnings of US$0.63 per share in the latest quarter.

Important announcements on Thursday, August 11

Interims: Antofagasta PLC, Coca-Cola HBC AG, Derwent London PLC, Empiric Student Property PLC, Empresaria Group PLC, Entain PLC, M&G PLC, Network International Holdings PLC, Pressure Technologies PLC, Savills PLC

AGM: Inspecs Group PLC, Marks Electrical Group PLC, Silver Bullet Data Services Group PLC

Ex-dividends to reduce the FTSE 100 index by: 24.71 (Ashtead, Informa, Rio Tinto, Shell, Barclays, SEGRO, Astrazeneca, Standard Chartered, Pearson, BP, Fresnillo)

Economic announcements: RICS Housing Market Survey (UK), Continuing Claims (US), Initial Unemployment Claims (US), Producer Price Index (US), China Inflation, Retail Sales, industrial production

Income in the United States: Illumina, Rivian Automotive

Karen J. Nelson