Final Results - Part 2

Antofagasta PLC
6 March 2001

PART 2


Notes




1. Reporting currency and accounting policies

a)   Reporting currency

The functional reporting currency of the Group is US dollars, the principal
currency in which the Group operates and in which assets and liabilities are
held.  These preliminary results have additionally been presented in sterling
on a supplementary basis.  Share capital remains denominated in sterling and,
for the purposes of reporting in US dollars, share capital and share premium
are translated at the period end rate of exchange.  As explained in Note 9,
dividends are paid in both US dollars and sterling.

b) Accounting policies

Four new accounting standards have been adopted in these preliminary results.
FRS 16, 'Current Tax', FRS 17, 'Retirement Benefits' and FRS 18 'Accounting
Policies' have had no effect on the Group's financial position, results or
cash flows.  FRS 19, 'Deferred Tax' has also been adopted.  Certain amounts in
the balance sheet have been reclassified from creditors to debtors and
provisions as required by FRS 19 and prior year comparatives restated
accordingly.  This reclassification has had no effect on the Group's results,
cash flows or net financial position.

Other than the reclassification in respect of FRS 19, the profit and loss
account, balance sheet and cash flow statement for the year to 31 December
2000 have been prepared on the basis of the accounting policies set out in the
Group's statutory accounts for the year to 31 December 1999.



2.     Production (neither audited nor reviewed by the auditors)

The Group announced  production volumes and cash costs for 2000 on 31 January
2001.  Production information on mining operations for the year may be
summarised as follows:

a)       Tonnes of payable copper produced (neither audited nor reviewed by
the auditors)


                                                          Year to       Year to
                                                         31.12.00      31.12.99
                                                      '000 tonnes   '000 tonnes


Los Pelambres

Payable copper in concentrates                           298.9               -

Michilla
Copper cathodes                                           51.1          51.3
Payable copper in concentrates                             1.1           9.2

Group total                                              351.1          60.5



During 1999, while still under development, Los Pelambres produced 17,400
tonnes of copper in concentrates before a commercial level of production was
achieved.  This production and the related sales were not accounted for in the
1999 profit and loss account, and are excluded from the production figures
above.

b)    Cash costs per pound (neither audited 0nor reviewed by the auditors)

                                                        Year to         Year to
                                                       31.12.00        31.12.99
                                                          cents           cents


Los Pelambres                                             35.6               -

Michilla                                                  59.8             55.4

Group weighted average                                    39.2             55.4



Cash costs are a measure of cost of operational production expressed in terms
of cents per pound of payable copper produced.  Cash costs exclude
depreciation, financial income and expenses, exchange gains and losses and
corporation tax.





3.       Segmental analysis

a)     Turnover by geographical destination
                                 US Dollars                     Sterling

                        Unaudited year to        Audited  Unaudited     Audited
                           31.12.00 US$'m        year to    year to     year to
                                                31.12.99   31.12.00    31.12.99 
                                                   US$'m        £'m         £'m

UK                                    5.7            7.9        3.7         4.9
Rest of                             169.1           41.3      111.6        25.5
Europe
Chile                                78.2           45.7       51.6        28.3
Rest of Latin                        54.9           33.2       36.2        20.5
America

North America                        38.4            2.8       25.4         1.7

Asia Pacific                        419.8           14.6      276.9         8.9
/ other
                                    766.1          145.5      505.4        89.8



b) Turnover and operating profit before exceptional items by class of business
and geographical location

Operations are based in Latin America.  Turnover and operating profit can be
analysed as follows:
                                    US Dollars                  Sterling

                          Unaudited year to      Audited Unaudited Audited year
                             31.12.00 US$'m      year to   Year to  to 31.12.99
                                                31.12.99  31.12.00          £'m
                                                   US$'m       £'m

Turnover
Mining                                696.1         93.6     459.2         57.8
Railway and other
transport services
                                       
-          Continuing                  57.9         51.9      38.2         32.0
                                       
-          Acquisitions                12.1            -       8.0            -
                                      766.1        145.5     505.4         89.8
Operating profit before
exceptional items
Mining                                224.9        (9.2)     148.4        (5.6)
Railway and other
transport services
                                       
-          Continuing                  19.3         19.2      12.8         11.8
                                        
-          Acquisitions                 1.8            -       1.2            -
                                      246.0         10.0     162.4          6.2
Exceptional items      5                  -        (18.6)         -       (11.5)
Operating profit/(loss)               246.0         (8.6)    162.4         (5.3)
after exceptional items




4.       Operating profit / (loss)


                                    US Dollars                  Sterling

                          Unaudited year to      Audited Unaudited Audited year
                             31.12.00 US$'m      year to   year to  to 31.12.99
                                                31.12.99  31.12.00          £'m
                                                   US$'m       £'m
                                                               
Turnover                              766.1        145.5     505.4         89.8
Cost of sales                        (418.9)       (95.2)   (276.2)       (58.8)
Gross profit                          347.2         50.3     229.2         31.0
Administrative expenses               (88.7)       (36.5)    (58.5)       (22.5)
Closure provision                      (1.0)            -     (0.7)            -
Severance charges                      (2.7)        (1.1)     (1.8)        (0.7)
Exploration costs                      (8.3)        (3.3)     (5.5)        (2.0)
Other net operating                    (0.5)         0.6      (0.3)         0.4
(expense)/income
Operating profit before               246.0         10.0     162.4          6.2
exceptional items

Exceptional items      5                  -        (18.6)        -        (11.5)
Operating profit/(loss)               246.0         (8.6)    162.4         (5.3)
after exceptional items




Depreciation charges in 2000 amounted to US$105.9 million (£69.7 million).  Of
this amount, US$95.4 million (£62.8  million) is included in cost of sales and
US$10.5 million (£ 6.9 million) is included in administrative expenses.
Depreciation charges in 1999 amounted to US$22.4 million (£13.9 million) of
this amount, (£13.2 million) is included in cost of sales and US$1.0 million
(£0.6 million) is included in administrative expenses.



Exploration costs in 2000 include US$2.9 million in relation to Michilla.  In
1999, exploration costs previously capitalised at Michilla of US$8.1 million
were written off and included in the exceptional items disclosed in Note 5
below.



5.       Exceptional items


                                           US Dollars             Sterling

                                    Unaudited year    Audited Unaudited Audited
                                       to 31.12.00    year to   year to year to
                                             US$'m  31.12.99  31.12.00 31.12.99 
                                                        US$'m       £'m     £'m
                                                                    
Operating
Provision for write-down  of                     -     (12.0)         -   (7.4)
mining assets and stocks
Non-incremental overhead costs                   -
incurred in the course of mining
development                                             (6.6)         -   (4.1)
Non-operating
Profit on disposal of fixed assets             4.1          -       2.7       -
at El Chacay
                                               4.1     (18.6)       2.7  (11.5)
Tax effect                                    (0.6)      2.8       (0.4)   1.8
Minority interest effect                         -       5.5         -     3.4
                                               3.5     (10.3)       2.3   (6.3)









6.   Net interest (payable)/receivable relating to the Group


                                    US Dollars                   Sterling

                           Unaudited year to        Audited Unaudited   Audited
                              31.12.00 US$'m        year to   year to   year to
                                             31.12.99 US$'m  31.12.00  31.12.99
                                                                  £'m       £'m
Interest receivable                     21.0           14.8      13.9       9.3
Interest payable                       (80.5)          (0.2)    (53.1)     (0.2)
Discount charge                          1.2           (0.2)      0.8      (0.2)
relating to provisions
                                       (58.3)          14.4     (38.4)      8.9







7.      Tax

The tax charge of US$29.0 million (£19.1 million; 1999 - US$ 1.9 million; £1.2
million) represents an effective rate of 13.0% (1999 - 14.4%) on profit before
tax, as compared with the Chilean statutory tax rate of 15%.   The lower
effective tax rate arises principally because the dividend of US$31.3 million
(£19.9 million) received from Quinenco is paid out of Quinenco's post-tax
profits and is not subject to further tax on receipt.



8.       Earnings per share

Earnings per share is calculated on profit after tax, minority interest and
preference dividends giving adjusted earnings of US$138.0 million (£90.6
million; 1999 - US$15.7 million ; £9.6 million) and based on 197,171,339
ordinary shares in issue throughout the period (1999  - weighted average
number of ordinary shares 193,278,188). Earnings per share excluding
exceptional items is calculated on the same basis but excluding an exceptional
gain of US$3.5 million (£2.3million; 1999 - exceptional loss of US$10.3
million; £6.3 million).

9.       Dividends

Following requests from shareholders, Antofagasta plc recently changed its
policy in respect of the currency in which dividend payments are paid to
holders of ordinary shares.  Shareholders on the register of members with an
address in the United Kingdom will continue to receive dividend payments in
pounds sterling, unless they elect to be paid in US dollars.  All other
shareholders will be paid by cheque in US dollars, unless they have previously
instructed the company's registrar to pay dividends by bank transfer to a
sterling bank account, or they elect for payment by cheque in pounds sterling.
  The company's registrar must receive any such election before the record
date for a particular dividend.



The Board will recommend a final dividend of 22.5p (1999 - 5.75p) per ordinary
share for payment on  8 June 2001 to shareholders on the Register at the close
of business on 4 May 2001.  This dividend comprises a regular element of 10
pence and a special element of  12.5 pence.  Dividends are declared gross, but
dividends payable to United Kingdom shareholders will be paid net of
withholding tax.  The exchange rate to be applied for the conversion of
dividends will be £1 = US$1.4421, giving a dividend for those shareholders who
will be paid in US dollars a final dividend of 32.45 cents per ordinary share,
comprising an ordinary dividend of 14.42 cents and a special dividend of 18.03
cents.




10.       Tangible fixed assets
                                           US Dollars
                                                         Rolling
                                                    stock, plant,
                                                       machinery
                    Freehold land and  Permanent way    and water
                      buildings            and works distribution  Mining Total
                       US$'m                   US$'m        US$'m   US$'m US$'m 
                                                              

Net book value                                                      
1 January 2000        30.6                   33.3           39.4 1,532.5 1,635.8
(audited)
Acquisition              -                    9.9           21.3       -   31.2
Additions              0.1                    3.0            4.1   367.2  374.4
Closure provision        -                      -              -     0.9    0.9
capitalised
Reclassified to          -                      -              -    (3.1)  (3.1)
stocks
Disposals                -                      -           (0.1)   (3.6)  (3.7)
Depreciation          (0.1)                  (1.7)          (4.9) (99.2) (105.9)

Provision for            -                      -              -    0.9     0.9
closure
Exchange              (0.3)                  (0.6)          (2.0)     -    (2.9)
31 December 2000      30.3                   43.9           57.8 1,794.7 1,926.7
(unaudited)

                                      
                                                   Sterling

                                                   Rolling stock,
                                                           plant,
                                             machinery and water
                      Freehold  Permanent way       distribution   Mining Total
                      land and      and works
Net book value       buildings                          
                            £'m           £'m                 £'m      £'m   £'m
                           
1 January 2000            19.2           21.5                24.1   951.8 1016.6
(audited)


                                                                          Total

                                                                            £'m
Acquisition                  -            6.2                13.2      -   19.4
Additions                  0.1            2.0                 2.7  242.2  247.0
Closure provision            -              -                   -    0.6    0.6
capitalised
Reclassified to              -              -                   -   (2.0)  (2.0)
stocks
Disposals                    -              -               (0.1)   (2.4)  (2.5)
Depreciation             (0.1)          (1.1)               (3.1)  (65.4) (69.7)

Provision for                -              -                   -    0.6    0.6
closure
Exchange                   1.1            0.8                 2.0   73.5    77.4
31 December 2000          20.3           29.4               38.8 1,198.3 1,286.8
(unaudited)



11.      Disposal of associate and acquisition of subsidiary




Investments in associates                                  US$'m            £'m
1 January 2000 (audited)                                   20.6            13.2
                                                      
Transferred to investments in subsidiaries and            (20.6)         (13.2)
consolidated
31 December 2000 (unaudited)                                   -              -



At the beginning of the year, the Group restructured its interests in the
Bolivian rail networks by exchanging its 12% interest in Empresa Ferroviaria
Oriental S.A. ('Oriental') for a further 13.5% interest in Empresa Ferroviaria
Andina S.A. ('Andino'), taking its interest in the Andino to a controlling 50%
interest.  Accordingly this investment has been treated as a subsidiary and
consolidated from 1 January 2000.







12.       Other investments


                                                             US$'m          £'m
1 January 2000 (audited)                                     185.8        108.3
Disposals                                                     (0.3)        (0.1)
31 December 2000 (unaudited)                                 185.5        108.2

                                                        

Investments held at 31 December 2000 were all quoted with an aggregate market
value of US$ 256.8 million (1999 - US$ 406.0 million). These investments
include a 33.61% interest in Quinenco S.A.



13.       Loans


                                   US Dollars                   Sterling

                         Unaudited 31.12.00      Audited    Unaudited  Audited
                                      US$'m     31.12.99    31.12.00   31.12.99
                                                   US$'m         £'m        £'m
                                                       
                                                                       
Los Pelambres

-          Loans                    (878.7)      (902.8)   (588.2)      (560.7)

-          Subordinated debt             -        (34.7)         -       (21.5)

El Tesoro
-          Loans                    (149.5)       (25.2)   (100.1)       (15.7)

-          Subordinated debt         (36.2)       (94.9)    (24.3)       (58.9)

-          Finance leases            (15.0)            -    (10.0)            -

Michilla
-          Finance leases             (2.1)        (1.2)     (1.4)        (0.7)
                                      
-          Loans                      (0.1)        (0.2)     (0.1)        (0.1)
Transport and other services
-          Loans                     (14.1)       (12.1)     (9.4)        (7.5)
                                  (1,095.7)    (1,071.1)   (733.5)      (665.1)





Maturity of loans:
                                   US Dollars               Sterling
                         Unaudited 31.12.00      Audited    Unaudited  Audited
                                      US$'m     31.12.99    31.12.00   31.12.99
                                                   US$'m         £'m        £'m
Due within one year                  (92.2)       (64.8)    (61.7)       (40.1)
Due after more than one           (1,003.5)    (1,006.3)   (671.8)      (625.0)
year
                                  (1,095.7)    (1,071.1)   (733.5)      (665.1)




14.       Provisions for liabilities and charges

                                                   US Dollars
                                  Decommi-sioning
                                        and site
                                  rehabilitation       Severance Deferred
                                                     indemnities      tax Total
                                           US$'m           US$'m   US$'m US$'m  
                                                           
                                                                   
1 January 2000 (restated)                  (3.1)           (7.2)   (7.0) (17.3)
Acquisition                                    -           (1.7)        - (1.7)
Charge to operating profit in              (1.0)           (2.7)        - (3.7)
period
Release of discount to net                 (0.3)            1.5         -  1.2
interest in period
Charge to tax on profit in period              -              -   (27.0) (27.0)
Utilised in the period                         -            0.8     0.7    1.5
Capitalised to fixed assets                (0.9)              -      -    (0.9)
Exchange                                       -            0.4     0.1    0.5
31 December 2000 (unaudited)               (5.3)           (8.9)  (33.2) (47.4)






                                                    Sterling
                                  Decommi-sioning
                                        and site
                                  rehabilitation       Severance Deferred
                                                     indemnities      tax Total
                                             £'m             £'m      £'m  £'m

1 January 2000 (restated)                  (1.9)           (4.5)   (4.3) (10.7)
Acquisition                                    -           (1.1)      -   (1.1)
Charge to operating profit in              (0.7)           (1.8)      -   (2.5)
period
Release of discount to net                 (0.2)            1.0       -    0.8
interest in period
Charge to tax on profit in period              -              -   (17.8) (17.8)
Utilised in the period                         -            0.5     0.4    0.9
Capitalised to fixed assets                (0.6)              -       -   (0.6)
Exchange                                   (0.1)              -    (0.5)  (0.6)
31 December 2000 (unaudited)               (3.5)           (5.9)  (22.2) (31.6)



Deferred tax balances were previously netted off against corporation tax
debtor and creditor balances.  These have been reclassified and separately
disclosed in provisions for liabilities and charges above, following the
implementation of FRS 19 'Deferred Tax'.  The amount reclassified at the start
of year was US$7.0 million (£4.3 million), and prior year comparatives in
respect of debtors, creditors and provisions have been restated accordingly.
The reclassification has no effect on results, cash flows or net assets.



Severance costs were previously calculated on a current value basis.  These
have been reassessed on a discounted basis taking into account the expected
service lives of employees.  The effect of this change in methodology has been
to reduce the severance indeminities provision by US$1.7 million (£
1.1million).  This has been credited to the profit and loss account in 2000 as
an adjustment to the discounting charge for the period.





15.       Reconciliation of movements in shareholders' funds

                                             US Dollars          Sterling

                                          Unaudited Audited Unaudited   Audited
                                            year to year to   year to   year to
                                           31.12.00 31.12.99 31.12.00  31.12.99
                                           
                                              US$'m   US$'m       £'m       £'m
                                              
Profit for the financial period               138.2    15.9      90.7       9.7
Other recognised gains relating to the
period
-  Currency translation adjustment             18.0     3.9      29.6       8.5


Total recognised gains and losses             156.2    19.8     120.3      18.2
Dividends                                     (73.9)  (25.6)    (50.9)    (15.9)
                                               82.3    (5.8)     69.4       2.3
Issue of ordinary shares                          -     0.6         -       0.4
Share premium on issue                            -    37.0         -      22.8
Exchange movement on sterling denominated     (21.1)   (8.2)        -         -
share capital and share premium
Opening shareholders' funds                   887.3   863.7     545.1     519.6
Closing shareholders' funds                   948.5   887.3     614.5     545.1



16.       Reconciliation of operating profit / (loss) to net cash inflow from
operating activities

                                         US Dollars            Sterling

                                      Unaudited Audited   Unaudited     Audited
                                        year to year to     year to     year to
                                        31.12.00 31.12.99  31.12.00    31.12.99
                                          US$'m   US$'m         £'m         £'m
                                          
Operating profit/(loss)                   246.0   (8.6)      162.4        (5.3)
Depreciation                              105.9   22.4        69.7        13.9
Loss on disposal of tangible fixed          3.0   12.3         2.0         7.6
assets
Increase in stocks                         (6.0) (20.9)       (4.0)      (12.9)
Increase in debtors                       (70.5)  (0.1)      (46.5)       (0.1)
Increase/(decrease) in                     48.2   (0.8)       31.8        (0.4)
creditors and provisions

Net cash inflow from operating            326.6    4.3       215.4        2.8
activities






17.       Reconciliation of net cash flow to movement in net debt


                                         US Dollars            Sterling

                                      Unaudited Audited   Unaudited     Audited
                                        year to year to     year to     year to
                                       31.12.00 31.12.99    31.12.00    31.12.99
                                          US$'m   US$'m         £'m         £'m
                                          
Net cash inflow/(outflow) in                2.9   (0.5)         0.9         0.2
the period
Cash inflow from increase in              (9.8) (517.2)       (6.4)     (319.3)
debt
Cash inflow from decrease in             (40.2)  (55.4)      (26.5)      (34.2)
liquid resources                                 
Change in net debt resulting             (47.1) (573.1)      (32.0)     (353.3)
from cash flows
Capitalisation of subordinated             10.3       -         6.8           -
debt
Acquisition                                 5.1   (6.4)         3.2       (3.9)
                                                  
Reclassification                            3.5  (25.6)         2.2      (16.0)
                                                 
Interest accrued on long-term             (8.1)   (4.6)        (5.3)      (2.8)
loan balances                                     
New leases                               (16.3)       -       (10.8)           -
                                                      
Exchange                                  (3.5)   (4.8)       (37.6)     (7.8)
                                                  
Movement in net debt in the              (56.1) (614.5)      (73.5)     (383.8)
period
Net debt at the beginning of            (739.5) (125.0)     (459.1)      (75.3)
the period
Net debt at the end of the period       (795.6) (739.5)     (532.6)     (459.1)



18.        Financial information


The financial information set out in this announcement does not constitute the
Group's statutory accounts for the years ended 31 December 2000 or 1999. The
financial information for the year ended 31 December 1999 is derived from the
statutory accounts for that year which have been delivered to the Registrar of
Companies, as adjusted for the restatement in the balance sheet for FRS 19 '
Deferred Tax' as explained in Note 1(b).  The auditors reported on those
accounts; their report was unqualified and did not contain a statement under
s237(2) or (3) Companies Act 1985. The statutory accounts for the year ended
31 December 2000 will be finalised on the basis of the financial information
presented by the Directors in this preliminary announcement and will be
delivered to the Registrar of Companies following the Company's Annual General
Meeting.



19.       Currency translation

Assets and liabilities denominated in foreign currencies are translated into
dollars and sterling at the period end rates of exchange.  Results denominated
in foreign currencies have been translated into dollars and sterling at the
average rate for each period.



                         Period end rates            Average rates

      31.12.00     US$1.49 = £1;   US$1 = Ch$574    US$1.52 = £1; US$1 = Ch$540

      31.12.99      US$1.61 = £1;  US$1 = Ch$531    US$1.62 = £1; US$1 = Ch$509



20.  Distribution

The Annual Report and Financial Statements, including the Notice of the Annual
General Meeting and Chairman's Statement for the year ended 31 December 2000
will be posted  to all shareholders in  May 2001.  The Annual General Meeting
will be held in the Armourers Hall, 81 Coleman Street, London EC2 at 10.30
a.m. on 7 June 2001.