15th March 2016
A decision by copper miner Antofagasta today to pass on its final dividend and cut its 2015 annual payout has brought the total dividend cuts announced by FTSE 100 firms for 2015 and 2016 to more than £5.7 billion.
Shares in the commodities company were under pressure today following the announcement that it would cut its 2015 annual payout from 13.5p to 2.0p.
Russ Mould, investment director at AJ Bell, says: “This move by Antofagasta represents a stunning change from the glory years of 2010, 2011 and 2012 when it paid out three special dividends worth a total of 127p per share, an enormous number compared to today’s 486p share price and one that shows how the mining industry’s fortunes have changed as commodity prices have tumbled.
“Antofagasta’s dividend came to around £133m in 2014 but just £20 million in 2015 and this reduction takes the total amount of cuts announced by FTSE 100 firms for 2015 and 2016 to over £5.7 billion.”
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