CAP (CAP) Q4 2024 earnings summary

Executive summary

• Consolidated net loss of US$426.9 million in 2024, mainly due to a one-off restructuring provision for Huachipato and indefinite suspension of steel operations, resulting in significant asset impairments.

• Revenue for 2024 was US$1,801 million, down 25% year-over-year, with EBITDA down 42% and mining remaining the core business.

• Suspension of Huachipato's steel production progressed as planned, halting losses and minimizing cash requirements.

• Steel solutions segment impacted by weak construction sector, but outlook for 2025 is more optimistic, especially in modular construction.

• New ventures in rare earths and green steel pilot projects are underway, with full ownership of Aguas CAP and additional stakes in rare earth projects.

Financial highlights

• Consolidated EBITDA decreased by 42% in 2024, primarily due to lower mining segment results, with EBITDA at US$569 million, down from US$975 million in 2023.

• Net income turned negative, with a loss of US$427 million in 2024, compared to a loss of US$7 million in 2023.

• Mining revenues fell 27.6% YoY, mainly due to lower shipments, prices, and a negative MtM effect (US$-151.1 million).

• Steel solutions revenues declined 24% YoY, driven by lower shipments and prices.

• Cash and cash equivalents at year-end were US$392 million, down from US$497 million.

Outlook and guidance

• The company is focusing on mining and infrastructure, with steel operations suspended indefinitely.

• Consolidated CAPEX for 2025 projected at ~US$275 million, with the majority allocated to mining.

• Iron ore shipments expected to be 15.5 Mt in 2025, with production cash cost guidance at US$52/t.

• Market consensus forecasts 62% Fe iron ore price at US$95–99/t for 2025.

• Management expects continued volatility in commodity prices and is prioritizing cost control and capital discipline.