Antofagasta (ANTO.L): a good investment if you live in the UK

UK-listed ANTO.L compared directly to US-listed PCU, 24 month chart

The FT reports today on the 53.6c dividend that big Chilean copper company Antofagasta (ANTO.L) is paying, this despite all the sector slowdown and all the et ceteras. that you know already. ANTO.L also pointed out in its conference call that capex will remain as stated previously, U$1.7Bn for 2009. Production schedules remain on target for FY09 and FY10 (2010 includes a big boost from the new mine due online).

That's pretty good stuff, and ANTO is enjoying the benefits of sitting on the large cash pile it made in the $3.50/lb to $4/lb copper period just finished. If you live in the UK and are looking for a defensive cyclical there are plenty of worse options out there and that above chart shows that the stock has held up well against PCU, as good a pure copper benchmark as there is.

But due to the swandive in the British Pound (GBP) things aren't so promising for dollar-based investors in ANTO.L, as this chart that compares the main London quoted stock with the US pinksheet illustrates.

Still, it's a good performance from ANTO.L in 2008, whichever way you cut it. At today's PPS of 530p, that dividend declared today offers a 7.3% yield. If you're feeling contrary and like the GBP against the USD going forward, ANTO.L certainly offers leverage and that investor-friendly dividend will give you a decent amount of downside protection, too. DYODD.

Father and Son

It's not time to make a change,
Just relax, take it easy.
You're still young, that's your fault,
There's so much you have to know.
Find a girl, settle down,
If you want you can marry.
Look at me, I am old, but I'm happy.

Father and Son, Cat Stevens, 1970

A super-duper gathering is happening in the resort town of Cartagena, Colombia this week. Labelled "The Meeting of Fathers and Sons" it's basically a round table of many of the richest and most influential industrialists in Latin America who have brought their offspring along to show them what they have in store (as long as the crisis doesn't rob family coffers too much). The meeting is being organized by rich Colombians Carlos Ardila, the Giliskis, Luis Carlos Sarmiento and Julio Mario Santodomingo. Invitees include Mexican Carlos Slim (has done quite well with telephones these last few years) , Venezuela's Gustavo Cisneros (Venevision et al), Argentines Paolo Rocca (Tenaris), Federico Braun and Alfredo Román, Chileans Andrónico Luksic (Antofagasta et al) and Álvaro Saieh, Brazilians Joao Roberto Marinho, David Feffer and Antonio Moreira Salles and Panama's Stanley Motta.

So that's a serious concentration of net worth in one spot over the next three days and you can guarantee that the security ring put up around the compound could detect a sparrow's fart. Equally unsurprising is that Colombian Prez Uribe is slated to join the chat tomorrow and tell fathers how important they are and sons how important they will be.

Apparently the agenda is topped by something called 'social issues'. I'm going to take a wild guess and suppose that won't include how these people can emulate the Venezuelan 'Misiones' system over the rest of the continent. Mojitos served.