Antofagasta

Here is another quick look at a FTSE 100 company.

Antofagasta (ANTO) is a Chilean based copper miner. It also has operations in Bolivia and Peru and also mines Molybdenum. ANTO also has railway and water distribution operations.

The market cap. is about £6.5 Billion, the PE is about 10 and the dividend yield is about 4%.

So is ANTO worth a second look? Probably, although other more diversified miners like BHP Billiton are available at a similar PE. Unless you have a specific reason to be bullish about copper prices BLT would be the safer option. ANTO obviously has greater political risk as it operates purely in South America. The chance of a serious political crisis is low but increased taxation on miners is always possible.

Another point to note is the volatility of the ANTO share price - in the last 6 month is has moved between 600p and 800p twice. The could present trading opportunities but could also be a bit disconcerting when it is plunging.

A final positive point - the 4% yield is generous for a miner.

One to keep an eye on I feel.