Chilean miner & steel maker CAP has ended 2021 with a stupendous year-on-year growth in its profit by 147%, reaching USD 741.4 million, due to good performance of the Group's mining, steel, and steel processing segments compared to the previous year, in particular by the better margins of the mining business, such as consequence of the increase in prices and the reduction of its operating costs. In 2021, CAP was benefited by positive results in all its lines of business. In the mining sector, record-high results were achieved due to a price level in the reference index IODEX Platts 65% Fe that reached its peak monthly average of USD 246 per tonne in June. This was, in turn, exploited with good shipment volumes, which totaled 16.2 million tonnes and a reduction in its unit operation costs. In CSH's case, the rise in steel prices together with an increase of shipped volumes - which reached their highest since 2013 had a positive impact in the result, achieving the best EBITDA and profit figures in 13 years. For the Steel Processing Group it was also a record-breaking year, with positive results in Chile, Peru and Argentina, fueled by the price hike of steel. Finally, the infrastructure division stayed true to its performance history, contributing with USD 58 million in EBITDA and USD 22 million in profit to the group.In 2021, CAP SA saw 37% more revenues than 2020, mainly thanks to higher prices of iron ore in the first half of the year, higher steel prices and greater sales volumes in the steel and steel-processing segments. The consolidated EBITDA increased by 86%, from USD 974.0 million in 2020 to USD 1,813.8 million in 2021. The consolidated EBITDA is still strongly led by CMP's contribution and, during 4Q21, there is a markedly higher contribution from CSH. The good price of steel was also reflected in the realized price of the Steel Processing Group. In the last quarter of the year, the price of steel products reached USD 1,452 per tonne, 35% more than the last quarter in 2020. In 2021's aggregate figures, the average price reached USD 1,349 per tonne, 41% more than 2020.For 2022, CAP will invest the same level as in 2021 in order of magnitude, with significant increases in the steel business due to expansion and innovation projects, highlighting the preliminary studies that have already begun for the development of a prototype of green hydrogen plant. CAP is granted USD 3.6 million for a green hydrogen plant in Huachipato. CAP'S proposal, which has received the funding from Corfo, is to build an H2G plant with a capacity to produce up to 1,550 tonnes of H2G per year and reduce more than 161 thousand tonnes of C02 annually.
Chilean miner & steel maker CAP has ended 2021 with a stupendous year-on-year growth in its profit by 147%, reaching USD 741.4 million, due to good performance of the Group's mining, steel, and steel processing segments compared to the previous year, in particular by the better margins of the mining business, such as consequence of the increase in prices and the reduction of its operating costs. In 2021, CAP was benefited by positive results in all its lines of business. In the mining sector, record-high results were achieved due to a price level in the reference index IODEX Platts 65% Fe that reached its peak monthly average of USD 246 per tonne in June. This was, in turn, exploited with good shipment volumes, which totaled 16.2 million tonnes and a reduction in its unit operation costs. In CSH's case, the rise in steel prices together with an increase of shipped volumes - which reached their highest since 2013 had a positive impact in the result, achieving the best EBITDA and profit figures in 13 years. For the Steel Processing Group it was also a record-breaking year, with positive results in Chile, Peru and Argentina, fueled by the price hike of steel. Finally, the infrastructure division stayed true to its performance history, contributing with USD 58 million in EBITDA and USD 22 million in profit to the group.In 2021, CAP SA saw 37% more revenues than 2020, mainly thanks to higher prices of iron ore in the first half of the year, higher steel prices and greater sales volumes in the steel and steel-processing segments. The consolidated EBITDA increased by 86%, from USD 974.0 million in 2020 to USD 1,813.8 million in 2021. The consolidated EBITDA is still strongly led by CMP's contribution and, during 4Q21, there is a markedly higher contribution from CSH. The good price of steel was also reflected in the realized price of the Steel Processing Group. In the last quarter of the year, the price of steel products reached USD 1,452 per tonne, 35% more than the last quarter in 2020. In 2021's aggregate figures, the average price reached USD 1,349 per tonne, 41% more than 2020.For 2022, CAP will invest the same level as in 2021 in order of magnitude, with significant increases in the steel business due to expansion and innovation projects, highlighting the preliminary studies that have already begun for the development of a prototype of green hydrogen plant. CAP is granted USD 3.6 million for a green hydrogen plant in Huachipato. CAP'S proposal, which has received the funding from Corfo, is to build an H2G plant with a capacity to produce up to 1,550 tonnes of H2G per year and reduce more than 161 thousand tonnes of C02 annually.
