Enaex S.A

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What it is

Enaex was established in 1920, making it over a century old; it started as a Chilean manufacturer and grew into a vertically integrated explosives group that now makes the raw material, packages it into finished blasts, and operates the detonation on-site for the miner.

It owns the largest ammonium nitrate production complex in the world — the Prillex América facility, with a capacity of 850,000 tonnes per year. Beyond that single plant, it manages three dedicated production plants, sixty service plants at mine sites, and 300 mobile manufacturing units.

Its mining clients include Antofagasta Minerals, Anglo American, Codelco, BHP, and Glencore, across Chile, Argentina, Brazil, Colombia, and Peru. It also exports to more than 40 countries across six continents.

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Who owns it

The controlling shareholder is Sigdo Koppers S.A., a Chilean conglomerate that holds approximately 60.7% of Enaex and has been in that position since 1993. Insiders in total hold 87.0% of the shares (EODHD), leaving a free float of roughly 13% — our calculation — which explains the stock’s thin daily trading volume.

Sigdo Koppers operates across services, industrial, and automotive activities, as well as the import, sale, and lease of heavy machinery. Because the shares are so tightly held, the float is low and trading volumes are correspondingly light.

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Who runs it

Juan Andrés Errázuriz Domínguez serves as General Manager and CEO of Enaex S.A. The CFO is Patricio Pabst G.

In August 2023, Enaex announced a set of leadership promotions effective September 2023, creating new C-suite roles aimed at strengthening international growth and innovation. The company is governed by a nine-member board of directors; board members serve three-year terms and may be re-elected indefinitely.

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The money, in plain words

Sales have grown steadily: from CLP 1.85 trillion (~US$2.04 billion) in FY 2023 to CLP 2.16 trillion (~US$2.39 billion) in FY 2025, a rise of 17.0% over two years (our calculation). Net profit rose in step, from CLP 153.7 billion (US$170 mn) to CLP 186.5 billion (US$206 mn) over the same period (our calculation).

For every peso of sales, Enaex keeps about 8.6 cents as net profit — a net margin of 8.6% (our calculation), reasonable for a capital-heavy industrial company with both manufacturing and on-site service costs. For every peso shareholders have invested in the business, it earns back roughly 20 cents per year — a return on equity of 20.4%, which is strong for the sector.

At 16.3 times earnings (price-to-earnings ratio of 16.3×), the market is paying a fair but not extravagant price for that consistency. The company holds roughly CLP 294 billion (~US$325 million) in cash with no long-term debt disclosed, giving it a substantial financial cushion — net cash of ~US$325 million (our calculation).

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What it is doing now

Enaex has completed the first placement of a bond linked to sustainability — meaning the interest rate it pays adjusts depending on whether it meets agreed environmental targets, a structure that signals both investor appetite and management commitment to lower-carbon operations.

It has also signed a memorandum of understanding with NYK Bulk & Projects Carriers to jointly assess the feasibility of supplying low-carbon ammonia for new copper concentrate bulkers. On the production side, its HyEx project would be the first green ammonia plant in Chile, with an annual output of 18,000 tonnes per year from green hydrogen and renewable energy.

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What to watch

• Dividend resumption. The current yield is zero; historically Enaex has paid dividends, and any resumption would be a material signal to income investors — watch the annual shareholders’ meeting.
• International revenue mix. The company is targeting a shift that would reduce Chilean exposure below 50% of total sales. Progress toward that goal is the single best proxy for whether the global expansion is real.
• Copper demand cycle. Enaex’s revenues move closely with mining activity; a prolonged softening in copper or gold prices would compress both volumes and pricing power.
• HyEx and green ammonia. The HyEx project, submitted for environmental review, aims to produce green ammonia from renewable energy. Regulatory approval and construction timelines will determine whether Enaex can diversify its input costs and market its product as low-carbon.
• Thin float risk. With only ~13% freely traded, any large buyer or seller moves the price sharply; liquidity risk is real for any position of size.

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This is news, not investment advice.