23rd Oct 2025 10:39
(Alliance News) - Antofagasta PLC on Wednesday lowered full-year guidance for cash costs and capital expenditure, though copper production is expected to be at the bottom end of its target range.
The Chile-focused miner guided USD3.6 billion in capex for 2025, reduced from USD3.9 billion previously guided. Net cash cost per pound is now expected between USD1.20 and USD1.30 for the full-year, compared to the prior range of USD1.45 to USD1.65.
Antofagasta noted that the capex estimate excludes costs related to its Zaldivar project. In the three months that ended September 30, Zaldivar cash costs rose 11% on-quarter to USD3.74 per pound "following the settlement of a three-year collective bargaining agreement". The company also cited "increased unit costs for key consumables, such as sulphuric acid and diesel, and an increase in costs associated with the utilisation of inventory from prior periods, partially offset by higher production during the period."
In the three months that ended September 30, Antofagasta produced 161,800 tonnes of copper, up 1.1% from 160,100 tonnes the previous quarter. However, copper sales fell 8.1% on-quarter to 141,300 tonnes from 153,800 tonnes.
For all of 2025, the company sees copper production at the low end of its previous guidance, which is between 660,000 and 700,000 tonnes. This will compare to 663,950 tonnes in 2024.
Looking ahead to 2026, Antofagasta expects copper production "between 650,000 and 700,000 tonnes, with an incremental year-on-year gain in production expected at Los Pelambres."
Third-quarter gold production was 53,900 ounces, up 12% from 48,300 ounces in the quarter that ended June 30, while molybdenum output dropped 11% to 3,900 tonnes from 4,400 tonnes.
Net cash costs came to USD1.07 per pound, which is 4% below the second quarter.
Antofagasta added that all its major projects remain on track, and that it has "one remaining labour negotiation scheduled to take place in 2025, with the supervisors union at Antucoya," after union talks at Zaldivar concluded in the third quarter.
The company's shares were down 0.8% at 2,618.00 pence on Thursday in London.
By Holly Munks, Alliance News reporter
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