15th Apr 2026 10:08
(Alliance News) - Antofagasta PLC on Monday reported a decrease in quarterly copper production, but maintained annual guidance and left its cost targets unchanged, assuming fuel prices return to their January levels.
Shares in Antofagasta rose 3.3% to 4,004.00 pence on Wednesday morning in London, having more than doubled over the past year.
The London-based mining house targeting Chile estimated copper production of 143,000 tonnes in the first quarter of 2026, down 19% from 177,000 tonnes in the fourth quarter of 2025, and down 7.6% from 154,700t a year prior.
Antofagasta attributed this to "lower processing rates, and lower copper grades", but said its mine plan remained on track at the Los Pelambres and Centinela concentrators.
Copper sales decreased 32% on-quarter to 137,000t from 201,000t, and 20% on-year from 170,200t.
Gold production declined to 46,500 ounces from 66,300 ounces the preceding quarter, but were 8.4% ahead of the level reported a year earlier, reflecting higher gold grades, partially offset by lower ore processing rates at Los Pelambres and Centinela.
Molybdenum output edged down to 3,000t from 4,400t on-quarter and 3,100t on-year, through a combination of higher molybdenum recoveries and lower ore processing rates.
Cash costs before by-product credits jumped 17% on-year to 2.77 per pound, due to higher costs at the two concentrators. However, by-product credits more than doubled to USD1.69 per pound, strengthened by gold and molybdenum pricing, meaning net cash costs were 30% lower than the USD1.54 figure posted a year prior.
Antofagasta said its main projects were track in terms of timing and budget, as it reaffirmed full-year guidance.
The company continues to expect annual copper production ranging from 650,000t to 700,000t. In 2025, copper output had decreased 1.6% to 653,700t from 664,000t in 2024.
It also left cash cost targets unchanged, eyeing a range of USD2.30 to USD2.50 per tonne before by-product credits and USD1.15 to USD1.35 per tonne after credits.
This guidance assumes fuel prices return to January 2026 levels during the course of the second quarter, normalising from the spike prompted by conflict in the Middle East and the closure of the Strait of Hormuz. Antofagasta also reiterated annual capital expenditure guidance of USD3.4 billion.
In 2025, Antofagasta's revenue grew 30% on-year to USD8.62 billion, but lagged behind Peel Hunt expectations of USD8.68 billion. Operating profit from subsidiaries and share of total results from associates and joint ventures climbed 64% to USD3.43 billion, but was slightly below Peel Hunt's USD3.45 billion consensus estimate.
Antofagasta Chief Executive Ivan Arriagada commented on Wednesday: "As we move through the year, we expect copper production to increase quarter‑on‑quarter, supported by higher ore processing rates and improving grades at Los Pelambres, in line with the mine plan.
The CEO continued: "Pre‑commissioning activities are now underway at the Centinela Second concentrator project, while progress across the Los Pelambres growth enabling projects continues to strengthen the operational platform for future production growth, as we look to increase our copper production by 30%.
"Against a backdrop of higher energy prices, we remain focused on safety, operational excellence, disciplined cost control and the timely execution of our growth and development projects, while maintaining resilient supply chains, and to date we have experienced no supply disruptions. The copper price remains constructive in 2026, and the medium‑term fundamentals for copper are compelling, underpinned by structural demand drivers and constrained supply."
By Holly Munks, Alliance News reporter
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