Antofagasta (LSE:ANTO) posted a strong performance in the second quarter, with copper production across the group rising 3% compared to the previous quarter to reach 160,100 tonnes. The increase was largely supported by improved output from its Los Pelambres and Centinela operations.
For the first half of the year, total copper production climbed to 314,900 tonnes—marking an 11% increase from the same period in 2024.
The company also benefited from higher by-product volumes, which helped lift margins. Gold output rose 13% sequentially to 48,300 ounces, while molybdenum production jumped 42% to 4,400 tonnes. These gains contributed to a significant 27% drop in net cash costs for the quarter, which came in at $1.12 per pound. On a half-year basis, net cash costs declined 32% to $1.32/lb, aided by what the company described as “lower underlying costs and an increase in by-product credits.”
CEO Ivan Arriagada commented that the company delivered “increased production at our two large operations, Los Pelambres and Centinela,” while also highlighting that “net cash costs fell by 27%, benefitting from gold and molybdenum by-products.”
The company reaffirmed its full-year copper production guidance of 660,000 to 700,000 tonnes and expects net cash costs to end the year near the lower end of the projected $1.45 to $1.65/lb range. Arriagada added, “Production is expected to increase quarter-on-quarter for the remainder of the year, following maintenance activities completed in H1 2025.”
Capital expenditure guidance remains steady at $3.9 billion.
On the asset level, Los Pelambres produced 73,300 tonnes of copper in Q2, representing a 5% rise from Q1. Cost efficiencies from by-products helped drive net cash costs at the site down to $0.71/lb. Centinela, meanwhile, delivered a 9% increase in copper output to 60,600 tonnes, with net cash costs falling to $0.84/lb.
Work continues on major development projects at both Los Pelambres and Centinela. These include the construction of a second concentrator at Centinela and the expansion of the desalination plant at Los Pelambres. Arriagada confirmed that the project pipeline is “on track and on budget.”
He also reiterated the miner’s strong long-term view on copper: “Our conviction in copper as the metal of the future remains,” citing rising demand driven by decarbonisation efforts, artificial intelligence, and infrastructure development, alongside increasingly limited global supply.
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