Antofagasta (LSE:ANTO) reported an 8% year-on-year decline in copper production for the first quarter of 2026, though output still exceeded internal consensus estimates, helping lift shares by around 3% following the update. The Chilean miner produced 143,000 tonnes of copper in the period, ahead of the expected 138,000 tonnes, while copper sales fell more sharply, down 19.5% to 137,000 tonnes.
Costs showed significant improvement, with net cash costs falling 30% year-on-year to $1.08 per pound. This was driven by a surge in by-product credits, which more than doubled to $1.69/lb, offsetting a 17% increase in underlying cash costs. Strong gold and molybdenum prices supported this performance, with gold production rising 8% to 46,500 ounces and realised prices climbing 70% to $5,264 per ounce. Molybdenum output remained broadly stable at 3,000 tonnes.
Chief executive Iván Arriagada highlighted the resilience of the company’s asset base and the contribution from by-products. “Our net cash costs during the quarter were 108c/lb at the Group level, including 72c/lb and 34c/lb at Los Pelambres and Centinela respectively,” he said.
Looking ahead, the company expects copper production to increase progressively through the year, supported by higher throughput and improved ore grades at Los Pelambres. “As we move through the year, we expect copper production to increase quarter-on-quarter, with higher processing rates and improving grades at Los Pelambres, in line with the mine plan,” Arriagada added.
Full-year guidance remains unchanged, with copper production forecast at 650,000 to 700,000 tonnes, net cash costs expected in the range of $1.15 to $1.35 per pound, and capital expenditure set at $3.4 billion. Analysts at Morgan Stanley noted that Antofagasta will need to increase its production run rate by around 18% over the remainder of the year to reach the lower end of guidance, leaving limited margin for operational setbacks.
The company also confirmed that key growth projects are progressing as planned. Pre-commissioning work is underway at the Centinela Second Concentrator Project, while construction continues on the Los Pelambres concentrate pipeline and desalination plant expansion. All major developments remain on schedule and within budget, and the group reported no fatalities across its operations so far in 2026.
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