Antofagasta (LSE:ANTO) delivered stable operating performance during the second quarter of 2026, keeping its full-year production, cost and capital expenditure guidance unchanged despite higher operating costs. Copper production reached 142,000 tonnes during the quarter, broadly in line with the previous three months but 9 percent lower on a year-to-date basis. Gold and molybdenum production remained broadly unchanged compared with the first quarter.
Higher costs offset by stronger by-product credits
Cash costs before by-product credits increased to 2.94 dollars per pound following higher input costs and the impact of a one-off labour settlement. However, stronger by-product credits helped reduce net cash costs during the first half compared with the same period last year, allowing the company to maintain its full-year outlook.
Management said operating performance remains in line with expectations despite inflationary pressures, supported by disciplined cost management and steady production across its mining operations.
Growth projects continue to advance
Antofagasta’s key development projects remain on schedule, with commissioning expected to begin next year. These include the Centinela Second Concentrator and the expansion of the concentrate pipeline and desalination plant at Los Pelambres, both of which are expected to increase production capacity and improve ore grades over the longer term.
The company also approved a 0.9 billion dollar water supply project for its Zaldívar mine. The initiative will utilise reprocessed wastewater as part of a circular economy approach, supporting a potential extension of the mine’s operating life until 2051 while creating thousands of jobs in the surrounding region.
Long-term outlook supported by investment pipeline
Antofagasta continues to benefit from a strong operational and financial foundation, supported by a favourable technical trend and a pipeline of fully funded growth projects designed to increase future production.
These strengths are balanced by a relatively high valuation, including an elevated price-to-earnings ratio and modest dividend yield. Higher leverage and negative free cash flow during the peak investment phase also remain factors for investors to monitor.
About Antofagasta plc
Antofagasta plc is a Chile-based mining company focused primarily on copper production, with additional output of gold and molybdenum. Its principal mining operations include Los Pelambres, Centinela, Antucoya and Zaldívar.
The company is investing in a series of expansion projects aimed at increasing production capacity and improving operational efficiency as global demand for copper continues to grow, driven by electrification, renewable energy and digital infrastructure.
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