Antofagasta (LSE:ANTO) delivered a strong financial performance in the first half of 2026, benefiting from higher commodity prices, disciplined cost management and favourable working capital movements. Revenue increased 18% to $4.48 billion, while EBITDA climbed 27% to $2.84 billion, taking the EBITDA margin to 63.4%.
Higher realised prices for copper, gold and molybdenum supported the improvement, alongside tighter control of costs across the business. Operating cash flow rose 53%, while profit before tax advanced 72%. The miner also increased its interim dividend by 81%, with its balance sheet remaining in a solid position and net leverage staying relatively low.
Copper Guidance Maintained Despite Severe Weather
Operationally, Antofagasta maintained a fatality-free safety performance during the period. Severe weather affected production at Los Pelambres, but the disruption was contained sufficiently for the group to leave its full-year 2026 copper production guidance unchanged at between 625,000 and 655,000 tonnes.
The company is also continuing to advance its major expansion programmes. Growth projects at Centinela and Los Pelambres remain scheduled for commissioning in 2027, providing additional capacity as Antofagasta positions itself to benefit from longer-term growth in global copper consumption.
At Zaldívar, the group is progressing a $0.9 billion water pipeline investment designed to eliminate the operation’s reliance on continental water. The project could also help support a potential extension of the mine’s operating life to 2051.
Growth Pipeline Supports Longer-Term Outlook
Antofagasta’s outlook is underpinned by strong technical momentum and an encouraging earnings picture, including record profitability, substantial cash generation and a fully funded pipeline of growth investments. Rising demand for copper associated with electrification, renewable energy infrastructure and expanding digital networks provides an additional long-term tailwind.
However, valuation and financial considerations provide some counterbalance. The company’s relatively high price-to-earnings multiple and modest dividend yield offer less valuation support, while increased leverage and uneven recent free cash flow remain factors for investors to monitor.
More About Antofagasta
Antofagasta plc is a Chile-focused copper mining group whose principal operations include Los Pelambres, Centinela and Zaldívar. The company is predominantly exposed to copper while also generating meaningful by-product revenue from gold and molybdenum.
Its asset portfolio and cost position place Antofagasta among the higher-margin participants in the global copper industry, leaving the business closely exposed to structural demand trends including electrification, renewable power development and investment in digital infrastructure.
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