Antofagasta (LSE:ANTO) reported a 7% increase in copper production to 151,900 tonnes in the third quarter of 2026, supported by improved output at Los Pelambres, while maintaining its full-year production guidance.
The Chile-focused mining group said copper production for the first nine months of the year totalled 436,900 tonnes, representing an 8% decline compared with the corresponding period in 2025.
The year-on-year reduction reflected lower copper grades at Centinela Concentrates and weaker recoveries at Centinela Cathodes.
Antofagasta attributed the quarterly production increase primarily to Los Pelambres, where operations recovered following a severe weather event in July and completed the drawdown of inventories accumulated during the preceding quarter.
The company maintained its 2026 copper production guidance at between 625,000 and 655,000 tonnes.
Antofagasta Forecasts 630,000 to 690,000 Tonnes of Copper in 2027
Antofagasta also announced its initial copper production guidance for 2027, forecasting output of between 630,000 and 690,000 tonnes.
The outlook reflects expectations of higher copper grades at Los Pelambres, partially offset by lower grades at Centinela Concentrates.
The company expects to provide further details of its 2027 financial and operational outlook alongside its fourth-quarter production report in January.
This will include guidance for cash costs and capital expenditure, which were not included in the latest update.
Antofagasta continues to develop its major growth projects at Centinela and Los Pelambres, with construction activities approaching their final stages.
Chief Executive Iván Arriagada said the projects were progressing towards construction completion and commissioning during 2027.
Higher Diesel Prices Prompt Increase in Cash Cost Guidance
While maintaining its production outlook, Antofagasta increased its 2026 guidance for cash costs before by-product credits to between $2.60 and $2.70 per pound, compared with its previous forecast of $2.40 to $2.60 per pound.
The company attributed the revision to elevated global diesel prices, which have increased operating costs across its mining activities.
Cash costs before by-product credits were $2.73 per pound in the third quarter, representing a 7% reduction compared with the preceding quarter.
For the first nine months of 2026, these costs averaged $2.81 per pound, an increase of 20% year-on-year.
Net cash costs, which account for revenue generated from by-products, were $1.38 per pound during the third quarter.
Antofagasta maintained its full-year net cash cost guidance at between $1.15 and $1.35 per pound.
The company also reaffirmed its 2026 capital expenditure guidance of $3.4 billion, reflecting its existing investment programme across operating assets and development projects.
Gold and Molybdenum Production Declines
Production of Antofagasta’s principal by-products declined during the third quarter.
Gold output fell 4% compared with the preceding quarter to 44,300 ounces, while molybdenum production decreased 6% to 2,900 tonnes.
Both commodities contribute to the group’s revenue and are reflected in its net cash cost calculations through by-product credits.
The latest figures follow a period of varying production performance across Antofagasta’s mining operations, with higher copper output at Los Pelambres contrasting with the effects of lower grades and recoveries elsewhere in the portfolio.
Growth Projects Target Commissioning in 2027
Antofagasta said construction work at its major projects at Centinela and Los Pelambres had entered its final phases, with completion and commissioning expected during 2027.
The projects form part of the group’s investment programme to support future copper production and develop its existing mining operations in Chile.
Management also reiterated its assessment of the longer-term copper market, citing investment in energy infrastructure and digitalisation, alongside constraints on global copper supply, as factors supporting demand.
The company’s immediate priorities include meeting its remaining 2026 production targets, managing higher operating costs and progressing construction work ahead of the planned commissioning activities next year.
About Antofagasta
Antofagasta (LSE:ANTO) is a Chile-focused mining group principally engaged in copper production, with gold and molybdenum produced as by-products.
Its principal mining operations include Los Pelambres and Centinela, where the company operates copper production facilities and is undertaking development projects.
The group invests in mine development, processing infrastructure and operational improvements to support production across its Chilean assets.
Antofagasta’s financial performance is influenced by copper production volumes, commodity prices, operating costs and capital investment requirements.
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