Antofagasta backs 2026 goals despite copper output dip

Chilean miner Antofagasta (LSE: ANTO) reported lower first-quarter copper output on Wednesday but maintained its 2026 forecast, citing expected production gains through the year.

The London-listed company produced 143,000 tonnes of copper in the first three months, down 8% from a year earlier, while net cash costs fell 30% to $1.08 a pound. The decline reflected lower processing rates and weaker copper grades at two concentrators, in line with the mine plan.

“Significantly, cash cost guidance is unchanged for now,” BMO mining analyst Alexander Pearce said in a note on Wednesday. “Although the company flags this is dependent on fuel prices returning to January levels in the second quarter, likely a similar situation for most of its peers.”

Despite higher energy prices, Antofagasta said it has not faced supply disruptions and that all major projects remain on track and on budget.

“As we move through the year, we expect copper production to increase quarter-on-quarter, supported by higher ore processing rates and improving grades at Los Pelambres, in line with the mine plan,” CEO Ivan Arriagada said in a statement.

Forecast

The company kept its full-year production forecast unchanged at 650,000-700,000 tonnes at a by-product cash cost of $1.15-1.35 per lb. of copper, as well as its capital spending outlook of $3.4 billion, in line with BMO estimates, Pearc said. The Centinela second concentrator project is on schedule with pre-commissioning activities under way, he noted. 

Gold production rose 8% to 46,500 oz. on stronger grades, partly offset by lower processing rates. Molybdenum output was broadly steady at 3,000 tonnes.

The company warned on Monday it is monitoring market conditions after a blockage in the Strait of Hormuz pushed up sulfuric acid prices, a key input for Chile’s copper industry, which relies on imports.

Beyond Chile

Arriagada has said the company is assessing opportunities in Argentina as policy changes revive investor interest, with options ranging from standalone exploration to partnerships, including projects such as Glencore’s (LSE: GLEN) El Pachón near Antofagasta’s flagship Chilean operations. He said the review is at an early stage with no specific targets.

Antofagasta also continues to pursue U.S. copper projects despite slow permitting, as lawmakers consider lifting a mining ban in a Minnesota wilderness area, a move that could support domestic supply of critical minerals.

Shares in Antofagasta gained 0.8% to £39.05 apiece in London on Wednesday, valuing the conpany at £38.4 billion ($52.1 billion).