Antofagasta trades lower as copper output, guidance cut overshadow H1 earnings
By Iain Gilbert
Date: Thursday 13 Aug 2026
(Sharecast News) - Copper miner Antofagasta posted a strong first‑half performance on Thursday, delivering higher earnings and margins, but shares fell in early trading as investors focused on weaker production and a reduced full‑year output outlook.
Underlying earnings rose 27% year‑on‑year to $2.84bn, driven by an 18% increase in revenues to $4.48bn, supported by sharply higher realised prices. EBITDA margins widened five percentage points to 63.4%, while pre‑tax profits jumped 72% to $1.99bn and earnings per share climbed 62% to 85.9 cents.
Cash flow from operations increased 53% to $2.77bn, helped by stronger earnings and favourable working‑capital movements, while net debt surged to $3.97bn from $2.75bn at year‑end, reflecting capex, dividends and the recognition of new water‑infrastructure leases, leaving the firm's net debt‑to‑EBITDA ratio at 0.68x. The interim dividend was set at USD 30.1 cents per share.
Copper production fell 9% to 285,000 tonnes, mainly due to lower grades and temporary disruptions at Los Pelambres and Centinela, while gold output rose 2% to 92,800 ounces, and molybdenum production dropped 18% to 6,100 tonnes.
Net cash costs decreased 8% to $1.22 per pound, supported by stronger by‑product credits and cost‑control measures, though higher input costs and lower volumes remained headwinds.
The FTSE 100-listed group said major growth projects continued to advance, including the Centinela Second Concentrator and infrastructure expansions at Los Pelambres. It also approved a $900m investment in new water infrastructure for Zaldívar, enabling a shift away from continental water from 2028 and supporting a potential mine‑life extension to 2051.
Looking ahead, Antofagasta expects full‑year copper production of 625,000-655,000 tonnes, a reduction from prior guidance, also contributing to Thursday's share‑price weakness. Cash‑cost and capex guidance remained unchanged, while Antofagasta's Competitiveness Programme delivered $67m of savings in H1, keeping it on track for its $110m full‑year target.
As of 0900 BST, Antofagasta shares were down 4.39% at 3,852p.
Reporting by Iain Gilbert at Sharecast.com
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