Citi has praised Antofagasta PLC (LSE:ANTO) half-year performance as “solid”, pointing to stronger earnings, lower costs and the approval of a $1bn mine development that will accelerate spending in the second half of the year.
The Chilean copper miner on Thursday posted earnings before interest, tax, depreciation and amortisation of $2.23bn for the first six months of 2025, a 60% increase on last year and slightly ahead of analyst forecasts.
Citi said the uplift was driven by higher realised prices for copper and gold, while unit costs fell 32% to $1.32 per pound, comfortably below the lower end of the company’s full-year target range of $1.45 to $1.65.
Antofagasta reiterated its full-year production target of between 660,000 and 700,000 tonnes of copper, which Citi expects will land towards the lower end.
The board has approved the development of the Encuentro mine at its Centinela operation to maintain production by accessing sulphide ore, with capital spending of $1bn starting in the second half of 2025.
Citi added that a potential upgrade to Antofagasta’s cost guidance would be a further positive for the stock, which it rates a “buy” with a price target of £23.
The shares were up 2% at £21.37.