Antofagasta PLC (LSE:ANTO) increased first-half earnings and cash generation as stronger realised commodity prices and cost discipline offset lower copper production, while its major expansion projects continued towards commissioning in 2027.
Revenue for the 6 months to June 30, 2026, increased 18% year-on-year to US$4.48 billion, while EBITDA rose 27% to US$2.84 billion. The EBITDA margin expanded by 5 percentage points to 63.4%.
Profit before tax climbed 72% to US$2.0 billion and operating cash flow increased 53% to US$2.77 billion.
Antofagasta declared an interim dividend of 30.1 US cents per share, up 81% from 16.6 cents a year earlier and representing 35% of underlying net earnings.
Copper production lower but costs contained
Group copper production was 285,000 tonnes in the first half, down 9% year-on-year, principally reflecting lower production at the Los Pelambres and Centinela operations.
Net cash costs nevertheless fell 8% to US$1.22 per pound, supported by stronger by-product credits and cost controls. Antofagasta's competitiveness program delivered US$67 million of savings and productivity improvements during the period and remains on track for its US$110 million full-year target.
The company revised its 2026 copper production forecast to between 625,000 and 655,000 tonnes following severe weather in Chile that prompted a precautionary shutdown at Los Pelambres.
Operations have since resumed, with mining and processing activities progressively increasing. Inspections found no material damage to key equipment and infrastructure, although repairs are required to some pipeline platforms and water management systems.
Antofagasta expects quarterly production to increase sequentially through the remainder of 2026.
Chief executive Iván Arriagada said higher realised prices, productivity initiatives and cash cost discipline had supported the earnings improvement, while the company's balance sheet remained positioned to fund its growth plans. Net debt to EBITDA stood at 0.68 times at June 30.
Major copper projects advance
Antofagasta continued construction and pre-commissioning work on its major growth projects at Centinela and Los Pelambres, which are scheduled to complete commissioning during 2027.
Together, the projects are expected to increase the group's copper production by around 30%.
At Centinela, pre-commissioning of the Second Concentrator Project progressed alongside construction, with additional work planned around the flotation cell area following geotechnical studies.
At Los Pelambres, infrastructure work includes installation of a new concentrate pipeline and expansion of the existing desalination plant to 800 litres per second.
Antofagasta has also approved an investment of approximately US$900 million in a water pipeline and pumping system at Zaldívar. The project is intended to allow the operation to move away from continental water sources from mid-2028 and support a potential extension of the mine life to 2051.
Next steps
Attention during the second half will centre on the ramp-up at Los Pelambres and the expected sequential increase in group copper production.
Antofagasta will also continue construction and commissioning preparations at Centinela and Los Pelambres ahead of planned completion in 2027, while targeting its US$110 million full-year competitiveness savings goal.
