Shares in Antofagasta PLC (LSE:ANTO), the Chilean copper miner and FTSE 100 constituent, fell 5% to 3,835p after the group cut its production forecast for the year despite a forecast-beating set of half-year results.
The company now expects to produce between 625,000 and 655,000 tonnes of copper in 2026, down from earlier guidance of 650,000 to 700,000 tonnes.
The reduction follows a shutdown at the Los Pelambres mine caused by extreme weather in Chile, which prompted the government to declare a state of catastrophe in the Coquimbo region.
Mining and processing have gradually resumed, although inspections have identified the need for repairs to certain pipeline platforms and water management systems.
Earnings before interest, tax, depreciation and amortisation (EBITDA), a common measure of operating profitability, rose 27% to $2.84 billion in the six months to June.
That was roughly 2% ahead of the average analyst forecast, helped by higher realised copper prices, which averaged $6.19 a pound.
Revenue increased 18% to $4.48 billion, in line with expectations, while pre-tax profit jumped 72% to $2 billion.
Earnings per share of 85.9 cents came in 12% above consensus, and the interim dividend of 30.1 cents beat forecasts by 7%.
Cash generated from operations climbed 53% to $2.77 billion, with capital spending of $1.67 billion in the period.
Net debt rose to $3.97 billion, or 0.68 times EBITDA, from $2.75 billion at the end of last year, reflecting capital expenditure, dividends and the recognition of a new water infrastructure lease at the Centinela mine.
Full-year capital expenditure guidance was unchanged at $3.4 billion, as was the net cash cost forecast of $1.15 to $1.35 a pound after by-product credits.
Panmure Liberum, which rates the shares 'hold' with a 3,250p target price, described the financial performance as in line with a small EBITDA beat.
Peel Hunt, also a 'holder' with a 3,610p target, said the results were ahead of its own expectations but mixed against wider market forecasts, with the guidance cut the sting in the tail.
Growth projects remain on track, with the Centinela second concentrator and the Los Pelambres expansion due for commissioning in 2027.
Additional work is required around Centinela's flotation cell area following geotechnical studies, though this sits within the existing project schedule.
A recently approved water project at Zaldívar, costing around $900 million, could extend that mine's life to 2051.
