Antofagasta profits surge as copper prices offset lower production

Antofagasta has delivered a financially strong first half of 2026, with higher copper and by-product prices more than compensating for lower production and sales volumes.

Revenue rose 18% to $4,479.0 million, while EBITDA increased 27% to $2,840.5 million. EBITDA means earnings before interest, tax, depreciation and amortisation, and is a commonly used measure of underlying operating performance.

The complication for investors is that copper production fell 9%, costs before by-product credits increased and severe weather disrupted Los Pelambres after the reporting period. Full-year production is now expected to be between 625,000 and 655,000 tonnes.

Antofagasta's key half-year figures

Metric	H1 2026	H1 2025	Change
Revenue	$4,479.0 million	$3,799.4 million	18%
EBITDA	$2,840.5 million	$2,234.2 million	27%
EBITDA margin	63.4%	58.8%	5 percentage points
Profit before tax	$1,995.8 million	$1,162.0 million	72%
Operating cash flow	$2,772.9 million	$1,812.0 million	53%
Underlying earnings per share	85.9 cents	47.4 cents	81%
Interim dividend per share	30.1 cents	16.6 cents	81%
Copper production	285,000 tonnes	Not disclosed in the headline table	Down 9%

The 63.4% EBITDA margin is particularly notable. It increased from 58.8%, showing that the uplift in realised commodity prices flowed through strongly despite higher operating costs and lower output.

Profit before tax climbed 72% to $1,995.8 million, while underlying earnings per share rose 81% to 85.9 cents. There were no exceptional items during the period.

Higher metal prices did the heavy lifting

Antofagasta's average realised copper price increased 36% to $6.19/lb. Realised gold prices rose 46% to $4,772/oz, while the realised molybdenum price increased 55% to $32.6/lb.

These movements were crucial because copper sales volumes fell 18.4% to 250,500 tonnes. The lower volume reduced revenue by $566.0 million, but higher realised copper prices added $903.8 million.

By-product revenue also provided meaningful support. Revenue from molybdenum, gold and other by-products rose 44.4% to $957.5 million, despite lower gold and molybdenum sales volumes.

This is the central message from the results: Antofagasta generated much stronger earnings from fewer tonnes sold because the pricing environment was substantially more favourable.

Investors can read the original company announcement for the complete financial statements and operational review.

Production and operating costs remain the weak spots

Group copper production fell 9% to 285,000 tonnes. Output at Los Pelambres decreased 7% to 133,800 tonnes, while Centinela production declined 16% to 97,100 tonnes.

Los Pelambres was affected by lower throughput and grades, as well as concentrate inventory accumulating during pipeline maintenance. Centinela's performance reflected lower copper grades and recoveries.

Cash costs before by-product credits rose 23% to $2.85/lb. The company pointed to higher input costs, lower production, appreciation of the Chilean peso and a one-off labour settlement at Centinela.

However, net cash costs after by-product credits fell 8% to $1.22/lb. By-product credits are revenues from metals such as gold and molybdenum that are deducted from copper production costs. Stronger by-product prices therefore provided valuable protection against underlying inflation.

The Competitiveness Programme generated $67 million of savings and productivity improvements. Antofagasta remains on track for its full-year target of $110 million.

Severe weather has reduced production expectations

Los Pelambres resumed operations following a precautionary shutdown caused by exceptionally severe weather in Chile's Coquimbo Region, which was declared a state of catastrophe.

Antofagasta said there was no material impact on key equipment and infrastructure. However, inspections identified repairs needed on certain pipeline platforms and water management systems, while mining and processing activities have been increasing gradually.

As a result, 2026 copper production is now expected to be between 625,000 and 655,000 tonnes. Quarterly production is expected to increase sequentially during the remainder of the year.

Full-year cash costs before by-product credits are expected to be $2.40-$2.60/lb, with net cash costs of $1.15-$1.35/lb. Capital expenditure guidance remains $3.4 billion, excluding the Zaldívar water project.

Cash flow, debt and the dividend

Operating cash flow rose 53% to $2,772.9 million, supported by higher earnings and favourable working capital movements.

Antofagasta nevertheless remains in a capital-intensive phase. First-half capital expenditure was $1,672.1 million, compared with $1,620.4 million a year earlier. Net debt increased from $2,749.5 million at the end of 2025 to $3,966.1 million at 30 June 2026.

The net debt-to-EBITDA ratio increased from 0.53 times to 0.68 times. This remains relatively low, although the direction of travel deserves attention while major projects are under construction.

The Board declared an interim dividend of 30.1 cents per share, up 81%. This represents a 35% payout of underlying earnings and amounts to $296.7 million. It is due to be paid on 30 September 2026 to shareholders on the register at the close of business on 4 September.

For further company coverage, visit the Antofagasta PLC share page.

Growth projects are approaching an important stage

Antofagasta says its major projects at Centinela and Los Pelambres are progressing towards completion of commissioning in 2027. Collectively, these investments are expected to increase copper production by 30%.

The $4.4 billion Centinela Second Concentrator Project had incurred $3.3 billion of expenditure to date. Pre-commissioning continued during the half, although additional work is planned around the flotation cell area following geotechnical studies. The company says this remains within the overall schedule.

At Los Pelambres, work is continuing on a new concentrate pipeline and expansion of the desalination plant to 800 litres per second.

Antofagasta has also approved approximately $0.9 billion for a water pipeline and pumping system at Zaldívar. The project is intended to replace continental water with reprocessed wastewater from mid-2028 and support a potential mine-life extension to 2051.

What investors should watch next

The positives are clear: sharply higher earnings, a wider margin, strong operating cash flow, lower net cash costs and a substantially increased dividend. The balance sheet is also supporting a sizeable growth programme without excessive leverage based on the reported net debt-to-EBITDA ratio.

The main concern is the quality of the operating performance beneath the commodity price benefit. Production and sales volumes declined, underlying costs rose and Los Pelambres faces a gradual recovery following the weather disruption.

The second half therefore needs to show the expected sequential production improvement. Investors should also watch project execution, the remaining repairs at Los Pelambres, inflation in mining inputs and whether the company can meet its $110 million competitiveness target.

Antofagasta's first-half numbers are strong, but the next test is converting its heavy investment and improved pricing into higher, more dependable copper output.