Antofagasta earnings boosted by copper prices despite output drop
LONDON - Chilean miner Antofagasta posted a 27% increase in half-year core earnings on Thursday as high prices for copper offset lower production, but a shutdown at one of its mines led it to cut its 2026 output forecast.
Earnings before interest, taxes, depreciation and amortisation for the first six months of the year rose to $2.84-billion from $2.23-billion a year earlier.
The miner, majority owned by Chile's Luksic family, announced an interim dividend of 30.1 cents per share, almost double the 16.6 cents paid a year earlier.
Antofagasta's increase in first-half performance mirrors that of other London-listed miners, which benefited from higher commodity prices, including for copper that is in demand for the energy transition. Prices were driven by the disruption linked to war in Iran, although that has also led to increased production costs.
The company cut its 2026 copper output estimate to between 625 000 and 655 000 tons, from a previous forecast of 650 000 to 700 000 tons, owing to a shutdown at its Los Pelambres mine in July after extreme rains prompted Chile's government to declare a "state of catastrophe" in the Coquimbo Region.
Shares fell 4.6% in early London trading, underperforming peers in the resources sector.
The miner said it would need to repair some pipeline platforms and water management systems even though there had been no significant impact on major infrastructure.
Cash costs in the first half were 8% lower year-on-year at $1.22/lb, but the miner in July forecast a 20-cent increase for the full year to $2.60/lb, owing to persistently higher fuel prices.
Operating cash flow surged 53% to $2.77-billion on higher earnings and lower working capital.
Citi analysts said in a note the "solid cash flow position" should offset the negative impact of the lowered output.
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