Antofagasta backs 2026 goals despite copper output dip

Chilean miner Antofagasta (LON: ANTO) reported lower first-quarter copper output on Wednesday but maintained its 2026 guidance, citing expected production gains through the year.

The London-listed company produced 143,000 tonnes of copper in the first three months, down 8% from a year earlier, while net cash costs fell 30% to $1.08 a pound. The decline reflected lower processing rates and weaker copper grades at two concentrators, it said.

Despite higher energy prices, the group said it has not faced supply disruptions and that all major projects remain on track and on budget.

“As we move through the year, we expect copper production to increase quarter-on-quarter, supported by higher ore processing rates and improving grades at Los Pelambres, in line with the mine plan,” Chief Executive Ivan Arriagada said in a statement.

BMO analyst Alexander Pearce said that while guidance was unchanged at 650,000-700,000 tonnes at a by-product cash cost of $1.15-1.35/lb Cu, Antofagasta’s cost guidance assumes fuel prices return to January (pre-conflict) levels in the second quarter, reflecting some of the recent input cost pressure from acid, diesel and foreign exchange.

Pearce added that capex guidance of $3.4 billion also remained unchanged, in line with BMO estimates, and that the Centinela second concentrator project is on schedule with pre-commissioning activities under way.

Gold production rose 8% to 46,500 ounces on stronger grades, partly offset by lower processing rates. Molybdenum output was broadly steady at 3,000 tonnes.

The company warned on Monday it is monitoring market conditions after a blockage in the Strait of Hormuz pushed up sulfuric acid prices, a key input for Chile’s copper industry, which relies on imports.

Beyond Chile

Arriagada has said the company is assessing opportunities in Argentina as policy changes revive investor interest, with options ranging from standalone exploration to partnerships, including projects such as Glencore’s (LON: GLEN) El Pachón near Antofagasta’s flagship Chilean operations. He said the review is at an early stage with no specific targets.

Antofagasta also continues to pursue US copper projects despite slow permitting, as lawmakers consider lifting a mining ban in a Minnesota wilderness area, a move that could support domestic supply of critical minerals.