Antofagasta banks on stronger second-half to hit copper goal

Chilean copper miner Antofagasta (LON: ANTO) reaffirmed on Tuesday its full-year production guidance after second-quarter copper output edged lower, betting stronger production in the second half will lift it to its target.

The company produced 142,000 tonnes of copper in the three months ended June 30, down 0.7% from the previous quarter as lower output at its Antucoya mine offset performance elsewhere. Net cash costs climbed nearly 26% to $1.36 per pound. Antofagasta said quarterly production is expected to increase through the remainder of the year and maintained its guidance of 650,000 to 700,000 tonnes of copper for 2025, with net cash costs of $1.15 to $1.35 per pound.

“Construction on our major growth projects continues to advance, with commissioning expected to be completed next year, while early pre-commissioning activities are under way at the Centinela Second Concentrator project,” CEO Iván Arriagada said. “We also approved investment in Zaldívar’s long-term water supply solution, supporting a potential mine life extension to 2051.”

Antofagasta’s outlook reflects the broader optimism surrounding copper markets as demand from electrification and infrastructure investment continues to outpace expectations while supply disruptions and slower mine development tighten the market. Delivering the upper end of its annual guidance will require a stronger second half after a largely flat start to the year.

Gold production slipped 0.4% from the previous quarter to 46,300 ounces, with output unchanged at Los Pelambres and Centinela. Molybdenum production rose 3.3% to 3,100 tonnes.

BMO Capital Markets analyst Alexander Pearce said Antofagasta’s unchanged 2026 capex guidance of $3.4 billion excludes the recently approved $900 million investment at Zaldívar. The recycled-water project could extend the mine’s life to 2051 from the early 2030s while ending its reliance on continental water from mid-2028.