Antofagasta’s first half copper output up 11%

Chilean miner Antofagasta (LSE: ANTO) reported on Wednesday an almost 11% increase in copper production for the first half of 2025, driven by stronger output from its Los Pelambres and Centinela operations.

The company, Chile’s largest copper miner after the state-owned Codelco, produced 314,900 tonnes of copper from January through June, up from 284,700 tonnes during the same period in 2024.Second-quarter production reached 160,000 tonnes, matching analyst forecasts.

“Overall a better-than-expected second quarter 2025, with copper production in line with our forecast and lower cash costs, implying a positive tailwind from by-products,” BMO Metals & Mining analyst Alexander Pearce said in a note.

Despite the increase, Antofagasta — which operates four copper mines in Chile — maintained its 2025 guidance at 660,000 to 700,000 tonnes. It also reaffirmed its capital expenditure target of $3.9 billion, one of the largest sums ever earmarked by the company, as it ramps up expansions in Chile and neighbouring Peru.

Positive outlook 

“Our conviction in copper as the metal of the future remains, with a positive outlook for copper over the medium-term,” CEO Iván Arriagada said.

“We see continuing demand support in the form of rising uses from key strategic sectors, driven by accelerating structural trends, such as energy security and modern technologies needed for decarbonization, artificial intelligence and infrastructure, with a supply-side that is becoming increasingly constrained.”

Much of the investment is going toward key development projects, including a new concentrate pipeline at Los Pelambres and a second concentrator at Centinela. Both are advancing on schedule and within budget.

 

Antofagasta expects Los Pelambres to deliver another 25 years of production and value creation. The mine output came to 320,000 tonnes last year, ranking just outside the top 10 producers globally.

The $4.4 billion Nueva Centinela project, approved in late 2023, will add 144,000 tonnes copper-equivalent a year to its overall production. The expansion includes upgrades to the molybdenum plant and development of the Esperanza Sur pit, where it is deploying autonomous trucks. 

Antofagasta noted the approval of the Environmental Impact Assessment for its Zaldívar mine in the second quarter of the year. This will allow production continue through 2051.

Wan Nurhayati, equity analyst at Craft & Capital Research, said the approval is a positive development, supporting the long-term production outlook.

Nurhayati expects the earnings margin “to improve in 2025 on better production and higher by-product credits, although we remain mindful of capex peaking at $3.9 billion, which could affect cash flow.”

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