Antofagasta (LSE:ANTO) reported EBITDA of $2,840.5 million for the first half, up 27% on the same period last year, as higher realised copper prices offset rising operating costs.
The Chile-focused copper miner's EBITDA margin widened five percentage points to 63.4%, which it said keeps it towards the top end of global pure-play copper producers. Cash flow from operations rose 53% to $2,772.9 million, and net debt to EBITDA stood at 0.68x, up from 0.53x at the end of December but still described as resilient.
"Having passed peak levels of capital expenditure for our current phase of growth, we remain well positioned for the future with a resilient balance sheet and low levels of net debt," said chief executive Iván Arriagada.
Copper production fell 9% year-on-year to 285,000 tonnes, hit by lower grades at Centinela and Los Pelambres and a pipeline maintenance-driven inventory build.
Los Pelambres resumed operations following a precautionary shutdown after severe weather prompted Chile's government to declare a state of catastrophe in the Coquimbo Region.
The company said the production impact has been contained, setting full-year guidance at 625,000-655,000 tonnes of copper.
The board declared an interim dividend of 30.1 cents per share, a 35% payout of underlying earnings.
Major growth projects at Centinela and Los Pelambres, expected to lift copper production by 30%, remain on track for commissioning completion in 2027.
Adam Vettese, analyst at eToro, in a note, said that the sharp production shortfall and the subsequent cut to full-year guidance have overshadowed the financial beats.
Near term, the analyst expects the shares will likely trade more on sequential volume recovery and the direction of copper prices.
He added that weather-related disruption at Los Pelambres highlights physical risk in Chilean mining, even as management say projects remain on track for a meaningful production step-up from 2027.
News Intelligence what this means for the company
Antofagasta lifted its full-year copper production guidance to 625,000–655,000 tonnes despite a 9% year-on-year production drop in H1, driven by higher realised copper prices that pushed EBITDA up 27% and EBITDA margin to 63.4%. The company has now tightened guidance after Los Pelambres resumed operations following a precautionary weather shutdown, signalling confidence that the production impact from the August weather event has been contained; it also reported passing peak capex and maintaining net debt at a resilient 0.68x EBITDA, positioning it to fund growth projects expected to lift output by 30% in 2027.
The narrowed guidance range and 27% EBITDA growth underscore Antofagasta's exposure to copper price strength, but near-term cost headwinds from elevated diesel and sulphuric acid prices remain a risk. The company's entry into a lower-capex phase and resilient balance sheet improve visibility on cash returns, though execution of the 2027 growth projects and commodity price volatility remain key variables.
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