Antofagasta’s $2B profit eclipsed by Chile copper woes
Stronger copper and gold prices lifted first-half profit and cash flow, but Los Pelambres shutdown clouded the year ahead.
Antofagasta's profit growth outweighed Chilean copper industry woes in the first half of 2026. The Chilean miner cut its annual production forecast for 2026 after extreme weather halted its flagship Los Pelambres mine. Despite a 27% increase in core earnings, the company lowered its production guidance to 625,000-655,000 tonnes, a 5% reduction from the previous estimate.
The extreme weather, primarily heavy rain and snow in July, caused the mine to shut down under a state of catastrophe declared by Chile's government. Copper prices surged 36% and gold rose 46%, helping offset the production decline and boosting Antofagasta's first-half core earnings to $2 billion. The company's market value sits at nearly £37.7 billion ($50 billion), but its stock underperformed during mid-afternoon London trading.
Antofagasta's stronger-than-expected results were driven by lower cash costs and depreciation, leading to an adjusted EPS of $0.86, surpassing analysts' estimates by 15%. The company declared an interim dividend of $0.30 per share, outpacing expectations. Chile faces challenges as other copper producers grapple with operational issues and aging mines while trying to maintain output amidst high copper prices.
Written by urgent.news from Mining.com's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
