Earnings call transcript: Antofagasta H1 2026 profit jumps as copper margins widen

Antofagasta reported a remarkable 72% increase in profit before tax for the first half of 2026, driven by higher copper and byproduct prices. Revenue jumped 18% to $4.5 billion, while EBITDA margins expanded to 63.4%, among the highest in the pure-play copper sector. The miner attributed part of the 7,000-tonne copper production decline to lower grades at Centinela and Los Pelambres, but acknowledged this as a timing issue rather than a permanent loss, with most of the shortfall expected to be recognized in the second half.

Antofagasta's operating discipline shone through, with a fatality-free year and a lost time injury frequency rate below 1. The company's competitiveness program delivered $67 million in savings, keeping it on track for a $110 million full-year target. Copper generated 77% of revenue, with byproducts contributing 22%. Production was lower than the previous half-year due to lower grades at certain mines, but management expected most of this decline to be offset in the second half.

The company's capital spending remained elevated due to major growth projects, including the Centinela Second Concentrator and Los Pelambres expansion, both slated for completion by 2027. Antofagasta's shares were nearly unchanged after the earnings call, trading at $4,029, near the top of its 52-week range. The stock's market capitalization stands at $53.6 billion, though it is currently trading above its fair value.

The company aims to maintain disciplined growth through brownfield expansions and capitalize on longer-dated opportunities, such as extending mine life at Los Pelambres and securing water supply at Zaldívar.