Antofagasta Earnings Soar on Stronger Commodity Prices and Cost Discipline

Antofagasta PLC's first-half earnings and cash generation improved as stronger commodity prices and cost discipline offset lower copper production. The company reported an 18% year-over-year increase in revenue to $4.48 billion for the six months ending June 30, while EBITDA rose 27% to $2.84 billion.

The EBITDA margin expanded by 5 percentage points to 63.4%, with profit before tax climbing 72% to $2.0 billion and operating cash flow increasing 53% to $2.77 billion. Antofagasta declared an interim dividend of 30.1 US cents per share, up 81% from 16.6 cents a year earlier.

Copper production was lower due to reduced output at Los Pelambres and Centinela operations, but net cash costs fell 8% to $1.22 per pound due to stronger by-product credits and cost controls. The company revised its copper production forecast for the full year to between 625,000 and 655,000 tonnes following severe weather in Chile.

Antofagasta's major expansion projects at Centinela and Los Pelambres are progressing towards commissioning in 2027, with the projects expected to increase copper production by around 30%. The company has also approved a $900 million investment in a water pipeline and pumping system at Zaldívar.