Berenberg Sees Copper Price Selloff as Buying Opportunity for Antofagasta

Berenberg has upgraded its rating on Antofagasta from 'hold' to 'buy', citing the recent copper price selloff as a compelling entry point.

The broker believes that the current copper prices, which have moved towards $15,000 a tonne due to supply disruptions and investor speculation, create an opportunity for investors to add to their positions or enter the market.

Berenberg does not expect additional U.S. tariffs on copper imports to be imposed, as it would have a detrimental inflationary impact on the U.S. economy.

The broker is bullish on Antofagasta's growth prospects, with copper volumes expected to rise 27% to 818,000 tonnes by 2028 from 646,000 tonnes in 2026, driven by higher grades at the Los Pelambres mine and the new Centinela second concentrator project.

Berenberg expects capital expenditure to roll over in 2027, lifting free cash flow to $3.1 billion in 2027 from about $700 million in 2026, with EBITDA margins of around 66% to 68% supporting the outlook.