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Investing.com -- Antofagasta reported a drop in copper production in the first quarter of 2026 but was still ahead of company-compiled consensus, and noted that output is expected to rise steadily through the remainder of the year.
The Chilean miner’s shares gained 3% following the release.
Antofagasta produced 143,000 tonnes of copper in the three months to March, down 8% from the same period a year earlier, but was ahead of the company’s consensus of 138,000.
Copper sales fell more sharply, dropping 19.5% year-on-year to 137,000 tonnes.
Net cash costs came in at $1.08 per pound for the quarter, 30% lower year-on-year, as surging by-product credits — up 104% to $1.69/lb — more than offset a 17% rise in cash costs before credits. Gold and molybdenum prices were the key drivers, with gold realised at $5,264 per ounce during the quarter, up 70% from a year ago.
Gold production rose 8% year-on-year to 46,500 ounces, while molybdenum output of 3,000 tonnes was broadly flat.
Chief Executive Iván Arriagada said the results reflected the quality of the company’s portfolio, pointing in particular to the contribution from by-products. "Our net cash costs during the quarter were 108c/lb at the Group level, including 72c/lb and 34c/lb at Los Pelambres and Centinela respectively," he said.
Looking ahead, Arriagada said production is expected to pick up through the year. "As we move through the year, we expect copper production to increase quarter-on-quarter, with higher processing rates and improving grades at Los Pelambres, in line with the mine plan."
Full-year guidance was left unchanged, with group copper output forecast at 650,000 to 700,000 tonnes. Net cash cost guidance was also held at $1.15–$1.35/lb, and capital expenditure remained guided at $3.4 billion.
"ANTO will need to deliver an 18% step up in production run-rate for the rest of the year to meet its low end of 650kt. This will be driven by Los Pelambres (throughput and grades), leaving limited room for error," Morgan Stanley analysts said.
They also said they expect "limited changes to consensus EBITDA at this point."
The company said its pre-commissioning activities are underway at the Centinela Second Concentrator Project, while construction work continues on the Los Pelambres concentrate pipeline and desalination plant expansion. All major projects remain on track and on budget, Antofagasta said.
Antofagasta also confirmed its operations remain fatality-free so far in 2026.