Full Breakdown
Antofagasta Reports Decline in Q1 Copper Production with Positive Outlook for 2026
4/15/2026, 9:04:25 PM
Overview of Q1 Performance
Antofagasta PLC, a Chilean multinational mining company, reported a decrease in copper production for the first quarter of 2026, producing 143,000 tonnes, which is an 8% decline compared to the same period in 2025. Despite this drop, the output surpassed the company's own consensus estimate of 138,000 tonnes. Copper sales experienced a more significant decline, falling 19.5% year-on-year to 137,000 tonnes. The company attributed the reduced production to lower processing rates and grades at its Los Pelambres and Centinela mines.
Financial Highlights
The company reported net cash costs of $1.08 per pound for the quarter, a 30% reduction from the previous year, primarily due to a 104% increase in by-product credits, which reached $1.69 per pound. Gold production rose by 8% year-on-year to 46,500 ounces, while molybdenum output remained stable at 3,000 tonnes. Chief Executive Iván Arriagada emphasized the quality of Antofagasta's portfolio, highlighting the positive impact of by-products on overall financial performance.
Future Production Expectations
Looking ahead, Antofagasta expects a gradual increase in copper production throughout 2026, driven by higher processing rates and improved ore grades at Los Pelambres. The company has maintained its full-year guidance for copper output between 650,000 and 700,000 tonnes, with analysts noting that achieving the lower end of this range will require an 18% increase in production rates for the remainder of the year.
Ongoing Projects and Developments
Antofagasta is advancing several key projects, including the Centinela Second Concentrator Project and the expansion of the Los Pelambres concentrate pipeline and desalination plant. Pre-commissioning activities for the Centinela project are currently underway, and all major projects are reported to be on track and within budget.
Official Statements & Responses
In a statement, Iván Arriagada remarked, "As we move through the year, we expect copper production to increase quarter-on-quarter, supported by higher ore processing rates and improving grades at Los Pelambres." He also noted the company's commitment to maintaining safety and operational excellence, stating that operations have remained fatality-free in 2026.
Criticism & Opposition
Despite the optimistic outlook, some analysts have expressed caution regarding the company's ability to meet its production targets, citing the need for significant improvements in processing rates and ore grades. Morgan Stanley analysts highlighted that the company must deliver an 18% increase in production run-rate to meet its lower guidance threshold.
Conflicting Reports & Gaps
While Antofagasta's production figures for Q1 2026 are consistent across reports, there is some discrepancy regarding the specific challenges faced at the Los Pelambres and Centinela mines. Further details on the operational adjustments needed to enhance production rates have not been fully disclosed.
Verbatim Quotes
- “STRONG net cash cost performance in a constructive copper price environment Antofagasta plc CEO, Iván Arriagada said: “We are pleased to report another strong quarter of cash cost performance.” — Iván Arriagada, CEO
- “The copper price remains constructive in 2026, and the medium-term fundamentals for copper are compelling, underpinned by structural demand drivers and constrained supply.” — Iván Arriagada, CEO
Antofagasta's performance in the first quarter of 2026 reflects both challenges and opportunities as the company navigates production adjustments and ongoing projects while maintaining a focus on cost efficiency and safety.
