REG - Antofagasta PLC - Q2 2025 PRODUCTION REPORT

AntofagastaAnnouncement

Wed 07:00

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RNS Number : 1955R  Antofagasta PLC  16 July 2025

NEWS RELEASE, 16 JULY 2025

 

Q2 2025 PRODUCTION REPORT

Robust Production of copper and by-products; net cash costs 27% lower

 

Antofagasta plc CEO, Iván Arriagada said: "We delivered increased production
at our two largest copper mining districts, Los Pelambres and Centinela. On a
quarter-on-quarter basis, Group-level copper production increased by 3% (11%
compared to the prior year period) and net cash costs fell by 27% (32%
compared to the prior year period), with costs benefitting from gold and
molybdenum by-products, with production up 13% and 42% respectively.

"Guidance for the year remains unchanged with copper production for the full
year expected to be in the range of 660-700,000 tonnes and net cash costs
towards the lower end of the guidance range of $1.45-1.65/lb. Production is
expected to increase quarter-on-quarter for the remainder of the year,
following maintenance activities completed in H1 2025.

"Our pipeline of copper growth and development projects at both Centinela and
Los Pelambres continues to advance on time and on budget, with recent market
movements in by-product pricing strengthening the investment case for these
projects. At Zaldívar, we were pleased to secure approval of our
Environmental Impact Assessment during the quarter, which allows us to extend
this operation's mine life to 2051.

"Our conviction in copper as the metal of the future remains, with a positive
outlook for copper over the medium-term. We see continuing demand support in
the form of rising uses from key strategic sectors, driven by accelerating
structural trends, such as energy security and modern technologies needed for
decarbonisation, AI and infrastructure, with a supply-side that is becoming
increasingly constrained."

 GROUP PRODUCTION AND CASH COSTS                               Year to Date          Q2     Q1
                                                               2025   2024   %       2025   2025   %
 Copper production                           Kt                314.9  284.7  10.6    160.1  154.7  3.5
 Copper sales                                Kt                324.0  277.2  16.9    153.8  170.2  (9.6)
 Gold production                             koz               91.2   66.9   36.3    48.3   42.9   12.6
 Molybdenum production                       Kt                7.4    5.2    42.3    4.4    3.1    41.9
 Cash costs before by-product credits ((1))  $/lb              2.32   2.65   (12.5)  2.27   2.37   (4.2)
 Net cash costs ((1))                        $/lb              1.32   1.94   (32.0)  1.12   1.54   (27.3)

(1)   Cash cost is a non-GAAP measure used by the mining industry to express
the cost of production in US dollars per pound of copper produced.

 

 

HIGHLIGHTS

PRODUCTION

·    Copper production in Q2 2025 was 160,100 tonnes, representing a 3%
increase quarter-on-quarter, reflecting higher output from the Group's two
concentrators (Centinela Concentrates and Los Pelambres), offset by lower
output from the Group's cathode operations.

·    Copper production in H1 2025 was 314,900 tonnes, representing an 11%
increase year-on-year.

·    Gold production in Q2 2025 was 48,300 ounces, 13% higher than the
prior quarter, with an increase in production at both Los Pelambres and
Centinela Concentrates. Gold production in H1 2025 was 91,200 ounces,
representing an increase of 36%, with higher output at both Centinela
Concentrates and Los Pelambres.

·    Molybdenum production in Q2 2025 was 4,400 tonnes, 42% higher
quarter-on-quarter, principally reflecting higher output at Los Pelambres.
Molybdenum production of 7,400 tonnes in H1 2025 was also 42% higher as a
result of higher output at both Los Pelambres and Centinela.

CASH COSTS

·    Cash costs before by-product credits in Q2 2025 were $2.27/lb,
representing a 4% decrease quarter-on-quarter, driven by higher production at
both Los Pelambres and Centinela Concentrates. Cash costs in H1 2025 were
$2.32/lb, a year-on-year decrease of 13% due to increased production at both
Los Pelambres and Centinela Concentrates.

·    By-product credits in Q2 2025 were $1.15/lb, representing a 39%
increase quarter-on-quarter, with this increase associated with strong
by-product volumes and pricing. By-product credits in H1 2025 were 41% higher
at $1.00/lb, following higher by-product production and realised gold prices.

·    Net cash costs in Q2 2025 were $1.12/lb, representing a 27% reduction
quarter-on-quarter, reflecting lower underlying costs and an increase in
by-product credits seen during the period. Net cash costs in H1 2025 were
$1.32/lb, representing a 32% decrease year-on-year, with lower underlying cash
costs and higher by-product credits.

PROJECT DEVELOPMENT UPDATE

·    All majors projects remain on track and on budget.

·    Centinela Second Concentrator: Work during the period focused on the
assembly of key mining equipment at the Esperanza Sur mine, and installation
of structural steel for the concentrator, the assembly of mechanical equipment
for the concentrate thickeners and the assembly of ball mill components. In
the coming quarter, work is expected to start on civil works for the
high-pressure grinding rolls (HPGR) and the assembly of the primary crusher
structure.

·    Los Pelambres' Growth Enabling Projects:

o  Concentrate pipeline: During the quarter, trenching excavation and
pipeline assembly activities continued for the new concentrate transport
system and water line. In the tunnels in the elevated section of the route,
progress was made with the installation of the ventilation and lighting
systems. In Q3 2025, work is expected to begin on the 33 kV power line and the
assembly of the electrical room at the substation situated at the El Mauro
tailings facility.

o  Desalination plant expansion: Civil works continue at the desalination
plant and pumping stations.

2025 GUIDANCE (AS PREVIOUSLY ANNOUNCED)

·    Guidance for the year remains unchanged. Group copper production for
the full year is expected to be in the range of 660-700,000 tonnes.

·    Group-level cash cost guidance, both before and after by-product
credits, is also unchanged

at $2.25-2.45/lb and $1.45-1.65/lb respectively.

·    Capital expenditure guidance is also unchanged at $3.9 billion.

SAFETY AND SUSTAINABILITY

·    The Group continues to maintain its strong health and safety track
record in 2025, with no fatalities and a year-to-date total injury frequency
rate of 1.67 (FY 2024: 1.62).

ZALDÍVAR UPDATE

·    As previously announced on 16 May 2025, Zaldívar's Environmental
Impact Assessment (EIA) was formally approved during the period, which
included a collaborative engagement process with communities, government and
other local stakeholders in Chile.

·    This approval enables Zaldívar's mine life to be extended to 2051,
with a three-year transition to a long-term supply of water from 2028, which
is expected to be either sea water or a third-party water source.

CORPORATE

·    As announced on 26 June 2025, the Company's Board of Directors
appointed Ignacio Bustamante as an Independent Non-Executive Director with
effect from 1 July 2025.

·    The Company held its Annual General Meeting on 8 May 2025, with all
resolutions passed during the meeting.

·    The Group published its Report on Payments to Governments on 27 June
2025, showing that over 99.9% of taxes and other payments to governments in
2024 were paid in Chile, in line with previous years.

·    The Group will be hosting an investor site visit to the Centinela
Second Concentrator Project in November 2025.

 

 Investors - London                                                                   Media - London
 Rosario Orchard      rorchard@antofagasta.co.uk (mailto:rorchard@antofagasta.co.uk)  Carole Cable   antofagasta@brunswickgroup.com (mailto:antofagasta@brunswickgroup.com)
 Robert Simmons       rsimmons@antofagasta.co.uk (mailto:rsimmons@antofagasta.co.uk)  Telephone      +44 20 7404 5959
 Telephone            +44 20 7808 0988

                                                                                      Media - Santiago
                                                                                      Pablo Orozco   porozco@aminerals.cl (mailto:porozco@aminerals.cl)
                                                                                      Carolina Pica  cpica@aminerals.cl (mailto:cpica@aminerals.cl)
                                                                                      Telephone      +56 2 2798 7000

 

 

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MINING OPERATIONS

Los Pelambres

Copper production rose by 5% to 73,300 tonnes in Q2 2025, reflecting higher
copper grades and recoveries. Lower quarter-on-quarter throughput rates
followed maintenance completed during the period, including maintenance work
on the processing plant in early April as announced in the Group's Q1
Production Report. Following this work, Los Pelambres is expected to deliver
quarter-on-quarter production increases for the remainder of the year.

Copper production in H1 2025 was 8% higher than the prior year at 143,200
tonnes, with this year-on-year increase principally related to the
accumulation of concentrate inventories in the prior year period.

By-product output of gold and molybdenum rose by 23% and 52% respectively in
Q2 2025, in parallel to 10-15% increases in realised prices for both
by-products, generating a significant credit for Los Pelambres' net cash
costs. Gold production in Q2 2025 rose to 14,300 ounces as a result of higher
grades processed. With respect to molybdenum production, this increase to
3,500 tonnes was driven by grades rising by 37% during the period, and
recoveries returning to a level in line with previous years.

Copper sales in Q2 2025 and H1 2025 were broadly in line with production
during each period, with port operations continuing in line with expectations.

Cash costs before by-product credits were $2.19/lb, 5% lower on a
quarter-on-quarter basis, reflecting higher copper production, partially
offset by appreciation of the Chilean peso. Cash costs before by-product
credits in H1 2025 were 4% higher year-on-year at $2.24/lb, with this movement
driven by an increase in unit costs and consumption rates for key consumables,
offset by lower treatment charges, higher inventory levels in the prior year
period and depreciation of the Chilean peso.

Net cash costs, which include credits for sales of molybdenum and gold
by-products, were 48% lower quarter-on-quarter at $0.71/lb in Q2 2025. This
movement reflects a 57% increase in the by-product credit to $1.48/lb
following strong by-product output and pricing. Net cash costs in H1 2025 fell
by 15% to $1.03/lb, reflecting higher by-product output and gold pricing,
partially offset by a decrease in molybdenum pricing.

 

 LOS PELAMBRES                                        Year to Date          Q2     Q1
                                                      2025   2024   %       2025   2025   %
 Daily ore throughput                          kt     172.4  186.7  (7.7)   171.2  173.5  (1.3)
 Copper grade                                  %      0.54   0.54    -      0.54   0.53   1.9
 Copper recovery                               %      89.1   88.6   0.6     89.8   88.3   1.7
 Copper production                             kt     143.2  132.5  8.1     73.3   69.9   4.9
 Copper sales                                  kt     145.6  133.4  9.1     72.6   73.0   (0.5)
 Molybdenum grade                              %      0.023  0.015  53.3    0.026  0.019  36.8
 Molybdenum recovery                           %      80.4   84.9   (5.3)   83.7   75.8   10.4
 Molybdenum production                         kt     5.7    4.2    35.7    3.5    2.3    52.2
 Molybdenum sales                              kt     5.5    4.6    19.6    3.6    2.0    80.0
 Gold grade                                    g/t    0.040  0.031  29.0    0.044  0.035  25.7
 Gold recovery                                 %      70.6   69.6   1.4     70.1   71.2   (1.5)
 Gold production                               koz    25.9   18.9   37.0    14.3   11.6   23.3
 Gold sales                                    koz    25.0   17.2   45.3    13.8   11.3   22.1
 Cash costs before by-product credits((1))     $/lb   2.24   2.16   3.7     2.19   2.30   (4.8)
 Net cash costs ((1))                          $/lb   1.03   1.21   (14.9)  0.71   1.36   (47.8)

(1) Includes tolling charges of $0.12/lb in Q2 2025, $0.11/lb in Q1 2025,
$0.11/lb in YTD 2025 and $0.27/lb in YTD 2024.

 
Centinela

Total copper production rose by 9% in Q2 2025 to 60,600 tonnes, reflecting an
increase in copper in concentrate production, offset by lower cathode
production, shifting the balance of copper in concentrate to cathodes to 73%
of total production across the Centinela District. Total copper production in
H1 2025 rose by 25% to 116,200 tonnes, with an 84% increase in copper in
concentrate output year-on-year and 28% lower production of cathodes.

Production of copper in concentrate increased to 44,500 tonnes in Q2 2025,
representing a quarter-on-quarter rise of 24%, as a result of higher copper
grades, recoveries and ore throughput rates broadly in line with the plant's
nameplate capacity, which follows the completion of maintenance in the prior
period. During H1 2025, copper in concentrate production rose to 80,300
tonnes, representing an 84% increase, which was principally related to a 67%
increase in copper grades, in addition to higher recoveries and ore throughput
rates.

Total cathode production declined by 19% to 16,100 tonnes in Q2 2025 on a
quarter-on-quarter basis, following lower copper grades and ore processing
rates. Total cathode production in H1 2025 declined by 28% to 35,800 tonnes on
a year-on-year basis, with lower copper grades in line with the mine plan
being the principal factor driving this movement.

Copper sales from Centinela Concentrates were 39,300 tonnes in Q2 2025,
approximately 5,000 tonnes below the level of production for the quarter,
following adverse weather conditions in the north of Chile and at the Group's
port during the month of May. It is expected that this additional tonnage will
be shipped in the coming months. Copper sales from Centinela Cathodes in Q2
2025 were broadly in line with production during the period.

Cash costs before by-product credits of $2.11/lb were 9% lower on a
quarter-on-quarter basis in Q2 2025, with this reduction reflecting the shift
in the balance of production towards the lower cost copper in concentrate, an
increase in total production, lower unit costs for diesel and lower treatment
charges, partially offset by appreciation of the Chilean peso. Cash costs
before by-products fell by 33% in H1 2025 to $2.21/lb, with this movement
primarily driven by higher copper production and an increased proportion of
copper in concentrate production, in addition to lower unit costs for key
consumables and lower treatment charges.

Net cash costs in Q2 2025 declined by 29% on a quarter-on-quarter basis to
$0.84/lb, with by-product credits increasing by 12% to $1.27/lb following
strong production of both gold and molybdenum, and higher realised prices. Net
cash costs of $1.00/lb in H1 2025 were 60% lower than the prior year period,
reflecting higher by-product production and gold pricing, which combined to
increase by-product credits by 46% to $1.21/lb.

 

 CENTINELA                                             Year to Date                 Q2     Q1
                                                       2025        2024       %     2025   2025         %
 CONCENTRATES
 Daily ore throughput                            kt    103.3  95.6      8.1         106.0  100.6  5.4
 Copper grade                                    %     0.55   0.33      66.7        0.58   0.51   13.7
 Copper recovery                                 %     82.5   78.4      5.2         83.4   81.4   2.5
 Copper production                               kt    80.3   43.6      84.2        44.5   35.9   24.0
 Copper sales                                    kt    81.2   40.3      101.5       39.3   41.9   (6.2)
 Molybdenum grade                                %     0.018  0.011     63.6        0.019  0.017  11.8
 Molybdenum recovery                             %     65.6   67.8      (3.2)       64.2   67.2   (4.5)
 Molybdenum production                           kt    1.7    1.0       70.0        0.9    0.8    12.5
 Molybdenum sales                                kt    1.7    1.0       70.0        1.0    0.7    42.9
 Gold grade                                      g/t   0.17   0.14      21.4        0.17   0.17   -
 Gold recovery                                   %     67.4   63.1      6.8         68.0   66.8   1.8
 Gold production                                 koz   65.3   48.0      36.0        34.0   31.3   8.6
 Gold sales                                      koz   68.4   43.8      56.2        31.2   37.2   (16.1)
 CATHODES
 Daily ore throughput                            kt    55.0   57.4      (4.2)       52.3   57.8   (9.5)
 Copper grade                                    %     0.48   0.64      (25.0)      0.45   0.50   (10.0)
 Copper recovery                                 %     71.1   72.3      (1.7)       71.8   70.6   1.7
 Copper production - heap leach                  kt    34.5   48.3      (28.6)      15.4   19.1   (19.4)
 Copper production - total ((1))                 kt    35.8   49.4      (27.5)      16.1   19.8   (18.7)
 Copper sales                                    kt    40.6   47.1      (13.8)      16.0   24.7   (35.2)
 Total copper production                         kt    116.2  93.0      24.9        60.6   55.6   9.0
 Cash costs before by-product credits((2))       $/lb  2.21   3.31      (33.2)      2.11   2.31   (8.7)
 Net cash costs((2))                             $/lb  1.00   2.48      (59.7)      0.84   1.18   (28.8)

(1) Includes production from ROM material

(2) Includes tolling charges of $0.07/lb in Q2 2025, $0.10/lb in Q1 2025,
$0.08/lb in YTD 2025 and $0.15/lb in YTD 2024.

 
Antucoya

Copper production in Q2 2025 was 4% lower on a quarter-on-quarter basis at
19,300 tonnes, relating to an increase in copper recorded as inventories in
the leach pads and lower recoveries, partially offset by an increase in ore
throughput rates. Copper production in H1 2025 was 2% lower than the prior
year period, reflecting higher inventories, lower grades and ore throughput
rates, offset by higher recoveries.

Cash costs in Q2 2025 rose by 9% to $2.70/lb in Q2 2025, with high costs as a
result of an increase in unit costs for key consumables, such as diesel and
sulphuric acid, costs associated with increased inventories and appreciation
of the Chilean peso. Cash costs in H1 2025 were in line year-on-year, which
represents a balance of increased unit costs for key consumables, such
sulphuric acid and electricity, and higher inventories, balanced by the
positive effect of lower consumption rates for sulphuric acid.

 ANTUCOYA                     Year to Date         Q2    Q1
                              2025   2024   %      2025  2025  %
 Daily ore throughput  kt     92.8   95.2   (2.5)  93.2  92.5  0.8
 Copper grade          %      0.31   0.32   (3.1)  0.31  0.31  -
 Copper recovery       %      71.3   67.9   5.0    70.8  71.9  (1.5)
 Copper production     kt     39.5   40.3   (2.0)  19.3  20.2  (4.5)
 Copper sales          kt     39.4   38.4   2.6    18.6  20.8  (10.6)
 Cash costs            $/lb   2.58   2.58   -      2.70  2.47  9.3

 

Zaldívar

Total attributable copper production in Q2 2025 fell by 22% to 7,000 tonnes
during the quarter, following lower ore throughput rates, partially offset by
higher grades. Total attributable copper production in H1 2025 was 15% lower
at 16,000 tonnes, primarily as a result of lower grades during the period.

Cash costs of $3.38/lb in Q2 2025 were 9% higher than the prior period,
explained by lower production and an increase in the consumption of key
consumables, partially offset by a decrease in costs associated with the
utilisation of inventory from prior periods. Cash costs of $3.22/lb in H1 2025
were 8% higher than the prior year period, following similar key drivers for
higher costs as those outlined above, partially offset by depreciation of the
Chilean peso.

 ZALDÍVAR                                     Year to Date          Q2    Q1
                                              2025   2024   %       2025  2025  %
 Daily ore throughput                  kt     36.3   37.9   (4.2)   32.0  40.7  (21.4)
 Copper grade                          %      0.63   0.70   (10.0)  0.67  0.59  13.6
 Copper recovery                       %      54.0   56.5   (4.4)   53.6  54.4  (1.5)
 Copper production - heap leach ((1))  kt     10.3   13.2   (22.0)  4.3   6.0   (28.3)
 Copper production - total ((1,2))     kt     16.0   18.9   (15.3)  7.0   9.0   (22.2)
 Copper sales ((1))                    kt     17.1   18.0   (5.0)   7.4   9.8   (24.5)
 Cash costs                            $/lb   3.22   2.97   8.4     3.38  3.09  9.4

(1) Group's 50% share.

(2) Includes production from secondary leaching.

 

Transport Division

The total transported volume by the Transport Division rose 2% in Q2 2025, on
a quarter-on-quarter basis, to 1.6 million tonnes, with similar volumes
transported by both rail and road operations in both periods. On a
year-to-date basis, total volumes declined by 10% to 3.1 million tonnes.

 TRANSPORT                         Year to Date          Q2     Q1
                                   2025   2024   %       2025   2025   %
 Rail                       kt     2,419  2,767  (12.6)  1,205  1,213  (0.7)
 Road                       kt     720    738    (2.4)   376    344    9.3
 Total tonnage transported  kt     3,139  3,505  (10.4)  1,582  1,557  1.6

 

Commodity prices and exchange rates

                        Year to Date                 Q2      Q1
                        2025   2024   %      2025       2025      %
 Copper
 Market price    $/lb   4.28   4.13   3.6    4.32       4.24      1.9
 Realised price  $/lb   4.55   4.40   3.4    4.40       4.69      (6.2)
 Gold
 Market price    $/oz   3,072  2,205  39.3   3,281      2,859     14.8
 Realised price  $/oz   3,263  2,314  41.0   3,442      3,098     11.1
 Molybdenum
 Market price    $/lb   20.6   20.9   (1.4)  20.7       20.5      1.0
 Realised price  $/lb   21.1   22.8   (7.5)  22.1       19.3      14.5
 Exchange rates
 Chilean peso    per $  955    941    1.5    947        963       (1.7)

 

Spot commodity prices for copper, gold and molybdenum as at 30 June 2025 were
$4.55/lb, $3,282/oz and $21.9/lb respectively, compared with $4.39/lb,
$3,118/oz and $20.0/lb as at 31 March 2025 and $3.95/lb, $2,610/oz and
$21.1/lb as at 31 December 2024.

The provisional pricing adjustments for copper, gold and molybdenum for the
quarter were positive $22.9 million, positive $8.4 million and positive $18.4
million respectively.

The provisional pricing adjustments for copper, gold and molybdenum for the
year to date were positive $182.9 million, positive $22.2 million and positive
$8.6 million respectively.

Depreciation, amortisation and loss on disposals

For the first half of 2025, depreciation, amortisation and loss on disposals
will be approximately $0.9 billion.

Tax

The effective tax rate in H1 2025 is expected to be approximately 36%.

Net finance expense

The net finance expense in H1 2025 is expected to be approximately $146
million (H1 2024: $27 million), with this movement principally related to
exchange rates.

 

_________________________________________________________________________________________

Cautionary Statement

This announcement may contain certain forward-looking statements. All
statements other than statements of historical fact are, or may be deemed to
be, forward-looking statements.

These forward-looking statements are based upon current expectations and
assumptions regarding anticipated developments and other factors affecting the
Group. They are not historical facts, nor are they guarantees of future
performance or outcomes. Readers should not place undue reliance on
forward-looking statements.

Forward-looking statements involve known and unknown risks, uncertainties,
assumptions and other factors that are beyond the Group's control. Given these
risks, uncertainties and assumptions, actual results could differ materially
from any future results expressed or implied by these forward-looking
statements.

These forward-looking statements speak only as of the date of this document.
Except as required by any applicable law or regulation, the Group expressly
disclaims any obligation or undertaking to release publicly any updates or
revisions to any forward-looking statements contained herein to reflect any
change in the Group's expectations with regard thereto or any change in
events, conditions, or circumstances on which any such statement is based.

No assurance can be given that the forward-looking statements in this document
will be realised. Past performance cannot be relied on as a guide to future
performance.

This document does not contain or comprise profit forecasts, investment,
accounting, legal, regulatory or tax advice nor is it an invitation for you to
enter into any transaction. You are advised to exercise your own independent
judgement (with the advice of your professional advisers as necessary) with
respect to the risks and consequences of any matter contained herein.

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