REG - Antofagasta PLC - Q3 2025 PRODUCTION REPORT

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RNS Number : 4613E  Antofagasta PLC  23 October 2025

NEWS RELEASE, 23 OCTOBER 2025

 

Q3 2025 PRODUCTION REPORT

Q3 PROduction in line; record by-product credit drives net costs lower

2025 net cash cost guidance Mid-point lowered by 30 cents

Antofagasta plc CEO, Iván Arriagada said: "Antofagasta delivered a strong
quarter, with Group copper production in line quarter-on-quarter and net cash
costs continuing to trend lower. Our two largest mining districts, Los
Pelambres and Centinela, maintained strong margins, supported by a record
by-product credit of $1.35/lb, which was driven by higher gold production and
favourable pricing.

"With one quarter remaining of the full year, we have narrowed our guidance
ranges: Copper production for the year is expected at the lower end of our
guidance, with increased ore throughput and grades anticipated at Los
Pelambres in the final quarter. In light of our continued focus on operational
efficiency and strong by-product contribution, we have lowered our net cash
cost guidance for 2025 to $1.20-1.30/lb. Group-level capex guidance for 2025
is lowered to $3.6 billion, principally due to depreciation of the Chilean
peso.

"The Group's major construction projects remain on track and on budget, with
work advancing at both Centinela and Los Pelambres that will help deliver
production growth of 30% in the medium term, and margin growth through
additional output of by-products at Centinela.

"Copper continues to demonstrate strong market fundamentals, with rising
global demand driven by themes that include energy security, electrification
and the development of new technologies, such as AI. On the supply-side, the
global copper industry continues to experience elevated levels of disruption,
as well as structural factors such as grade decline and rising ore hardness."

 GROUP PRODUCTION AND CASH COSTS                               Year to Date          Q3     Q2
                                                               2025   2024   %       2025   2025   %
 Copper production                           Kt                476.6  463.7  2.8     161.8  160.1  1.1
 Copper sales                                Kt                465.3  453.7  2.6     141.3  153.8  (8.1)
 Gold production                             koz               145.0  118.7  22.2    53.9   48.3   11.6
 Molybdenum production                       Kt                11.4   7.9    44.3    3.9    4.4    (11.4)
 Cash costs before by-product credits ((1))  $/lb              2.35   2.53   (7.1)   2.42   2.27   6.6
 Net cash costs ((1))                        $/lb              1.24   1.81   (31.5)  1.07   1.12   (4.5)

(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 Q3 2025 was 161,800 tonnes, 1% higher
quarter-on-quarter, reflecting in line production from the Group's two
concentrators (Los Pelambres and Centinela Concentrates).

·    Copper production in 9M 2025 was 476,600 tonnes, representing a 3%
increase year-on-year, with increased production at Centinela Concentrates,
and a lower contribution from Centinela Cathodes and Los Pelambres.

·    Gold production in Q3 2025 was 53,900 ounces, 12% higher on a
quarter-on-quarter basis, which reflects increased gold production at
Centinela Concentrates. Year-to-date gold production was 145,000 ounces, 22%
higher year-on-year, with higher gold production at both Centinela
Concentrates and Los Pelambres.

·    Molybdenum production in Q3 2025 was 3,900 tonnes, 11% lower on a
quarter-on-quarter basis, corresponding to lower molybdenum grades at Los
Pelambres. Molybdenum production in 9M 2025 was 44% higher year-on-year, with
11,400 tonnes produced, with increased production at both Los Pelambres and
Centinela Concentrates.

CASH COSTS

·    Cash costs before by-product credits in Q3 2025 were $2.42/lb, 7%
higher quarter-on-quarter, driven by higher costs at Centinela in connection
with the utilisation of inventories from prior periods. Cash costs before
by-product credits in 9M 2025 were $2.35/lb, representing a level 7% lower
year-on-year, principally in relation to a higher contribution by Centinela
Concentrates.

·    By-product credits in Q3 2025 were $1.35/lb, a 17% increase
quarter-on-quarter, following higher gold production and higher by-product
pricing.

·    Net cash costs in Q3 2025 were $1.07/lb, 4% lower on a
quarter-on-quarter basis, with higher by-product credits partially offset by
higher underlying cash costs. Year-to-date net cash costs were $1.24/lb,
reflecting an increase in by-product credits and lower cash costs.

FULL YEAR (FY) 2025 GUIDANCE

·    The Group expects FY 2025 copper production to be at the lower end of
the guidance range (660-700Kt).

·    Following strong by-product pricing in 2025, the Group has lowered
its guidance range for net cash costs in 2025 using updated pricing
assumptions.

·    The Group has also lowered its guidance for consolidated capital
expenditures in FY 2025, primarily as a result of depreciation of the Chilean
peso in 2025.

·    Guidance ranges for Group-level production of gold and molybdenum
remain unchanged.

 FY 2025 GUIDANCE                              Unit  Original guidance  Range updates
 Copper production                             Kt    660-700            Lower end of guidance range
 Cash costs before by-product credits ((1))    $/lb  2.25-2.45          Unchanged
 Net cash costs ((1,) (2))                     $/lb  1.45-1.65          Lowered to 1.20-1.30
 Consolidated Group capital expenditure ((3))        $3.9 billion       Lowered to $3.6 billion

(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.

(2)   Includes updated by-product credits at pricing of gold ($4,000/oz) and
molybdenum ($24/lb) for Q4 2025.

(3)   Capital expenditure figure excludes Zaldívar.

FY 2026 GUIDANCE

·    Total full-year Group copper production in 2026 is expected to be
between 650,000 and 700,000 tonnes, with an incremental year-on-year gain in
production expected at Los Pelambres.

·    In line with previous years, the Group will provide its 2026 guidance
for cash costs and capital expenditure in the Q4 2025 Production Report, due
for release in January 2026.

 

PROJECT DEVELOPMENT UPDATE

·    All major projects remain on track and on budget.

·    Centinela Second Concentrator: Recent work continues to focus on the
assembly of key mining equipment at Esperanza Sur, the continued installation
of structural steel for the concentrator and mechanical works for thickeners
and ball mills. Following delivery to site, the process to assemble and
install the project's high-pressure grinding rolls is advanced, with
associated civil works also now underway.

·    Los Pelambres' Growth Enabling Projects:

o  Concentrate pipeline: During Q3 2025, activities continued to focus on
trenching, welding and installation works in both the high and low zones of
the overall route, with work also now advancing to new areas. Civil works for
the 33 kV power line in the high mountain area have commenced.

o  Desalination plant expansion: Civil works at the desalination plant and
pumping stations continued to progress during the period. Key developments in
Q3 included completion of electrical room pedestals, advancement of structural
works for the water processing building and completion of foundations for
booster pumps.

SAFETY AND SUSTAINABILITY

·    The Group continues to maintain its strong health and safety track
record in 2025, with no fatalities and a total recordable injury frequency
rate in 9M 2025 of 1.74 (FY 2024: 1.62).

CORPORATE

·    Following the end of the period, the Group concluded two separate
three-year labour agreements, one with the supervisors union at Los Pelambres
and another with the workers union at Antucoya, which follows an agreement
concluded in Q3 2025 with the supervisors union at Zaldívar. The Group has
one remaining labour negotiation scheduled to take place in 2025, with the
supervisors union at Antucoya.

·    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)       Sara Powell    antofagasta@fticonsulting.com (mailto:antofagasta@fticonsulting.com)
 Robert Simmons       rsimmons@antofagasta.co.uk (mailto:rsimmons@antofagasta.co.uk)       Ben Brewerton
 Telephone            +44 20 7808 0988                                                     Nick Hennis
                                                                                           Telephone      +44 20 3727 1000

                                                                                           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

 

Register on our website to receive our email alerts at the following address:
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MINING OPERATIONS

Los Pelambres

Copper production totalled 73,000 tonnes in Q3 2025, in line with the previous
quarter, with higher copper grades and lower ore throughput rates offsetting
each other. On a year-on-year basis, copper production of

216,200 tonnes was 4% below the prior year period, with this movement related
to lower throughput rates due to areas with harder ore and maintenance during
the period. Los Pelambres does not have any major maintenance scheduled for
the remainder of the year.

Output of by-products in Q3 2025 was 14% and 3% lower on a quarter-on-quarter
basis for molybdenum and gold respectively, with both movements related to
reduction in grades and ore throughput rates.

Copper sales in Q3 2025 of 57,200 tonnes were 21% lower on a
quarter-on-quarter basis, following adverse weather conditions at the end of
the quarter. Year-to-date copper sales were 8% lower on a year-on-year basis,
with

202,900 tonnes shipped, following the conditions at the end of Q3 as described
above, partially offset by additional sales at the beginning of the period
that were carried over from the prior period.

Cash costs before by-product credits were $2.20/lb in Q3 2025, in line with
the previous quarter, which mirrors copper production levels also being in
line for the quarter. Cash costs before by-product credits in 9M 2025 were
$2.23/lb, a year-on-year increase of 5%, which reflects the lower level of
copper production and higher consumption rates of key consumables, such as
grinding media, electricity and explosives.

Net cash costs, which include credits for sales of molybdenum and gold
by-products, were $0.59/lb in Q3 2025, representing a 17% decrease
quarter-on-quarter, following higher pricing for both gold and molybdenum,
offset in part by lower production of by-products as the mine plan progressed
to areas with lower by-product grades. Year-to-date net cash costs were
$0.88/lb in 9M 2025, representing a 31% decrease year-on-year, which
corresponds to increased by-product volumes and realised pricing for both gold
and molybdenum.

 

 LOS PELAMBRES                                        Year to Date          Q3     Q2
                                                      2025   2024   %       2025   2025   %
 Daily ore throughput                          kt     169.6  185.4  (8.5)   164.1  171.2  (4.1)
 Copper grade                                  %      0.54   0.54   -       0.56   0.54   3.7
 Copper recovery                               %      89.7   88.5   1.4     90.9   89.8   1.2
 Copper production                             kt     216.2  224.4  (3.7)   73.0   73.3   (0.4)
 Copper sales                                  kt     202.9  221.7  (8.5)   57.2   72.6   (21.2)
 Molybdenum grade                              %      0.023  0.015  53.3    0.025  0.026  (3.8)
 Molybdenum recovery                           %      80.9   83.6   (3.2)   81.9   83.7   (2.2)
 Molybdenum production                         kt     8.8    6.3    39.7    3.0    3.5    (14.3)
 Molybdenum sales                              kt     8.7    6.3    38.1    3.1    3.6    (13.9)
 Gold grade                                    g/t    0.041  0.031  32.3    0.043  0.044  (2.3)
 Gold recovery                                 %      70.7   69.8   1.3     70.9   70.1   1.1
 Gold production                               koz    39.7   31.9   24.5    13.8   14.3   (3.5)
 Gold sales                                    koz    34.8   29.6   17.6    9.8    13.8   (29.0)
 Cash costs before by-product credits((1))     $/lb   2.23   2.12   5.2     2.20   2.19   0.5
 Net cash costs ((1))                          $/lb   0.88   1.27   (30.7)  0.59   0.71   (16.9)

(1) Includes tolling charges of $0.11/lb in Q3 2025, $0.12/lb in Q2 2025,
$0.11/lb in YTD 2025 and $0.24/lb in YTD 2024.

 
Centinela

Total copper production across the Centinela District was 61,100 tonnes in Q3
2025, with both Centinela Concentrates and Cathodes in line with the previous
quarter. Total copper production in 9M 2025 was 18% higher on a year-on-year
basis at 177,300 tonnes, with this increase driven by higher output from
Centinela's concentrator.

Copper in concentrate production was 45,100 tonnes in Q3 2025, in line on a
quarter-on-quarter basis, reflecting a balance of higher ore throughput rates
and recoveries, offset by lower copper grades. Copper in concentrate
production in 9M 2025 of 125,500 tonnes represented a level 67% higher on a
year-on-year basis, principally due to higher copper grades, in addition to
higher ore throughput rates and recoveries.

Total cathode production was in line in Q3 2025, with 16,000 tonnes produced
during the period. This result reflects a balance of higher ore throughput
rates, offset by lower copper grades and recoveries. Total cathode production
in 9M 2025 declined by 31% to 51,800 tonnes, as a result of lower copper
grades.

In respect of by-products, production of gold rose by 18% during Q3 2025 to
40,000 ounces, with this increase principally related to higher gold grades.
Production of molybdenum was in line on a quarter-on-quarter basis, with 900
tonnes produced.

Cash costs before by-product credits were $2.29/lb in Q3 2025, 9% higher than
the prior quarter, with an increase in consumption rates for key consumables,
such as diesel and sulphuric acid, and the utilisation of inventories from
prior periods. Cash costs before by-product credits in 9M 2025 were $2.24/lb,
25% lower on a year-on-year basis, following higher copper production and
lower unit pricing for diesel, partially offset by higher costs associated
with maintenance activities.

Net cash costs were $0.66/lb in Q3 2025, representing a 21% decrease
quarter-on-quarter, with this movement reflecting an increase in gold
production, and higher by-product pricing for both gold and molybdenum. Net
cash costs in 9M 2025 were $0.88/lb, 57% lower year-on-year, which is the
result of lower underlying costs, in addition to increased production volumes
and realised pricing for both by-products of gold and molybdenum.

 

 CENTINELA                                             Year to Date                 Q3     Q2
                                                       2025        2024       %     2025   2025         %
 CONCENTRATES
 Daily ore throughput                            kt    104.8  99.0      5.9         107.7  106.0  1.6
 Copper grade                                    %     0.55   0.36      52.8        0.56   0.58   (3.4)
 Copper recovery                                 %     83.3   78.7      5.8         84.9   83.4   1.8
 Copper production                               kt    125.5  75.2      66.9        45.1   44.5   1.3
 Copper sales                                    kt    125.7  69.9      79.8        44.4   39.3   13.0
 Molybdenum grade                                %     0.017  0.011     54.5        0.016  0.019  (15.8)
 Molybdenum recovery                             %     62.9   66.5      (5.4)       57.0   64.2   (11.2)
 Molybdenum production                           kt    2.6    1.6       62.5        0.9    0.9    -
 Molybdenum sales                                kt    2.8    1.6       75.0        1.1    1.0    10.0
 Gold grade                                      g/t   0.18   0.16      12.5        0.19   0.17   11.8
 Gold recovery                                   %     67.4   65.0      3.7         67.5   68.0   (0.7)
 Gold production                                 koz   105.3  86.8      21.3        40.0   34.0   17.6
 Gold sales                                      koz   104.2  78.7      32.4        35.9   31.2   15.1
 CATHODES
 Daily ore throughput                            kt    54.9   59.6      (7.9)       54.8   52.3   4.8
 Copper grade                                    %     0.46   0.63      (27.0)      0.43   0.45   (4.4)
 Copper recovery                                 %     69.9   71.5      (2.2)       67.2   71.8   (6.4)
 Copper production - heap leach                  kt    49.8   74.0      (32.7)      15.3   15.4   (0.6)
 Copper production - total ((1))                 kt    51.8   75.5      (31.4)      16.0   16.1   (0.6)
 Copper sales                                    kt    55.2   74.7      (26.1)      14.6   16.0   (8.8)
 Total copper production                         kt    177.3  150.7     17.7        61.1   60.6   0.8
 Cash costs before by-product credits((2))       $/lb  2.24   2.99      (25.1)      2.29   2.11   8.5
 Net cash costs((2))                             $/lb  0.88   2.07      (57.5)      0.66   0.84   (21.4)

(1) Includes production from ROM material

(2) Includes tolling charges of $0.05/lb in Q3 2025, $0.07/lb in Q2 2025,
$0.07/lb in YTD 2025 and $0.14/lb in YTD 2024.

 
Antucoya

Copper production in Q3 2025 was 18,600 tonnes, 4% lower on a
quarter-on-quarter basis, primarily as a result of lower copper grades
processed during the period. Copper production in 9M 2025 was 58,100 tonnes,
3% lower than the same period in 2024, following lower copper grades and an
increase of copper held in the processing circuit, offset by an increase in
copper recoveries.

Cash costs in Q3 2025 rose by 13% to $3.05/lb following lower copper
production, higher consumption rates for key consumables, such as sulphuric
acid and diesel, and maintenance activities. Year-to-date costs were $2.73/lb
in Q3 2025, a 4% higher level on a year-on-year basis, following lower copper
production and increased stripping activities, offset by lower consumption
rates for sulphuric acid.

 ANTUCOYA                     Year to Date         Q3    Q2
                              2025   2024   %      2025  2025  %
 Daily ore throughput  kt     92.5   91.8   0.8    91.9  93.2  (1.4)
 Copper grade          %      0.31   0.32   (3.1)  0.30  0.31  (3.2)
 Copper recovery       %      71.0   68.6   3.5    70.2  70.8  (0.8)
 Copper production     kt     58.1   59.6   (2.5)  18.6  19.3  (3.6)
 Copper sales          kt     56.8   59.7   (4.9)  17.4  18.6  (6.5)
 Cash costs            $/lb   2.73   2.63   3.8    3.05  2.70  13.0

 

Zaldívar

Total attributable copper production in Q3 2025 was 9,000 tonnes, 29% higher
quarter-on-quarter, following an increase in ore throughput rates, partially
offset by lower grades. Total attributable copper production in 9M 2025 was
25,100 tonnes, 13% lower year-on-year, following lower copper grades, ore
throughput rates and recoveries.

Cash costs were $3.74/lb in Q3 2025, 11% higher on a quarter-on-quarter basis,
following the settlement of a three-year collective bargaining agreement,
increased unit costs for key consumables, such as sulphuric acid and diesel,
and an increase in costs associated with the utilisation of inventory from
prior periods, partially offset by higher production during the period. Cash
costs were $3.41/lb in 9M 2025, 14% higher than the same period in 2024, with
this increase principally related to lower copper production, and an increase
in the unit cost for key consumables, such as sulphuric acid.

 ZALDÍVAR                                     Year to Date          Q3    Q2
                                              2025   2024   %       2025  2025  %
 Daily ore throughput                  kt     37.3   39.4   (5.3)   39.3  32.0  22.8
 Copper grade                          %      0.63   0.68   (7.4)   0.62  0.67  (7.5)
 Copper recovery                       %      54.5   57.2   (4.7)   55.4  53.6  3.4
 Copper production - heap leach ((1))  kt     16.8   19.9   (15.6)  6.5   4.3   51.2
 Copper production - total ((1,2))     kt     25.1   28.9   (13.1)  9.0   7.0   28.6
 Copper sales ((1))                    kt     24.8   27.7   (10.5)  7.6   7.4   2.7
 Cash costs                            $/lb   3.41   3.00   13.7    3.74  3.38  10.7

(1) Group's 50% share.

(2) Includes production from secondary leaching.

 

Transport Division

The total transported volume by the Transport Division was in line
quarter-on-quarter in Q3 2025, with 1.6 million tonnes transported, reflecting
an increase in rail tonnages offset by a decrease in road tonnages. On a
year-to-date basis, total volumes declined by 11% to 4.7 million tonnes.

 TRANSPORT                         Year to Date          Q3     Q2
                                   2025   2024   %       2025   2025   %
 Rail                       kt     3,679  4,163  (11.6)  1,261  1,205  4.6
 Road                       kt     1,049  1,134  (7.5)   329    376    (12.5)
 Total tonnage transported  kt     4,729  5,297  (10.7)  1,590  1,582  0.5

 

Commodity prices and exchange rates

                        Year to Date              Q3        Q2
                        2025   2024   %     2025       2025      %
 Copper
 Market price    $/lb   4.33   4.14   4.6   4.44       4.32      2.8
 Realised price  $/lb   4.57   4.36   4.8   4.60       4.40      4.5
 Gold
 Market price    $/oz   3,200  2,296  39.4  3,454      3,281     5.3
 Realised price  $/oz   3,408  2,439  39.7  3,705      3,442     7.6
 Molybdenum
 Market price    $/lb   21.9   21.2   3.3   24.4       20.7      17.9
 Realised price  $/lb   23.6   21.9   7.8   28.0       22.1      26.7
 Exchange rates
 Chilean peso    per $  957    938    2.0   960        947       1.4

 

Spot commodity prices for copper, gold and molybdenum as at 30 September 2025
were $4.67/lb, $3,816/oz and $25.0/lb respectively, compared with $4.55/lb,
$3,282/oz and $21.9/lb as at 30 June 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 $48.9 million, positive $10.3 million and positive $38.5
million respectively.

The provisional pricing adjustments for copper, gold and molybdenum for the
year to date were positive

$231.8 million, positive $32.4 million and positive $47.2 million
respectively.

 

_________________________________________________________________________________________

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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