Antofagasta (FG1) Q2 2026 Earnings Report

The call communicated a predominantly positive operating and financial picture: robust H1 results (EBITDA +27%, cash flow +53%), strong margins (63%), reduced net cash costs (‑8%), continued project progress and full funding of a low‑risk growth pipeline, and continued emphasis on safety. However, notable near‑term risks were highlighted: severe weather at Pelambres that reduced production guidance (now 625,000–655,000 tonnes) and deferred higher‑grade ore, inflationary pressure on diesel and sulfuric acid (with some contractual exposure for 2027), additional lease liabilities (~$630m), and localized technical work at Centinela. On balance, the company emphasized cost discipline, secured supply/contracts, and that major projects remain on track and funded, suggesting strengths outweigh the near‑term operational headwinds.

Management kept net cash cost guidance unchanged at $1.15–$1.35/lb for 2026 while lowering full‑year copper production guidance to 625,000–655,000 tonnes to reflect the Pelambres storm disruption (management noted ~5 million m3 of snow cleared and that guidance embeds winter weather contingency). H1 showed EBITDA up 27% to $2.84bn, a record 63% EBITDA margin, operating cash flow +53% and an interim dividend of $0.301 (c.80–81% increase, consistent with a 35% minimum payout); net cash cost was down ~8% year‑on‑year. Capital metrics: group CapEx guidance of $3.4bn for 2026 (2025: $3.7bn) with peak spend behind, sustaining CapEx run‑rate ~$1.0–$1.5bn pa, Centinela spend to date ~$3.3bn, commissioning due in 2027 with ramp‑up in 2028, a $2.5bn project facility to be drawn as planned, the growth pipeline is fully funded and targets ~30% volume uplift on commissioning, Zaldivar water pipeline investment approved at $900m, and ~$630m of lease liabilities were added to net debt.