Antofagasta, the FTSE 100 copper miner, has issued higher production guidance for 2027 and reported a 7% quarter-on-quarter jump in copper output, though it nudged up its full-year cost forecasts due to elevated diesel prices.
The Chilean miner expects to produce between 630,000 and 690,000 tonnes of copper in 2027, reflecting higher grades at its Los Pelambres mine, partially offset by lower grades at Centinela Concentrates.
Full-year 2026 production guidance of 625,000 to 655,000 tonnes remains unchanged, though cash costs before by-product credits have been revised up to $2.60 to $2.70 per pound, from a previous range of $2.40 to $2.60, due to persistently high diesel prices.
Net cash cost guidance is unchanged at $1.15 to $1.35 per pound, and capital expenditure guidance remains at $3.4 billion.
Copper production in the third quarter reached 151,900 tonnes, up 7% on the prior quarter, driven by stronger output at Los Pelambres following the drawdown of inventories built up in the second quarter.
Los Pelambres had been temporarily affected by severe weather in July, but recovered strongly, with copper production rising 17% quarter-on-quarter to 79,300 tonnes.
Year-to-date copper production of 436,900 tonnes was 8% below the same period in 2025, reflecting lower grades at Centinela Concentrates and weaker recoveries at Centinela Cathodes, in line with the mine plan.
Copper prices remained elevated, with the average realised price in the quarter of $6.79 per pound, up from $6.57 per pound in the second quarter, against a broader market backdrop that Antofagasta described as having "strong fundamentals."
The company's major growth projects at both Centinela and Los Pelambres are entering their final construction phases, with commissioning expected to complete in 2027.
On safety, the group has now gone more than five years without a fatal accident across any of its sites or projects.
A post-quarter development saw two workers' unions at Centinela, representing around 20% of its own employees, declare a strike, with negotiations ongoing.
