Antofagasta Backs 2025 Guidance Despite Missing 2024 Copper Production Target

Antofagasta’s copper production for 2024 fell slightly below the company’s expectations but showed a 1% increase from the previous year. The Anglo-Chilean miner reported producing 664,000 tons of copper, which was at the lower end of its guided range of 670,000 to 710,000 tons.

In the fourth quarter, copper production reached 200,300 tons, up 12% from the previous quarter, driven by higher output across all operations. Despite this, full-year gold production dropped 11% to 186,900 ounces due to lower grades at Centinela Concentrates. Fourth-quarter gold production, however, was 32% higher quarter-on-quarter.

Antofagasta reaffirmed its 2025 guidance, projecting copper production between 660,000 and 700,000 tons, with incremental gains expected at Centinela Concentrates. The company’s group capital expenditure for 2025 is anticipated to reach $3.9 billion, reflecting peak spending on the Centinela Second Concentrator and growth projects at Los Pelambres and Centinela.

According to a recent research note by RBC Capital Markets, copper prices are likely to retreat toward $4.00 per pound after an 8% year-to-date increase. Analysts cautioned that a significant price decline could disproportionately impact Antofagasta due to its high capital expenditure commitments and reliance on higher copper prices.

For 2024, Antofagasta’s net cash costs rose 2% year-on-year to $1.64 per pound. The company’s molybdenum production remained steady at 10,700 tons for the year.