Antofagasta plc shares fell 4.8% to 3,658.5p following publication of the group's Q2/H1 2026 production figures, which revealed a notable drop in output for the first half of the year. Copper production reached 285,000 tonnes in the first six months - a 9.5% decline versus the same period a year earlier.
The decline was attributed to reduced throughput at the company’s two primary concentrators, Los Pelambres and Centinela. That shortfall has heightened scrutiny over Antofagasta’s capacity to lift output sufficiently in the second half to meet its stated full-year target of 650,000–700,000 tonnes.
Compounding investor concerns, management revised its cash cost guidance upward. The company now expects cash costs before by-product credits to be in the range of $2.40–$2.60 per pound, compared with its prior $2.30–$2.50 per pound range. Management cited persistently high fuel prices and elevated costs for key consumables as the reasons for the upward adjustment.
CEO Iván Arriagada said: "full-year guidance remains unchanged, with copper production expected to increase through the remainder of the year, supported by higher ore throughput and improving grades at both Los Pelambres and Centinela." Despite that reassurance, the market reaction suggested investors remain unconvinced the second-half ramp can fully offset the H1 shortfall.
The wider market backdrop offered little support. The FTSE 100 opened sharply lower, with mining names leading the decline. Antofagasta ranked among the bottom three performers on the index alongside miners Fresnillo and Endeavour. In London morning trading spot copper, gold, and silver all traded softer, removing a key commodity-price tailwind the sector had enjoyed in recent weeks.
The combination of a company-specific production miss, a higher unit-cost outlook, and a sector-wide retreat in metals prices amplified selling pressure on Antofagasta’s stock. The share price slid well below its opening level of 3,786p and moved toward the session low of 3,652p, leaving the stock approximately 18% below its 52-week high of 4,475p.
Market reaction snapshot
- Share price decline: -4.8% to 3,658.5p.
- First-half copper output: 285,000 tonnes, down 9.5% year-on-year.
- Revised cash-cost guidance: $2.40–$2.60 per pound (previously $2.30–$2.50).
- Full-year production target remains 650,000–700,000 tonnes.
This set of results and guidance revisions has left investors focused on whether operational improvements at Los Pelambres and Centinela can materialize quickly enough to restore confidence and meet the company’s full-year objectives.