Antofagasta reported fourth-quarter copper output of 177,000 tonnes, marking a 9% increase from the prior quarter and bringing full-year production to 653,700 tonnes. This quarterly rise was driven by strong throughput at the Los Pelambres and Centinela operations, where ore grades improved by 4% and 3% respectively. The company also maintained its sulfide expansion projects on schedule, supporting its full-year guidance of 650,000–660,000 tonnes.

Copper futures climbed 7% to $6.34 per pound during the quarter, extending the year-on-year gain to nearly 48% as tight supply and surging electrification demand put upward pressure on prices. This price environment is forecast to boost Antofagasta’s annual revenues by approximately $1.2 billion based on current production levels, significantly enhancing free cash flow generation and underpinning dividend sustainability.

In addition to copper, Antofagasta’s gold by-product stream delivered higher margins as spot gold prices remained above $2,000 per ounce. Gold sales of 220,000 ounces in the year contributed roughly $400 million to revenues, helping offset the company’s fixed cost base and improving overall cash margin by 3 percentage points compared with the prior year.

The ongoing expansion at Centinela is set to add 370 million pounds of annual copper capacity by mid-2026, at an expected capital cost of $1.1 billion. Once complete, Antofagasta forecasts a 10% reduction in unit cash costs, positioning it in the lowest quartile of the global cost curve. Management estimates the project will generate an internal rate of return of 18%, underpinning long-term earnings growth and shareholder returns.