Antofagasta (LON:ANTO) used its full-year results presentation to highlight record profitability in 2025, continued progress on a fully funded growth program, and a focus on safety and sustainability as it builds toward a planned production step-up later in the decade.
Safety and sustainability priorities
Management said the group delivered another fatality-free year and maintained key safety metrics ahead of industry benchmarks. A specific focus in 2025 was reducing “high potential incidents,” with the company recording its lowest level of such incidents. Executives also noted that safety performance across major construction projects was in line with group outcomes despite the presence of around 18,000 temporary contractors across those sites.
Record 2025 financial performance
Chief Financial Officer Mauricio said 2025 results reflected “strong foundations” and supported a balanced approach between dividends and funding growth. Revenue increased 30% to $8.6 billion, which he attributed to higher sales volume and a favorable market environment. EBITDA rose 52% to a record $5.2 billion, with EBITDA margin expanding to 60%. Operating cash flow increased 30% to $4.3 billion.
Management said net debt to EBITDA remained broadly flat year-over-year, even as the group moved through peak capital expenditures in 2025 tied to major projects under construction. The company also noted “tricky factors” that affected cash flow, including a working capital increase—previously flagged in January—driven by higher shipments in transit and higher pricing at year-end, as well as higher tax payments. The effective tax rate for the full year was 36%. Dividends paid during the year totaled $760 million, up from $557 million in 2024.
On shareholder returns, management reiterated its capital allocation framework and said the board recommended a final dividend in line with its policy. Executives said the total dividend for 2025 represented 50% of earnings. The CFO added that, if approved, total dividends for the year would be $0.646 per share, and that more than $3 billion had been paid to shareholders over the past five years.
Operations and cost performance
Copper production was flat year-on-year, with management saying grades and recoveries offset lower throughputs. The company emphasized cost discipline amid broader industry inflation and technical challenges, reporting pre-credit costs in line year-on-year and a five-year low for net cost.
- Los Pelambres net cost: $0.82 per pound
- Centinela net cost: $0.75 per pound
Management said the performance reflected consistent operations, stronger by-product credits, and cost-control initiatives. The company’s competitiveness program delivered a $0.08 per pound benefit in 2025 and met its annual target, according to the CFO.
Growth program: construction, sequencing, and optionality
Executives described a “fully financed” multi-year construction program aimed at delivering roughly 30% production growth, with projects said to be on time and on budget. Management identified the Centinela second concentrator and Los Pelambres growth-enabling projects as the key near-term drivers.
For Los Pelambres, the company expects full-year grades to rise to approximately 0.6% copper, which management said would be more in line with historical levels following two years of lower grades in 2024 and 2025. Executives emphasized this uplift is driven by the mine plan and does not require additional capital investment.
At Centinela, management said the second concentrator represents the largest component of the near-term growth plan, contributing about two-thirds of the expected increase. Construction is expected to finish in 2027, with ramp-up in 2028. Management said 2029 is expected to be the first full year at design capacity. The company also noted the project is expected to double Centinela’s output of gold and molybdenum, which it framed as supporting both volume and margin growth.
In Q&A, management addressed how it plans to avoid a post-2028 growth plateau. Executives pointed to additional options under study, including a Los Pelambres mine-life extension permit that could bring close to 1 billion tons of resources into reserves, with management expecting a permit decision around early 2027 or possibly before. The company also discussed cathode opportunities in the Centinela district involving satellite deposits and mentioned one opportunity called Polo Sur, saying it expects to share more details during the year as work advances.
Permitting environment, portfolio decisions, and other updates from Q&A
Management expressed a constructive view on Chile as a mining jurisdiction, noting reforms approved in 2025 aimed at reducing permitting timelines. Executives also cited ongoing discussions about improving the investment environment, including proposals to reduce corporate tax rates, and said the incoming government’s focus includes regulatory adjustments that could be implemented through the executive branch.
On capital returns and the balance sheet, management emphasized continued discipline under its capital allocation framework when asked whether the company could increase returns above the 50% payout level given its cash position and anticipated decline in capital spending later in the build cycle. The CFO described cash balances in three “buckets”: securing project financing (from cash and undrawn facilities), operational cash buffers at subsidiaries, and additional capacity for shareholder returns. He also said working capital should normalize in the first half of the year as copper prices have been “much more stable” at levels he described as in the high $5 per pound range.
Executives were also asked about potential value-unlocking transactions for infrastructure and metal streaming. Management said it has previously divested infrastructure assets, citing the water system at Centinela and transmission lines at other operations, and said it could consider similar options at Los Pelambres after construction is complete—indicating it would not pursue such steps before 2027 to avoid disrupting the build. On streaming, management said it generally prefers to retain full exposure to by-products given their importance to the cost position—molybdenum at Los Pelambres and gold at Centinela—though it will continue to assess alternatives.
Additional topics included:
- Treatment and refining charges (TC/RCs): management said roughly 70%–80% of contracts are term, with the remainder spot, and cited an all-in marketing cost figure of around $0.15 per pound, including TC/RCs, freight, and other marketing activities.
- Zaldívar water from 2028 onward: management said the current solution covers through 2028 and the company expects to make a decision on a new water solution in the first half of 2026, likely involving a pipeline and sourcing from alternative, non-seawater sources, which it said could be cheaper from a water and capex perspective.
- Twin Metals (U.S.): executives said they expect progress in the near term, citing actions to reverse a land withdrawal in Minnesota, ongoing discussions to regain leases, and potential use of the “Fast 41” permitting corridor for eligible projects.
- Labor negotiations: management said it concluded multiple negotiations in 2025, including at Los Pelambres and Zaldívar, and expects three negotiations at Centinela and one at Zaldívar in 2026, expressing confidence based on relationships and Centinela’s performance and expansion story.
Closing the call, management reiterated that 2025 delivered record EBITDA and said construction at the Centinela second concentrator had progressed to slightly above 70% completion by year-end, with the company focused on completing major projects and delivering the targeted 30% production increase.
About Antofagasta (LON:ANTO)
Antofagasta plc is a copper mining group with significant by-product production and interests in transportation. The Group creates value for its stakeholders through the discovery, development and operation of copper mines. The Group is committed to generating value in a safe and sustainable way throughout the commodity cycle.
