Antofagasta’s shares dip despite soaring revenue
London listed Mining company Antofagasta saw its share’s dip in early morning trading despite reporting a rise in revenue, driven by increased commodity prices and booming demand.
The Chilean based group recorded a 30 per cent jump in revenue to $8.6bn (£6.3bn), reflecting copper prices reaching record highs in 2025, coupled with the rising prices of by-products including gold and molybdenum, and increased sales volumes.
The average copper price jumped 18 per cent to $4.93 per pound.
The increase comes as demand continues to be underpinned by energy security and the rapid adoption of modern technologies, including AI infrastructure, data centres and electric vehicles.
Profit before tax rocketed 92 per cent to $3.2bn, while earning jumped 30 per cent to $4.3bn.
Cash flow from operations reached $4.3bn, a 30 per cent increase from the prior year, while the group’s balance sheet increased 14 per cent to $4.9bn.
The mining giant’s cost cutting Programme, which looks to reduces its cost base and improve operational efficiency, generated savings of $115m, exceeding the group’s original target of $100m for the year.
Earnings per share reached 129.3 cents, with the Board proposing a final dividend of 48 cents per share.
Mark Crouch, market analyst at Etoro, said: “Blowing the doors of expectations, Antofagasta has come roaring into 2026 like a coiled spring finally unleashed.
“When a miner generates that kind of return, doubling earnings and more than doubling the dividend, investors sit up and take notice.
“The world needs more copper. Electrification, renewables, AI’s power-hungry data centres, all roads lead back to the red metal.”
Shares fell 3.2 per cent in early morning trading to 3,264 pence.
Copper production shrinks
While demand for the asst remained robust, production dipped slightly by two per cent year on year to 653,700 tonnes, as increased output at its Centinela Concentrates site, failed to offset the lower contributions from Centinel Cathodes and Los Pelambres.
But, gold production soared 13 per cent to 211,300 ounces, with higher production across Centinela Concentrates and Los Pelambres.
Molybdenum production also rocketed 48 per cent across both sites.
Despite the small fall in copper production, the group’s guidance for 2026 remained unchanged at 650,000 to 700,000 tonnes.
Combatting shrinking copper ores
Analysts pinned the fall in production to the industry being increasingly “constrained by decline ore grades” which are ultimately limiting the pace at which new supply can be brought to the market.
Disruption rate at the copper miner’s sites also remained elevated, after severe weather and problems with infrastructure and maintenance, damaged operations.
But the group is progressing its growth and development programme, with construction underway at its Centinela and Los Pelambres, which are expected to deliver 30 per cent growth in production in the medium term.
The group expects the construction to increase the exposure to copper and by-products offsetting the overall decline in ores and allowing the group to meet growing global demand for the asset.