Antofagasta plc Shares Drop After Raising Cost Guidance
Antofagasta plc shares fell over 6% after the company raised full-year cash cost guidance and issued a 2027 production forecast below analyst expectations.
Shares of Antofagasta plc fell more than 6% on Thursday following the release of a 2027 production forecast of 630,000 to 690,000 tonnes, a figure that trailed previous estimates and analyst expectations. The company also raised its full-year cash cost guidance to between $2.60 and $2.70 per pound, up from a previous estimate of $2.40 to $2.60 per pound, citing an increase in global diesel prices.
Despite the market reaction and the subdued long-term outlook, the company reported a 7% increase in third-quarter copper production, totaling 151,900 metric tons. This growth was primarily driven by higher output at the Los Pelambres mine. Antofagasta plc confirmed its full-year production guidance remains between 625,000 and 655,000 tons.
CEO Iván Arriagada stated that construction activities at the Centinela and Los Pelambres growth projects are in their final phases and remain on schedule for completion in 2027. Analysts suggest that the weaker 2027 outlook may be a result of weather-related disruptions that occurred earlier this year.
