Shares in Antofagasta fell in opening trade after the Chilean miner gave tepid guidance for copper production next year.
The London-listed miner said Thursday that it expects copper output in the range of 630,000 to 690,000 metric tons in 2027, a weaker outlook than its initial 2026 guidance of 650,000 to 700,000 tons.
In August, Antofagasta lowered its copper production expectations for this year to between 625,000 and 655,000 tons, citing a temporary halt in July to operations at its Los Pelambres mine in Chile's Coquimbo region due to heavy rain and power outages.
The 2027 guidance "implies no growth on the original guidance for 2026," RBC's Ben Davis and David Monus wrote in a note to clients. This is despite a pickup in grades at the Los Pelambres mine, and the expected commissioning of an expansion at the Centinela mine, they said.
In opening trade, London-listed shares dropped 6.5%.
J.P. Morgan analysts said in a note that the copper output guidance could drive mid-single-digit downgrades to consensus earnings before interest, taxes, depreciation and amortization for 2027.
The company also flagged higher costs Thursday, citing increased global diesel prices. It lifted its full-year guidance for cash costs before byproduct credits to a range of $2.60 to $2.70 a pound from its previous expectation of $2.40 to $2.60 a pound.
Antofagasta said it produced 151,900 tons of copper in the third quarter, a 7% increase from the previous quarter, driven by higher output at the Los Pelambres mine. However, analysts at J.P. Morgan and RBC both said the quarterly copper output missed company consensus.
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