Dear shareholders,
2025 was a year of delivery for Antofagasta, with strong safety results, record financial performance and the achievement of key milestones at our major construction projects which, once completed, are expected to increase our copper production by 30%, lower our costs and further consolidate our two large-scale mining districts for the long-term.
As the world turns increasingly to copper, we are progressing with the implementation of our strategic decision to opt for growth, marking the next chapter in our 40-year history as a pure‑play copper producer. Our purpose – developing mining for a better future – continues to guide our long‑term value creation, underpinned by safe operations, disciplined project execution and responsible stewardship across our portfolio.
Safety remains at the heart of how we operate and we are pleased to have delivered another fatality‑free year. In a year when the global mining industry experienced several serious safety incidents, we reflected on the importance of constantly striving to reduce and mitigate safety risks. To that end, we continue to strengthen our safety-first culture centred on visible leadership, accountability and continuous improvement.
Annual Report 2025
Copper: a global priority
Copper is now firmly recognised as a strategic material. Demand continues to rise as societies electrify their economies, supported by long‑term structural drivers including energy security, electrification and the rapid expansion of emerging technologies including those that leverage artificial intelligence and the associated investments in infrastructure including data centres.
At the same time, the supply side remains challenged globally. Declining ore grades, water scarcity, rising ore hardness, longer permitting timelines, and increasing disruption rates are constraining the development of new capacity.
These dynamics resulted in record copper prices during 2025, complemented by higher prices for our by‑products of precious metals, gold and silver, and molybdenum.
Chile’s position and our heritage
Chile remains the world’s leading copper‑producing nation, with a longestablished regulatory and fiscal environment that has supported long-term investment.
Following the presidential election in 2025, there is now greater clarity over the policy agenda, with economic growth a key priority. Chile is working to streamline administrative processes associated with permitting, and these developments are expected to support Chile’s long‑term competitiveness and reinforce the country’s role as a critical supplier of copper.
For more than four decades, Antofagasta has built a reputation as a reliable operator. Our two large-scale mining districts – Los Pelambres and Centinela – have more than five billion tonnes of resources each and are a strategic advantage. Through our long-established presence and organic growth, we have built a portfolio that has resource depth, strong community relationships, established infrastructure and extensive institutional knowledge. These districts form the backbone of our long‑term growth strategy and give us the optionality to sequence investment as market conditions evolve.
Balancing investment and returns
Our operational cash flows drive our ability to grow, and in 2025 we produced 653,700 tonnes of copper at a net cash cost of $1.19/lb, positioning us competitively on the global cost curve. Through our capital allocation framework, we have a well-invested portfolio, while simultaneously delivering a balance of returns to shareholders and investments in growth. As such, we are able to recommend to shareholders a final dividend for 2025 which, if approved, would bring the full year dividend to 50% of net earnings, exceeding our dividend policy of a minimum of 35% for more than 10 consecutive years.
Strategic growth focus
Our medium-term growth strategy is centred on lower-risk brownfield expansions within established districts, with a focus on copper concentrates with associated by-products, which are typically lower cost as a result and, we are progressing on time and on budget across our portfolio of major construction and development projects.
At Centinela, construction of the Second Concentrator Project continues as planned, with several key milestones achieved, and we have recently moved into a new phase of work, installing key equipment. At Los Pelambres, work on the desalination plant expansion and the new concentrate pipeline advanced steadily, strengthening long‑term reliability and providing a platform for our development project to extend the mine life beyond 2035, which continued through the permitting process during 2025. Collectively, these projects are designed to expand volumes as well as margins, benefitting from by‑product credits, extend mine lives and add resilience.
We also advanced our longer‑term growth options. The approval of the Environmental Impact Assessment (EIA) at Zaldívar in 2025 paves the way for this operation’s water transition and mine life extension, creating the opportunity to realise Zaldívar’s full potential. We have also advanced with the consolidation of mining properties in the Centinela District, our greenfield Cachorro and Encierro projects and our other exploration activities in Chile and Peru. Our strategic investment in Buenaventura provides exposure to a highly prospective copper region with breadth of permits and optionality. In the United States, Twin Metals remains a long‑dated option for development of a deposit that contains copper and other critical minerals, and we continue to pursue the regulatory pathway to protect the project’s value through a disciplined approach.
Innovation: a strategic enabler
We continue to focus on innovation initiatives that strengthen our competitiveness and resilience throughout the cycle such as automation, digitalisation, integrated remote operating centres and advanced analytics, to improve safety, productivity and cost stability. In parallel, we are developing longer-term innovation initiatives, such as Cuprochlor‑T®, and this is now progressing towards potential applications at third‑party mines.
Governance and sustainability
Effective governance underpins our strategy, risk management and our ability to deliver. During the year, we welcomed Ignacio Bustamante to the Board as an Independent Non‑Executive Director, adding valuable experience across the Americas and strengthening the Board’s oversight of our priorities: strategy, capital allocation, risk, culture and performance.
At the beginning of 2026, Andrónico Luksic Craig stepped down from the Board and Andrónico Luksic Lederer was appointed as a Non-Executive Director. I would like to thank Andrónico Luksic Craig for the significant contribution he has made to the Board over the past twelve years. We are delighted that Andrónico Luksic Lederer accepted our invitation to join the Board. In his previous role as Vice President of Development, he oversaw major strategic transactions and drove significant progress in exploration, leading to the advancement of key projects, and the launch of new exploration activities in Peru. His breadth of experience will be of great benefit to Antofagasta in the years ahead.
Sustainability remains integral to our long‑term approach. In 2025, we achieved full compliance with the Global Industry Standard on Tailings Management across our operating portfolio, and have now achieved The Copper Mark assurance at all four mines, reaffirming our commitment to responsible production.
Our longstanding partnerships with local communities are central to how we create shared value. The second cycle of the Somos Choapa programme commenced during the year, focusing on long‑term development priorities, including education, infrastructure, climate resilience and entrepreneurship, co‑designed with municipalities and local organisations.
Outlook
The outlook for copper remains compelling, with strong demand fundamentals and constrained growth in supply. Chile continues to provide a stable platform for long‑term investment, supported by regulatory clarity and reforms aimed at improving permitting efficiency and promoting growth. At Antofagasta, we are delivering with confidence: our strategy is clear, our projects are progressing well, and our people remain committed to operating safely and responsibly. I would like to thank our employees, contractors, partners, communities and shareholders for their continued support.
JEAN-PAUL LUKSIC
CHAIRMAN