QUARTERLY PRODUCTION IN LINE, WITH COSTS BENEFITTING FROM BY-PRODUCTS ACROSS H1

Antofagasta plc CEO, Iván Arriagada said:  “We delivered another consistent performance in Q2, with copper production in line with the previous quarter and continued cash cost discipline across the business. Full-year guidance remains unchanged, with copper production expected to increase through the remainder of the year, supported by higher ore throughput and improving grades at both Los Pelambres and Centinela.

"Construction on our major growth projects continues to advance with commissioning expected to complete next year, with early pre-commissioning activities progressing in specific subsystems at the Centinela Second Concentrator Project. During Q2, we approved investment in Zaldívar's long-term water supply solution, in line with its life of mine extension potential to 2051. The project also reflects our commitment to responsible water stewardship and circular economy solutions.

"Given inflationary pressures persist across the mining industry, following external disruptions in the oil and other feedstock markets, we remain focused on supply chains to ensure security of sourcing, disciplined cost control, operational excellence and the safe execution of our growth projects.

"Copper fundamentals remain strong, with record prices during the period reflecting robust demand and an increasingly constrained supply outlook. Structural demand drivers, including electrification, energy security, digital infrastructure and artificial intelligence, support a positive medium-term outlook for copper.”

_{(1)   Cash cost is a non-GAAP measure used by the mining industry to express the cost of production in US dollars per pound of copper produced.}

HIGHLIGHTS

PRODUCTION

• Copper production in Q2 2026 was 142,000 tonnes, 1% lower on a quarter-on-quarter basis, reflecting lower output at Antucoya. Approximately 7,000 tonnes of copper processed at Los Pelambres during the quarter remained in plant inventory and will be recognised as filtered production in H2 2026, following an extended concentrate pipeline maintenance completed in the period. Year-to-date copper production of 285,000 tonnes was 9% lower than the prior year, reflecting lower output at Los Pelambres and Centinela. Quarterly production is expected to increase sequentially over the remainder of the year.
• Gold production in Q2 2026 was 46,300 ounces, in line with the previous quarter, with output levels unchanged at both Los Pelambres and Centinela. Year-to-date gold production of 92,800 ounces was in line on a year-on-year basis, with higher output at Centinela offset by lower output at Los Pelambres.
• Molybdenum production in Q2 2026 was 3,100 tonnes, also in line with the previous quarter, reflecting a similar level of output at both Los Pelambres and Centinela. Year-to-date molybdenum production of 6,100 tonnes was 18% lower on a year-on-year basis mainly due to lower output at Los Pelambres.

CASH COSTS

• Cash costs before by-product credits in Q2 2026 were $2.94/lb, representing an increase of 6% on a quarter-on-quarter basis mainly reflecting higher input costs, including increased prices for diesel, sulphuric acid and other key consumables across most of our operations, as well as the impact of a one-off labour settlement with the supervisors’ union at Centinela during the period. Cash costs in H1 2026 were $2.85/lb, a year-on-year increase of 23% due to higher input costs, the labour settlement noted above and the effects of lower production at both Los Pelambres and Centinela Concentrates.
• By-product credits in Q2 2026 were $1.58/lb, representing a 7% decrease quarter-on-quarter, with lower pricing for gold. By-product credits in H1 2026 were 64% higher at $1.63/lb, following higher by-product realised prices.
• Net cash costs in Q2 2026 were $1.36/lb, 26% higher on a quarter-on-quarter, mirroring the movement in the underlying cash costs before by-product credits and reflecting lower realised pricing for gold. Net cash costs in H1 2026 were $1.22/lb, representing an 8% decrease year-on-year, as higher underlying cash costs were fully offset by higher by-product credits.

GROWTH AND DEVELOPMENT PROJECTS

• Our major growth projects continue to advance towards completing commissioning next year.
• Centinela Second Concentrator Project: Key activities during the quarter included completion of the internal lining of the ball mills and construction of the fines stockpile dome structure. In parallel, pre-commissioning activities continued to progress across specific subsystems, including testing of the primary crusher motor system and the energisation of the drives and motors for the overland conveyor.
• Los Pelambres’ Growth Enabling Projects:
  • Concentrate pipeline: Progress continues along both the upper and lower sections of the pipeline route, including the welding of piping sections, road crossings and drainage works. For the electrical power lines, several cable stringing and connection works were completed, alongside the installation of structures and power transformers.
  • Desalination plant expansion: Activities during the quarter included completion of the external cladding installation for the Seawater Reverse Osmosis (SWRO) building.
• Zaldívar Water Supply: The Group announced an investment decision in Q2 2026 for the construction of a water pipeline and pumping system, which will enable Zaldívar to transition away from continental water from mid-2028. The planned investment of approximately $0.9 billion over the next two years (100% basis) allows a potential extension of the mine life to 2051 and the creation of more than 5,000 local jobs. The mine will utilise reprocessed wastewater from the City of Antofagasta, reflecting the Group’s commitment to circular economy solutions.
  

GUIDANCE

• Production guidance for the year remains unchanged. Group copper production for the full year is expected to be in the range of 650,000-700,000 tonnes. Quarterly production is expected to increase sequentially throughout the remainder of the year.
• Group-level cash cost guidance after by-product credits remains unchanged at $1.15-1.35/lb, with a reduction in cash costs expected in H2 2026 as a result of higher planned production. However, with fuel prices and key consumables remaining above the levels seen in January 2026, Group-level cash cost before by-product credits are now expected to be in the range of $2.40-2.60/lb.
• Capital expenditure guidance is also unchanged at $3.4 billion.^[1]

SAFETY AND SUSTAINABILITY

• The Group’s strong health and safety track record continues in 2026, with no fatalities and a lost-time injury frequency rate continuing below 1.0.
• In accordance with the current Water Code regulations in Chile, a water redistribution agreement approved by the DGA (Chile’s water administration department) is required to be in effect so that, if there is a drought, certain conditions are completed to enable Los Pelambres to be able to extract up to 400 litres per second consistently with its water rights at the point of extraction in the Choapa river. This agreement requires an administrative action from government to be in place, which is refreshed annually, and is currently in its final stages of issuance for the coming period.

CORPORATE UPDATE

• The Company held its Annual General Meeting on 7 May 2026, with all resolutions passed during the meeting.
• The Group published its Report on Payments to Governments on 30 June 2026, showing that over 99.9% of taxes and other payments to governments in 2025 were paid in Chile, in line with previous years.
• During the quarter, the Group successfully concluded a three-year labour agreement with the supervisors’ union at Centinela.

_{^[1] Note: Capital expenditure guidance figure excludes Zaldívar, in line with previous years.}

Investors – London

Rosario Orchard rorchard@antofagasta.co.uk 

Robert Simmons rsimmons@antofagasta.co.uk

Telephone +44 20 7808 0988 

Media – London

Sara Powell 

Ben Brewerton

Nick Hennis

antofagasta@fticonsulting.com

Telephone +44 20 3727 1000

Media – Santiago

Pablo Orozco porozco@aminerals.cl 

Carolina Pica cpica@aminerals.cl

Telephone +56 2 2798 7000