Diario | Latin America

Research evidence excerpt

Diario | Latin America

our ($1.14/lb) and consensus

($1.23/lb) estimates. Higher than expected cash costs mainly reflect higher input costs, including

increased prices for diesel, sulphuric acid and other key consumables across most of Anto's

operations, as well as the impact of a one-off labour settlement with the supervisors’ union at

Centinela during 2Q. 2Q provisional pricing adjustments for copper, gold and molybdenum for the

quarter were +$134.9m, -$18.1m and +$35.3m respectively.

2026 Cost Guidance Raised: 2026 production guidance for copper (650-700kt) and consolidated

capex guidance ($3.4bn ex-Zaldivar) remain unchanged. Copper production remains expected to

rise sequentially over the course of the year on rising throughput and grades at Los Pelambres

and Centinela. Net cash cost guidance of $1.15-1.35/lb remains unchanged. However, guidance

for cash costs pre-byproducts has been raised ~4% to $2.40-2.60/lb (from $2.30-2.50/lb) as prices

for fuel and key consumables have remained elevated.

Major Projects Advancing: Key growth projects remain on track for commissioning in 2027. At

Centinela's Second Concentrator, the quarter saw completion of ball mill internal linings and the

fines stockpile dome, alongside pre-commissioning of the primary crusher motor and overland

conveyor drives. At Los Pelambres, progress continued on the concentrate pipeline. The Zaldívar

water supply project was approved in 2Q, a c.$0.9bn investment (100% basis) to build a pipeline

and pumping system using reprocessed wastewater from Antofagasta city, allowing the mine to

move off continental water from mid-2028 and potentially extending life-of-mine to 2051.

Our Call: On our estimates, which do not yet include 2Q26 production results, Anto trades at a