Chilean mining giant Antofagasta has reported its strongest profit margins in four years, as the company capitalized on higher copper production, reduced operational costs, and favorable commodity prices during the first half of 2025.
The London-listed firm, which operates primarily in Chile, saw its pretax profit surge to $1.16 billion, representing a significant increase from the $712.6 million recorded in the same period of 2024. Earnings before interest, taxes, depreciation, and amortization
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Chilean mining giant Antofagasta has reported its strongest profit margins in four years, as the company capitalized on higher copper production, reduced operational costs, and favorable commodity prices during the first half of 2025.
The London-listed firm, which operates primarily in Chile, saw its pretax profit surge to $1.16 billion, representing a significant increase from the $712.6 million recorded in the same period of 2024. Earnings before interest, taxes, depreciation, and amortization (EBITDA) grew by 60% to reach $2.23 billion, while the company’s EBITDA margin expanded by 12 percentage points to 58.8% – the highest level since 2021.
This financial performance was underpinned by an 11% increase in copper production, with output reaching 314,900 tonnes during the six-month period. The production gains were primarily attributed to enhanced operational efficiency at the Centinela Concentrates and Los Pelambres facilities in Chile, two of the company’s flagship mining operations.
Sales volumes reflected these operational improvements, with copper sales rising by 17% compared to the previous year. The company also benefited from a 53% increase in gold sales, which helped offset production costs as gold is a valuable by-product of Antofagasta’s mining operations.
In response to the strong financial results, Antofagasta’s board more than doubled its interim dividend to 16.6 cents per share, up from 7.9 cents per share in the comparable period last year. This move signals confidence in the company’s financial position and its commitment to returning value to shareholders.
The majority of Antofagasta remains under the control of Chile’s influential Luksic family, who have extensive interests across mining, banking, and other industrial sectors throughout Latin America.
Market conditions have played a crucial role in Antofagasta’s performance. Copper prices have maintained elevated levels throughout much of 2025, driven by robust global demand linked to the ongoing energy transition. The metal’s essential role in electrification infrastructure, renewable energy systems, and battery manufacturing has supported strong pricing, benefiting major producers like Antofagasta.
The supply side of the copper market continues to face constraints, including regulatory challenges, aging mine infrastructure, and delays in new project development. These factors, combined with steadily increasing demand, have maintained upward pressure on prices and created favorable conditions for established producers.
Gold prices have similarly remained strong during the period, supported by macroeconomic uncertainty, central bank purchases, and investor hedging activity, providing an additional revenue stream for Antofagasta.
The company’s impressive results come against a backdrop of both challenges and opportunities in the global mining sector. While demand for metals crucial to the energy transition continues to grow, mining companies must navigate cost pressures, increasingly stringent environmental regulations, and geopolitical uncertainties.
In Chile specifically, ongoing debates regarding mining royalties, water rights, and environmental permitting continue to shape the operating environment. As the world’s leading copper-producing nation, Chile has sought to balance economic development with environmental protection and social equity concerns, creating a complex landscape for companies like Antofagasta.
The company has made investments in sustainability initiatives and infrastructure expansions at its key operational sites, though detailed long-term capital expenditure plans and comprehensive ESG performance metrics were not included in the current financial release.
Looking ahead, Antofagasta’s performance in the second half of 2025 will depend on both internal operational execution and external market factors, including metal prices, inflationary pressures, labor relations, and potential weather-related disruptions.
The company’s ability to maintain its strong margin performance will likely hinge on commodity price stability and continued success in controlling operational costs. Without revised guidance, market observers will be focused on operational consistency and potential developments in dividend policy as the company moves toward 2026.
For now, the first-half results affirm Antofagasta’s strong position within the global copper market, benefiting from the structural demand growth for metals essential to the worldwide energy transition.
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33 Comments
This margin expansion is remarkable—60% EBITDA growth in just six months.
Hard to sustain, but certainly impressive for now.
Impressive results from Antofagasta—strong production growth coupled with cost savings is a great combo for investors.
Do you think this uptick in gold sales will sustain through the next half?
Curious how the sustainability of these margins looks in a cooler commodity cycle.
These margins are eye-popping. Can they keep it up without inflation kicking back in?
Energy costs were mentioned as a key saver—hopefully that trend continues.
Antofagasta’s EBITDA margin expansion is notable—one of the best in the sector right now.
Wondering how much of this is mine-specific vs. macro tailwind.
Agreed, placing them at the top of the efficiency chart in copper.
Central Chile’s stability is paying off for Antofagasta—politics haven’t disrupted operations.
True, no headlines on permits or strikes recently.
Antofagasta seems to have turned a corner operationally—consistency will be key now.
Sustaining this output growth will be critical for the next quarter.
Centennial looks solid, but Pelambres was a drag last year.
Copper’s rally certainly helped, but operational improvements at key mines are the real story here.
Los Pelambres has been underperforming—great to see progress there.
This gold production bump is unexpected given an otherwise tight market—nice surprise.
Underrated part of the report, for sure.
60% EBITDA growth is hard to ignore. Where else do you see this kind of leverage to copper prices?
Not many—most peers have higher cost bases.
The stock is flat despite great results—maybe expectations were higher after the recent price rally?
Investors might be waiting to see if this is a one-off or sustainable.
The increased gold sales volume is particularly intriguing given the metal’s recent performance.
Any insights into whether this is a one-time boost or recurring?
Yet another mining company proving that efficiency matters more than just commodity prices.
Couldn’t agree more—cost management is the real kudos here.
Antofagasta’s results reinforce why Chile is still a top-tier mining jurisdiction.
Stable policies and high-grade deposits make a difference.
This earnings report makes me feel better about LME copper’s long-term outlook.
Supply-side confidence is key, and Antofagasta is delivering.
Antofagasta is proving that operational excellence can outpace commodity cycles.
A strong case for investing in management talent, not just resources.