Chilean multinational conglomerate Antofagasta has reported a strong quarter of cash cost performance, with net cash costs having been 108c/lb at group level in the first quarter of the year.

Notably, net cash costs were 72c/lb and 34c/lb at the Los Pelambres and Centinela mines, respectively, despite lower copper production in the quarter.

The group-wide net cash cost decline of 30% year-on-year was driven by higher by-product credits.

CEO Iván Arriagada says this demonstrates the quality of the group’s portfolio, including its meaningful exposure to gold and molybdenum.

The company expects copper production to increase in the year head, on the back of higher ore processing levels and improving grades at Los Pelambres.

Arriagada confirms that pre-commissioning activities are underway at the Centinela second concentrator project, while progress across the Los Pelambres growth-enabling projects continue to strengthen the operational platform for future production growth.

Antofagasta aims to increase its copper production by 30%, particularly as prices remain strong for now and medium-term fundamentals – structured demand and constrained supply – are compelling.

In the first quarter of the year, Antofagasta recorded 19.2% lower copper production of 143 000 t, compared with 177 000 t in the last quarter of 2025. For context, Antofagasta produced 154 700 t of copper in the first quarter of 2025.

Arriagada attributes the lower copper production to lower processing rates and grades in line with the mine plans at both Los Pelambres and Centinela.

Gold production also decreased by almost 30% quarter-on-quarter to 46 500 oz in the first quarter of the year, which compares to 66 300 oz having been produced in the last quarter of 2025 and 42 900 oz produced in the first quarter of 2025.

The company recorded lower ore processing rates at both of its concentrators despite achieving higher gold grades.

Molybdenum production totalled 3 000 t in the quarter under review, compared with 4 400 t in the preceding quarter and 3 100 t in the same quarter of last year.

The molybdenum production decline reflects a balance of higher recoveries but lower ore processing rates.

Antofagasta remains on track to produce between 650 000 t and 700 000 t of copper in the full year at an estimated net cash cost of between $1.15/lb and $1.35/lb – assuming fuel prices return to levels seen in January.

The company’s capital expenditure guidance remains unchanged at $3.4-billion for the year.