Antofagasta Shares Decline Despite Revenue Surge and Strong Copper Market
Shares in the London-listed mining company Antofagasta dipped in early morning trading on Tuesday, February 17, 2026, even as the firm reported a significant jump in revenue fueled by soaring copper demand and high commodity prices. The Chilean-based group saw its stock fall by 3.2 percent to 3,264 pence, contrasting sharply with its financial performance.
Record Revenue and Profit Growth
Antofagasta recorded a 30 percent increase in revenue, reaching $8.6 billion (£6.3 billion), driven by copper prices hitting record highs in 2025. The average copper price rose by 18 percent to $4.93 per pound, supported by robust demand from energy security initiatives and the rapid adoption of modern technologies such as AI infrastructure, data centers, and electric vehicles. Additionally, higher prices for by-products like gold and molybdenum, along with increased sales volumes, contributed to the revenue boost.
Profit before tax skyrocketed by 92 percent to $3.2 billion, while earnings jumped 30 percent to $4.3 billion. Cash flow from operations increased by 30 percent to $4.3 billion, and the group's balance sheet grew by 14 percent to $4.9 billion. Earnings per share reached 129.3 cents, with the Board proposing a final dividend of 48 cents per share.
Cost-Cutting and Operational Efficiency
The mining giant's cost-cutting program, aimed at reducing its cost base and improving operational efficiency, generated savings of $115 million, exceeding the original target of $100 million for the year. This initiative has helped bolster the company's financial health amid market fluctuations.
Production Challenges and Future Outlook
Despite strong demand, copper production dipped slightly by two percent year-on-year to 653,700 tonnes. Increased output at the Centinela Concentrates site was insufficient to offset lower contributions from Centinela Cathodes and Los Pelambres. However, gold production soared by 13 percent to 211,300 ounces, and molybdenum production rocketed by 48 percent across both sites.
Analysts attribute the production decline to declining ore grades, which are constraining the industry's ability to bring new supply to the market. Disruption rates at Antofagasta's sites remained elevated due to severe weather and infrastructure issues, but the group is progressing with its growth and development program. Construction at Centinela and Los Pelambres is expected to deliver a 30 percent increase in production in the medium term, helping offset ore declines and meet growing global demand.
Expert Commentary
Mark Crouch, a market analyst at Etoro, commented on the results, stating, "Blowing the doors off expectations, Antofagasta has come roaring into 2026 like a coiled spring finally unleashed. When a miner generates that kind of return, doubling earnings and more than doubling the dividend, investors sit up and take notice. The world needs more copper. Electrification, renewables, AI's power-hungry data centers—all roads lead back to the red metal."
Despite the slight production dip, Antofagasta's guidance for 2026 remains unchanged at 650,000 to 700,000 tonnes, reflecting confidence in its strategic initiatives to combat shrinking copper ores and capitalize on sustained demand.
