DEVELOPMENT PROJECTS

Twin Metals Minnesota (USA)

Twin Metals Minnesota (Twin Metals) is a wholly owned copper, nickel, and platinum group metals (PGMs) underground mining project, which holds copper, nickel/cobalt, and PGM deposits in north-eastern Minnesota, United States (US). The planned project is over a portion of the total resource and envisages mining and processing 18,000 tonnes of ore per day for 25 years to produce three separate concentrates - copper, nickel/cobalt and PGMs. However, further development of the current project, as configured, is on hold whilst litigation takes place to challenge several actions taken by the US federal government to deter its development.

In 2022, Twin Metals filed a lawsuit in the US District Court for the District of Columbia (District Court) challenging the administrative actions resulting in the rejection of Twin Metals' preference right lease applications (PRLAs), the cancellation of its federal mining leases 1352 and 1353, the rejection of its Mine Plan of Operation (MPO), and the dismissal of the administrative appeal of the MPO rejection. Twin Metals claimed that the government's actions were arbitrary and capricious, contrary to the law, and in violation of its rights. In September 2023, the District Court dismissed Twin Metals' suit on motion by the government. In November 2023, Twin Metals appealed the District Court's order to the US Court of Appeals for the District of Columbia Circuit. This action is pending. Oral arguments were held in January 2025 before the appellate court. Twin Metals and the Federal Government filed a motion to stay the decision after the oral argument. No decision on the stay has been issued.

 

FINANCIAL REVIEW FOR THE SIX MONTHS ENDED 30 JUNE 2025

 

Results (unaudited)

			Six months ended 30.06.2025			Six months ended 30.06.2024
	Before exceptional items	Exceptional  items	Total	Before exceptional items	Exceptional Items	Total
	$m	$m	$m	$m	$m	$m
Revenue	3,799.4	-	3,799.4	2,955.2	-	2,955.2
EBITDA (including share of EBITDA from associates and joint ventures)[7]	2,234.2	-	2,234.2	1,394.4	-	1,394.4
Total operating costs	(2,524.6)	-	(2,524.6)	(2,283.9)	-	(2,283.9)
Operating profit from subsidiaries	1,274.8	-	1,274.8	671.3	-	671.3
Net share of results from associates and joint ventures	33.3	-	33.3	17.2	-	17.2
Operating profit and share of total results from associates and joint ventures	1,308.1	-	1,308.1	688.5	-	688.5
Net finance (expense) / income	(146.1)	-	(146.1)	(26.9)	51.0	24.1
Profit before tax	1,162.0	-	1,162.0	661.6	51.0	712.6
Income tax expense	(424.6)	54.5	(370.1)	(286.8)	(12.7)	(299.5)
Profit from continuing operations	737.4	54.5	791.9	374.8	38.3	413.1
Profit for the year	737.4	54.5	791.9	374.8	38.3	413.1
Attributable to:
Non-controlling interests	270.3	-	270.3	153.5	-	153.5
Profit attributable to the owners of the parent	467.1	54.5	521.6	221.3	38.3	259.6
Basic earnings per share	Cents	Cents	Cents	Cents	cents	Cents
From continuing operations	47.4	5.5	52.9	22.4	3.9	26.3

 

The $262.0 million increase in the profit for the financial period attributable to the owners of the parent (including exceptional items) from $259.6 million in the first six months of 2024 to $521.6 million in the current period reflected the following factors:

	$m
Profit for the financial period attributable to the owners of the parent in H1 2024	259.6
Less: exceptional items - 2024	(38.3)
Profit attributable to the owners of the parent in H1 2024 (excluding exceptional items)	221.3
Increase in revenue	844.2
Increase in total operating costs	(240.7)
Increase in net share of results from associates and joint ventures	16.1
Increase in net finance expenses (excluding exceptional items)	(119.2)
Increase in income tax expense (excluding exceptional items)	(137.8)
Increase in non-controlling interests	(116.8)
	245.8
Profit attributable to the owners of the parent in H1 2025 (excluding exceptional items)	467.1
Exceptional items - 2025	54.5
Profit for the financial period attributable to the owners of the parent in H1 2025	521.6

 

 

Revenue

 

The $844.2 million increase in revenue from $2,955.2 million in the first six months of 2024 to $3,799.4 million in the current period reflected the following factors:

	$m
Revenue in the first six months of 2024	2,955.2
Increase in copper sales volumes	461.9
Increase in realised copper price	104.7
Increase from lower treatment and refining charges	60.9
Increase in gold revenue	163.6
Increase in molybdenum revenue	45.2
Increase in silver revenue	20.0
Decrease in transport division revenue	(12.1)
	844.2
Revenue in the first six months of 2025	3,799.4

 

 

Revenue from the Mining division

 

Revenue in the first half of 2025 from the Mining division increased by $856.3 million, or 30.0%, to $3,713.5 million, compared with $2,857.2 million in the first six months of 2024. The increase comprised a $627.5 million increase in copper sales and a $228.8 million increase in by-product revenues.

 

 

Revenue from copper sales

 

Revenue from copper concentrate and copper cathode sales increased by $627.5 million, or 25.9%, to $3,050.5 million, compared with $2,423.0 million in the first six months of 2024. The increase reflected the impact of $461.9 million increase due to higher sales volumes, $104.7 million from higher realised prices and a $60.9 million increase in revenue from lower treatment and refining charges.

 

(i)  Copper volumes

 

Copper sales volumes included within revenue increased by 18.4% from 259,200 tonnes in 2024 to 306,900 tonnes in 2025, increasing revenue by $461.9 million. This increase was mainly due to higher production at Centinela concentrates (36,800 tonne increase, as a result of increased copper ore grades, as well as higher recoveries and ore throughput rates) and Los Pelambres (10,700 tonne increase, reflecting the accumulation of concentrate inventories in the prior period), and shipments which had been temporarily delayed at  31 December 2024 (due to bad weather conditions at the port).

 

(ii) Realised copper price

 

The average realised price increased by 3.5% to $4.55/lb in the first six months of 2025 (first half of 2024 - $4.40/lb), resulting in a $104.7 million increase in revenue. The LME average market price increased by 3.7% in H1 2025 to $4.28/lb (first half of 2024 - $4.13/lb). In the first half of 2025 there was a $182.8 million positive impact from provisional pricing adjustments, mainly as a result of a positive impact in the average mark to market price (30 June 2025 $4.50/lb vs 31 December 2024 $3.95/lb) and positive impact in the settlement of sales invoiced in the previous and current periods.

 

Realised copper prices are determined by comparing revenue (before treatment and refining charges for concentrate sales) with sales volumes in the period. Realised copper prices differ from market prices mainly because, in line with industry practice, concentrate and cathode sales agreements generally provide for provisional pricing at the time of shipment with final pricing based on the average market price in future periods (normally around one month after delivery to the customer in the case of cathode sales and four months after delivery to the customer in the case of concentrate sales).

 

Further details of provisional pricing adjustments are given in Note 6 to the condensed consolidated interim financial statements.

 

(iii) Treatment and refining charges

 

Treatment and refining charges (TC/RCs) for copper concentrate decreased by $60.9 million to $29.8 million in the first half of 2025, compared with $90.7 million in the first six months of 2024, reflecting lower average TC/RC rates, partially offset by increased concentrate sales volumes at Los Pelambres and Centinela.

 

With sales of concentrates at Los Pelambres and Centinela, which are sold to smelters and roasting plants for further processing into fully refined metal, the price of the concentrate invoiced to the customer reflects the market value of the fully refined metal less a "treatment and refining charge" deduction, to reflect the lower value of this partially processed material compared with the fully refined metal. For accounting purposes, the revenue amount reflects the invoiced price (which is based on the net of the market value of fully refined metal less the treatment and refining charges). However, under the standard industry definition of unit cash costs, treatment and refining charges are regarded as part of cash costs.

 

Accordingly, the decrease in these charges has had a positive impact on revenue in the year.

 

 

Revenue from molybdenum, gold and other by-product sales

 

Revenue from by-product sales (net of tolling charges) at Los Pelambres and Centinela relate mainly to molybdenum and gold and, to a lesser extent, silver. Revenue from by-products increased by $228.8 million or 52.7% to $663.0 million in the first half of 2025, compared with $434.2 million in the first six months of 2024. This increase was mainly due to the higher gold realised price and sales volumes, as well as molybdenum sales volumes, slightly offset by a decrease in the molybdenum realised price.

 

Revenue from gold sales (net of treatment and refining charges) was $304.4 million (first half of 2024 - $140.8 million), an increase of $163.6 million, due to a higher realised price and increased sales volumes. The realised gold price was $3,263.4/oz in the first half of 2025 compared with $2,313.8/oz in the first six months of 2024, reflecting the average market price for 2025 of $3,071.8/oz (first half of 2024 - $2,205.1/oz) and a positive provisional pricing adjustment of $22.2 million. The gold sales volumes increased by 53.1% from 61,000 ounces in the first half of 2024 to 93,400 ounces in the first six months of 2025, mainly due to higher production at Centinela, primarily the result of higher gold grades within the ores processed, as well as higher recoveries.

 

Revenue from molybdenum sales (net of treatment and refining charges) was $311.2 million (first half of 2024 - $266.0 million), an increase of $45.2 million. The increase was due to the higher sales volumes of 7,200 tonnes (first half of 2024 - 5,600 tonnes), partially offset by lower realised price of $21.1/lb (first half of 2024 - $22.8/lb).

 

Revenue from silver sales increased by $20.0 million to $47.4 million (first six months of 2024 - $27.4 million). The increase was due to higher sales volumes of 1.4 million ounces (first half of 2024 - 1.0 million ounces) and a higher realised silver price of $33.1/oz (first six months of 2024 - $27.6/oz).

 

 

Revenue from the Transport division

 

Revenue from the Transport division (FCAB) decreased by $12.1 million or 12.3% to $85.9 million (first six months of 2024 - $98.0 million), mainly due to lower transport volumes in the rail business.

 

 

Total operating costs

 

The $240.7 million increase in total operating costs from $2,283.9 million in the first half of 2024 to $2,524.6 million in the first six months of 2025 was due to the following factors:

	$m
Total operating costs in the first half of 2024	2,283.9
Increase in depreciation, amortisation and loss on disposals	212.8
Increase in mine-site operating costs	63.2
Decrease in other mining division expenses	(32.4)
Mining royalty ad-valorem element	0.8
Decrease in exploration and evaluation costs	(1.1)
Increase in corporate costs	4.5
Decrease in Transport division operating costs	(7.1)
	240.7
Total operating costs in the first six months of 2025	2,524.6

 

 

Depreciation, amortisation and disposals

 

The depreciation and amortisation charge increased by $212.8 million in the first half of 2025 to $860.0 million (first half of 2024 - $647.2 million). This increase mainly reflected the increased sale volumes and increased depreciation of new assets

 

Operating costs (excluding depreciation, amortisation and loss on disposals) at the Mining division

 

Operating costs (excluding depreciation, amortisation, loss on disposals and impairments) at the Mining division increased by $35.0 million to $1,612.5 million in the first half of 2025, an increase of 2.2%.

 

Of this increase, $63.2 million was attributable to higher mine-site operating costs. This increase in mine-site costs was due to the higher sales volumes and the stronger Chilean peso, partially offset by higher mine development credits at Centinela, lower unit costs, mainly due to the higher ore grade and recoveries at Centinela concentrates, the cost savings from the Group's Cost and Competitiveness Programme and lower key input prices.

 

On a unit cost basis, weighted average cash costs excluding treatment and refining charges and by-product revenues decreased from $2.48/lb in the first six months of 2024 to $2.24/lb in the first six months of 2025. As detailed in the alternative performance measures section on page 57 of the half-year results announcement, by-product credits and treatment and refining charges, for accounting purposes, both impact revenue and do not therefore affect operating expenses.

 

The Competitiveness Programme was implemented to reinforce the operational improvement and reduce the Group's cost base, improving its competitiveness within the industry. During the first half of 2025, the programme achieved benefits of $60.3 million in the mining division, of which $33.8 million represented the value of productivity improvements and $26.5 million reflected cost savings. Of the $26.5 million of cost savings, $26.2 million related to Los Pelambres, Centinela and Antucoya, and therefore impacted the Group's operating costs, and $0.3 million related to Zaldívar (on a 100% basis) and impacted the share of results from associates and joint ventures.

 

Other mining division expenses decreased by $32.4 million, mainly due to lower inventory provision expenses and reduced medium and long-term drilling costs at the mining operations.

 

Operating costs at the Mining division include $13.8 million (first six months of 2024 - $13.0m) in respect of the "ad valorem" element of the mining royalty at Los Pelambres. As the ad valorem element is based on revenue rather than profit, it does not meet the IAS 12 Income Taxes definition of a tax expense, and is therefore recorded as an operating expense. From a unit cash cost perspective, the ad valorem expense is included within "C3" cash costs, and is not included within the net cash cost and cash cost before by-product credits amounts, which are the Group's principal cash cost metrics.

 

Exploration and evaluation costs decreased by $1.1 million to $25.7 million (2024 - $26.8 million), reflecting decreased exploration and evaluation expenditure principally in respect of Chile exploration. 

 

Corporate costs increased by $4.5 million, due to higher mining property licence fees as result of recent relevant regulatory changes.

 

 

Operating costs (excluding depreciation, amortisation and loss on disposals) at the Transport division

 

Operating costs (excluding depreciation, amortisation and loss on disposals) at the Transport division decreased by $7.1 million to $52.1 million (first half of 2024 - $59.2 million), mainly due the stronger Chilean peso and lower transport volumes.

 

 

Operating profit from subsidiaries

 

As a result of the above factors, operating profit from subsidiaries increased by $603.5 million or 89.9% in 2025 to $1,274.8 million (first half of 2024 - $671.3 million).

 

 

Share of results from associates and joint ventures

 

The Group's share of results from associates and joint ventures increased by $16.1 million to $33.3 million in the first six months of 2025, compared with $17.2 million in the first half of 2024. This was mainly due to a higher contribution from Compañía de Minas Buenaventura S.A.A.

 

 

EBITDA

 

EBITDA (earnings before interest, tax, depreciation and amortisation) increased by $839.8 million or 60.2% to $2,234.2 million (first half of 2024 - $1,394.4 million). EBITDA includes the Group's proportional share of EBITDA from associates and joint ventures.

 

EBITDA from the Mining division increased by $845.7 million or 62.5% from $1,351.9 million in the first six months of 2024 to $2,197.6 million this half year. This reflected the higher revenue explain above and higher EBITDA from associates and joint ventures, slightly offset by higher mine-site costs.

 

EBITDA at the Transport division decreased by $5.9 million to $36.6 million in 2025 ($42.5 million - first half of 2024), mainly due to lower transport volumes.

 

 

Commodity price and exchange rate sensitivities

 

The following sensitivities show the estimated approximate impact on EBITDA for the first six months of 2025 of a 10% movement in the average copper, molybdenum and gold prices and a 10% movement in the average US dollar / Chilean peso exchange rate.

 

The impact of the movement in the average commodity prices reflects the estimated impact on the relevant revenues during the first six months of 2025, and the impact of the movement in the average exchange rate shows the estimated impact on Chilean peso denominated operating costs during the period. These estimates do not reflect any impact in respect of provisional pricing or hedging instruments, any potential inter-relationship between commodity price and exchange rate movements, or any impact from the retranslation or changes in valuations of assets or liabilities held on the balance sheet at the period-end.

 

	Average market commodity price / average exchange rate during the six months ended 30.06.25	Impact of a 10% movement in the commodity price / exchange rate on EBITDA for the six months ended 30.06.25
		$m
Copper price	$4.28/lb	306
Molybdenum price	$20.6/lb	33
Gold price	$3,071.8/oz	29
US dollar / Chilean peso exchange rate	933.42	82

 

 

Net finance expense (excluding exceptional items)

 

Net finance expense (excluding exceptional items) of $146.1 million reflected a variance of $119.2 million compared with the $26.9 million of expenses in H1 2024.

                               

	Six months ended 30.06.25 $m	Six months ended 30.06.24 $m
Investment income	84.6	73.5
Interest expense	(177.8)	(132.1)
Other finance items	(52.9)	31.7
Net finance expense	(146.1)	(26.9)

 

 

Investment income increased from $73.5 million in the first six months of 2024 to $84.6 million in H1 2025, mainly due to higher average cash and liquid investment balances.

 

Interest expense increased from $132.1 million in the first six months of 2024 to $177.8 million in H1 2025, primarily due to the additional interest expense relating to Centinela's water transportation agreement during the current period, and in the comparative period the partial capitalisation of the financing costs relating to Los Pelambres' Phase 1 Expansion Project in the final months of construction.

 

Other finance items were a net loss of $52.9 million, compared with a net gain of $31.7 million in 2024, a variance of $84.6 million. This was mainly due to the foreign exchange impact of the retranslation of Chilean peso denominated assets and liabilities, which resulted in a $39.4 million loss in 2025 compared with a $41.5 million gains in 2024. In addition, there was an expense of $13.4 million in respect of the unwinding of the discounting of provisions (first half of 2024 - expense of $9.7 million).

 

 

Profit before tax (excluding exceptional items)

 

As a result of the factors set out above, profit before tax increased by 75.6% to $1,162.0 million in the first half of 2025 (first half of 2024 - $661.6 million).

 

 

Income tax expense

 

The tax charge in the first half of 2025 excluding exceptional items increased by $137.8 million to $424.6 million (first half of 2024 - $286.8 million) and the effective tax rate for the period was 36.5% (first half of 2024 - 43.3%). Including exceptional items, the tax charge in the first half of 2025 was $370.1 million and the effective tax rate was 31.9%.

 

		Six months ended 30.06.2025 Excluding exceptional items			Six months ended 30.06.2025 Including exceptional items					Six months ended 30.06.2024 Excluding exceptional items		Six months ended 30.06.2024 Including exceptional items
		$m	%		$m	%			$m		%	$m	%
Profit before tax		1,162.0			1,162.0				661.6			712.6
Profit before tax multiplied by Chilean corporate tax rate of 27%		(313.7)	27.0		(313.7)	27.0			(178.7)		27.0	(192.4)		27.0
Mining Tax (royalty)		(97.3)	8.4		(97.3)	8.4			(117.0)		17.7	(117.0)		16.4
Deduction of mining royalty as an allowable expense in determination of first category tax		25.8	(2.2)		25.8	(2.2)			30.6		(4.6)	30.6		(4.3)
Withholding tax		(23.3)	2.0		(23.3)	2.0			(13.5)		2.0	(13.5)		1.9
Items non-taxable & non-deductible from first category tax		(23.0)	2.0		(23.0)	2.0			(5.6)		0.8	(5.6)		0.8
Impact of unrecognised tax losses on current tax		(7.0)	0.6		(7.0)	0.6			(0.8)		0.1	(0.8)		0.1
Reversal of the provision against carrying value of assets (exceptional items)		-	-		54.5	(4.7)			-		-	-		-
Tax effect of share of profit of associates and joint ventures		9.8	(0.8)		9.8	(0.8)			2.0		(0.3)	2.0		(0.3)
Adjustment in respect of prior years		4.1	(0.5)		4.1	(0.4)			(3.8)		0.6	(3.8)		0.5
Difference in overseas tax rates		-	-		-	-			-		-	1.0		(0.1)
Tax expense and effective tax rate for the Year ended		(424.6)	36.5		(370.1)	31.9			(286.8)		43.3	(299.5)		42.0

 

 

The reconciliation between the effective tax rate and the statutory tax rate reflects the following points:

 

 

·    The mining tax (royalty) (net impact of $71.5 million / 6.2% including the deduction of the mining tax (royalty) as an allowable expense in the determination of first category tax);

·    The withholding tax relating to the remittance of profits from Chile (impact of $23.3 million / 2.0%);

·    Items not deductible for Chilean corporate tax purposes, principally the funding of expenses outside of Chile (impact of $23.0 million / 2.0%);

·    The impact of unrecognised tax losses (impact of $7.0 million / 0.6%);

·    An offsetting impact of the recognition of the Group's share of results from associates and joint ventures, which are included in the Group's profit before tax net of their respective tax charges (impact of $9.8 million / 0.8%);

·    Adjustments in respect of prior years (impact of $4.1 million / 0.5%).

 

The Group's mining operations are subject to a mining tax (royalty). The new Chilean mining royalty took effect from 1 January 2024. The new royalty terms include a royalty ranging from 8% to 26% applied to the ''Mining Operating Margin'', depending on each mining operation's level of profitability, as well as a 1% ad valorem royalty on copper sales. As the ad valorem element is based on revenue rather than profit it does not meet the IAS 12 Income Taxes definition of a tax expense and is therefore recorded as an operating expense. From a unit cash cost perspective, the ad valorem expense is included within "C3" cash costs, and is not included within the net cash cost and cash cost before by-product credits amounts, which are the Group's principal cash cost metrics. The new royalty terms have a cap, establishing that total taxation, which includes corporate income tax, the two components of the new mining royalty, and theoretical tax on dividends, should not exceed a rate of 46.5% on Mining Operating Margin less the royalty ad-valorem expense. Los Pelambres has been subject to the new royalty from 1 January 2024. Centinela and Antucoya have tax stability agreements in place, and so the new royalty rates will only impact their royalty payments from 2030 onwards. Until then, they continue to be subject to the previous royalty system, applying a progressive rate ranging from 5% to 14% of taxable operating profits, depending on the operating margin.

 

 

Exceptional items

 

Exceptional items are material items of income and expense which are non-regular or non-operating and typically non-cash, including impairments and profits or losses on disposals. The classification of these types of items as exceptional is considered to be useful as it provides an indication of the earnings generated by the ongoing businesses of the Group.

Compañía de Minas Buenaventura S.A.A.

During 2023, the Group entered into an agreement to acquire up to an additional 30 million shares in Compañía de Minas Buenaventura S.A.A. An exceptional fair value gain of $51.0 million was recognised during the first six months of 2024 in respect of this agreement; a deferred tax expense of $12.7 million was recognised in respect of this gain, resulting in a post-tax impact of $38.3 million.

During the first six months of 2025, an exceptional deferred tax credit of $54.5 million was recognised, due to the derecognition of the deferred tax liability which had been recognised through the income statement in relation to the agreement, as the requirements of the UK Substantial shareholdings exemption were met during the period.

 

 

Non-controlling interests

 

Profit for the first half of the year attributable to non-controlling interests was $270.3 million, compared with $153.5 million in the first half of 2024, an increase of $116.8 million. This reflected the increase in earnings analysed above.

 

 

Earnings per share

		Six months ended 30.06.25	Six months ended 30.06.24
		$ cents	$ cents
Underlying earnings per share (excluding exceptional items)		47.4	22.4
Earnings per share (exceptional items)		5.5	3.9
Earnings per share (including exceptional items)		52.9	26.3

 

 

Earnings per share calculations are based on 985,856,695 ordinary shares. 

 

As a result of the factors set out above, profit attributable to equity shareholders of the Company (excluding exceptional items) was $467.1 million, compared with $221.3 million in the first half of 2024, and underlying earnings per share (excluding exceptional items) were 47.4 cents for the first half of 2025 (first half of 2024 - 22.4 cents per share). The profit attributable to equity shareholders (including exceptional items) was $521.6 million, resulting in earnings per share (including exceptional items) of 52.9 cents per share for the first half of 2025. 

 

 

Dividends

Dividends per share declared in relation to the period are as follows:

 

		Six months ended 30.06.25	Six months ended 30.06.24
		$ cents	$ cents
Ordinary dividends:
Interim		16.6	7.9
Total dividends to ordinary shareholders		16.6	7.9

 

 

The Board determines the appropriate dividend each year based on consideration of the Group's cash balance, the level of free cash flow and underlying earnings generated during the year and significant known or expected funding commitments. It is expected that the total annual dividend for each year would represent a payout ratio based on underlying net earnings for that year of at least 35%.

 

The Board has declared an interim dividend for the first half of 2025 of 16.6 cents per ordinary share, which amounts to $163.7 million. The interim dividend will be paid on 30 September 2025 to ordinary shareholders that are on the register at the close of business on 5 September 2025.

 

 

Capital expenditure

 

Capital expenditure increased by $560.9 million from $1,059.5 million in the first half of 2024 to $1,620.4 million in the current period, mainly due to the Second Concentrator Project at Centinela as well as the Desalination Plant Expansion, Concentrate Pipeline and El Mauro Enclosures Projects at Los Pelambres, and also increased IFRIC 20 mine development at Centinela, partly offset by the completion of the Los Pelambres Phase 1 Expansion project in the first half of 2024.

 

Capital expenditure figures quoted in this report are on a cash flow basis, unless stated otherwise.

 

 

Derivative financial instruments

 

The Group periodically uses derivative financial instruments to reduce its exposure to commodity price, foreign exchange and interest rate movements. The Group does not use such derivative instruments for speculative trading purposes. At 30 June 2025, there were foreign exchange derivative financial instruments in place in respect of the Centinela Second Concentrator project capex, with a negative fair value of $1.4 million (30 June 2024 - negative fair value 15.7 million).

 

 

 Cash flows

 

The key features of the cash flow statement are summarised in the following table.

		Six months ended 30.06.25	Six months ended 30.06.24
		$m	$m
Cash flows from continuing operations		1,812.0	1,483.9
Income tax paid		(421.4)	(316.8)
Net interest paid		(134.9)	(77.3)
Purchases of property, plant and equipment		(1,620.4)	(1,059.5)
Dividends paid to equity holders of the Company		(231.7)	(239,6)
Agreement to acquire non-controlling interest		(80.0)	-
Dividends paid to non-controlling interests		(40.0)	-
Capital increase from non-controlling interest		115.8	39.7
Dividends from associates and joint ventures		14.5	3.5
Other items		(0.1)	0.1
Changes in net (debt)/cash relating to cash flows		(586.2)	(166.0)
Other non-cash movements		(68.4)	(124.1)
Effects of changes in foreign exchange rates		(4.0)	11.3
Movement in net (debt)/cash in the period		(658.6)	(278.8)
Net (debt)/cash at the beginning of the year		(1,629.1)	(1,159.8)
Net (debt) at the end of the period		(2,287.7)	(1,438.6)

 

 

Cash flows from continuing operations were $1,812.0 million in the first half of 2025 compared with $1,483.9 million in the first half of 2024.  This comprised EBITDA from subsidiaries for the period of $2,134.8 million (first half of 2024 - $1,318.5 million) adjusted for the negative impact of a net working capital increase of $319.4 million (first half of 2024 - positive impact of $171.9 million from a net working capital decrease), and the negative impact of a decrease in provisions of $3.4 million (first half of 2024 - negative impact of an decrease in provisions of $6.5 million).

 

The $319.4 million working capital decrease in the first six months of 2025 was due to a decrease in accounts payable and an increase in receivables (reflecting the higher copper price and higher volumes included in receivables at 30 June 2025 compared with 31 December 2024), partly offset by a decrease of work in progress and finished goods inventories at Los Pelambres and Centinela.

 

The net cash outflow in respect of tax in the first half of 2025 was $421.4 million (first half of 2024 - $316.8 million). This amount differs from the current tax charge in the consolidated income statement (including exceptional items) of $358.2 million (first half of 2024 - $394.0 million) mainly because cash tax payments for corporate tax and the mining tax include payments on account for the current year (based on prior periods' profit levels) of $350.8 million (first half of 2024 - $218.8 million), withholding tax payments of $30.5 million (first half of 2024 - $66.5million), the settlement of outstanding balances in respect of the previous year's tax charge of $40.1 million (first half of 2024 - $49.3 million) and in the first half of 2024 the recovery of $17.8 million in respect of prior years.

 

Capital expenditure in the first half of 2025 was $1,620.4 million compared with $1,059.5 million in the first half of 2024, for the reasons explained above.

 

Dividends paid to equity holders of the Company in the first half of 2025 were $231.7 million (first half of 2024 - $239.6 million), related to the payment of the final dividend declared in respect of 2024.

 

Agreement to acquire non-controlling interest were $80.0 million. In January 2025 the Group entered into an agreement with Mineralinvest to acquire its 49% interest in Antomin Investors' copper exploration properties in the Centinela District for $80 million. Properties currently held by Antomin Investors that are outside the Centinela District have been demerged into a new entity, Antomin Volcanes, held 51% by the Group and 49% by Mineralinvest. The acquisition of the remaining 49% stake in Antomin Investors is expected to complete later in 2025. As Antomin Investors is a subsidiary of the Antofagasta plc Group, this agreement to acquire the remaining 49% stake in Antomin Investors constitutes an agreement to acquire own equity instruments in accordance with IAS 32 Financial Instruments: Presentation

 

Dividends paid by subsidiaries to non-controlling shareholders were $40.0 million (first half of 2024 - nil).

 

A capital contribution of $115.8 million was received from Marubeni, the minority partner at Centinela, in respect of financing for the Centinela Second Concentrator project.

 

Dividends received from associates and joint ventures of $14.5 million (six months ended 30 June 2024 - $3.5 million) related to a dividend received from Compañía de Minas Buenaventura S.A.A.

 

 

Financial position

 

			At 30.06.25	At 31.12.24
			$m	$m
Cash, cash equivalents and liquid investments			4,577.7	4,316.3
Total borrowings			(6,865.4)	(5,945.4)
Net cash/(debt) at the end of the period			(2,287.7)	(1,629.1)

 

 

At 30 June 2025, the Group had combined cash, cash equivalents and liquid investments of $4,577.7 million (31 December 2024 - $4,316.3). Excluding the non-controlling interest share in each partly-owned operation, the Group's attributable share of cash, cash equivalents and liquid investments was $3,442.2 million (31 December 2024 - $3,513.5 million).

 

Total Group borrowings and other financial liabilities at 30 June 2025 were $6,865.4 million, an increase of $920.0 million during the period (at 31 December 2024 - $5,945.4 million). The increase was mainly due to $1,527.3 million in respect of the bond issued by Los Pelambres, $436.4 million from the senior loan at Los Pelambres and $293.6 million in respect of the project financing at Centinela, partly offset by repayments of the senior loans at Los Pelambres ($761.0 million), Centinela ($33.3 million) and Antucoya ($25.0 million), and repayment of the short-term loan at Los Pelambres ($475.0 million).

 

Excluding the non-controlling interest share in each partly-owned operation, the Group's attributable share of the borrowings was $5,016.9 million (31 December 2024 - $4,446.8 million).

 

This resulted in net debt at 30 June 2025 of $2,287.7 million (31 December 2024 - net debt $1,629.1 million). Excluding the non-controlling interest share in each partly-owned operation, the Group had an attributable net debt position of $1,574.7 million (31 December 2024 - net debt $933.3 million).

 

Going concern

 

The financial information contained in this half-year financial report has been prepared on the going concern basis. Details of the factors which have been taken into account in assessing the Group's going concern status are set out in Note 1 to the half-year results announcement.

 

 

Principal risks and uncertainties

 

There are a number of potential risks and uncertainties which could have a material impact on the Group's performance over the remaining six months of the financial year and could cause actual results to differ materially from expected and historical results. The principal risks and uncertainties which were disclosed in the 2024 Annual Report are as follows:

 

·    Talent management

·    Labour relations

·    Health and safety

·    Environmental management

·    Climate change

·    Community relations

·    Political, legal and regulatory

·    Corruption

·    Operations

·    Tailing storage

·    Strategic resources

·    Cyber security

·    Liquidity

·    Commodity prices and exchange rates

·    Growth of mineral resource base and opportunities

·    Project development and execution

·    Innovation and digitisation

·    External risks

 

There have been no changes to the above categories of key risks in the first six months of 2025.

 

A detailed explanation of the risks summarised above can be found in the Risk Management section of the 2024 Annual Report, which is available at www.antofagasta.co.uk.

 

 

Cautionary Statement

 

This announcement contains certain forward-looking statements. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Examples of forward-looking statements include those regarding the Group's strategy, plans, objectives or future operating or financial performance, reserve and resource estimates, commodity demand and trends in commodity prices, growth opportunities, and any assumptions underlying or relating to any of the foregoing. Words such as 'may', 'will', 'should', 'aim', 'expect', 'continue', 'progress', 'estimate', 'anticipate', 'intend', 'look', 'believe', 'vision', 'ambition', 'target', 'seek', 'goal', 'plan', 'potential', 'try', 'work towards', 'future', 'become', 'introduce', 'transform', 'outcome', 'project', 'projections', 'deliver', 'evolve', 'develop', 'forward', 'medium-term', 'long-term', 'objective', 'achievement' or the negative of these terms and other similar expressions of future actions or results, and their negatives identify forward-looking statements. Forward-looking statements also include, but are not limited to, statements and information regarding the climate and sustainability ambitions, targets and strategy of the Company or Group.

 

These forward-looking statements are based upon current expectations and assumptions regarding anticipated developments and other factors affecting the Group. They are not historical facts, nor are they guarantees of future performance or outcomes. All forward-looking statements contained in this document are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements.

 

Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that are beyond the Group's control. Given these risks, uncertainties and assumptions, actual results could differ materially from any future results expressed or implied by these forward-looking statements. Important factors that could cause actual results to differ from those in the forward-looking statements include: global economic conditions, demand, supply and prices for copper and other long-term commodity price assumptions (as they materially affect the timing and feasibility of future projects and developments), trends in the copper mining industry and conditions of the international copper markets, the effect of currency exchange rates on commodity prices and operating costs, the availability and costs associated with mining inputs and labour, operating or technical difficulties in connection with mining or development activities, employee relations, litigation, and actions and activities of governmental authorities (including changes in laws, regulations or taxation), the availability and cost of technologies and infrastructure required for the Group to achieve its emissions reductions targets and ambitions and changes in the emissions of the Group's suppliers that affect the Scope 3 emissions reported by the Group.

 

These forward-looking statements speak only as of the date of this document. Except as required by any applicable law or regulation, the Group expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Group's expectations with regard thereto or any change in events, conditions, or circumstances on which any such statement is based. No assurance can be given that the forward-looking statements in this document will be realised. Past performance cannot be relied on as a guide to future performance.

 

Any opinions or views of third parties contained in this document are those of the third parties identified, and not Antofagasta, its affiliates, directors, officers, employees, or agents. Neither Antofagasta nor any of its affiliates, directors, officers, employees, or agents make any representation or warranty as to its quality, accuracy, or completeness, and they accept no responsibility or liability for the contents of this material, including any errors of fact, omission or opinion expressed.

 

Some of the information and data in this document may have been obtained from public or other third-party sources and has not been independently verified. Antofagasta makes no representation or warranty regarding its completeness, accuracy, fitness for a particular purpose or non-infringement of such information.

 

This document does not contain or comprise profit forecasts, investment, accounting, legal, regulatory or tax advice nor is it an invitation for you to enter into any transaction. You are advised to exercise your own independent judgement (with the advice of your professional advisers as necessary) with respect to the risks and consequences of any matter contained herein.

 

     Condensed Consolidated Income Statement

				Six months ended 30.06.2025 (Unaudited)			Six months ended 30.06.2024 (Unaudited)
		Excluding exceptional items	Exceptional items note 3	Total	Excluding exceptional items	Exceptional items note 3	Total
	Notes	$m	$m	$m	$m	$m	$m
Revenue	5,6	3,799.4	-	3,799.4	2,955.2	-	2,955.2
Total operating costs		(2,524.6)	-	(2,524.6)	(2,283.9)	-	(2,283.9)
Operating profit	2,5	1,274.8	-	1,274.8	671.3	-	671.3
Net share of results from associates and joint ventures	2,5	33.3	-	33.3	17.2	-	17.2
Operating profit and share of total results from associates and joint ventures	2	1,308.1	-	1,308.1	688.5	-	688.5
Investment income	8	84.6	-	84.6	73.5	-	73.5
Interest expense	8	(177.8)	-	(177.8)	(132.1)	-	(132.1)
Other finance items	8	(52.9)	-	(52.9)	31.7	51.0	82.7
Net finance (expense)/income	8	(146.1)	-	(146.1)	(26.9)	51.0	24.1
Profit before tax		1,162.0	-	1,162.0	661.6	51.0	712.6
Income tax expense	3,9	(424.6)	54.5	(370.1)	(286.8)	(12.7)	(299.5)
Profit for the period		737.4	54.5	791.9	374.8	38.3	413.1
Attributable to:
Non-controlling interests		270.3	-	270.3	153.5	-	153.5
Owners of the parent		467.1	54.5	521.6	221.3	38.3	259.6
		US cents	US cents	US cents	US cents	US cents	US cents
Basic and diluted earnings per-share 1	10	47.4	5.5	52.9	22.4	3.9	26.3

 

1.        All earnings in all the periods presented are from continuing operations.

 

 

Condensed Consolidated Statement of Comprehensive Income

	Notes	Six months ended 30.06.2025 (Unaudited)	Six months ended 30.06.2024 (Unaudited)
		$m	$m
Profit for the period	5	791.9	413.1
Items that may be or were subsequently reclassified to profit or loss:
Gains/(loss) on cash flow hedging		24.1	(15.9)
Tax effects arising on cash flow hedges deferred in reserves		(6.5)	4.3
Currency translation adjustment		1.3	(0.8)
Total items that may be or were subsequently reclassified to profit or loss		18.9	(12.4)
Items that will not be subsequently reclassified to profit or loss:
Actuarial (loss) on defined benefit plans		(0.9)	(0.3)
(Loss)/gains on fair value of equity investments	13	(3.1)	33.1
Tax on items recognised directly in equity that will not be reclassified		0.4	0.1
Deferred tax credit/(charge) on equity investment1 (see note 3)		44.7	(7.7)
Share of other comprehensive losses of associates and joint ventures, net of tax		(1.9)	(1.9)
Total items that will not be subsequently reclassified to profit or loss		39.2	23.3
Total other comprehensive income		58.1	10.9
Total comprehensive income for the period		850.0	424.0
Attributable to:
Non-controlling interests		275.2	149.9
Owners of the parent		574.8	274.1
Total comprehensive income for the period - continuing operations		850.0	424.0
		850.0	424.0

 

¹ During the first six months of 2025 a deferred tax credit of $44.7 million was recognised in reserves, due to the derecognition of the deferred tax liability in respect of the Group's investment in Buenaventura. Please refer to Note 3 for further information.

 

Condensed Consolidated Statement of Changes in Equity

 

For the six months ended 30.06.2025

 

	Share       capital	Share premium	Other reserves	Retained earnings	Equity attributable to owners of the parent	Non- controlling interests	Total equity
	$m	$m	$m	$m	$m	$m	$m
Balance at 1 January 2025	89.8	199.2	112.2	9,061.0	9,462.2	3,492.0	12,954.2
Capital increase1	-	-	-	-	-	115.8	115.8
Agreement to acquire non-controlling interest2	-	-	-	(80.0)	(80.0)	-	(80.0)
Profit for the period	-	-	-	521.6	521.6	270.3	791.9
Other comprehensive income for the period	-	-	55.3	(2.1)	53.2	4.9	58.1
Total comprehensive income for the period	-	-	55.3	519.5	574.8	275.2	850.0
Dividends	-	-	-	(231.7)	(231.7)	(40.0)	(271.7)
Balance at 30 June 2025 (unaudited)	89.8	199.2	167.5	9,268.8	9,725.3	3,843.0	13,568.3

¹ Related to Marubeni's capital contribution of $115.8 million in Centinela.

² Related to the agreement to acquire the remaining stake in Antomin Investors Limited, as detailed in Note 17.

 

 

 

For the six months ended 30.06.2024

 

	Share       capital	Share premium	Other reserves	Retained earnings	Equity attributable to owners of the parent	Non- controlling interests	Total equity
	$m	$m	$m	$m	$m	$m	$m
Balance at 1 January 2024	89.8	199.2	104.5	8,558.4	8,951.9	3,096.5	12,048.4
Capital increase1	-	-	-	-	-	39.7	39.7
Profit for the period	-	-	-	259.6	259.6	153.5	413.1
Other comprehensive income for the period	-	-	16.5	(2.0)	14.5	(3.6)	10.9
Total comprehensive income for the period	-	-	16.5	257.6	274.1	149.9	424.0
Dividends	-	-	-	(239.6)	(239.6)	-	(239.6)
Balance at 30 June 2024 (unaudited)	89.8	199.2	121.0	8,576.4	8,986.4	3,286.1	12,272.5

¹ Related to Marubeni's capital contribution of $39.7 million in Centinela.

 

 Condensed Consolidated Balance Sheet

 

			At 30.06.2025 (Unaudited)	At 31.12.2024
Non-current assets	Notes		$m	$m
Property, plant and equipment	12		14,938.4	13,917.0
Inventories			742.1	707.8
Investments in associates and joint ventures	13		1,793.4	1,776.1
Trade and other receivables			55.3	54.4
Equity investments			11.3	11.6
Deferred tax assets			4.2	9.7
			17,544.7	16,476.6
Current assets
Inventories			812.0	925.1
Trade and other receivables			1,021.2	899.5
Current tax assets			118.5	17.4
Liquid investments	16		1,976.8	2,127.1
Cash and cash equivalents	16		2,600.9	2,189.2
			6,529.4	6,158.3
Total assets			24,074.1	22,634.9
Current liabilities
Short-term borrowings and other financial liabilities	14		(421.0)	(1,322.5)
Trade and other payables			(1,214.8)	(1,320.3)
Derivative financial instruments	7		(1.4)	(20.4)
Short-term decommissioning and restoration provisions			(4.2)	(5.9)
Current tax liabilities			(163.6)	(106.4)
			(1,805.0)	(2,775.5)
Non-current liabilities
Medium and long-term borrowings and other financial liabilities	14		(6,444.4)	(4,622.9)
Trade and other payables			(5.2)	(10.2)
Derivative financial instruments			-	(5.1)
Post-employment benefit obligations			(167.1)	(152.2)
Decommissioning and restoration provisions			(430.2)	(422.1)
Deferred tax liabilities			(1,653.9)	(1,692.7)
			(8,700.8)	(6,905.2)
Total liabilities			(10,505.8)	(9,680.7)
Net assets			13,568.3	12,954.2
Equity
Share capital			89.8	89.8
Share premium			199.2	199.2
Other reserves			(4.5)	(18.2)
Retained earnings			9,440.8	9,191.4
Equity attributable to owners of the parent			9,725.3	9,462.2
Non-controlling interests			3,843.0	3,492.0
Total equity			13,568.3	12,954.2

 

The condensed consolidated interim financial statements were approved by the Board of Directors on 13 August 2025.

 

Condensed Consolidated Cash Flow Statement

			At 30.06.2025 (Unaudited)	At 30.06.2024 (Unaudited)
	Notes		$m	$m
Cash flows from operations	15		1,812.0	1,483.9
Interest paid			(236.8)	(129.8)
Income tax paid			(421.4)	(316.8)
Net cash from operating activities			1,153.8	1,037.3
Investing activities
Dividends from associates and joint ventures			14.5	3.5
Proceeds from sale of property plant and equipment			-	0.2
Purchases of property, plant and equipment			(1,620.4)	(1,059.5)
Net increase/(decrease) in liquid investments	16		146.6	(648.9)
Interest received			101.9	52.5
Net cash used in investing activities			(1,357.4)	(1,652.2)
Financing activities
Dividends paid to owners of the parent			(231.7)	(239.6)
Dividends paid to preference shareholders of the Company			(0.1)	(0.1)
Dividends paid to non-controlling interests			(40.0)	-
Capital increase from non-controlling interest1			115.8	39.7
Agreement to acquire non-controlling interest	17		(80.0)	-
Proceeds from other financial liabilities			-	600.0
Proceeds from issue of new borrowings			2,257.3	1,564.8
Repayment of borrowings			(1,354.3)	(408.3)
Principal elements of lease payments			(56.3)	(74.5)
Repayment of other financial liabilities			(5.2)	-
Net cash from/financing activities			605.5	1,482.0
Net increase in cash and cash equivalents	16		401.9	867.1
Cash and cash equivalents at beginning of the period			2,189.2	644.7
Net increase in cash and cash equivalents	16		401.9	867.1
Effect of foreign exchange rate changes	16		9.8	(3.3)
Cash and cash equivalents at end of the period	16		2,600.9	1,508.5

¹ Related to Marubeni's capital contribution of $115.8 million in Centinela (six months ended 30 June 2024 - $39.7 million).

Notes

1.   General information and accounting policies

a)             General information

These condensed consolidated interim financial statements ("the interim financial statements") of the Antofagasta plc Group for the half-year reporting period ended 30 June 2025 were approved for issue by the Board of Directors of the Company on 13 August 2025. The interim financial statements are unaudited.

These interim financial statements have been prepared under the accounting policies as set out in the statutory accounts for the period ended 31 December 2024.

The interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting and with the requirements of the Companies Act 2006 as applicable to companies reporting under those standards.

These interim financial statements do not include all of the notes of the type normally included in annual financial statements and should be read in conjunction with the consolidated financial statements for the year ended 31 December 2024. Accordingly, the consolidated financial information is not in full accordance with to or of IFRS Accounting Standards issues by the IASB and endorsed for the UK. The consolidated financial information has been prepared on the going concern basis.

The information contained in this announcement for the periods ended 30 June 2024 and 31 December 2024 also does not constitute statutory accounts. A copy of the statutory accounts for the year ended 31 December 2024 has been delivered to the Registrar of Companies. The auditors' report on those accounts was unqualified, with no matters by way of emphasis, and did not contain statements under sections 498(2) or (3) of the Companies Act 2006.

 

Going concern

The Directors have assessed the going concern status of the Group, considering a period of at least 12 months from the date of approval of these condensed consolidated interim financial statements.

The Group's business activities, together with those factors likely to affect its future performance, are set out in the Financial and Operating Review. Details of the cash flows of the Group during the period, along with its financial position at the period-end, are set out in the Financial Review. The condensed consolidated financial statements include details of the Group's cash, cash equivalents and liquid investment balances in Note 16, and details of borrowings are set out in Note 14.

When assessing the going concern status of the Group, the Directors have considered in particular its financial position, including its significant balance of cash, cash equivalents and liquid investments and the terms and remaining durations of the borrowing facilities in place. The Group had a strong financial position as at 30 June 2025, with combined cash, cash equivalents and liquid investments of $4,577.7 million. Total borrowings and other financial liabilities were $6,865.4 million, resulting in a net debt position of $2,287.7 million. Of the total borrowings, only 6% is repayable within one year, and an additional 9% repayable between one and two years.

When assessing the prospects of the Group, the Directors have considered the Group's copper price forecasts, the Group's expected production levels, operating cost profile and capital expenditure. These forecasts are based on the Group's budgets and life-of-mine models, which are also used when assessing relevant accounting estimates, including depreciation, deferred stripping and closure provisions. This analysis has focused on the existing asset base of the Group, without factoring in potential development projects, which is considered appropriate for an assessment of the Group's ability to manage the impact of a depressed economic environment. The analysis has only included the drawdown of existing committed borrowing facilities and has not assumed that any new borrowing facilities will be put in place. The Directors have assessed the key risks which could impact the prospects of the Group over the going concern period and consider the most relevant to be risks to the copper price outlook, as this is the factor most likely to result in significant volatility in earnings and cash generation. Robust downside sensitivity analyses have been performed, assessing the impact of each of:

 

●	A significant deterioration in the future copper price forecasts by an average of 10% throughout the going concern period,
●	An even more pronounced short-term reduction of a further 50 c/lb in the copper price for a period of three months, in addition to the above deterioration of 10% in the copper price throughout the review period,
●	The risk of capital expenditure overruns in respect of the Second Concentrator Project at Centinela, the Desalination Plant Expansion, Concentrate Pipeline and El Mauro Enclosures Projects at Los Pelambres. In the case of the Second Concentrator Project at Centinela, given the timescale of the project, we have concluded that this is not likely to result in a significant impact during the going concern review period. In the case of the Desalination Plant Expansion, Concentrate Pipeline and El Mauro Enclosures Projects at Los Pelambres, we have included the impact of a 20% overrun in the downside sensitivity analysis, and
●	A shutdown of any one of the Group's operations for a period of one month.

 

The stability of tailings storage facilities represents a potentially significant operational risk for mining operations globally. The Group's tailings storage facilities are designed to international standards, constructed using downstream methods, subject to rigorous monitoring and reporting, and reviewed regularly by an international panel of independent experts. Given these standards of design, development, operations and review, the impact of a potential tailings dam failure has not been included in the sensitivity analysis.

The above downside sensitivity analyses indicated results which could be managed in the normal course of business, including the aggregate impact of the above sensitivities occurring at the same time. The analysis indicated that the Group is expected to remain in compliance with all of the covenant requirements of its borrowings throughout the review period and retain sufficient liquidity. Based on their assessment of the Group's prospects and viability, the Directors have formed a judgement, at the time of approving the condensed consolidated interim financial statements, that there are no material uncertainties that the Directors are aware of that cast doubt on the Group's going concern status and that there is a reasonable expectation that the Group has adequate resources to continue in operational existence for a period of at least 12 months from the date of approval of these condensed consolidated interim financial statements. The Directors therefore consider it appropriate to adopt the going concern basis of accounting in preparing the condensed consolidated interim financial statements.

b)                  Adoption of new accounting standards

 The following accounting standards, amendments and interpretations became effective in the current reporting period but the application of these standards and interpretations had no material impact on the amounts reported in these interim financial statements 'and should be read in conjunction with the consolidated FS for the yr ended 31 Dec 2024:

 

Amendments	Effective date
Lack of Exchangeability (Amendments to IAS 21)	Annual periods beginning on or after 1 January 2025.

 

c)             Accounting standards issued but not yet effective

At the date of authorisation of these financial statements, the following standards and interpretations, which have not been applied in these financial statements, were in issue but not yet effective. It is expected that where applicable, these standards and amendments will be adopted on each respective effective date. None of these standards are expected to have a significant impact on the Group, except for      IFRS 18. IFRS 18 introduces new requirements to:

-              present specified categories and defined subtotals in the statement of profit or loss,

-              provide disclosures on management-defined performance measures (MPMs) in the notes to the financial statements, and

-              improve aggregation and disaggregation.

The Group is currently assessing the impact of IFRS 18, and the preliminary assessment indicates that the presentation of the net share of results from associates and joint ventures is expected to be shown within investing activities, rather than being part of operating profit or loss. Further changes upon the implementation of IFRS 18 may be required.

The following standards are effective after 1 January 2025 (and subject to UK endorsement):

Standards	Effective date
IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information	Annual periods beginning on or after 1 January 2026.
IFRS S2 Climate-related Disclosures	Annual periods beginning on or after 1 January 2026.
Presentation and Disclosures in Financial Statements (IFRS 18)1	Annual periods beginning on or after 1 January 2027.
IFRS 19 Subsidiaries without Public Accountability: Disclosures (IFRS 19)1	Annual periods beginning on or after 1 January 2027.
Amendments to IFRS	Effective date
Classification and measurement of financial instruments (Amendments IFRS 9 and IFRS 7)1	Annual periods beginning on or after 1 January 2026.

¹ These amendments are still subject to UK endorsement.

 

 

d)             Critical accounting judgements and key sources of estimation uncertainty

 

The critical accounting judgements and key estimates applied in these interim financial statements are:

 

Judgements

 

Non-financial assets impairment indicators:

 

The Group reviews the carrying value of its intangible assets and property, plant and equipment, as well as its investments in its associates and joint ventures, to determine whether there is an indication that those assets are impaired. As at 30 June 2025 the following assessments have been performed:

 

●	Buenaventura: It has been determined that, as of 30 June 2025, there were indicators of a potential impairment in relation to the Group's investment in associate balance in respect of Compañía de Minas Buenaventura S.A.A. (''Buenaventura''). Accordingly, as detailed in Note 13, an estimate of the recoverable amount of the Buenaventura investment in associate balance has been performed. The recoverable amount indicated by this assessment was above the carrying value of the investment in associate balance, and accordingly no impairment is required or appropriate as at 30 June 2025.
●	Zaldívar: It has been determined that, as of 30 June 2025, there were indicators of a potential impairment in relation to the Group's investment in joint venture balance in respect of Zaldívar; in particular, considering changes to its life-of-mine plans and the operational performance during the first six months of 2025. Accordingly, as detailed in Note 4, an estimate of the recoverable amount of the Zaldívar investment in joint venture balance has been performed. The recoverable amount indicated by this assessment was above the carrying value of the investment in joint venture balance, and accordingly no impairment is required or appropriate as at 30 June 2025.

 

 

Estimates

 

The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The Group has identified the following estimates and assumptions which are considered to have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next 12 months:

 

·      The estimate of the recoverable amount of the Zaldívar investment in joint venture balance, as detailed in Note 4, reflects certain key estimates and assumptions. Details of the key assumptions and relevant sensitivities in respect the estimate of the recoverable amount are set out in Note 4.

 

 

2.   Operating profit and share of total results from associates and joint ventures

		Six months ended 30.06.2025	Six months ended 30.06.2024
		$m	$m
Revenue		3,799.4	2,955.2
Cost of sales		(2,090.2)	(1,852.5)
Gross profit		1,709.2	1,102.7
Administrative and distribution expenses		(305.0)	(299.8)
Other operating income		26.4	24.5
Other operating expenses 1		(155.8)	(156.1)
Operating profit		1,274.8	671.3
Net share of results from associates and joint ventures		33.3	17.2
Operating profit and share of total results from associates and joint ventures		1,308.1	688.5

¹ Other operating expenses comprise $25.7 million of exploration and evaluation expenditure (six months ended 30 June 2024 - $26.8 million), $11.2 million in respect of the employee severance provision (six months ended 30 June 2024 - $9.0 million), $0.3 million in respect of the closure provision (six months ended 30 June 2024 - $0.4 million), and $118.6 million of other expenses (including Medium-term and long-term drilling costs & evaluation of $33.3 million (six months ended 30 June 2024 - $45.4 million), costs of community programmes of $33.5 million (six months ended 30 June 2024- $44.6 million),  the "ad valorem" element of the new mining royalty of $13.8 million (six months ended 30 June 2024- $13.0 million), and other expenses of $38.0 million (six months ended 30 June 2024- $16.9 million).

 

 

3.   Exceptional items

Exceptional items are material items of income and expense which are non-regular or non-operating and typically non-cash, including impairments and profits or losses on disposals. The tax effect of items presented as exceptional is also classified as exceptional, as are material deferred tax adjustments that relate to more than one reporting period. The classification of these types of items as exceptional is considered to be useful as it provides an indication of the underlying earnings generated by the ongoing businesses of the Group.

 

Compañía de Minas Buenaventura S.A.A

During 2023, the Group entered into an agreement to acquire up to an additional 30 million shares in Buenaventura. Prior to completion, the agreement was accounted for at fair value through profit and loss. From March 2024 onwards, the Group was considered to have significant influence over Buenaventura (in accordance with the IAS 28 Investments in Associates and Joint Ventures definition). Accordingly, the Group's interest in Buenaventura has been accounted for as an investment in associate from that date.

An exceptional fair value gain of $51.0 million was recognised during the first six months of 2024 in respect of the agreement. A deferred tax expense of $12.7 million was recognised in respect of this gain, resulting in a post-tax impact of $38.3 million.

During the first six months of 2025, an exceptional deferred tax credit of $54.5 million was recognised in the income statement, due to the derecognition of the deferred tax liability which had been previously recognised through the income statement in relation to the agreement, as the requirements of the UK Substantial shareholdings exemption were met during the period.

A further deferred tax credit of $44.7 million has been recognised in Other Comprehensive Income, due to the derecognition of the deferred tax liability which had been previously recognised through Other Comprehensive Income in relation to the Group's existing shareholding in Buenaventura.

 

4.        Impairment reviews and asset sensitivities

 

Zaldívar

 

It has been determined that, as of 30 June 2025, there were indicators of a potential impairment in relation to the Group's investment in joint venture balance in respect of Zaldívar; in particular, considering changes to its life-of-mine plans and the operational performance during the first six months of 2025. Accordingly, an impairment review was performed as at 30 June 2025. The review concluded that the recoverable amount of the investment balance was above its carrying value, and accordingly no impairment was required or appropriate.

 

This review has been based on the fair value less costs of disposal for the investment balance, reflecting the Group's current estimate of the net amount it would expect to receive from the sale of the investment in an orderly transaction between potential market participants. This value has been estimated based on discounted cash flow models in respect of Zaldivar operation and projects, as well as the valuation of additional mineral resource potential based on resource multiples. The key assumptions used in this review are listed below.

 

Copper price outlook

The assumption to which the value of the investment is most sensitive is the future long-term copper price. The copper price forecasts (representing the Group's estimates of the assumptions that would be used by independent market participants in valuing the assets) are based on consensus analyst forecasts. A long-term copper price of $4.50/lb (reflecting 2025 real terms) has been used in the model, which has increased from $4.15/lb (reflecting 2024 real terms) at the prior year-end.

 

The US dollar/Chilean peso exchange rate

The value of the assets is also sensitive to movements in the US dollar/Chilean peso exchange rate. A long-term exchange rate of Ch$870/$1 has been used in the model. This compares with the long-term exchange rate of Ch$850/$1 used at the 2024 year-end.

 

Discount rate

A real post-tax discount rate of 8% (31 December 2024 - 8%), calculated using relevant market data, has been applied in the model.

 

Climate-related impacts

The impairment review reflects the Group's estimates of potential future climate-related impacts. The Group's Annual Report provides disclosures in line with the recommendations of the Task Force on Climate-related Financial Disclosures (''TCFD'').  This process includes scenario analyses assessing the potential future impact of transition and physical risks. The results of this scenario analysis have been considered as part of this review.

 

Other relevant assumptions

In addition to the impact of the future copper price, the US dollar/Chilean peso exchange rate, the discount rate and climate-related impacts, the model is sensitive to the assumptions in respect of future production levels, operating costs and sustaining and development capital expenditure. The relevant operational assumptions include the following particular aspects:

 

·	Zaldívar's EIA application, extending the operation's mining and water environmental permits to 2051, and allowing the development of the primary sulphides ore deposit, was approved in May 2025. The permit approval includes a transitional period whereby Zaldívar's existing continental water extraction permit has been extended to 2028, after which time the mine must transition its water supply to either seawater or water from third parties. The impairment valuation model includes the forecast costs of an alternative water source to be implemented by 2028, allowing the continued operation of the mine without interruption. The model assumes that the primary sulphides deposit will be developed, and also that Zaldívar will process a portion of the residual copper contained within its existing tailings deposit.
·	The mining of certain parts of Zaldívar's ore deposit are subject to agreements or easements to access these areas and to relocate certain infrastructure owned by third parties. The impairment valuation model assumes that the necessary agreements, easements and permits will be obtained to allow the mining of these parts of the ore deposit.

 

Conclusion

The recoverable amount indicated by this assessment was above the carrying value of the investment in joint venture balance, and accordingly no impairment is required or appropriate as at 30 June 2025.

 

The assumption to which the estimation of the recoverable amount is most sensitive is the future copper price. A down-side sensitivity was performed with a long-term copper price of $4.05/lb, reflecting a 10% reduction in the long-term price forecast. This indicated a potential deficit of approximately $175 million (on a 50% attributable basis) for the Zaldívar investment balance. This was a simple sensitivity exercise, looking at an illustrative change in the forecast long-term copper price in isolation. A deterioration in the long-term copper price environment is likely to result in corresponding improvements in a range of input cost factors. In particular, given that copper exports account for over 50% of Chile's exports, historically there has often been a correlation between movements in the copper price and the US dollar/Chilean peso exchange rate, and a decrease in the copper price may therefore result in a weakening of the Chilean peso, with a resulting reduction in the operation's operating costs and capital expenditure in US$ terms. These likely cost reductions, as well as potential operational changes which could be made in a weaker copper price environment, could partly mitigate the impact of the lower copper price modelled in this potential down-side sensitivity.

 

 

 

 

Other Mining Operations

 

There were no indicators of potential impairment for the Group's non-current assets associated with its other mining operations as at 30 June 2025, and accordingly no impairment tests have been performed. The impairment indicator assessment included consideration of the potential indicators set out in IAS 36, 'Impairment of Assets', which included quantitative analysis based on the operations' life-of-mine models as adjusted for certain assumptions (including potential future development opportunities) ("the models"). These models provide indicative valuations and do not represent, or comply with, a formal impairment assessment prepared in accordance with IAS 36.  

 

No qualitative indicators of potential impairment were identified. Similarly, no quantitative indicators of impairment were identified, with the models used within the impairment indicator assessment continuing to indicate positive headroom for the Group's other mining operations, with the indicated value of the assets in excess of their carrying value.

 

5.   Segmental analysis

The Group's reportable segments, which are the same as its operating segments, are as follows:

 

●              Los Pelambres

●              Centinela

●              Antucoya

●              Zaldívar

●              Exploration and evaluation

●              Corporate and other items

●              Transport division

 

For management purposes, the Group is organised into two business divisions based on their products - Mining and Transport. The mining division is split further for management reporting purposes to show results by mine and exploration activity. Los Pelambres produces primarily copper concentrate and molybdenum, gold and silver as a by-product. Centinela produces copper concentrate containing gold as a by-product, copper cathodes and molybdenum concentrates. Antucoya and Zaldívar produce copper cathodes. The transport division provides rail and road cargo transport together with a number of ancillary services. All the operations are based in Chile. The Exploration and evaluation segment incurs exploration and evaluation expenses. "Corporate and other items" comprises costs incurred by the Company, Antofagasta Minerals S.A., the Group's mining corporate centre and other entities, that are not allocated to any individual business segment. Consistent with its internal management reporting, the Group's corporate and other items are included within the mining division.

 

The Chief Operating decision-maker (the Group's Chief Executive Officer) monitors the operating results of the business segments separately for the purpose of making decisions about resources to be allocated and assessing performance. Segment performance is evaluated based on the operating profit of each of the segments.

 

During the six-month period to 30 June 2025, there have been no changes from prior periods in the measurement methods used to determine operating segments and reported segment profit or loss' to the bottom of the page 11' as required by IAS 34.16A.g.v

 

a)   Segment revenues and results

 

For the six months ended 30.06.2025 (Unaudited)

 

	Los Pelambres	Centinela	Antucoya	Zaldívar	Exploration and evaluation2	Corporate and other items	Total Mining	Transport division	Total
	$m	$m	$m	$m	$m	$m	$m	$m	$m
Revenue	1,823.6	1,508.4	381.5	-	-	-	3,713.5	85.9	3,799.4
Operating costs excluding depreciation	(745.8)	(570.3)	(223.8)	-	(25.7)	(46.9)	(1,612.5)	(52.1)	(1,664.6)
Depreciation	(307.3)	(452.3)	(74.2)	-	-	(6.0)	(839.8)	(17.9)	(857.7)
Loss on disposals	-	(2.3)	-	-	-	-	(2.3)	-	(2.3)
Operating profit/(loss)	770.5	483.5	83.5	-	(25.7)	(52.9)	1,258.9	15.9	1,274.8
Net share of results from associates and joint ventures	-	-	-	0.7	-	32.3	33.0	0.3	33.3
Operating profit and share of total results from associates and joint ventures	770.5	483.5	83.5	0.7	(25.7)	(20.6)	1,291.9	16.2	1,308.1
Investment income	17.1	26.5	4.6	-	-	35.5	83.7	0.9	84.6
Interest expense	(82.6)	(46.9)	(12.8)	-	-	(35.4)	(177.7)	(0.1)	(177.8)
Other finance items (excluding exceptional items)	(26.4)	(20.4)	(5.0)	-	-	(2.1)	(53.9)	1.0	(52.9)
Profit/(loss) before tax	678.6	442.7	70.3	0.7	(25.7)	(22.6)	1,144.0	18.0	1,162.0
Tax	(236.6)	(132.3)	(15.6)	-	-	(34.0)	(418.5)	(6.1)	(424.6)
Tax - exceptional items3	-	-	-	-	-	54.5	54.5	-	54.5
Profit/(loss) for the period	442.0	310.4	54.7	0.7	(25.7)	(2.1)	780.0	11.9	791.9
Non-controlling interests	168.4	90.5	11.5	-	-	(0.1)	270.3	-	270.3
Profit/(losses) attributable to the owners of the parent	273.6	219.9	43.2	0.7	(25.7)	(2.0)	509.7	11.9	521.6
EBITDA1	1,077.8	938.1	157.7	48.0	(25.7)	1.7	2,197.6	36.6	2,234.2
Capital Expenditure (cash basis)	436.0	1,122.9	43.2	-	-	2.5	1,604.6	15.8	1,620.4
Segment assets and liabilities
Segment assets	8,932.1	9,286.6	2,172.4	-	-	1,453.1	21,844.2	436.5	22,280.7
Investments in associates and joint ventures	-	-	-	893.8	-	890.3	1,784.1	9.3	1,793.4
Segment liabilities	(4,807.7)	(3,183.1)	(577.2)	-	-	(1,878.2)	(10,446.2)	(59.6)	(10,505.8)

 

¹ EBITDA refers to Earnings Before Interest, Tax, Depreciation and Amortisation. EBITDA is calculated by adding back depreciation, amortisation, profit or loss on disposals and impairment charges to operating profit. This comprises 100% of the EBITDA from the Group´s subsidiaries, and the Group´s proportional share of the EBITDA of its associates and joint ventures.

² Operating cash outflow in the exploration and evaluation segment was $20.3 million.

³ An exceptional deferred tax credit of $54.5 million was recognised during the first six months of 2025, due to the derecognition of the deferred tax liability in respect of the Group's agreement to acquire shares in Buenaventura, as the requirements of the UK Substantial shareholdings exemption were met during the period. See Notes 3 and 13.

For the six months ended 30.06.2024 (Unaudited)

 

	Los Pelambres	Centinela	Antucoya	Zaldívar	Exploration and evaluation2	Corporate and other items	Total Mining	Transport division	Total
	$m	$m	$m	$m	$m	$m	$m	$m	$m
Revenue	1,526.7	970.8	359.7	-	-	-	2,857.2	98.0	2,955.2
Operating costs excluding depreciation	(641.6)	(640.9)	(225.8)	-	(26.8)	(42.4)	(1,577.5)	(59.2)	(1,636.7)
Depreciation	(209.5)	(359.8)	(55.8)	-	-	(4.9)	(630.0)	(17.2)	(647.2)
Operating profit/(loss)	675.6	(29.9)	78.1	-	(26.8)	(47.3)	649.7	21.6	671.3
Net share of results from associates and joint ventures	-	-	-	6.7	-	10.3	17.0	0.2	17.2
Operating profit and share of total results from associates and joint ventures	675.6	(29.9)	78.1	6.7	(26.8)	(37.0)	666.7	21.8	688.5
Investment income	16.4	15.4	3.7	-	-	37.6	73.1	0.4	73.5
Interest expense	(59.9)	(24.1)	(15.5)	-	-	(32.4)	(131.9)	(0.2)	(132.1)
Other finance items (Excluding exceptional items)	10.0	17.4	3.4	-	-	2.0	32.8	(1.1)	31.7
Fair value gain on other financial assets - exceptional items 3	-	-	-	-	-	51.0	51.0	-	51.0
Profit/(loss) before tax	642.1	(21.2)	69.7	6.7	(26.8)	21.2	691.7	20.9	712.6
Tax	(259.0)	3.7	(18.1)	-	-	(9.2)	(282.6)	(4.2)	(286.8)
Tax - exceptional items3	-	-	-	-	-	(12.7)	(12.7)	-	(12.7)
Profit/(loss) for the period	383.1	(17.5)	51.6	6.7	(26.8)	(0.7)	396.4	16.7	413.1
Non-controlling interests	152.1	(6.9)	9.2	-	-	(0.9)	153.5	-	153.5
Profit/(losses) attributable to the owners of the parent	231.0	(10.6)	42.4	6.7	(26.8)	0.2	242.9	16.7	259.6
EBITDA1	885.1	329.9	133.9	50.9	(26.8)	(21.1)	1,351.9	42.5	1,394.4
Capital Expenditure (cash basis)	355.1	631.3	52.1	-	-	1.7	1,040.2	19.3	1,059.5
Segment assets and liabilities
Segment assets	8,104.0	7,438.6	1,884.6	-	-	2,178.6	19,605.8	419.0	20,024.8
Investments in associates and joint ventures	-	-	-	886.1	-	820.9	1,707.0	10.0	1,717.0
Segment liabilities	(4,128.4)	(2,764.4)	(524.6)	-	-	(1,994.9)	(9,412.3)	(57.0)	(9,469.3)

 

¹ EBITDA refers to Earnings Before Interest, Tax, Depreciation and Amortisation. EBITDA is calculated by adding back depreciation, amortisation, profit or loss on disposals and impairment charges to operating profit. This comprises 100% of the EBITDA from the Group´s subsidiaries, and the Group´s proportional share of the EBITDA of its associates and joint ventures.

² Operating cash outflow in the exploration and evaluation segment was $24.0 million.

³ An exceptional fair value gain of $51.0 million was recognised during the first six months of 2024 in respect of the Group's agreement to acquire shares in Buenaventura. A deferred tax expense of $12.7 million was recognised in respect of this gain, resulting in a post-tax impact of $38.3 million. See Notes 3 and 13.

 

 

b)     Entity wide disclosures

 

Revenue by product

	Six months ended 30.06.2025	Six months ended 30.06.2024
	$m	$m
Copper
-  Los Pelambres	1,442.8	1,221.2
-  Centinela concentrates	787.7	363.9
-  Centinela cathodes	389.4	436.0
-  Antucoya	378.4	356.5
Provision of shipping services
-  Los Pelambres	30.7	28.2
-  Centinela concentrates	15.7	10.6
-  Centinela cathodes	2.8	3.4
-  Antucoya	3.0	3.2
Gold
-  Los Pelambres	80.7	39.9
-  Centinela concentrates	223.7	100.9
Molybdenum
-  Los Pelambres	236.4	217.3
-  Centinela concentrates	74.8	48.7
Silver
-  Los Pelambres	33.1	20.0
-  Centinela concentrates	14.3	7.4
Total Mining	3,713.5	2,857.2
Transport division	85.9	98.0
	3,799.4	2,955.2

 

 

 

Revenue by location of customer

	Six months ended 30.06.2025	Six months ended 30.06.2024
	$m	$m
Europe
-  United Kingdom	10.9	15.8
-  Switzerland	266.2	142.2
-  Spain	13.8	46.8
-  Germany	200.8	35.2
-  Rest of Europe	51.8	116.7
Latin America
-  Chile	206.7	200.9
-  Rest of Latin America	219.0	140.4
North America
-  United States	314.6	110.4
Asia Pacific
-  Japan	1,143.7	964.7
-  China	732.9	640.0
-  Singapore	181.7	170.8
-  South Korea	205.7	193.0
-  Hong Kong	222.4	56.2
-  Rest of Asia	29.2	122.1
	3,799.4	2,955.2

 

Information about major customers

 

In the first half of 2025, the Group´s mining revenue included $744.2 million related to one large customer that individually accounted for more than 10% of the Group's revenue (six months ended 30 June 2024 - one large customer representing $446.6 million)

 

6.   Revenue

Copper, molybdenum, gold and silver concentrate sale contracts and copper cathode sale contracts generally provide for provisional pricing of sales at the time of shipment, with final pricing being based on the monthly average London Metal Exchange copper price or monthly average molybdenum price for specified future periods. This normally ranges from one to four months after shipment to the customer. For sales contracts which contain provisional pricing mechanisms, the total receivable balance is measured at fair value through profit or loss. Gains and losses from the mark-to-market of open sales are recognised through adjustments to revenue in the income statement and to trade receivables in the balance sheet. The Group determines mark-to-market prices using forward prices at each period-end for copper concentrate and cathode sales, and period-end month average prices for molybdenum concentrate sales due to the absence of a futures market in the market price references for that commodity in the majority of the Group's contracts.

 

With sales of concentrates, which are sold to smelters and roasting plants for further processing into fully refined metal, the price of the concentrate (which is the amount recorded as revenue) reflects the market value of the fully refined metal less a "treatment and refining charge" deduction, to reflect the lower value of this partially processed material compared with the fully refined metal.

 

A significant proportion of the Group's copper sales are on Cost, Insurance & Freight (CIF) Incoterms, which means that the Group is responsible for shipping the product to a destination port specified by the customer. The shipping service represents a separate performance obligation and is recognised separately from the sale of the material over time as the shipping service is provided.

 

The total revenue from contracts with customers and the impact of provisional pricing adjustments in respect of concentrate and cathode sales is as follows:

	Six months ended 30.06.2025	Six months ended 30.06.2024
	$m	$m
Revenue from contracts with customers
Sale of products	3,447.8	2,662.8
Provision of shipping services associated with the sale of products	52.2	45.4
Transport division 1	85.9	98.0
Provisional pricing adjustments in respect of copper, gold, molybdenum and silver	213.5	149.0
Total revenue	3,799.4	2,955.2

 

¹The transport division provides rail and road cargo transport together with a number of ancillary services.

 

The categories of revenue which are principally affected by different economic factors are the individual product types. A summary of revenue by product is set out in Note 5(b).

 

The following tables set out the impact of provisional pricing adjustments, and treatment and refining charges for the more significant products. The revenue from these products, which includes, for the sale of copper, revenue associated with the provision of shipping services, is reconciled to total revenue in Note 5(b).

 

For the period ended 30 June 2025

 

 

	$m	$m	$m	$m	$m	$m	$m	$m	$m	$m	$m
	Los Pelambres	Centinela	Centinela	Antucoya	Los Pelambres	Centinela	Los Pelambres	Centinela	Los Pelambres	Centinela	Total
	Copper concentrate	Copper concentrate	Copper cathodes	Copper cathodes	Gold in concentrate	Gold in concentrate	Molybdenum concentrate	Molybdenum concentrate	Silver concentrate	Silver concentrate
Provisionally priced sales of products	1,341.5	743.5	384.0	376.2	76.2	206.4	252.9	75.7	33.1	14.8	3,504.3
Revenue from freight services	30.7	15.7	2.8	3.0	-	-	-	-	-	-	52.2
	1,372.2	759.2	386.8	379.2	76.2	206.4	252.9	75.7	33.1	14.8	3,556.5
Effects of pricing adjustments to previous year invoices
Reversal of mark-to-market adjustments at the end of the previous year	40.1	22.0	1.4	1.4	-	0.4	4.0	0.5	-	-	69.8
Settlement of sales invoiced in the previous year	22.8	9.6	0.5	0.3	2.0	1.3	(8.8)	2.6	(0.2)	(0.4)	29.7
Total effect of adjustments to previous year invoices in the current year	62.9	31.6	1.9	1.7	2.0	1.7	(4.8)	3.1	(0.2)	(0.4)	99.5
Effects of pricing adjustments to current period invoices
Settlement of sales invoiced in the current period	23.3	11.6	3.4	0.5	2.6	14.4	(0.1)	(1.4)	0.4	0.1	54.8
Mark-to-market adjustments at the end of the current period	29.4	16.4	0.1	-	-	1.5	8.6	3.2	-	-	59.2
Total effect of adjustments to current period invoices	52.7	28.0	3.5	0.5	2.6	15.9	8.5	1.8	0.4	0.1	114.0
Total pricing adjustments	115.6	59.6	5.4	2.2	4.6	17.6	3.7	4.9	0.2	(0.3)	213.5
Revenue before deducting treatment & refining charges	1,487.8	818.8	392.2	381.4	80.8	224.0	256.6	80.6	33.3	14.5	3,770.0
Treatment and refining charges	(14.3)	(15.4)	-	-	(0.1)	(0.3)	(20.2)	(5.8)	(0.2)	(0.2)	(56.5)
Revenue net of tolling charges
	1,473.5	803.4	392.2	381.4	80.7	223.7	236.4	74.8	33.1	14.3	3,713.5

 

 

 

For the period ended 30 June 2024

 

	$m	$m	$m	$m	$m	$m	$m	$m	$m	$m	$m
	Los Pelambres	Centinela	Centinela	Antucoya	Los Pelambres	Centinela	Los Pelambres	Centinela	Los Pelambres	Centinela	Total
	Copper concentrate	Copper concentrate	Copper cathodes	Copper cathodes	Gold in concentrate	Gold in concentrate	Molybdenum concentrate	Molybdenum concentrate	Silver concentrate	Silver concentrate
Provisionally priced sales of products	1,211.7	355.8	431.8	350.1	39.4	98.3	210.0	45.5	20.3	7.3	2,770.2
Revenue from freight services	28.2	10.6	3.4	3.2	-	-	-	-	-	-	45.4
	1,239.9	366.4	435.2	353.3	39.4	98.3	210.0	45.5	20.3	7.3	2,815.6
Effects of pricing adjustments to previous year invoices
Reversal of mark-to-market adjustments at the end of the previous year	(45.1)	(16.2)	(0.3)	(0.2)	-	(2.6)	1.0	0.4	-	-	(63.0)
Settlement of sales invoiced in the previous year	62.5	28.2	(1.0)	(0.9)	(0.4)	1.5	3.3	1.6	(0.7)	-	94.1
Total effect of adjustments to previous year invoices in the current year	17.4	12.0	(1.3)	(1.1)	(0.4)	(1.1)	4.3	2.0	(0.7)	-	31.1
Effects of pricing adjustments to current period invoices
Settlement of sales invoiced in the current period	71.1	25.1	6.6	8.2	1.0	3.7	10.2	3.3	0.7	0.2	130.1
Mark-to-market adjustments at the end of the current period	(12.0)	(5.4)	(1.1)	(0.7)	-	0.1	5.2	1.8	-	-	(12.1)
Total effect of adjustments to current period invoices	59.1	19.7	5.5	7.5	1.0	3.8	15.4	5.1	0.7	0.2	118.0
Total pricing adjustments	76.5	31.7	4.2	6.4	0.6	2.7	19.7	7.1	-	0.2	149.1
Revenue before deducting treatment & refining charges	1,316.4	398.1	439.4	359.7	40.0	101.0	229.7	52.6	20.3	7.5	2,964.7
Treatment and refining charges	(67.0)	(23.6)	-	-	(0.1)	(0.1)	(12.4)	(3.9)	(0.3)	(0.1)	(107.5)
Revenue net of tolling charges
	1,249.4	374.5	439.4	359.7	39.9	100.9	217.3	48.7	20.0	7.4	2,857.2

 

(i)      Copper concentrate

 

The typical period for which sales of copper concentrate remain open until settlement occurs is a range of approximately three to four months from shipment date.

		At 30.06.2025	At 30.06.2024
Sales provisionally priced at the balance sheet date	Tonnes	129,700	112,400
Average mark-to-market price	$/lb	4.49	4.33
Average provisional invoice price	$/lb	4.33	4.42

 

 

(ii)     Copper cathodes

 

The typical period for which sales of copper cathodes remain open until settlement occurs is approximately one month from shipment date.

		At 30.06.2025	At 30.06.2024
Sales provisionally priced at the balance sheet date	Tonnes	12,100	14,300
Average mark-to-market price	$/lb	4.51	4.30
Average provisional invoice price	$/lb	4.50	4.36

 

 

(iii)    Gold in concentrate

 

The typical period for which sales of gold in concentrate remain open until settlement is approximately one month from shipment date.

		At 30.06.2025	At 30.06.2024
Sales provisionally priced at the balance sheet date	Ounces	20,600	10,500
Average mark-to-market price	$/oz	3,313	2,337
Average provisional invoice price	$/oz	3,242	2,329

 

 

(iv)    Molybdenum concentrate

 

The typical period for which sales of molybdenum remain open until settlement is approximately two months from shipment date.

 

		At 30.06.2025	At 30.06.2024
Sales provisionally priced at the balance sheet date	Tonnes	4,100	2,700
Average mark-to-market price	$/lb	21,87	23.20
Average provisional invoice price	$/lb	20,55	21.95

 

 

As detailed above, the effects of gains and losses from the marking-to-market of open sales are recognised through adjustments to revenue in the income statement and to trade receivables in the balance sheet. The effect of mark-to-market adjustments on the balance sheet at the end of each period is shown below.

		Effect on debtors of period and year end mark-to-market adjustments
		Six months ended  30.06.2025	Six months ended 30.06.2024
		$m	$m
Los Pelambres - copper concentrate		29.4	(12.0)
Los Pelambres - molybdenum concentrate		8.6	5.2
Centinela - copper concentrate		16.4	(5.4)
Centinela - molybdenum concentrate		3.2	1.8
Centinela - gold in concentrate		1.5	0.1
Centinela - copper cathodes		0.1	(1.1)
Antucoya - copper cathodes		-	(0.7)
		59.2	(12.1)

 

7.   Financial instruments and financial risk management

a)             Categories of financial instruments

The carrying value of financial assets and financial liabilities is shown below.

			For the period ended 30.06.2025
	At fair value through profit and loss	At fair value through other comprehensive income		Derivative instruments at fair value, designated as hedges	Held at amortised cost	Total
	$m	$m		$m	$m	$m
Financial assets
Equity investments	-	11.3		-	-	11.3
Trade and other receivables	696.8	-		-	190.4	887.2
Cash and cash equivalents	239.6	-		-	2,361.3	2,600.9
Liquid investments	1,976.8	-		-	-	1,976.8
	2,913.2	11.3		-	2,551.7	5,476.2
Financial liabilities
Derivative financial instruments	-	-		(1.4)	-	(1.4)
Trade and other payables	-	-		-	(1,089.1)	(1,089.1)
Borrowings and other financial liabilities	-	-		-	(6,865.4)	(6,865.4)
	-	-		(1.4)	(7,954.5)	(7,955.9)
			For the year ended 31.12.2024
	At fair value through profit and loss	At fair value through other comprehensive income		Derivative instruments at fair value, designated as hedges	Held at amortised cost	Total
	$m	$m		$m	$m	$m
Financial assets
Equity investments	-	11.6		-	-	11.6
Trade and other receivables	669.1	-		-	129.3	798.4
Cash and cash equivalents	124.3	-		-	2,064.9	2,189.2
Liquid investments	2,127.1	-		-	-	2,127.1
	2,920.5	11.6		-	2,194.2	5,126.3
Financial liabilities
Derivative financial instruments	-	-		(25.5)	-	(25.5)
Trade and other payables	-	-		-	(1,177.4)	(1,177.4)
Borrowings and other financial liabilities	-	-		-	(5,945.4)	(5,945.4)
	-	-		(25.5)	(7,122.8)	(7,148.3)

 

The fair value of the fixed rate bonds (Corporatec) included within the "Borrowings" category in Note 14 was $1,729.4 million at 30 June 2025 compared with their carrying value of $1,731.3 million (year ended 31 December 2024 - fair value of $1,630.5 million compared with their carrying value of $1,729.0 million).

 

The fair value of the fixed rate bonds (Los Pelambres) included within the "Borrowings" category in Note 14 was $1,710.6 million at 30 June 2025 compared with their carrying value of $1,527.3 million.

 

The fair value of the fixed rate borrowings included within the "Other loans" category in Note 14 was $158.8 million at 30 June 2025 compared with their carrying value of $150.0 million (year ended 31 December 2024 - fair value of $700.5 million compared with their carrying value of $670.0 million). This fair value was calculated using market rates at the period end. These are level 2 inputs as described below.

 

The fair value of the fixed rate other financial liabilities balance shown in Note 14 was $832.4 million at 30 June 2025 compared with its carrying value of $588.8 million (year ended 31 December 2024 - fair value of $756.9 million at 31 December 2024 compared with its carrying value of $594.0 million). This fair value was calculated using market rates at the period end. These are level 2 inputs as described below.

 

The fair value of all other financial assets and financial liabilities carried at amortised cost approximates the carrying value presented above.

The following tables reconcile between the total trade and other receivables and trade and other payables balances on the balance sheet with the financial instrument amounts included in this note:

 

	Six months  ended 30.06.2025	Year ended  31.12.2024
Financial assets
Trade and other receivables (non-current) per balance sheet	55.3	54.4
Trade and other receivables (current) per balance sheet	1,021.2	899.5
Total trade and other receivables per balance sheet	1,076.5	953.9
Less: non-financial assets (including prepayments and VAT receivables)	(189.3)	(155.5)
Total trade and other receivables	887.2	798.4
Financial liabilities
Trade and other payables (current) per balance sheet	(1,214.8)	(1,320.3)
Trade and other payables (non-current) per balance sheet	(5.2)	(10.2)
Total trade and other payables per balance sheet	(1,220.0)	(1,330.5)
Less: non-financial liabilities (including VAT payables)	130.9	153.1
Total trade and other payables	(1,089.1)	(1,177.4)

Fair value of financial instruments

An analysis of financial assets and financial liabilities measured at fair value is presented below.

 

	For the period ended 30.06.2025
	Level 1	Level 2	Level 3	Total
	$m	$m	$m	$m
Financial assets
Equity investments (a)	11.3	-	-	11.3
Trade and other receivables (b)	-	696.8	-	696.8
Cash and cash equivalents (c)	239.6	-		239.6
Liquid investments (d)	-	1,976.8	-	1,976.8
	250.9	2,673.6	-	2,924.5
Financial liabilities
Derivatives financial instruments (e)	-	(1.4)	-	(1.4)
	-	(1.4)	-	(1.4)

 

	For the year ended 31.12.2024
	Level 1	Level 2	Level 3	Total
	$m	$m	$m	$m
Financial assets
Equity investments (a)	11.6	-	-	11.6
Trade and other receivables (b)	-	669.1	-	669.1
Cash and cash equivalents (c)	124.3	-	-	124.3
Liquid investments (d)	-	2,127.1	-	2,127.1
	135.9	2,796.2	-	2,932.1
	Level 1	Level 2	Level 3	Total
	$m	$m	$m	$m
Financial liabilities
Derivatives financial instruments (e)	-	(25.5)	-	(25.5)
	-	(25.5)	-	(25.5)

 

Recurring fair value measurements are those that are required in the balance sheet at the end of each reporting period.

a)	Equity investments are investments in shares on active markets and are valued using unadjusted quoted market values of the shares at the financial reporting date. These are level 1 inputs as described below.
b)	Provisionally priced metal sales for the period are marked-to-market at the end of the period. Gains and losses from the marking-to-market of open sales are recognised through adjustments to revenue in the income statement and trade receivables in the balance sheet. Forward prices at the end of the period are used for copper sales while period-end average prices are used for molybdenum concentrate sales. These are level 2 inputs as described below.
c)	The element of cash and cash equivalents measured at fair value relates to money market funds, which are valued reflecting market prices at the period end. These are level 1 inputs as described below.
d)	Liquid investments are highly liquid current asset investments that are valued reflecting market prices at the period end. These are level 2 inputs as described below.
e)	Derivatives are valued using a discounted cash flow analysis valuation model, which includes observable credit spreads and using the applicable yield curve for the duration of the instruments for non-optional derivatives, and option pricing models for optional derivatives. These are level 2 inputs as described below. As at 30 June 2025, derivatives relate to foreign exchange option contracts.

f)    

The inputs to the valuation techniques described above are categorised into three levels, giving the highest priority to unadjusted quoted prices in active markets (level 1) and the lowest priority to unobservable inputs (level 3 inputs):

Level 1 fair value measurement inputs are unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2 fair value measurement inputs are derived from inputs other than quoted market prices included in level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3 fair value measurement inputs are unobservable inputs for the asset or liability.

The degree to which inputs into the valuation techniques used to measure the financial assets and liabilities are observable and the significance of these inputs in the valuation are considered in determining whether any transfers between levels have occurred. In the six months ended 30 June 2025 and 30 June 2024, there were no transfers between levels in the hierarchy.

 

b)             Derivative financial instruments

The Group periodically uses derivative financial instruments to reduce exposure to foreign exchange, interest rate and commodity price movements. The Group does not use such derivative instruments for trading purposes. The Group has applied the hedge accounting provisions of IFRS 9 Financial Instruments. The effective portion of changes in the fair value of derivative financial instruments that are designated and qualify as hedges of future cash flows have been recognised directly in equity, with such amounts subsequently recognised in profit or loss in the period when the hedged item affects profit or loss. For non-financial hedged items, the amount is removed directly from equity and included as an adjustment to the initial cost of the hedged item. Any ineffective portion is recognised immediately in profit or loss. The time value element of changes in the fair value of derivative options is recognised within other comprehensive income. For non-financial hedged items, on initial recognition of the hedged item, the time value is removed from equity and included as an adjustment to the initial cost of the hedged item.

 

 

8.   Net finance (expense)/income

	Six months  ended 30.06.2025	Six months ended 30.06.2024
	$m	$m
Investment income
Interest income	54.1	30.5
Gains on liquid investments held at fair value through profit or loss	30.5	43.0
	84.6	73.5
Interest expense
Interest expense	(177.8)	(132.1)
	(177.8)	(132.1)
Other finance items
Unwinding of discount on provisions	(13.4)	(9.7)
Exceptional fair value gains (see note 3)	-	51.0
Effects of changes in foreign exchange rates	(39.4)	41.5
Preference dividends	(0.1)	(0.1)
	(52.9)	82.7
Net finance (expense)/income	(146.1)	24.1

In the six months ended 30 June 2025, amounts capitalised and consequently not included within the above table were as follows: $14.8 million at Los Pelambres (six months ended 30 June 2024 - $20.7 million) and $44.3 million at Centinela (six months ended 30 June 2024 - $6.2 million).

The interest expense shown above includes $5.8 million in respect of leases (six months ended 30 June 2024 - $9.6 million).

9.   Taxation

The tax charge for the period comprised the following:

	Six months ended 30.06.2025	Six months ended 30.06.2024
	$m	$m
Current tax charge
Corporate tax (principally first category tax in Chile)	(236.4)	(211.8)
Mining tax (royalty)	(93.5)	(113.3)
Withholding tax	(28.3)	(68.9)
	(358.2)	(394.0)
Deferred tax
Corporate tax (principally first category tax in Chile)	(69.0)	61.9
Mining tax (royalty)	(2.4)	(10.1)
Exceptional items	54.5	(12.7)
Withholding tax	5.0	55.4
	(11.9)	94.5
Total tax charge	(370.1)	(299.5)

 

The statutory rate of first category (i.e. corporate) tax in Chile is 27.0% (2024 - 27.0%).

 

In addition to first category tax, the Group incurs withholding taxes on any remittance of profits from Chile. Withholding tax is levied on remittances of profits from Chile at 35% less first category (i.e. corporation) tax already paid in respect of the profits to which the remittances relate.

 

The Group's mining operations are also subject to a mining tax (royalty). The new Chilean mining royalty took effect from 1 January 2024. The new royalty terms include a royalty ranging from 8% to 26% applied to the ''Mining Operating Margin'', depending on each mining operation's level of profitability, as well as a 1% ad valorem royalty on copper sales. As the ad valorem element is based on revenue rather than profit it does not meet the IAS 12 Income Taxes definition of a tax expense and is therefore recorded as an operating expense. The new royalty terms have a cap, establishing that total taxation, which includes corporate income tax, the two components of the new mining royalty, and theoretical tax on dividends, should not exceed a rate of 46.5% on Mining Operating Margin less the royalty ad-valorem expense.

 

Los Pelambres has been subject to the new royalty from 1 January 2024. Centinela and Antucoya have tax stability agreements in place, and so the new royalty rates will only impact their royalty payments from 2030 onwards. Until then, they continue to be subject to the previous royalty system, applying a progressive rate ranging from 5% to 14% of taxable operating profits, depending on the operating margin.

 

The following table provides a numerical reconciliation between the accounting profit before tax multiplied by the applicable statutory tax rate and the total tax expense (including both current and deferred tax).

			Six months ended 30.06.2025 excluding exceptional items			Six months ended 30.06.2025 Including exceptional  items			Six months ended 30.06.2024 excluding exceptional items			Six months ended 30.06.2024 Including exceptional  items
			$m	%		$m	%		$m	%		$m	%
	Profit before tax		1,162.0			1,162.0			661.6			712.6
	Profit before tax multiplied by Chilean corporate tax rate of 27%		(313.7)	27.0		(313.7)	27.0		(178.7)	27.0		(192.4)	27.0
		Mining Tax (royalty)	(97.3)	8.4		(97.3)	8.4		(117.0)	17.7		(117.0)	16.4
	Deduction of mining royalty as an allowable expense in determination of first category tax		25.8	(2.2)		25.8	(2.2)		30.6	(4.6)		30.6	(4.3)
	Withholding tax		(23.3)	2.0		(23.3)	2.0		(13.5)	2.0		(13.5)	1.9
	Items non-taxable and non-deductible from first category tax		(23.0)	2.0		(23.0)	2.0		(5.6)	0.8		(5.6)	0.8
	Impact of unrecognised tax losses on current tax		(7.0)	0.6		(7.0)	0.6		(0.8)	0.1		(0.8)	0.1
	Reversal of deferred tax on fair value gains (exceptional item)		-	-		54.5	(4.7)		-	-		-	-
	Tax effect of share of profit of associates and joint ventures		9.8	(0.8)		9.8	(0.8)		2.0	(0.3)		2.0	(0.3)
	Adjustment in respect of prior years		4.1	(0.5)		4.1	(0.4)		(3.8)	0.6		(3.8)	0.5
	Difference in overseas tax rates		-	-		-	-		-	-		1.0	(0.1)
	Tax expense and effective tax rate for the period		(424.6)	36.5		(370.1)	31.9		(286.8)	43.3		(299.5)	42.0

                                                 

 

The effective tax rate (excluding exceptional items) of 36.5 % varied from the statutory rate principally due to:

 

·	The mining tax (royalty) (net impact of $71.5 million/ 6.2 % including the deduction of the mining tax (royalty) as an allowable expense in the determination of first category tax);
·	The withholding tax relating to the remittance of profits from Chile (impact of $23.3 million / 2.0%);
·	Items not deductible for Chilean corporate tax purposes, principally the funding of expenses outside of Chile (impact of $23.0 million / 2.0%);
·	The impact of unrecognised tax losses (impact of $7.0 million 0.6%);
·	An offsetting impact of the recognition of the Group's share of results from associates and joint ventures, which are included in the Group's profit before tax net of their respective tax charges (impact of $9.8 million / 0.8%); and
	Adjustments in respect of prior years (impact of $4.1 million / 0.5%).

 

The effective tax rate (including exceptional items) of 31.9% varied from the statutory rate due to the factors outlined above, and due to the exceptional deferred tax credit of $54.5 million relating to the derecognition of the deferred tax liability in respect of the Group's investment in Buenaventura, as the requirements of the UK Substantial shareholdings exemption were met during the period (see Note 3).

 

The main factors which could impact the sustainability of the Group's existing effective tax rate are set out below.

 

·	The level of future distributions made by the Group's Chilean subsidiaries out of Chile, which could result in increased withholding tax charges. When determining whether it is likely that distributions will be made in the foreseeable future, and what is the appropriate foreseeable future period for this purpose, the Group considers factors such as the predictability of the likely future Group dividends, taking into account the Group's dividend policy and the level of potential volatility of the Group's future earnings, as well as the current level of distributable reserves at the Antofagasta plc entity level.
·	Changes in the applicable mining royalty rate, as a result of changes in the mining operations' levels of profitability, or the potential applicability of the mining royalty cap, as described above.
·	The impact of expenses which are not deductible for Chilean first category tax. Some of these expenses are fixed costs, and so the relative impact of these expenses on the Group's effective tax rate will vary depending on the Group's total profit before tax in a particular year.

 

OECD Pillar two model rules

The Group falls within the scope of the OECD Pillar two model rules, which introduces a minimum effective tax rate of 15% for multinational companies.

 

The rules were substantively enacted in the UK in 2023 and became effective from 1 January 2024. Currently, the Antofagasta Group operates in Chile and is subject to the Chilean first category (corporate) tax rate of 27%, plus withholding taxes on any profits distributed from Chile.

 

The Group is evaluating the potential future impact of these rules on its tax expense. However, based on the Group's current position, it does not anticipate any effect on its 2025 tax expense. There have not been changes to the Group's position or results subsequent to that date which would significantly impact that analysis.

 

The Group applied the exception to recognising and disclosing information about the deferred tax assets and liabilities related to Pillar 2 income taxes in accordance with the amendments to IAS 12 adopted by the UK Endorsement Board on 19 July 2023.

 

In relation to the analysis of the controlling interest and identification of the Group's Ultimate Parent Entity ("UPE"), management concluded that the 'deemed' consolidation rule in section (b) of the controlling interest definition should apply to the Abaroa Foundation. Consequently, Abaroa should be considered the UPE of the Multinational Enterprises ("MNE") Group for Pillar Two purposes.

 

Additionally, based on FY23 data and adjustments for material changes in FY24 and FY25, the Group concluded that it qualifies for the Transitional Country-by-Country Reporting ("CbCR") Safe Harbour regime in its main territories of operation, or is subject to greater than 15% tax in the period, hence no top-up tax is due.

 

On 14 July 2025, the E. Abaroa Foundation, as the Ultimate Parent Entity ("UPE") of the Antofagasta Group, formally nominated Antofagasta plc as the designated filing member for Pillar Two purposes in the United Kingdom. This designation requires Antofagasta plc to register the group with HM Revenue & Customs ("HMRC") in the United Kingdom, and to manage all related filings and communications, including the Globe Information Return or Overseas Return Notification. In accordance with this designation, Antofagasta plc completed the registration with HMRC on 27 June 2025.

 

Minera Centinela tax claims and queries

In the context of an administrative review, the Chilean Internal Revenue Service (SII) has raised claims and queries with Minera Centinela regarding tax deductions recognised in relation to the amortisation of organisation and start-up costs associated with the Encuentro pit. The tax associated with these base amounts to approximately USD$83 million. This matter, which relates to tax years 2020, 2021 and 2022, is currently being reviewed before the Chilean Tax and Customs Court. The Group considers that the tax treatment adopted by Minera Centinela is correct and appropriate, has robust arguments to support its position, and expects its position to be upheld through the judicial process. Should the Group be unsuccessful in defending its position, this amount (plus potential interest and penalties) would become payable.

 

10. Earnings per share

		Six months ended 30.06.2025	Six months  ended 30.06.2024
		$m	$m
Profit for the period attributable to owners of the parent (excluding exceptional items)		467.1	221.3
Exceptional Items		54.5	38.3
Profit for the period attributable to owners of the parent (including exceptional items) from operations		521.6	259.6
		Number	Number
Ordinary shares in issue throughout each period		985,856,695	985,856,695
		Six months ended 30.06.2025	Six months ended 30.06.2024
		US cent	US cent
Basic earnings per share (excluding exceptional items) from operations		47.4	22.4
Basic earnings per share (exceptional items) from operations		5.5	3.9
Basic earnings per share (including exceptional items) from operations		52.9	26.3

 

Basic earnings per share are calculated as profit after tax and non-controlling interests, based on 985,856,695 (2024: 985,856,695) ordinary shares.

 

The Group does not have any equity instruments which could potentially dilute earnings per share, and therefore diluted earnings per share did not differ from basic earnings per share as disclosed above.

 

 

11. Dividends

 

The Board has declared an interim dividend of 16.6 cents per ordinary share for the 2025 half year (2024 half year - 7.9 cents per ordinary share). Dividends are declared and paid gross. Dividends actually paid in the period and recognised as a deduction from net equity under IFRS were 23.5 cents per ordinary share (2024 half year - 24.3 cents per ordinary share), representing the final dividend declared in respect of the previous year.

 

The interim dividend will be paid on 30 September 2025 to ordinary shareholders that are on the register at the close of business on 5 September 2025. Shareholders can elect (on or before 8 September 2025) to receive this interim dividend in US Dollars, Pounds Sterling or Euro, and the exchange rate to be applied to interim dividends to be paid in Pounds Sterling or Euro will be set as soon as reasonably practicable after that date (which is currently anticipated to be on 10 September 2025).

 

Further details of the currency election timing and process (including the default currency of payment) are available on the Antofagasta plc website (www.antofagasta.co.uk) or from the Company's registrar, Computershare Investor Services PLC on +44 370 702 0159.

 

 

12. Property, plant and equipment

 

	Mining	Railway and other transport	At 30.06.2025	At 31.12.2024
	$m	$m	$m	$m
Balance at the beginning of the year	13,601.1	315.9	13,917.0	12,678.7
Additions	1,769.9	13.6	1,783.5	2,726.1
Additions - depreciation capitalised	94.9	-	94.9	87.9
Reclassifications	0.1	0.6	0.7	(1.0)
Capitalisation of interest	59.1	-	59.1	67.1
Adjustment to capitalised decommissioning provisions	-	-	-	(13.0)
Depreciation expensed in the period	(839.8)	(17.9)	(857.7)	(1,568.2)
Depreciation capitalised in PP&E	(94.9)	-	(94.9)	(87.9)
Depreciation capitalised in inventories	60.2	-	60.2	(338.5)
Write off	(1.6)	-	(1.6)	(5.5)
Asset disposals and others	(22.8)	-	(22.8)	(0.1)
Reversal of the provision against carrying value of assets (exceptional items)	-	-	-	371.4
Balance at the end of the period	14,626.2	312.2	14,938.4	13,917.0

 

During the six months ended 30 June 2025, the total effect of depreciation capitalised within Property, plant and equipment or inventories in respect of assets relating to Los Pelambres, Centinela and Antucoya is $34.7 million (year ended 31 December 2024 - $426.4 million), and has accordingly been excluded from the depreciation charge recorded in the income statement as shown in Note 5.

 

At 30 June 2025, the Group had entered into contractual commitments for the acquisition of property, plant and equipment amounting to $2,697.5 million (31 December 2024 - $3,773.3 million), mainly relating to the Second Concentrator Project at Centinela, the Desalination Plant Expansion, Concentrate Pipeline and El Mauro Enclosures Projects at Los Pelambres.

 

Depreciation capitalised in property, plant and equipment of $94.9 million related to the depreciation of assets used in mine development (operating stripping) at Centinela, Los Pelambres and Antucoya (year ended 31 December 2024 - $87.9 million).

 

 

13. Investments in associates and joint ventures

 

The investments which are included in the $1,793.4 million balance at 30 June 2025 are set out below.

 

	At 30.06.2025	At 31.12.2024
	$m	$m
Buenaventura	890.3	872.0
Zaldívar	893.8	895.1
ATI	9.3	9.0
Total	1,793.4	1,776.1

 

 

Investments in associates

 

●      Buenaventura - The Group has an 18.94% interest in Buenaventura. Buenaventura is Peru's largest, publicly traded precious and base metals company and a major holder of mining rights in Peru.

 

Impairment review

 

The initial carrying value of the investment in associate balance was recorded in March 2024 at a value equivalent to the fair value of the shares, reflecting their market value at that date. Between that date and 31 December 2024, the Buenaventura share price decreased by approximately 30%. This was assessed as an indicator of a potential impairment of the investment in associate balance as at 31 December 2024, and accordingly an impairment review was performed at the 2024 year-end. This review concluded that the recoverable amount of the investment balance was above its carrying value, and accordingly no impairment was required or appropriate.

 

Between 1 January 2025 and 30 June 2025, the Buenaventura share price increased by approximately 40%. However, the market value of the Group's shareholding in Buenaventura at 30 June 2025 was still approximately 10% below the $890.3 million carrying value of the Group's investment in associate balance in respect of Buenaventura at that date.

 

This was assessed as an indicator of a potential impairment of the investment in associate balance as at 30 June 2025, and accordingly an impairment review was performed at 30 June 2025. This review concluded that the recoverable amount of the investment balance was above its carrying value, and accordingly no impairment was required or appropriate.

 

This review has been based on the fair value less costs of disposal for the investment balance, reflecting the net amount the Group would expect to receive from the sale of the operation in an orderly transaction between market participants. This value has been estimated based on a discounted cash flow model in respect of Buenaventura's directly and indirectly held operations, investments and projects, as well as the valuation of additional mineral resource potential based on resource multiples. This reflects a level 3 fair value measurement per the IFRS 13 fair vale hierarchy. The key assumptions used in this estimation are listed below.

 

•   The forecasts of future metal price (representing the Group's estimates of the assumptions that would be used by independent market participants in valuing the assets) are based on consensus analyst forecasts. A long-term copper price of $4.50/lb and a long-term gold price of $2,600/oz (both reflecting 2025 real terms) have been used in the model; however, no assurances can be given that these prices will be maintained in future periods.

 

•     Assumptions in respect of future production levels, operating costs and sustaining and development capital expenditure, generally based on publicly available results, forecasts and technical reports in respect of Buenaventura's directly and indirectly held operations, minority interest investments and projects.

 

•     A real post-tax discount rate of 8% (31 December 2024 - 8%), calculated using relevant market data, has been applied to copper assets in the model.

 

The recoverable amount indicated by this assessment was above the carrying value of the investment in associate balance, and accordingly no impairment is required or appropriate as at 30 June 2025.

 

The assumptions to which the estimation of the recoverable amount is most sensitive are the future metal prices. Down-side sensitivities were performed with a long-term copper price of $4.05/lb and a long-term gold price of $2,340/oz, each reflecting a 10% reduction in the long-term price forecast. These sensitivities each continued to indicate a recoverable amount above the carrying value of the investment in associate balance.

 

·      ATI - The Group has a 30% interest in Antofagasta Terminal Internacional ("ATI"), which operates a concession to manage installations in the port of Antofagasta.

 

Investments in joint ventures

 

·      Zaldívar - The Group has a 50% interest in Minera Zaldívar SpA ("Zaldívar").

 

It has been determined that, as of 30 June 2025, there were indicators of a potential impairment in relation to the Group's investment in joint venture balance in respect of Zaldívar; in particular, considering changes to its life-of-mine plans and the operational performance during the first six months of 2025. Accordingly, as detailed in Note 4, an estimate of the recoverable amount of the Zaldívar investment in joint venture balance has been performed. The recoverable amount indicated by this assessment was above the carrying value of the investment in joint venture balance, and accordingly no impairment is required or appropriate as at 30 June 2025.

 

 

14. Borrowings and other financial liabilities

 

	At	At
	30.06.2025	31.12.2024
	$m	$m
Borrowings
Los Pelambres
- Senior loan	(1,570.9)	(1,887.6)
- Other loans	-	(475.0)
Centinela
- Senior loan	(835.7)	(572.6)
- Other loans	(150.0)	(195.0)
Antucoya
- Senior loan	(99.7)	(124.6)
- Subordinated debt	(198.4)	(205.5)
	(2,854.7)	(3,460.3)
Bonds
Los Pelambres	(1,527.3)	-
Corporate and other items	(1,731.3)	(1,729.0)
	(3,258.6)	(1,729.0)
Other financial liabilities
Centinela	(588.8)	(594.0)
	(588.8)	(594.0)
Leases
Los Pelambres	(30.3)	(19.2)
Centinela	(81.5)	(114.1)
Antucoya	(36.4)	(13.4)
Corporate and other items	(11.2)	(12.1)
Railway and other transport services	(1.0)	(0.9)
	(160.4)	(159.7)
Preference shares
Corporate and other items	(2.9)	(2.4)
	(2.9)	(2.4)
Total	(6,865.4)	(5,945.4)

 

Total Group borrowings and other financial liabilities at 30 June 2025 were $6,865.4 million, an increase of $920.0 million during the period (at 31 December 2024 - $5,945.4 million). The increase was mainly due to $1,527.3 million in respect of the bond issued by Los Pelambres as part of a financing associated with Los Pelambres' water infrastructure, $436.4 million from the senior loan at Los Pelambres and $293.6 million in respect of the project financing at Centinela, partly offset by repayments of the senior loans at Los Pelambres ($761.0 million), Centinela ($33.3 million) and Antucoya ($25.0 million), and repayment of the short-term loan at Los Pelambres ($475.0 million).

 

At 30 June 2025, $4,159.7 million (December 2024 - $3,155.1 million) of the borrowings and other financial liabilities has fixed rate interest and $2,705.7 million (December 2024 - $2,790.3 million) has floating rate interest.

 

	Facility available			Drawn			Undrawn
	30 June 2025	31 December 2024		30 June 2025	31 December 2024		30 June 2025	31 December 2024
	$m	$m		$m	$m		$m	$m
Revolving credit facility	500.0	500.0		-	-		500.0	500.0

 

 

The maturity profile of the Group's borrowings is as follows:

 

At 30 June 2025	Within 1 year	Between 1-2 years	Between 2-5 years	After 5 years	2025 Total
	$m	$m	$m	$m	$m
Senior loans	(198.2)	(398.8)	(636.1)	(1,273.2)	(2,506.3)
Bond	-	-	-	(3,258.6)	(3,258.6)
Other loans	(150.0)	(198.4)	-	-	(348.4)
Other financial liabilities	(11.4)	(12.9)	(49.8)	(514.7)	(588.8)
Leases	(72.9)	(38.7)	(48.8)	-	(160.4)
Preference shares	-	-	-	(2.9)	(2.9)
	(432.5)	(648.8)	(734.7)	(5,049.4)	(6,865.4)

 

At 31 December 2024	Within 1 year	Between 1-2 years	Between 2-5 years	After 5 years	2024 Total
	$m	$m	$m	$m	$m
Senior loans	(549.9)	(596.9)	(908.1)	(529.9)	(2,584.8)
Bond	-	-	-	(1,729.0)	(1,729.0)
Other loans	(670.0)	-	(205.5)	-	(875.5)
Other financial liabilities	(6.1)	(12.2)	(47.3)	(528.4)	(594.0)
Leases	(96.5)	(28.5)	(34.5)	(0.2)	(159.7)
Preference shares	-	-	-	(2.4)	(2.4)
	(1,322.5)	(637.6)	(1,195.4)	(2,789.9)	(5,945.4)

 

 

15. Reconciliation of profit before tax to net cash flow from operating activities

 

	At 30.06.2025	At 30.06.2024
	$m	$m
Profit before tax	1,162.0	712.6
Depreciation and amortisation	857.7	647.2
Net loss on disposals	2.3	-
Net finance expense - excluding exceptional items	146.1	26.9
Net share of (profit) of associates and joint ventures	(33.3)	(17.2)
Exceptional fair value gain in respect of other financial asset	-	(51.0)
Decrease/(increase) in inventories	18.5	(131.9)
(increase)/decrease in debtors	(103.6)	247.0
(Decrease)/increase in creditors	(234.3)	56.8
(Decrease) in provisions	(3.4)	(6.5)
Cash flow generated from operations	1,812.0	1,483.9

16. Analysis of changes in net debt

For the period ended 30 June 2025

	At 31.12.2024	Cash flows	Fair value gain	New leases	Early termination IFRS 16	Amortisation of finance costs	Capitalisation of interest	Reclassification	Exchange	At 30.06.2025
	$m	$m	$m	$m	$m	$m	$m	$m	$m	$m
Cash and cash equivalents	2,189.2	401.9	-	-	-	-	-	-	9.8	2,600.9
Liquid investments	2,127.1	(146.6)	(3.7)	-	-	-	-	-	-	1,976.8
Total cash and cash equivalents and liquid investments	4,316.3	255.3	(3.7)	-	-	-	-	-	9.8	4,577.7
Borrowings due within one year	(1,219.9)	1,354.3	-	-	-	-	-	(482.6)	-	(348.2)
Borrowings due after one year	(2,240.4)	(730.0)	-	-	-	(10.7)	(8.0)	482.6	-	(2,506.5)
Other financial liabilities due within one year	(6.1)	5.2	-	-	-	-	-	-	-	(0.9)
Other financial liabilities due after one year	(587.9)	-	-	-	-	-	-	-	-	(587.9)
Bonds due after one year	(1,729.0)	(1,527.3)	-	-	-	(2.3)	-	-	-	(3,258.6)
Leases due within one year	(96.5)	56.3	-	-	-	-	-	(31.7)	-	(71.9)
Leases due after one year	(63.2)	-	-	(66.5)	22.8	-	-	31.7	(13.3)	(88.5)
Preference shares	(2.4)	-	-	-	-	-	-	-	(0.5)	(2.9)
Total borrowings and other liabilities from financing activities	(5,945.4)	(841.5)	-	(66.5)	22.8	(13.0)	(8.0)	-	(13.8)	(6,865.4)
Net debt	(1,629.1)	(586.2)	(3.7)	(66.5)	22.8	(13.0)	(8.0)	-	(4.0)	(2,287.7)

 

 

For the period ended 31 December 2024

 

	At 31.12.2023	Cash flows	Fair value gain	New leases	Amortisation of finance costs	Capitalisation of interest	Reclassification	Exchange	At 31.12.2024
	$m	$m	$m	$m	$m	$m	$m	$m	$m
Cash and cash equivalents	644.7	1,550.1	-	-	-	-	-	(5.6)	2,189.2
Liquid investments	2,274.7	(148.5)	0.9	-	-	-	-	-	2,127.1
Total cash and cash equivalents and liquid investments	2,919.4	1,401.6	0.9	-	-	-	-	(5.6)	4,316.3
Borrowings due within one year	(794.1)	154.0	-	-	-	-	(579.8)	-	(1,219.9)
Borrowings due after one year	(3,057.9)	(1,459.9)	-	-	(13.5)	(17.9)	579.8	-	(3,969.4)
Other financial liabilities due within one year	-	4.6	-	-	-	-	(10.7)	-	(6.1)
Other financial liabilities due after one year	-	(598.6)	-	-	-	-	10.7	-	(587.9)
Leases due within one year	(107.8)	152.7	-	-	-	-	(141.4)	-	(96.5)
Leases due after one year	(116.9)	-	-	(111.1)	-	-	141.4	23.4	(63.2)
Preference shares	(2.5)	-	-	-	-	-	-	0.1	(2.4)
Total borrowings and other liabilities from financing activities	(4,079.2)	(1,747.2)	-	(111.1)	(13.5)	(17.9)	-	23.5	(5,945.4)
Net debt	(1,159.8)	(345.6)	0.9	(111.1)	(13.5)	(17.9)	-	17.9	(1,629.1)

 

 

Net debt

 

Net debt at the end of each period was as follows:

 

	At 30.06.2025	At 31.12.2024
	$m	$m
Cash, cash equivalents and liquid investments	4,577.7	4,316.3
Total borrowings and other financial liabilities	(6,865.4)	(5,945.4)
Net debt	(2,287.7)	(1,629.1)

 

 

17. Related party transactions

 

a)             Joint ventures

The Group has a 50% interest in Minera Zaldívar, which is a joint venture with Barrick Gold Corporation. During the six months ended 30 June 2025, the Group has not received dividends from Minera Zaldívar (six months ended 30 June 2024 - nil).

b)             Associates

The Group has a 18.9% interest in Compañía de Minas Buenaventura S.A.A, which is an associate. During the six months ended 30 June 2025, the Group has received dividends from Buenaventura of $14.0 million (six months ended 30 June 2024 - $3.5 million).

c)             Other related parties

The immediate parent company of the Group is Metalinvest Establishment, and the ultimate parent company is the E. Abaroa Foundation, in which members of the Luksic family are interested. The Group's subsidiaries, in the ordinary course of business, enter into various sale and purchase transactions with companies also controlled by members of the Luksic family, including Banco de Chile S.A., BanChile Corredores de Bolsa S.A., ENEX S.A. and Compañía de Inversiones Adriático S.A. These transactions were all on normal commercial terms.

 

The Group holds a 51% interest in Antomin 2 Limited ("Antomin 2") and Antomin Investors Limited ("Antomin Investors"), which own a number of copper exploration properties. The Group originally acquired its 51% interest in these properties for a nominal consideration from Mineralinvest Establishment, a company controlled by the Luksic family, which continues to hold the remaining 49% of Antomin 2 and Antomin Investors. The Group is responsible for any exploration costs relating to the properties held by these entities. During the six months ended 30 June 2025, the Group incurred $0.5 million (30 June 2024 - $0.1 million) of exploration costs at these properties.

 

In January 2025 the Group entered into an agreement with Mineralinvest to acquire its 49% interest in Antomin Investors' copper exploration properties in the Centinela District for $80 million. The Group paid a deposit of the $80 million transaction price at that point. Properties currently held by Antomin Investors that are outside the Centinela District have been demerged into a new entity, Antomin Volcanes, held 51% by the Group and 49% by Mineralinvest. The acquisition of the remaining 49% stake in Antomin Investors is expected to complete later in 2025. As Antomin Investors is a subsidiary of the Antofagasta plc Group, this agreement to acquire the remaining 49% stake in Antomin Investors constitutes an agreement to acquire own equity instruments in accordance with IAS 32 Financial Instruments: Presentation. Accordingly, this resulted in the initial recognition of a liability of $80 million and a corresponding reduction in reserves. The liability was immediately satisfied by the upfront payment of the transaction price, extinguishing the liability. The net impact of the agreement has therefore been the recognition of the $80 million cash outflow and the corresponding reduction in reserves.

 

This transaction further consolidates the Group's mining property interests in the Centinela District providing flexibility for future growth options. This transaction was overseen and approved by a committee of independent Directors who sought and received confirmation from a financial adviser, a major international investment bank with extensive experience in advising UK issuers on such matters, that the terms of the transaction were fair and reasonable as far as the shareholders of the companies were concerned.

 

 

18. Litigation and contingent liabilities

 

The Group is subject from time to time to legal proceedings, claims, complaints and investigations arising out of the ordinary course of business. The Group cannot predict the outcome of individual legal actions or claims or complaints or investigations. As a result, the Group may become subject to liabilities that could affect the Group's business, financial position and reputation. Litigation is inherently unpredictable, and large judgments may at times occur. The Group may incur, in the future, judgments or enter into settlements of claims that could lead to material cash outflows. The Group considers that no material loss to the Group is expected to result from the legal proceedings, claims, complaints and investigations that the Group is currently subject to. A provision is recognized for legal claims where the Group has a present obligation as a result of past events, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

 

Details of any significant potential tax uncertainties are set out in Note 9.

RESPONSIBILITY STATEMENT

 

 

We confirm to the best of our knowledge:

a)	the condensed set of financial statements has been prepared in accordance with IAS 34 Interim Financial Reporting;
b)	the half yearly financial report includes a fair review of the information required by DTR 4.2.7R (being an indication of important events that have occurred during the first six months of the financial year, and their impact on the half yearly financial report and a description of the principal risks and uncertainties for the remaining six months of the financial year); and
c)	the half yearly financial report includes a fair review of the information required by DTR 4.2.8R (being disclosure of related party transactions that have taken place in the first six months of the financial year and that have materially affected the financial position or the performance of the Group during that period and any changes in the related party transactions described in the last annual report that could have a material effect on the financial position or performance of the Group in the first six months of the current financial year).

 

 

 

By order of the Board

 

 

Jean-Paul Luksic	Francisca Castro
Chairman	Senior Independent Director

Independent Review Report to Antofagasta plc

 

Conclusion

We have been engaged by the company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2025 which comprises the condensed consolidated income statement, the condensed consolidated balance sheet, the condensed consolidated statement of comprehensive income, the condensed consolidated statement of changes in equity, the condensed consolidated cash flow statement and related notes 1 to 18.

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2025 is not prepared, in all material respects, in accordance with United Kingdom adopted International Accounting Standard 34 and the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority.

Basis for Conclusion

We conducted our review in accordance with International Standard on Review Engagements (UK) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Financial Reporting Council for use in the United Kingdom (ISRE (UK) 2410). A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

As disclosed in note 1, the annual financial statements of the group are prepared in accordance with United Kingdom adopted international accounting standards. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with United Kingdom adopted International Accounting Standard 34, "Interim Financial Reporting".

Conclusion Relating to Going Concern

Based on our review procedures, which are less extensive than those performed in an audit as described in the Basis for Conclusion section of this report, nothing has come to our attention to suggest that the directors have inappropriately adopted the going concern basis of accounting or that the directors have identified material uncertainties relating to going concern that are not appropriately disclosed.

This Conclusion is based on the review procedures performed in accordance with ISRE (UK) 2410; however future events or conditions may cause the entity to cease to continue as a going concern.

Responsibilities of the directors

The directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority.

In preparing the half-yearly financial report, the directors are responsible for assessing the group's ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's Responsibilities for the review of the financial information

In reviewing the half-yearly financial report, we are responsible for expressing to the company a conclusion on the condensed set of financial statements in the half-yearly financial report. Our Conclusion, including our Conclusion Relating to Going Concern, are based on procedures that are less extensive than audit procedures, as described in the Basis for Conclusion paragraph of this report.

Use of our report

This report is made solely to the company in accordance with ISRE (UK) 2410. Our work has been undertaken so that we might state to the company those matters we are required to state to it in an independent review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company, for our review work, for this report, or for the conclusions we have formed.

 

 

Deloitte LLP

Statutory Auditor

London, United Kingdom

13 August 2025

 

Alternative performance measures (not subject to audit or review)

This consolidated financial information includes a number of alternative performance measures, in addition to amounts in accordance with UK-adopted International Accounting Standards. These measures are included because they are considered to provide relevant and useful additional information to users of the accounts. Set out below are definitions of these alternative performance measures, explanations as to why they are considered to be relevant and useful, and reconciliations to the IFRS figures.

a) Underlying earnings per share

Underlying earnings per share is earnings per share from continuing operations, excluding exceptional items. This measure is reconciled to earnings per share from continuing and discontinued operations (including exceptional items) on the face of the income statement. This measure is considered to be useful as it provides an indication of the earnings generated by the ongoing businesses of the Group, excluding the impact of exceptional items which are irregular or non-operating in nature.

b)     EBITDA

EBITDA is calculated by adding back depreciation, amortisation, profit or loss on disposals and impairment charges to operating profit. This comprises 100% of the EBITDA from the Group´s subsidiaries, and the Group´s proportional share of the EBITDA of its associates and joint ventures.

EBITDA is considered to provide a useful and comparable indication of the current operational earnings performance of the business, excluding the impact of the historical cost of property, plant & equipment or the particular financing structure adopted by the business.

 

For the six months ended 30 June 2025

	Los Pelambres	Centinela	Antucoya	Zaldívar	Exploration and evaluation	Corporate and other items	Mining	Railway and other transport services	Total
	$m	$m	$m	$m	$m	$m	$m	$m	$m
Operating profit/(loss)	770.5	483.5	83.5	-	(25.7)	(52.9)	1,258.9	15.9	1,274.8
Depreciation and amortisation	307.3	452.3	74.2	-	-	6.0	839.8	17.9	857.7
Loss on disposals	-	2.3	-	-	-	-	2.3	-	2.3
EBITDA from subsidiaries	1,077.8	938.1	157.7	-	(25.7)	(46.9)	2,101.0	33.8	2,134.8
Proportional share of the EBITDA from associates and JVs	-	-	-	48.0	-	48.6	96.6	2.8	99.4
Total EBITDA	1,077.8	938.1	157.7	48.0	(25.7)	1.7	2,197.6	36.6	2,234.2

 

For the six months ended 30 June 2024

	Los Pelambres	Centinela	Antucoya	Zaldívar	Exploration and evaluation	Corporate and other items	Mining	Railway and other transport services	Total
	$m	$m	$m	$m	$m	$m	$m	$m	$m
Operating profit/(loss)	675.6	(29.9)	78.1	-	(26.8)	(47.3)	649.7	21.6	671.3
Depreciation and amortisation	209.5	359.8	55.8	-	-	4.9	630.0	17.2	647.2
EBITDA from subsidiaries	885.1	329.9	133.9	-	(26.8)	(42.4)	1,279.7	38.8	1,318.5
Proportional share of the EBITDA from associates and JVs	-	-	-	50.9	-	21.3	72.2	3.7	75.9
Total EBITDA	885.1	329.9	133.9	50.9	(26.8)	(21.1)	1,351.9	42.5	1,394.4

 

c)     Cash costs

Cash costs are a measure of the cost of operational production expressed in terms of cents per pound of payable copper produced.

This is considered to be a useful and relevant measure as it is a standard industry measure applied by most major copper mining companies which reflects the direct costs involved in producing each pound of copper. It therefore allows a straightforward comparison of the unit production cost of different mines and allows an assessment of the position of a mine on the industry cost curve. It also provides a simple indication of the profitability of a mine when compared against the price of copper (per lb).

With sales of concentrates at Los Pelambres and Centinela, which are sold to smelters and roasting plants for further processing into fully refined metal, the price of the concentrate invoiced to the customer reflects the market value of the fully refined metal less a "treatment and refining charge" deduction, to reflect the lower value of this partially processed material compared with the fully refined metal. For accounting purposes, the revenue amount reflects the invoiced price (which reflects the net of the market value of fully refined metal less the treatment and refining charges). Under the standard industry definition of cash costs, treatment and refining charges are regarded as part of the total cash cost figure.

	At 30.06.2025	At 30.06.2024
Reconciliation of cash costs excluding treatment & refining charges and by-product revenue:
Total Group operating costs (Note 5) ($m)	2,524.6	2,283.9
Zaldívar operating costs (attributable basis - 50%)	113.8	123.7
Less:
Depreciation and amortisation (Note 5) ($m)	(857.7)	(647.2)
Loss on disposal (Note 5) ($m)	(2.3)	-
Corporate and other items - Total operating cost (excluding depreciation) (Note 5) ($m)	(46.9)	(42.4)
Exploration and evaluation - Total operating cost (excluding depreciation) (Note 5) ($m)	(25.7)	(26.8)
Transport division - Total operating cost (excluding depreciation) (Note 5) ($m)	(52.0)	(59.2)
Closure provision and other expenses not included within cash costs ($m)	(56.2)	(75.6)
Inventories variation	(8.3)	44.4
Medium and long-term drilling costs & evaluation	(33.2)	(45.4)
Total cost relevant to the mining operations' cash costs ($m)	1,556.1	1,555.4
Copper production volumes (tonnes)1	314,880	284,700
Cash costs excluding treatment & refining charges and by-product revenue ($/tonne)	4,942	5,463
Cash costs excluding treatment & refining charges and by-product revenue ($/lb)	2.24	2.48
	At 30.06.2025	At 30.06.2024
Reconciliation of cash costs before deducting by-products revenue:
Treatment & refining charges - copper and by-products - Los Pelambres ($m)	34.9	79.8
Treatment & refining charges - copper and by-products - Centinela ($m)	21.7	27.8
Treatment & refining charges - copper - total ($m)	56.6	107.6
Copper production volumes (tonnes)1	314,880	284,700
Treatment & refining charges ($/tonne)	179.6	378.0
Treatment & refining charges ($/lb)	0.08	0.17
Cash costs excluding treatment & refining charges and by-product revenue ($/lb)	2.24	2.48
Treatment & refining charges ($/lb)	0.08	0.17
Cash costs before deducting by-product revenue (S/lb)	2.32	2.65

¹The 314,880 tonnes includes 16,000 tonnes of production at Zaldívar on a 50% attributable basis.

c) Cash costs (continued)

	At 30.06.2025	At 30.06.2024
Reconciliation of cash costs (net of by-product revenue):
Gold revenue - Los Pelambres ($m)	80.8	40.0
Gold revenue - Centinela ($m)	224.0	101.0
Molybdenum revenue - Los Pelambres ($m)	256.6	229.7
Molybdenum revenue - Centinela ($m)	80.6	52.6
Silver revenue - Los Pelambres ($m)	33.3	20.3
Silver revenue - Centinela ($m)	14.5	7.5
Total by-product revenue ($m)	689.8	451.1
Copper production volumes (tonnes)2	314,880	284,700
By-product revenue ($/tonne)	2,191.0	1,585.2
By-product revenue ($/lb)	0.99	0.71
Cash costs before deducting by-product revenue (S/lb)	2.32	2.65
By-product revenue ($/lb)	(0.99)	(0.71)
Cash costs (net of by-product revenue) ($/lb)	1.33	1.94

²The 314,880 tonnes includes 16,000 tonnes of production at Zaldívar on a 50% attributable basis.

The totals in the tables above may include some small apparent differences as the specific individual figures have not been rounded.

 

 

d) Attributable cash, cash equivalents & liquid investments, borrowings and net debt

 

Attributable cash, cash equivalents & liquid investments, borrowings and net debt reflects the proportion of those balances which are attributable to the equity holders of the Company, after deducting the proportion attributable to the non-controlling interests in the Group's subsidiaries.

This is considered to be a useful and relevant measure as the majority of the Group's cash tends to be held at the corporate level and therefore 100% attributable to the equity holders of the Company, whereas the majority of the Group's borrowings tend to be at the level of the individual operations, and hence only a proportion is attributable to the equity holders of the Company.

 

		June 2025				December 2024
	Total amount	Attributable share	Attributable amount		Total amount	Attributable share	Attributable amount
	$m		$m		$m		$m
Cash, cash equivalents and liquid investments:
Los Pelambres	1,544.5	60%	926.7		887.2	60%	532.3
Centinela	1,502.8	70%	1,052.0		1,148.1	70%	803.7
Antucoya	223.0	70%	156.1		345.0	70%	241.5
Corporate	1,263.6	100%	1,263.6		1,895.0	100%	1,895.0
Transport division	43.8	100%	43.8		41.0	100%	41.0
Total	4,577.7		3,442.2		4,316.3		3,513.5
Borrowings:
Los Pelambres (Note 14)	(3,128.5)	60%	(1,877.1)		(2,381.8)	60%	(1,429.1)
Centinela (Note 14)	(1,656.0)	70%	(1,159.2)		(1,475.7)	70%	(1,033.0)
Antucoya (Note 14)	(334.5)	70%	(234.2)		(343.5)	70%	(240.5)
Corporate (Note 14)	(1,745.4)	100%	(1,745.4)		(1,743.5)	100%	(1,743.3)
Transport division (Note 14)	(1.0)	100%	(1.0)		(0.9)	100%	(0.9)
Total (Note 14)	(6,865.4)		(5,016.9)		(5,945.4)		(4,446.8)
Net debt	(2,287.7)		(1,574.7)		(1,629.1)		(933.3)

 

Production and Sales Statistics (not subject to audit or review)

a)   Production and sales volumes for copper, gold and molybdenum

 

	Production			Sales
	Six months ended 30.06.2025	Six months ended 30.06.2024		Six months ended 30.06.2025	Six months ended 30.06.2024
Copper	000 tonnes	000 tonnes		000 tonnes	000 tonnes
Los Pelambres	143.2	132.5		145.6	133.4
Centinela	116.2	93.0		121.8	87.4
Antucoya	39.5	40.3		39.4	38.4
Zaldívar (attributable basis - 50%)	16.0	18.9		17.2	18.0
Group total	314.9	284.7		324.0	277.2
Gold	000 ounces	000 ounces		000 ounces	000 ounces
Los Pelambres	25.9	18.9		25.0	17.2
Centinela	65.3	48.0		68.4	43.8
Group total	91.2	66.9		93.4	61.0
Molybdenum	000 tonnes	000 tonnes		000 tonnes	000 tonnes
Los Pelambres	5.7	4.2		5.5	4.5
Centinela	1.7	1.0		1.7	1.1
Group total	7.4	5.2		7.2	5.6
Silver	000 ounces	000 ounces		000 ounces	000 ounces
Los Pelambres	1,027.0	777.8		1,002.8	734.5
Centinela	462.4	305.4		442.7	271.3
Group total	1,489.4	1,083.2		1,445.5	1,005.8

 

b)      Cash costs per pound of copper produced and realised prices per pound of copper and molybdenum sold

 

	Net Cash costs		Realised prices
	Six months ended 30.06.2025	Six months ended 30.06.2024	Six months ended 30.06.2025	Six months ended 30.06.2024
	$/lb	$/lb	$/lb	$/lb
Copper
Los Pelambres	1.03	1.21	4.63	4.48
Centinela	1.00	2.48	4.51	4.35
Antucoya	2.58	2.58	4.39	4.25
Zaldívar (attributable basis - 50%)	3.22	2.97	-	-
Group weighted average (net of by-products)	1.32	1.94	4.55	4.40
Group weighted average (before deducting by-products)	2.32	2.65
Group weighted average (before deducting by-products and excluding treatment & refining charges from concentrate)	2.24	2.48
Cash costs at Los Pelambres comprise:
On-site and shipping costs	2.13	1.89
Treatment & refining charges for concentrates	0.11	0.27
Cash costs before deducting by-product credits	2.24	2.16
By-product credits (principally molybdenum)	(1.21)	(0.95)
Cash costs (net of by-product credits)	1.03	1.21
Cash costs at Centinela comprise:
On-site and shipping costs	2.12	3.16
Treatment & refining charges for concentrates	0.08	0.15
Cash costs before deducting by-product credits	2.21	3.31
By-product credits (principally gold)	(1.20)	(0.83)
Cash costs (net of by-product credits)	1.00	2.48
LME average copper price			4.28	4.13
Gold			$/oz	$/oz
Los Pelambres			3,227	2,331
Centinela			3,277	2,307
Group weighted average			3,263	2,314
Market average price			3,072	2,205
Molybdenum			$/lb	$/lb
Los Pelambres			21.0	22.9
Centinela			21.1	22.8
Group weighted average			21.1	22.8
Market average price			20.6	20.9
Silver			$/oz	$/oz
Los Pelambres			33.3	27.6
Centinela			32.8	27.6
Group weighted average			33.1	27.6
Market average price			32.8	26.1

 

Notes to the production and sales statistics

 

(i)	For the Group's subsidiaries, the production and sales figures reflect the total amounts produced and sold by the mine, not the Group's share of each mine. The Group owns 60% of Los Pelambres, 70% of Centinela and 70% of Antucoya. For the Zaldívar joint venture, the production and sales figures reflect the Group's proportional 50% share. The figures in the tables above do not include Compañía de Minas Buenaventura S.A.A.
(ii)	Los Pelambres produces copper and molybdenum concentrates, Centinela produces copper concentrate, copper cathodes and molybdenum concentrate, and Antucoya and Zaldívar produce copper cathodes. The figures for Los Pelambres and Centinela are expressed in terms of payable metal contained in concentrate and in cathodes. Los Pelambres and Centinela are also credited for the gold and silver contained in the copper concentrate sold. Antucoya and Zaldívar produce cathodes with no by-products.
(iii)	Cash costs are a measure of the cost of operational production expressed in terms of cents per pound of payable copper produced. Cash costs are stated net of by-product credits. Cash costs exclude depreciation, financial income and expenses, hedging gains and losses, exchange gains and losses and corporate tax for all four operations. With sales of concentrates at Los Pelambres and Centinela, which are sold to smelters and roasting plants for further processing into fully refined metal, the price of the concentrate invoiced to the customer reflects the market value of the fully refined metal less a "treatment and refining charge" (TC/RC) deduction, to reflect the lower value of this partially processed material compared with the fully refined metal.  For accounting purposes, the revenue amount reflects the invoiced price (is which reflects the net of the market value of fully refined metal less the treatment and refining charges). However, under the standard industry definition of unit cash costs, treatment and refining charges are regarded as an expense and part of cash costs.
(iv)	Realised copper prices are determined by comparing revenue from copper sales (after adding back treatment and refining charges for concentrates) with sales volumes for each mine in the period. Realised molybdenum and gold prices are calculated on a similar basis. Realised prices reflect mark-to-market adjustments for sales contracts which contain provisional pricing mechanisms and gains and losses on commodity derivatives, which are included within revenue.
(v)	The totals in the tables above may include some small apparent differences as the specific individual figures have not been rounded.
(vi)	The production information and the cash cost information are derived from the Group's production report for the second quarter of 2025, published on 16 July 2025.