SOLID OPERATING PERFORMANCE; GUIDANCE MAINTAINED

Antofagasta plc CEO, Iván Arriagada said: “Our portfolio delivered a solid quarter of operating performance and cash cost discipline, with copper production up 20% compared with the same period of last year, explained by consistent or higher throughput across our sites and improved copper grades at Centinela, and with the production of gold and molybdenum by-products also up by 29% and 15% respectively.”

“The prior year period (Q1 2024) includes the effect of lower concentrate filtration at Los Pelambres, given the maintenance work undertaken on the concentrate pipeline, which has since performed reliably and in line with expectations.

“Our growth programme continues to make material progress, with the Centinela Second Concentrator Project and the Los Pelambres’ Growth Enabling Projects advancing well, with workforce levels approaching full deployment at each site. At Zaldívar, we are entering the final stages of our Environmental Impact Assessment, and we remain focused on the resolution of permitting during Q2 2025.

“Full year guidance is maintained, with Group production expected to be between 660,000 and 700,000 tonnes, which assumes a full 12 months of production at Zaldívar.

“With global markets experiencing significant volatility, our efforts remain centred on delivering robust operational performance, continued cost discipline and the timely execution of our growth projects. The medium-term outlook for copper remains strong given its fundamental role in energy security and electrification, positioning it as a metal of the future. We remain well-positioned to meet the rising demand through our pipeline of projects currently under construction.”

^{(1) Cash cost is a non-GAAP measure used by the mining industry to express the cost of production in US dollars per pound of copper produced.}

HIGHLIGHTS

PRODUCTION

• Copper production in Q1 2025 was 154,700 tonnes, 20% higher on a year-on-year basis, driven by increased production at the Group’s two concentrators – Los Pelambres and Centinela Concentrates.
• Gold production in Q1 2025 was 42,900 ounces, 29% higher on a year-on-year basis, following higher gold grades at Centinela Concentrates and maintenance in the prior year period at Los Pelambres.
• Molybdenum production in Q1 2025 was 3,100 tonnes, 15% higher on a year-on-year basis, following higher molybdenum grades processed at Centinela Concentrates.

CASH COSTS

• Cash costs before by-product credits in Q1 2025 were $2.37/lb, 11% lower on a year-on-year basis, principally driven by higher production at the Group’s concentrators (Los Pelambres and Centinela Concentrates).
• By-product credits in Q1 2025 were 83c/lb, representing a 12% increase year-on-year, with higher production of by-products and gold prices.
• Net cash costs in Q1 2025 were $1.54/lb, 20% lower year-on-year, driven by higher by-product credits and movements in the underlying cash costs before by-product credits.

GROWTH AND DEVELOPMENT PROJECTS

• Centinela Second Concentrator: Project continues to progress in line with expectations, with current work focused on the assembly of mining equipment, completion of concrete pouring for the foundations of Ball Mills 1 and 2 and initial concreting work for the primary crusher foundations.
• Los Pelambres’ Growth Enabling Projects: Project continues to progress in line with expectations, with work connected to the new concentrate pipeline ongoing in both the lower and upper sections of the new route, including trench excavation activities and adding ventilation to existing tunnels. Construction work to expand the Group’s desalination plant is also underway, with work during the period to install foundations for the ultrafiltration feed pumps.
• Cachorro Exploration Project: Declaration of environmental impact (DIA) submitted in January 2025 for additional exploration work, including up to 732 additional drill holes and the construction of an exploration adit to access the deposit at depth.

GUIDANCE (AS PREVIOUSLY ANNOUNCED)

• Guidance for the year remains unchanged. Group copper production for the full year is expected to be in the range of 660-700,000 tonnes.
• Group-level cash cost guidance, both before and after by-product credits, is also unchanged at $2.25-2.45/lb and $1.45-1.65/lb respectively.
• Capital expenditure guidance is also unchanged at $3.9 billion.

SAFETY AND SUSTAINABILITY

• The Group is pleased to confirm that its operations remain fatality-free in 2025, and the year-to-date lost time injury frequency rate¹ continues at a level below 1.0 and in line with the Group’s historical performance level.
• In accordance with the current Water Code regulations, a water redistribution agreement approved by the DGA (Chile’s water administration department) is required to be in effect so that when there is drought, certain conditions are completed to enable Los Pelambres to be able to extract up to 400 litres per second consistently with its water rights at the point of extraction in the Choapa river.
• In Q1 2025, the DGA approved an update to the water redistribution agreement, as Los Pelambres continues to work with both the water council or JVRCH (Junta de Vigilancia Rio Choapa) and the DGA to ensure an expeditious process is implemented.

ZALDÍVAR UPDATE

• As previously disclosed, in December 2024, a settlement was reached by the parties involved in the claim filed by the Consejo de Defensa del Estado (CDE), an independent governmental agency that represents the interests of the Chilean state, with the Company, Minera Escondida and Albemarle related to water extraction from the Monturaqui-Negrillar-Tilopozo aquifer. This settlement was thereafter approved by the Environmental Court in January 2025, thus putting an end to the proceeding.
• The operation at Zaldívar has rights to mine ore and extract water until May 2025. The mine life after May 2025 is, therefore, subject to the approval of an Environmental Impact Assessment (EIA). This EIA is under review by the relevant authorities, which contemplates up to three rounds of comments and reviews.
• The Group’s response to the third round of comments made by government agencies in Chile was filed in March 2025. As of the date of this report, each of the relevant government agencies have begun filing their responses to the Group’s application in a timely manner, with a formal decision expected shortly thereafter.
• Separate to the above EIA, under local environmental regulations, if a permit allowing continuity of operations is not favourably resolved by the current permit expiry date in May 2025, Zaldívar will be expected to have in place at that time an approved temporary closure plan. In line with this eventual regulatory condition being required, Zaldívar filed in December 2024 a temporary closure plan in compliance with this condition.
• The Group’s full year guidance for 2025 is presented based on 12-months of normal operations at Zaldívar.

CORPORATE UPDATE

• In March 2025, Los Pelambres successfully closed the financing associated with its water assets that was previously disclosed in the Company’s Full Year Results announcement on 18 February 2025. Through a structured financing solution, using a wholly owned subsidiary of Los Pelambres, the Group has secured $2 billion on favourable terms, comprising $1,550 million in privately placed notes with a 20-year tenor and a $450 million loan agreement with a group of commercial banks with a tenor of approximately nine years.
• In March 2025, the Group published its 2024 Annual Reporting Suite, which includes the Group’s Annual Report, the Mining Division’s Sustainability Report and Sustainability Databook, on its website (www.antofagasta.co.uk). The Company also published its 2025 Notice of Annual General Meeting (event to be held on 8 May 2025).

_{¹ Group-level, covering both Mining and Transport Divisions.}

Investors – London

Rosario Orchard rorchard@antofagasta.co.uk 

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