Antofagasta PLC (LON: ANTO), the Chilean mining group, reported its highest profit margins in four years on Thursday, citing a combination of increased copper production, lower operational costs, and stronger commodity prices. The company’s financial results for the first half of 2025 showed substantial year-over-year gains, with core earnings up nearly 60%, underscoring the continued importance of copper and gold in a commodities market shaped by the global energy transition.

Financial Performance

In its half-year report, Antofagasta said pretax profit had risen to $1.16 billion, up from $712.6 million in the first half of 2024. Earnings before interest, taxes, depreciation, and amortization (EBITDA) also grew by 60%, reaching $2.23 billion. The company’s EBITDA margin climbed 12 percentage points to 58.8%, marking the highest profitability level the miner has posted since 2021.

The margin expansion and earnings growth were supported by stronger pricing conditions for copper and gold, along with increased production volumes and reduced per-unit costs.

Production and Sales

Antofagasta attributed its earnings growth in large part to an 11% increase in copper output, with 314,900 tonnes produced during the first half of 2025. The rise in output was primarily driven by increased operational performance at the Centinela Concentrates and Los Pelambres plants in Chile.

In line with the increase in production, first-half copper sales rose 17%, reflecting both higher volumes and market prices. The company also reported a 53% surge in gold sales, which contributed to overall revenue and helped reduce net cash costs due to gold’s role as a by-product in the company’s operations.

Antofagasta said lower cash costs during the period also helped bolster profitability, though it did not provide specific unit cost figures in the initial release. Reductions in energy, input, and logistical expenses have been cited by mining firms in the region as contributing factors in recent quarters.

Dividend Declaration

Following the strong financial results, Antofagasta’s board declared an interim dividend of 16.6 cents per share, more than double the 7.9 cents paid during the same period last year. The dividend was based on the company’s earnings performance and reflected the board’s decision to return a portion of the profits to shareholders.

The company remains majority-owned by Chile’s Luksic family, one of the wealthiest and most influential families in Latin America, with longstanding involvement in mining, banking, and industrial sectors.

Copper prices have remained elevated through much of 2025, supported by strong global demand tied to electrification, renewable energy infrastructure, and battery manufacturing. As the energy transition accelerates, copper is widely viewed as a critical material, especially in technologies such as electric vehicles and wind and solar power systems.

Global copper supply has struggled to keep pace with demand, partly due to regulatory hurdles, aging mines, and project delays. These supply-side constraints, along with persistent consumption growth, have kept prices above historical averages, benefitting producers like Antofagasta.

Gold prices have also remained relatively strong during the period, supported by macroeconomic uncertainty, central bank purchases, and hedging activity from investors.

Antofagasta’s results come during wider challenges and opportunities in the global mining industry. While demand for transition-related metals is growing, companies continue to face cost pressures, environmental regulations, and geopolitical risks. In Chile specifically, debates over mining royalties, water rights, and environmental permitting continue to shape the sector’s operating environment. Chile remains the world’s top copper-producing country and a focal point for new exploration and investment. The government has recently emphasized balancing economic development with environmental protection and social equity, creating a complex landscape for operators like Antofagasta. The company has invested in sustainability initiatives and infrastructure expansions at its key sites, though it has yet to disclose detailed long-term capital expenditure plans or ESG performance figures in the current release.

Looking ahead, Antofagasta will release its next production and financial update later in the year. While first-half results position the company on strong financial footing, performance in the latter half will depend on a combination of internal execution and external market dynamics, including metal prices, cost inflation, labor relations, and weather-related risks. The miner’s ability to maintain or improve its margins may hinge on commodity price stability and continued cost controls. In the absence of revised guidance, investor attention is likely to focus on operational consistency and the outlook for dividend policy heading into 2026.

For now, the first-half results confirm Antofagasta’s strong positioning amid ongoing structural demand for copper and gold.