KGHM: Average Copper Price to Outstrip $5,000 in 2017

On November 5, Chile time, Codelco held an extraordinary shareholders' meeting in Santiago. According to foreign media reports, Chairman Fontaine stated that copper production in 2026 is expected to be slightly above 1.2 million mt, below the target of approximately 1.34 million mt set at the beginning of the year. Average annual copper production over the next four years is expected to be around 1.3 million mt. Fontaine had previously indicated that the original target of producing 1.7 million mt annually by 2030 would be difficult to achieve. The company's preliminary investigation shows that copper production was overstated by 24,000 mt in 2024 and by a net 18,100 mt in 2025, totaling 42,100 mt over the two years. The irregularities included prematurely counting materials that did not meet finished product standards as production, as well as duplicate entries. Duplicate entries resulted in an overstatement of copper inventories by 15,200 mt Cu.

Codelco Chairman Bernardo Fontaine said the company preliminarily identified around 42,100 tonnes of copper improperly recorded as production in 2024–2025, including unfinished material and duplicate entries across divisions. The irregularities may also have inflated copper inventories by approximately 18,800 tonnes, with an estimated financial impact of US$120 million–140 million. Audits by KPMG and EY remain under way. Codelco lowered its 2026 production guidance from 1.34 million tonnes to slightly above 1.2 million tonnes and expects annual output of around 1.3 million tonnes over the next four years. Its previous target of reaching 1.7 million tonnes by 2030 is no longer considered achievable.