CAP (CAP) Q3 & CMD 2025 earnings summary

Executive summary

• Focused on portfolio diversification, decarbonization, and sustainable growth by 2030, targeting leadership in high-grade iron ore and rare earths for the energy transition, and becoming a leading provider of decarbonization materials through an integrated portfolio.

• Key player in Chile’s economy, producing 98% of the country's iron ore and ranking 4th in the Dow Jones Sustainability Index for Mining & Steel.

• Stable ownership structure, listed on the Santiago Stock Exchange, with a market cap of ~$1 billion and a 44.2% free float as of October 2025.

• The mining segment remains the largest contributor, with $973 million in revenue, while the industrial segment generated $322 million.

• Indefinite suspension of steelmaking at the main steel subsidiary, with continued focus on non-steel businesses and operational optimization in mining.

Financial highlights

• Third quarter saw improved dispatches (1.7 million tons) and a 15% revenue increase compared to the previous quarter, with consolidated revenues up 15% YoY in 3Q25.

• Consolidated EBITDA remained stable quarter-over-quarter, but declined year-over-year due to lower mining prices and dispatches; mining EBITDA was flat YoY, offset by higher C1 cash costs and lower shipments.

• Net loss of $72 million for the last nine months, a significant improvement from $359 million loss last year, mainly due to the absence of Huachipato suspension impact; net loss for the nine months ended September 30, 2025, was $89 million.

• Cintac’s EBITDA grew over 158% year-over-year, offsetting weaker construction sector performance; Cintac’s EBITDA up 17% YoY, driven by modular construction and hospitality.

• Cash position strong at $350 million as of September 2025, with cash flow expected to be neutral for the year and no significant cash burn.

Outlook and guidance

• 2025 production guidance maintained at 15–15.5 million tons; 2026 guidance: 15.1–15.6 Mt, with Phase VI prestripping underway and new plant commissioning in 2H26.

• Cash cost guidance for 2024 is $52–$57/ton, expected to drop to $49–$53/ton in 2025 and 2026, and further to $45/ton by 2030 due to efficiency and new energy contracts.

• CapEx for 2025–2026 targeted at $300 million annually, with CMP accounting for $275 million.

• By 2030, aim to reach 18 million tons of iron ore and 2,225 tons of rare earths, representing 12% of global rare earths market.

• The mining segment expects a reduction in iron concentrate production in H2 2025 and 2026 due to the suspension of Phase 5 at Los Colorados Mine, with mitigation measures in place.