What happened
Antofagasta shares tumbled 7.5% to trade at 3,946p during the session as a sharp downturn in both precious and industrial metal prices dampened investor sentiment across the London mining sector. The session took the stock to an intraday low of 3,900p, substantially beneath Wednesday's close of 4,267p and a long way from its 52-week peak of 4,475p recorded earlier in the year.
Market context
The decline in Antofagasta formed part of a wider selloff that pushed the UK's main index lower. The FTSE 100 slipped to 10,226 points, a fall of 1.42% from the prior session, extending a one-month slide that now stands at 3.44%. Mining names were among the heaviest contributors to the drop, with Fresnillo and Antofagasta each falling by more than 5%, Anglo American down around 4%, and Endeavour off close to 3%.
Drivers of the selloff
Commodity price moves were the proximate catalyst. Gold weakened amid renewed U.S.-Iran tensions that supported the dollar, while concerns resurfaced that rising oil prices could keep inflationary pressures elevated. Market participants weighed the immediate impact of heightened geopolitical stress against the possibility that persistent inflation would delay any loosening of U.S. policy rates.
That hawkish tone in rates expectations is reflected in positioning tools cited by traders, with the dominant scenario indicating zero rate cuts for the year according to the CME FedWatch probabilities referenced by market participants.
Industrial metals also faced headwinds. Copper in particular came under pressure after commentary from the International Copper Study Group that the global refined copper market may move into a surplus by 2026, a dynamic that has contributed to the broader negative sentiment toward mining equities.
Analyst views and coverage
On the brokerage side, HSBC analyst Shilan Modi previously reduced the price target on Antofagasta to GBP 13.50 while retaining a Reduce rating. Separately, research houses including Oddo BHF have also provided recent commentary on the stock, with Oddo BHF initiating coverage and assigning a Neutral rating.
How the pieces fit together
Taken together, the rout in commodity markets driven by geopolitical tensions, a rate outlook that has turned less supportive for metals demand, and a sector-wide pullback on the London market combined to push Antofagasta to its session nadir of 3,900p. The share price now sits markedly below the prior session close of 4,267p and is significantly off the 52-week high of 4,475p.
Note: The article confines itself to the facts and market commentary reflected in trading and published analyst notes.