Barclays downgrades its recommendation on Antofagasta from 'weight in line' to 'underweight', with a price target lowered by 6% to £12.95, due to higher capital expenditure in 2025-26 and a lower NPV.

According to the broker, higher capital expenditure will imply significantly negative free cash flow until 2026 for this Chilean copper mining company.

He also points to the strong relative performance of the share price, which reached a 52-week high, valuation multiples at their highest level for eight years and a 43% premium to its base metal peers.

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