Chilean Iron Miner Weighs US$40M Asset Sale

CHILE · BUSINESS

A Chilean iron ore miner that reported a nine-month loss of US$127.8 million says it may sell what it can spare. CAP, a Santiago-listed group that mines iron ore, is weighing asset sales of about US$40 million at Cintac, its industrial unit, chief executive Nicolás Burr said on an investor call on Thursday 12 November 2026.

The money would go toward debt, which the company treats as its first priority. For anyone who follows iron ore, steel or Chilean credit, it shows how tight cash has become at a major Chilean industrial group.

What Happened

Burr said CAP is looking at “other recovery measures” for Cintac, its industrial arm, including the sale of non-essential assets that aims to raise about US$40 million. He added that the group has been negotiating with banks for months over three new refinancing structures that would stretch out the maturities of its current debt.

CAP also lent Cintac a US$30 million credit line, and Burr said the right size of that line is being reviewed as part of the bank talks. He said the group has also released a good deal of cash from working capital since the start of the year.

The Cash CAP Has

Felipe Gazitúa, CAP’s corporate finance manager, said the group held US$301 million in cash. Its mining arm, Compañía Minera del Pacífico (CMP), renewed a US$330 million credit line in October, and Gazitúa put total liquidity at US$631 million.

The credit line is a bank loan facility that CMP can draw on when it needs cash. The renewal is a syndicated loan with six banks that runs until October 2029, according to CAP’s results.

Other Moves on the Table

Gazitúa said CAP is also looking at turning infrastructure into cash, for example through an iron ore prepayment, which could add about US$500 million to liquidity. A prepayment means a customer pays in advance for ore that CAP will deliver later.

He also discussed prepaying debt, which he said could easily be US$200 million to US$300 million depending on cost, and said CAP would test the market in December. He also said the group is selling its power transmission line business and is looking for a partner in its water unit, Aguas CAP, for a possible expansion.

Why It Matters

CAP reported a loss of US$127.8 million for the first nine months of 2026 on revenue of US$1.25 billion, down 5.4%. Its earnings before interest, tax, depreciation and amortisation (EBITDA, a measure of operating profit) were US$198.2 million, while Cintac alone posted an EBITDA loss of US$6.4 million against a profit of US$12.9 million a year earlier.

The mining unit’s EBITDA fell 31.6% to US$166.5 million, as CMP’s average realised price fell 10.1% and sea freight costs tied to tensions in the Middle East rose sharply. Gazitúa said he does not expect trouble winning a waiver in December, meaning lenders would agree to relax debt conditions that CAP could otherwise fail to meet.

The Steel Plant Deal

CAP expects to close the sale of its idled Huachipato steel plant to Chilean steelmaker AZA in early 2027. Chile’s competition watchdog, the Fiscalía Nacional Económica, cleared the deal, and the steel company is valued at US$130 million; see our report on the Huachipato clearance.

Burr said CAP has not given up its plan to reach key milestones by 2030 despite the short-term difficulties. Our earlier report on CAP’s nine-month loss has the full results.

What It Means for You

CAP’s shares trade in Santiago, but its iron ore feeds the same steel supply chain that US buyers and global iron ore prices depend on. Investors who follow Chilean companies or iron ore should watch whether the waiver and refinancing come through in December.

If you only travel to or work with Chile, nothing changes for you. The story matters most to lenders, suppliers and steelmakers that deal with CAP and Cintac.

What Is Not Known

It is not known which assets Cintac would sell, to whom, or by when. The executives did not name them on the call, and the US$40 million is a target, not a signed deal.

How the two figures given by the finance executive fit together is also unclear: about US$500 million from monetising infrastructure such as an iron ore prepayment, and US$200 million to US$300 million for prepaying debt. The December waiver depends on lenders, whose terms CAP has not made public.

More: Chile news in English, every day from The Rio Times.

Frequently Asked Questions

Why Is CAP Selling Assets?

Executives say cutting debt is the first goal. They are weighing about US$40 million of asset sales at the Cintac unit.

How Much Cash Does CAP Have?

CAP’s corporate finance manager said it held US$301 million in cash. Its mining arm renewed a US$330 million credit line in October, and the finance executive put total liquidity at US$631 million.

What Does Cintac Do?

Cintac is CAP’s industrial unit. It supplies steel structures and runs construction and engineering projects.

Sources: CAP S.A. executives, statements on the investor conference call on the nine-month 2026 results, 12 November 2026; CAP S.A., nine-month 2026 results, 5–7 November 2026 (see Financial Market Commission of Chile, company filings); Fiscalía Nacional Económica, Huachipato decision, November 2026.

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