Southern Copper Corporation (SCCO)

Southern Copper reported record third-quarter net sales of $4,696.6 million, up 39.1 percent from a year earlier 1.

Net income was a record $1,801.8 million, up 62.7 percent 1. The company said higher metal prices for all its products drove the gain, while copper sales volumes dipped slightly 1.

Mined copper output for the first nine months fell 2.9 percent to 693,602 tonnes, mostly because the Peruvian mines are digging lower-grade ore 1.

The Tia Maria project in Peru was 49.6 percent complete on 30 September 2026 1. The company expects El Pilar in Mexico to start operating in 2029 on a capital budget of $551 million 1.

The open question is delivery, because the company says it is advancing toward 1.6 million tonnes of production while output is down this year 1. For all of 2025, net sales were a record $13,420.0 million 2.

Southern Copper was incorporated in Delaware in 1952 and has mined copper since 1960 2. Its common stock has been listed on the New York and Lima stock exchanges since 1996 2.

In April 2005 it acquired Minera Mexico from Americas Mining Corporation, a subsidiary of Grupo Mexico, its controlling stockholder 2. Minera Mexico gave it the Mexican mines it still runs, grouped in three units 2.

A strike hit the San Martin mine in Mexico from July 2007 to August 2018 2. After the stoppage the company renovated the idled facilities and restarted operations in the second quarter of 2019, at a cost of about $90.5 million 2.

In 2022, violent protests by communities next to the Cuajone mine hurt its operations 2. The railway between Cuajone and Ilo was blocked in February 2022, and the government declared a state of emergency in the Moquegua region in April 2022 2.

Since the second quarter of 2024 the board has approved quarterly stock dividends, paid partly from shares the company had repurchased earlier 2. No repurchases have been made since the third quarter of 2016 2.

Net sales in 2025 reached a record $13,420.0 million, up 17.4 percent 2. The 10-K credits higher volumes of molybdenum, zinc and silver, and higher prices for copper, silver, molybdenum and zinc 2.

Cost of sales grew 10.7 percent in 2025, mainly on workers' profit sharing, purchased copper, repair materials and energy 2. Capital investments were $1,325.3 million in 2025 and $1,027.3 million in 2024 2.

Copper and its by-products

Southern Copper mines and processes copper, molybdenum, zinc and silver, and all of its mining, smelting and refining facilities are in Peru and Mexico 2.

In 2025 copper brought in $10,033.8 million of its $13,420.0 million in net sales 2. Molybdenum added $1,405.1 million, silver $973.9 million and zinc $529.9 million 2.

Generally 80 percent to 90 percent of its metal production is sold under annual or longer-term contracts, mostly to end users rather than traders 2.

In the third quarter, mined zinc fell 7.9 percent to 41,880 tonnes and mined silver fell 1.9 percent 1.

Mines, smelters and refineries

In Peru it operates the Toquepala and Cuajone open-pit mines in the Andes, plus a smelter and refinery in the coastal city of Ilo 2. Each of Toquepala's two concentrators can mill 60,000 tonnes of ore a day 2.

In Mexico the La Caridad and Buenavista units run open-pit copper mines, and the IMMSA unit runs underground mines that produce zinc, lead, copper, silver and gold 2. The company holds 505,788 hectares of Mexican mine concessions 2.

People and rivals

At the end of 2025 the company had 16,617 employees, about 64.4 percent of them under a collective labor agreement, plus roughly 12,400 contractors 2.

German Larrea, the chairman of the board, said the third quarter delivered a record for net sales, adjusted EBITDA (a profit measure before interest, tax and depreciation) and net income 1.

The 10-K says competition in copper rests mainly on price and service, and that copper also competes with other materials such as aluminum and plastics 2.

Current problems

The 10-K says Tia Maria has been delayed while the company tries to resolve issues with community groups 2. In Peru the company says illegal miners have threatened the Los Chancas project area, and it is acting to regain control 1.

The umbrella, in words

Grupo Mexico owns the company in part: through its wholly owned subsidiary Americas Mining Corporation it owned 88.9 percent of the capital stock on 31 December 2025 2.

Southern Copper owns 99.998 percent of Minera Mexico, which runs the Mexican operations in three units: La Caridad, Buenavista and IMMSA 2.

Peru is run through a registered branch of the company itself, not a separate corporation, so the branch's obligations are direct obligations of the company 2.

The board has authorized a share repurchase program of up to $3 billion, with none carried out since the third quarter of 2016 2.

The company expects Tia Maria in Arequipa, Peru, to produce 120,000 tonnes of copper cathodes a year in its early years, with operations expected to begin in 1H28 1.

For El Pilar in Sonora, the company said project construction will begin in the first quarter of 2027, with production expected in the second half of 2029 1.

Chairman German Larrea said Tia Maria and El Pilar together would take annual production past one million tonnes, 85 percent of it refined copper 1.

The 10-K describes an organic growth plan to raise copper production to 1.6 million tonnes by 2033, and says the board approved a capital investment program of $1,925.5 million for 2026 2.

On 15 October 2026 the board authorized a quarterly cash dividend of $1.30 per share and a stock dividend of 0.0106 shares per share, payable 19 November 2026 1.