10-QPeriod: Q2 FY2025

SOUTHERN COPPER CORP/ Quarterly Report for Q2 Ended Jun 30, 2025

Filed July 31, 2025For Securities:SCCO

Summary

Southern Copper Corporation (SCCO) reported its financial results for the quarter and six months ended June 30, 2025. The company demonstrated resilience with net sales for the first six months of 2025 increasing by 8.0% year-over-year to $6.17 billion, driven by higher sales volumes across key metals like zinc, copper, molybdenum, and silver, alongside favorable price movements for copper, silver, and zinc. Net income attributable to SCC saw a significant increase of 13.8% for the first six months of 2025, reaching $1.92 billion, supported by revenue growth and a substantial 89.2% surge in interest income. The company's operational efficiency is highlighted by a decrease in operating cash costs per pound of copper produced, both before and net of by-product revenues, reflecting effective cost management and strong by-product contributions. Significant capital investments continue, with $553.5 million deployed in the first half of 2025, primarily in Mexican and Peruvian operations, aimed at enhancing production, reducing costs, and addressing environmental commitments.

Financial Highlights

50 data points
Beta

Revenue

$3.05B

60.3% Gross Margin

Net Income

$973.40M

31.9% Net Margin

EPS (Diluted)

$1.21

Total Assets

$19.55B

Cash & Equivalents

$3.33B

Free Cash Flow

$741.10M

Financial Statements
Beta
Revenue$3.05B
Cost of Revenue$1.21B
Gross Profit$1.84B
SG&A Expenses$32.50M
Operating Expenses$1.46B
Operating Income$1.59B
Net Income$973.40M
EPS (Basic)$1.21
EPS (Diluted)$1.21
Shares Outstanding (Basic)807.80M
Shares Outstanding (Diluted)807.80M

Key Highlights

  • 1Net sales for the first six months of 2025 increased by 8.0% to $6.17 billion, driven by higher volumes and improved prices for key metals.
  • 2Net income attributable to SCC grew by 13.8% for the first six months of 2025, reaching $1.92 billion.
  • 3Operating cash cost per pound of copper, net of by-product revenues, decreased by 23.6% in the first six months of 2025 compared to the prior year, reaching $0.70.
  • 4The company made capital investments totaling $553.5 million in the first half of 2025, focusing on its Mexican and Peruvian operations.
  • 5Interest income saw a significant increase of 89.2% in the first six months of 2025, contributing to improved profitability.
  • 6Strong performance in zinc production and sales, with a 52.9% increase in the first six months of 2025, driven by full capacity at the Buenavista Zinc concentrator.
  • 7The company declared a quarterly cash dividend of $0.80 per share and a stock dividend of 0.0101 shares per common stock for the upcoming quarter.

Frequently Asked Questions

Net sales increased by 8.0% in the first six months of 2025 due to higher sales volumes of zinc, copper, molybdenum, and silver, coupled with improved market prices for copper, silver, and zinc. The significant growth in zinc production and sales from the Buenavista Zinc concentrator was a key contributor.

Southern Copper effectively managed its operating costs, leading to a significant reduction in its operating cash cost per pound of copper. In the first six months of 2025, the operating cash cost per pound of copper, net of by-product revenues, decreased by 23.6% to $0.70, primarily due to lower treatment and refining charges and a substantial increase in by-product revenues from silver and zinc.

Southern Copper invested $553.5 million in capital projects during the first half of 2025. Major investments were directed towards its Mexican operations ($331.4 million), including tailings disposal and modernization projects, and Peruvian operations ($222.1 million), focusing on land acquisition for projects like Los Chancas and advancements at the Tia Maria project.

The company maintains a positive long-term outlook for copper, despite short-term price volatility and potential impacts from U.S. trade policies like tariffs. Molybdenum prices are expected to remain stable, while zinc fundamentals are strong due to anticipated supply tightening. Silver prices are expected to be supported by industrial demand. The sensitivity analysis indicates that a $0.10 per pound increase in copper price could increase net earnings by $62.5 million.