10-QPeriod: Q3 FY2025

SOUTHERN COPPER CORP/ Quarterly Report for Q3 Ended Sep 30, 2025

Filed October 31, 2025For Securities:SCCO

Summary

Southern Copper Corporation (SCCO) reported strong financial results for the nine months ended September 30, 2025, with net sales increasing by 10.4% to $9.55 billion and net income attributable to SCC rising by 17.2% to $3.03 billion, compared to the same period in 2024. This growth was driven by higher sales volumes of key by-products like molybdenum, silver, and zinc, coupled with improved pricing for copper, molybdenum, silver, and zinc. Despite a slight decrease in copper sales volume, the company demonstrated robust operational performance and effective cost management, leading to a significant reduction in its operating cash cost per pound of copper, net of by-product revenues. The company continues to invest strategically in its capital projects, with significant expenditures in both its Peruvian and Mexican operations aimed at increasing production, reducing costs, and addressing environmental and social commitments. Importantly, SCCO received authorization for the commencement of exploitation activities for the Tía María project, a significant development that is expected to contribute substantially to future revenues and regional development. Overall, SCCO's financial health remains strong, supported by favorable market conditions for its key commodities and a proactive approach to operational efficiency and strategic growth.

Financial Highlights

50 data points
Beta

Revenue

$3.38B

59.8% Gross Margin

Net Income

$1.11B

32.8% Net Margin

EPS (Diluted)

$1.35

Total Assets

$20.33B

Cash & Equivalents

$3.95B

Free Cash Flow

$1.21B

Financial Statements
Beta
Revenue$3.38B
Cost of Revenue$1.36B
Gross Profit$2.02B
SG&A Expenses$33.70M
Operating Expenses$1.61B
Operating Income$1.77B
Net Income$1.11B
EPS (Basic)$1.35
EPS (Diluted)$1.35
Shares Outstanding (Basic)822.70M
Shares Outstanding (Diluted)822.70M

Key Highlights

  • 1Net sales for the nine months ended September 30, 2025, increased by 10.4% to $9.55 billion, driven by higher sales volumes and improved prices for copper, molybdenum, silver, and zinc.
  • 2Net income attributable to SCC for the nine months ended September 30, 2025, rose by 17.2% to $3.03 billion, reflecting strong sales performance and effective cost management.
  • 3Operating cash cost per pound of copper, net of by-product revenues, decreased significantly by 29.3% to $0.61 for the nine months ended September 30, 2025, demonstrating improved cost efficiency.
  • 4Capital investments totaled $902.7 million for the nine months ended September 30, 2025, with significant allocations to both Peruvian and Mexican operations, focusing on production growth and cost reduction.
  • 5SCCO received authorization for the commencement of exploitation activities for the Tía María project in Peru, a key greenfield project expected to contribute significantly to future copper production and regional economic development.
  • 6The company experienced strong growth in by-product sales volumes, including molybdenum (+6.7%), silver (+16.6%), and zinc (+18.7%), contributing positively to overall revenue.
  • 7Robust cash flow generation from operating activities, amounting to $3.26 billion for the nine months ended September 30, 2025, underscores the company's financial strength and operational efficiency.

Frequently Asked Questions

Revenue growth was primarily driven by increased sales volumes for molybdenum, silver, and zinc, along with higher market prices for copper, molybdenum, silver, and zinc. Despite a slight decrease in copper sales volume, the improved pricing and strong performance of by-products significantly boosted overall net sales, which increased by 10.4% to $9.55 billion compared to the prior year period.

The company demonstrated effective cost management, leading to a significant decrease in its operating cash cost per pound of copper, net of by-product revenues, by 29.3% to $0.61 for the nine months ended September 30, 2025. This reduction was largely due to higher by-product revenues, primarily from molybdenum, silver, and zinc, as well as improved operational efficiencies. This cost control, coupled with increased sales, contributed to a 17.2% rise in net income attributable to SCC to $3.03 billion for the period.

The authorization for the commencement of exploitation activities for the Tía María project is a significant milestone. This greenfield project, utilizing state-of-the-art SX-EW technology, is expected to contribute 120,000 tonnes of copper cathodes annually. It represents a substantial future revenue stream, significant tax contributions, and job creation, reinforcing SCCO's growth strategy and its commitment to regional development in Peru.

Southern Copper's profitability is significantly affected by the volatility of copper and other metal prices. To mitigate this risk, the company focuses on value creation through efficient copper production, strict cost control, and production enhancement. Additionally, the company's robust by-product portfolio, including molybdenum, silver, and zinc, helps to diversify revenue streams and offset potential fluctuations in copper prices. Strategic capital investments aim to enhance operational efficiency and lower production costs, further strengthening the company's resilience to price volatility.