How did Southern Copper's profitability change in Q1 2025?

Net income attributable to SCC increased 28.5% to $945.9 million, and adjusted EBITDA grew 23.1% to $1,745.6 million. Gains came from higher sales volumes and prices, and from lower unit costs, which together expanded margins.

What dividend is shareholders receiving and when?

The Board approved a quarterly cash dividend of $0.70 per share and a stock dividend of 0.0099 shares per share. Both are payable May 19, 2025 to shareholders of record at the close of business on May 2, 2025. Cash will be paid in lieu of fractional shares based on an $81.13 reference price.

Did the company's balance sheet or leverage change materially?

Yes. Long-term debt increased to $6,747.0 million from $5,758.5 million at December 31, 2024, following $993.8 million of new debt issuance. Cash and equivalents rose to $4,116.3 million, and total equity increased to $9,636.7 million.

What risks did management highlight in the quarter?

Management cited instability in the copper market linked to shifting trade policies in the world's major economies. At Los Chancas in Peru, illegal miners attacked facilities in March 2025 and damaged equipment and camps, which could delay development. Interest expense also rose 14.2% YoY to $91.9 million.

What are the company's main growth projects?

Tia Maria in Peru (120,000 tpy SX-EW copper, $1,802M budget, operations expected in 2027), Los Chancas in Peru (130,000 tpy copper, $2.6B, operations expected 2031), Michiquillay in Peru (225,000 tpy copper, $2.5B, start-up expected 2032), and El Arco in Baja California, Mexico. Minera Mexico plans more than $600M of investment in 2025.

SCCO 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed April 25, 2025. Cited figures are marked; the original filing is the authoritative source.

Southern Copper (SCCO) reported strong first-quarter 2025 results, with net sales of $3,121.9 million^a, up 20.1% year over year and 12.1% sequentially.

Growth was driven by higher sales volumes of copper (+3.6%), molybdenum (+9.9%), zinc (+42.4%) and silver (+14.1%), along with higher metal prices. Net income attributable to SCC rose 28.5% to $945.9 million^b, with a net margin of 30.3%, and adjusted EBITDA reached $1,745.6 million (55.9% margin), up 23.1% year over year. Operating cash cost net of by-product credits fell 28.5% to $0.77 per pound, helped by a 22.2% increase in by-product revenue credits, while operating cash flow rose 9.3% to $721.3 million.

The Board authorized a quarterly cash dividend of $0.70^c per share plus a stock dividend of 0.0099 shares per share, payable May 19, 2025 to holders of record on May 2, 2025. Management flagged copper market instability tied to shifting trade policies in major economies. Capital investments rose 48.6% to $317.8 million, and the company's long-term capital program for this decade exceeds $15 billion.

Total debt increased materially during the quarter, with long-term debt rising to $6,747.0 million^d from $5,758.5 million at year-end 2024, while cash rose to $4,116.3 million. The 8-K furnishes the earnings release under Item 2.02 and is not deemed filed for Section 18 purposes. Investors should note the Los Chancas project disruption from illegal mining attacks in March 2025, and that the company is 88.9% owned by Grupo Mexico, which limits free float.

02—Key points

Key Highlights

Net sales of $3,121.9M, up 20.1% YoY and 12.1% QoQ, driven by volume growth in zinc (+42.4%), silver (+14.1%), molybdenum (+9.9%) and copper (+3.6%).
Net income attributable to SCC of $945.9M, up 28.5% YoY, with a 30.3% net margin versus 28.3% a year earlier.
Adjusted EBITDA of $1,745.6M, up 23.1% YoY, with a 55.9% margin.
Operating cash cost net of by-product credits fell to $0.77/lb from $1.07/lb (-28.5%), supported by a 22.2% rise in by-product revenue credits.
Quarterly cash dividend of $0.70/share plus a 0.0099-share stock dividend, payable May 19, 2025 to holders of record on May 2, 2025.
Long-term debt rose to $6,747.0M from $5,758.5M at year-end 2024 after $993.8M of new debt was incurred, while cash increased to $4,116.3M.
Capital investment program for this decade exceeds $15B; Q1 capex of $317.8M was up 48.6% YoY, with Los Chancas facing illegal-mining disruption in March 2025.

03—Questions

Frequently Asked Questions

How did Southern Copper's profitability change in Q1 2025?
Net income attributable to SCC increased 28.5% to $945.9 million, and adjusted EBITDA grew 23.1% to $1,745.6 million. Gains came from higher sales volumes and prices, and from lower unit costs, which together expanded margins.
What dividend is shareholders receiving and when?
The Board approved a quarterly cash dividend of $0.70 per share and a stock dividend of 0.0099 shares per share. Both are payable May 19, 2025 to shareholders of record at the close of business on May 2, 2025. Cash will be paid in lieu of fractional shares based on an $81.13 reference price.
Did the company's balance sheet or leverage change materially?
Yes. Long-term debt increased to $6,747.0 million from $5,758.5 million at December 31, 2024, following $993.8 million of new debt issuance. Cash and equivalents rose to $4,116.3 million, and total equity increased to $9,636.7 million.
What risks did management highlight in the quarter?
Management cited instability in the copper market linked to shifting trade policies in the world's major economies. At Los Chancas in Peru, illegal miners attacked facilities in March 2025 and damaged equipment and camps, which could delay development. Interest expense also rose 14.2% YoY to $91.9 million.
What are the company's main growth projects?
Tia Maria in Peru (120,000 tpy SX-EW copper, $1,802M budget, operations expected in 2027), Los Chancas in Peru (130,000 tpy copper, $2.6B, operations expected 2031), Michiquillay in Peru (225,000 tpy copper, $2.5B, start-up expected 2032), and El Arco in Baja California, Mexico. Minera Mexico plans more than $600M of investment in 2025.

04—Continue

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