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SOUTHERN COPPER CORP/ 8-K Report, Financial Results (Jul 22, 2026)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed July 22, 2026
Period End
July 21, 2026
Security
SCCO
In the record · 2016–202610-K1510-Q328-K86

SCCO filed 15 annual reports (10-K), 32 quarterly reports (10-Q) and 86 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Jul ’21Jul ’21
  2. Leadership change8-K · Jul ’25Jul ’25

01—Abstract

Summary

Summary of the 8-K filed July 22, 2026. Cited figures are marked; the original filing is the authoritative source.

Southern Copper (SCCO) reported record second-quarter 2026 results, with net sales of $4,289.0 milliona (up 40.6% year over year), net income of $1,670.0 million (up 71.6%, a 38.9% margin), and adjusted EBITDA of $2,856.0 million (up 59.5%, a 66.6% margin).

The growth was driven mainly by sharply higher metal prices: LME copper rose 39.8%, molybdenum 43.1%, zinc 30.8%, and silver 118.6% year over year. Copper sales volumes fell 1.5% and copper mined output dropped 3.5% quarter over quarter, with Peruvian production down 12.0%. Operating cash cost net of by-product credits was just $0.05b per pound in Q2, reflecting strong by-product revenue.

Cash generation and balance sheet strength stood out. Six-month operating cash flow rose 116.9% to $3,683.0 millionc, helped by a $718.5 million smaller working capital drag. Cash and short-term investments reached about $7.33 billion at June 30, 2026, against $7,994.4 million of long-term debt, after the company issued $1.25 billion of 10-year notes at 5.350% in June to fund the Tía María project and other SPCC capital needs.

Capital investments are rising, with a decade-long program above $20.5 billiond, including roughly $10.3 billion in Peruvian projects and $10.2 billion in Mexican investments. The Board declared a quarterly cash dividend of $1.10 per share plus a stock dividend of 0.0120 shares per share, for an estimated total of $3.23 per share, payable August 27, 2026 to holders of record on August 11, 2026. The filing is a Form 8-K furnished under Item 2.02, so the press release is not deemed "filed" for Section 18 purposes.

Management also signaled support for the incoming Peruvian administration. The main risks flagged are the Peru project pipeline's dependence on permitting and political transition, the Peruvian production decline, and the company's heavy exposure to metal price swings.

02—Key points

Key Highlights

  1. Record Q2 2026 net sales of $4,289.0M (+40.6% YoY) and record net income of $1,670.0M (+71.6% YoY), with a net margin of 38.9% versus 31.9% a year earlier.
  2. Adjusted EBITDA reached a record $2,856.0M (+59.5% YoY), with a 66.6% margin; six-month adjusted EBITDA was $5,568.8M (+57.5%).
  3. Operating cash cost net of by-product credits fell to $0.05/lb in Q2 2026 from $0.63/lb in Q2 2025, and was negative (-$0.03/lb) for six months, driven by by-product revenue up 51.4% in Q2.
  4. Six-month operating cash flow rose 116.9% to $3,683.0M, supported by a $718.5M improvement in working capital.
  5. Issued $1.25B of 10-year senior unsecured notes at 5.350% (due 2036) on June 24, 2026, with proceeds dedicated to SPCC's Tía María project and capex.
  6. Declared a quarterly cash dividend of $1.10/share plus a 0.0120-share stock dividend, an estimated total of $3.23/share, payable August 27, 2026 (record date August 11, 2026).
  7. Copper production declined 3.5% QoQ to 230,662 tonnes, with Peruvian mines down 12.0% on lower ore grades, partly offset by Mexican output up 3.2%.

03—Questions

Frequently Asked Questions

  1. What is the total dividend and when is it paid?

    The Board authorized a quarterly cash dividend of $1.10 per share and a stock dividend of 0.0120 shares per share. Based on a reference price of $177.32, the estimated total value is $3.23 per share. The dividend is payable August 27, 2026, to shareholders of record at the close of business on August 11, 2026. Fractional share entitlements will be paid in cash.

  2. Why did net income and margins rise so sharply in Q2 2026?

    The increase was driven mainly by higher metal prices rather than volume. Average LME copper rose about 40% year over year, molybdenum about 43%, zinc about 31%, and silver about 119%. Copper sales volumes fell 1.5%, so price variances did most of the work, and cost of sales rose only 14.7%.

  3. What are the main risks for investors?

    Key risks include declining copper output in Peru (down 12% in Q2 on lower ore grades), a 3.5% quarterly drop in total mined copper, and continued dependence on volatile commodity prices. The company's large Peruvian and Mexican project pipeline also depends on permits, government support, and political stability. The filing notes ongoing illegal mining at Los Chancas and a Peruvian executive transition. The 8-K also notes that the press release is furnished, not filed.

  4. How is SCC funding its growth program?

    The company combines strong operating cash flow with debt financing. It issued $1.25B of 10-year notes at 5.350% in June 2026, and long-term debt rose to $7,994.4M from $6,750.7M at year-end 2025. Capital investments were $864.7M in the first half, up 56.2%, against a decade-long program above $20.5B. Cash and short-term investments totaled about $7.3B at June 30, 2026.

  5. What is the outlook for the Tía María project?

    Tía María, a 120,000-tonne-per-year SX-EW copper project in Arequipa, was 42% complete as of June 30, 2026. Management expects all equipment to be fully assembled in 2027 and initial production to begin in the second half of 2027. The project has an estimated cash cost of $1.16/lb, and $693M of the $1,101M committed to project activities has been invested so far.

04—Continue

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