Southern Copper Q2 2026: Record Earnings on Surging Metal Prices, Tia Maria Progress
SCCO has more than doubled off its 52-week low of $86.612 on light trading volume (0.3× avg).
Summary
Southern Copper reported Q2 2026 net income of $1.67 billion, up 71.6% year-over-year, driven by surging metal prices. Operating cash costs net of by-products fell to just $0.05 per pound. The company declared a $1.10 cash dividend and advanced its Tia Maria project to 42% completion.
Key Events · Earnings and Guidance · SCCO
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Record Q2 Earnings
Net income attributable to SCC reached $1,670.0 million, a 71.6% increase from $973.4 million in Q2 2025, driven by higher copper, molybdenum, and silver prices.
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Operating Cash Cost Collapses
Operating cash cost per pound of copper, net of by-product revenues, fell to $0.05 from $0.63 a year ago, as by-product credits surged 51.4% per pound.
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Massive Shareholder Returns
Subsequent to quarter-end, the Board declared a $1.10 per share cash dividend and a 0.0120 stock dividend, payable August 27, 2026. Combined with the stock dividend value, the total estimated payment is $3.23 per share.
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Tia Maria Project 42% Complete
The Tia Maria copper project in Peru reached 42% completion, with $693 million invested of $1,101 million committed. First production is expected in the second half of 2027.
Analysis · SCCO · Energy & Transportation
Southern Copper delivered a blowout quarter, with net income surging 71.6% to $1.67 billion on the back of sharply higher copper, molybdenum, and silver prices. The company's operating cash cost net of by-product revenues collapsed to just $0.05 per pound, down from $0.63 a year ago, as surging by-product credits more than offset modest cost inflation. This is a textbook operating leverage story in a commodity upcycle. The balance sheet is fortress-like with $5.7 billion in cash and equivalents against $8.0 billion in long-term debt, and the company continues to return massive amounts of capital to shareholders—a $1.10 per share cash dividend plus a 1.2% stock dividend was declared subsequent to quarter-end. On the growth front, the Tia Maria project is now 42% complete with first production expected in the second half of 2027, and the El Pilar project is advancing toward a 2029 start. The only blemish is slightly lower copper production, down 3.5% year-over-year, but this was entirely price-driven outperformance.
At the time of this filing, SCCO was trading at $183.53 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $153.1B. The 52-week trading range was $86.61 to $221.67. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.