Southern Copper Reports Record 2025 Earnings, Cuts Operating Costs by 34%, and Boosts 2026 Capital Spending to $1.9B

summarizeSummary

Southern Copper reported record 2025 net sales and net income, driven by higher metal prices and by-product volumes, alongside a significant 34% reduction in operating cash costs. The company plans to invest $1.93 billion in capital projects for 2026 as part of its long-term growth strategy, despite a projected slight decrease in metal production for the upcoming year.

check_boxKey Events

• Record 2025 Financial Performance

  Reported record net sales of $13.42 billion (+17.4%) and net income attributable to SCC of $4.33 billion (+28.4%) for the fiscal year ended December 31, 2025, with EPS of $5.24.

• Significant Reduction in Operating Cash Costs

  Operating cash cost per pound of copper, net of by-product revenues, decreased by 34.0% to $0.58 in 2025, primarily due to higher sales volumes of molybdenum, silver, and zinc.

• Substantial 2026 Capital Investment Program

  Approved a $1.93 billion capital investment program for 2026, a 45% increase from 2025, aimed at organic growth and increasing copper production to 1.6 million tonnes by 2033.

• 2026 Production Outlook

  Forecasts a slight decrease in copper, molybdenum, silver, and zinc production for 2026, mainly attributed to lower ore grades.

auto_awesomeAnalysis

Southern Copper Corporation delivered record financial results for 2025, with net sales reaching $13.42 billion and net income attributable to SCC increasing by 28.4% to $4.33 billion. A key highlight is the significant 34% reduction in operating cash costs per pound of copper, net of by-product revenues, to $0.58. The company plans substantial capital investments of $1.93 billion in 2026 to support its long-term goal of increasing copper production to 1.6 million tonnes by 2033. While the 2026 production outlook for copper, molybdenum, silver, and zinc is projected to be slightly lower than 2025 due to factors like lower ore grades, the company's strong financial position, aggressive capital program, and robust ESG performance underscore its commitment to sustainable growth. Investors should monitor the execution of these capital projects and the ongoing geopolitical and regulatory landscape in Peru and Mexico, which present persistent, albeit managed, risks.