Southern Copper Corp ((SCCO)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Southern Copper Corp’s recent earnings call showcased a strong financial performance, marked by record net sales, EBITDA, and net income. This success was largely attributed to increased byproduct production and improved metal prices. However, the call also highlighted challenges such as declines in copper production and rising operating costs. Despite these hurdles, the company remains optimistic about future growth and market conditions.
Record-Breaking Financial Performance
Southern Copper Corp achieved remarkable financial milestones in the third quarter of 2025, setting new company records for net sales, adjusted EBITDA, and net income. The company reported net sales of $3.4 billion, marking a 15% increase compared to the same period in 2024. Adjusted EBITDA reached $1,975 million, a 17% rise from the previous year, with an impressive EBITDA margin of 59%.
Significant Byproduct Production Increases
The company saw substantial growth in byproduct production, with zinc production rising by 46%, silver output increasing by 16%, and molybdenum production up by 8% compared to the third quarter of 2024. This surge in zinc production was primarily driven by a 108% increase at the Buenavista zinc concentrator.
Cost Efficiency and Low Cash Costs
Southern Copper achieved a cash cost of $0.42 per pound of copper in the third quarter of 2025, positioning it as one of the industry’s most cost-efficient producers. This represented a 34% decrease from the previous quarter, underscoring the company’s focus on maintaining low operational costs.
Positive Market Conditions
The earnings call highlighted favorable market conditions, with LME copper prices increasing by 7% and COMEX prices rising by 14% during the quarter. Southern Copper estimates a copper market deficit of nearly 400,000 tons, which supports strong long-term fundamentals for copper prices.
ESG and Sustainability Achievements
Southern Copper’s commitment to sustainability was recognized with a 4-point increase in its S&P Global sustainability rating, placing it among the leaders in the mining sector. The company is actively working to reduce greenhouse gas emissions and restore ecosystems, reflecting its dedication to environmental responsibility.
Decrease in Copper Production
Despite the positive financial performance, the company experienced a 7% decrease in copper production in the third quarter of 2025 compared to the same period in 2024, with total production at 234,892 tons. This decline was attributed to lower ore grades and a strategic focus on maximizing zinc and silver production at the Buenavista mine.
Challenges in Mexican and Peruvian Operations
The company faced challenges in its Mexican and Peruvian operations, with copper production falling by 3% year-to-date in 2025 due to lower ore grades. In Peru, production decreased by 7% due to reduced output at the Toquepala and Cuajone mines.
Increased Operating Costs
Operating costs and expenses rose by $128 million, or 9%, compared to the third quarter of 2024. This increase was driven by higher costs in purchased copper concentrate, labor, and energy, posing a challenge to the company’s cost management efforts.
Forward-Looking Guidance
Looking ahead, Southern Copper Corp plans to focus on organic growth and has announced a capital investment of $2 billion in 2026, including $866 million allocated for the Tia Maria project. The company remains committed to enhancing production volumes and capitalizing on favorable market conditions to drive future growth.
In summary, Southern Copper Corp’s earnings call painted a picture of robust financial health, with record-breaking sales and profitability. While challenges such as declining copper production and rising costs persist, the company’s strategic focus on byproduct production and sustainability initiatives positions it well for future growth. Investors and market watchers will be keen to see how Southern Copper navigates these dynamics in the coming quarters.