Southern Copper Corporation
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.25%.
Did SCCO Beat Earnings? Q3 2025 Results
Southern Copper delivered a strong third quarter in 2025, beating Wall Street expectations on both the top and bottom lines as favorable metal prices and a surge in by-product production lifted results well above forecasts. The company posted earnings per share of $1.35, ahead of the $1.26 consensus estimate by 7.20%, while revenue of $3.38 billion topped expectations by 5.15% and grew 15.2% from the year-ago period. The single most decisive driver was a dramatic reduction in operating cash cost per pound of copper, which fell 44.7% to $0.42, powered largely by a 46.3% year-over-year surge in zinc production and a 16.4% rise in silver output that collectively transformed by-product credits into a meaningful earnings lever. Adjusted EBITDA climbed 17.3% to $1.98 billion, with margins widening to 58.5%. Looking ahead, the company's multi-decade growth program, anchored by the Tía María project now 23% complete and on track to produce 120,000 tonnes of copper cathodes annually beginning in 2027, reflects management's confidence that copper's long-term demand fundamentals, increasingly supported by AI infrastructure buildout, remain firmly intact.
- Higher metal prices: copper LME +6.5%, COMEX +14.2%; silver +34.4%; molybdenum +12.1%; zinc +1.6% vs Q3 2024
- Strong by-product production growth: zinc +46.3%, silver +16.4%, molybdenum +8.3% year-over-year
- Operating cash cost per pound of copper dropped 44.7% to $0.42 net of by-product credits
- Higher by-product revenue credits driven by improved sales volumes and prices
- Buenavista zinc concentrator production increased 108.2%
“We are very pleased with our third-quarter results, where our performance delivered new Company records for net sales, adjusted EBITDA and net income. These milestones are a testament to the strength of our strategy, execution and commitment to sustainable growth. This strong performance was primarily driven by a rise in by-product production and improved metal prices across all our products. Zinc production rose 46.3%, mainly on the back of notable production at our Buenavista zinc concentrator. Silver and molybdenum output grew 16.4% and 8.3%, respectively. The combination of higher production volumes and better copper and by-product prices enabled us to achieve a cash cost of $0.42 per pound of copper in 3Q25, one of the industry's lowest.”
Southern Copper CEO, on the earnings call
Forward Guidance & Outlook
SCC maintains a long-term strategic goal to produce 1.6 million tonnes of copper at the lowest possible cost per pound. The company's capital investment program for this decade exceeds $15 billion, with over $10.3 billion earmarked for Peruvian projects. The Tía María project is 23% complete with production expected to begin in 2027, producing 120,000 tonnes of copper cathodes annually. Los Chancas is expected to begin operations in 2030-2031, and Michiquillay by 2032. The company is confident that long-term fundamentals of copper and other metal prices will remain very positive and notes that recent US tariff policy changes have had limited impact on results.
SCCO YoY Financials
Figures from SEC filings and company reports. Not investment advice.