Southern Copper Corporation
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.60%.
Did SCCO Beat Earnings? Q1 2026 Results
Southern Copper delivered a strong first quarter for 2026, with earnings per share of $1.92 beating the $1.81 consensus by 6.18% and revenue of $4.25 billion edging past estimates by 0.67% while climbing 36.2% year over year. The primary engine behind the quarter was a dramatic surge in metal prices, with copper up 37.5%, silver up 157.9%, and zinc gaining 14.0%, a pricing tailwind so powerful it drove the company's operating cash cost per pound of copper to negative $0.11 from a positive $0.77 a year ago. Net income attributable to the company reached $1.58 billion, a 66.7% jump, while adjusted EBITDA expanded 55.4% to $2.71 billion at a 63.8% margin. The results also carried notable corporate news, as the company navigated a leadership transition following the passing of longtime CEO Oscar Gonzalez Rocha, with Leonardo Contreras Lerdo de Tejada named his successor. Looking ahead, management expects ore grades to recover by late 2026, with the Tia Maria project on track for first production in Q3 2027 as the decade-long, $20.50 billion expansion program continues to advance.
- Copper prices rose 37.5% year-over-year
- Silver prices surged 157.9% year-over-year
- Molybdenum prices increased 24.2% year-over-year
- Zinc prices rose 14.0% year-over-year
- Silver sales volumes grew 11.6% and zinc sales volumes grew 16.4%
- Operating cash cost per pound of copper turned negative at -$0.11 vs $0.77 in Q1 2025 driven by 87.4% higher by-product revenue credits
- Working capital release of $448.8 million boosted operating cash flow
“We are proud to report a record-breaking quarter, with net earnings of $1,576.9 million, which represented a 67% rise compared to 1Q25. This positive result was driven by higher sales volumes of silver (+11.6%) and zinc (+16.4%) and better prices for copper (+37.5%), silver (+157.9%), molybdenum (+24.2%) and zinc (+14.0%). In addition, the Company's cash cost decreased from a cost of $0.77 to -$0.11 per copper pound (-114%), driven by a growth in by-product revenues for all our by-products and cost efficiencies across operations.”
Southern Copper CEO, on the earnings call
Forward Guidance & Outlook
The company expects a recovery in ore grades by the end of 2026 and into subsequent years. SCC remains committed to its operational objective of increasing copper production to 1.6 million tons while maintaining cost-efficiency discipline. The Tia Maria project in Peru is on track for operations to begin in Q3 2027. The capital investment program for the decade exceeds $20.5 billion, with Peruvian projects alone potentially surpassing $10.3 billion. Los Chancas targets 2031 production start and Michiquillay targets 2032, though Los Chancas faces delays from illegal miners. El Arco in Mexico remains dependent on government action for electrical grid interconnection.
SCCO YoY Financials
Figures from SEC filings and company reports. Not investment advice.