Southern Copper Corporation
SCCO.US Full Coverage
Last updated:
Volume
52W avg
Day Range
52W High
52W Low
Market Cap
Div Yield
Forward P/E
P/B
Headlines
FY2025 Q4
Southern Copper delivered a record full‑year 2025, with adjusted EBITDA rising 22.1% to $7.8 bn as the Buenavista by‑product optimization lifted zinc production 36.1% YoY. Net sales grew 17.4% to $13.4 bn, net income rose 28.4% to $4.3 bn, and net operating cash cost fell 35% to an industry‑leading $0.58 per pound. Management now forecasts copper output to dip 4.7% to 911,400 t in 2026 while the Tia Maria project, 24% complete, stays on track for a mid‑2027 start‑up.
Net Sales (Q4)
$3.9B
+39.0%
Adjusted EBITDA (Q4)
$2.3B
+53.3%
Net Operating Cash Cost/lb (Q4)
$0.52
-45.8%
Mined Zinc Production (FY)
176,979 tonnes
+36.1%
Copper Production Guidance (FY26)
911,400 tonnes
-4.7% vs FY25
What We're Watching
Risk
2026 Cost Headwinds
📅
FY 2026
What to Monitor
The quarterly cash cost before byproduct credits. Monitor for an increase beyond the ~5% baseline impact management suggested could result from lower production volumes, which would signal accelerating pressure from currency appreciation or other costs.
Why It Matters
The company's ability to defend its industry-leading low-cost position is core to its investment thesis. A significant increase in gross costs could compress margins, particularly if byproduct prices moderate from current high levels.
Strategic
Long-Term Production at Core Mexican Mines
📅
Long-Term / Ongoing
What to Monitor
Any specific capital allocation or formal announcements regarding new reserve development at La Caridad or a potential expansion at Buenavista. The absence of a concrete plan within the next year could signal challenges.
Why It Matters
Buenavista and La Caridad are the company's foundational assets. Reversing their projected long-term production decline is essential to achieving the 1.6 million tonne corporate target and requires significant, long-lead-time investment.
Opportunity
Silver's Role as Primary Byproduct
📅
FY 2026
What to Monitor
The relative revenue contribution from silver versus molybdenum in quarterly results. A sustained shift where silver becomes the top contributor would confirm management's hypothesis and signal a structural change in the company's revenue mix.
Why It Matters
A structural shift with silver as the #1 byproduct could change the company's margin profile and exposure to commodity cycles. It would also validate the strategic pivot to prioritize zinc/silver at the Buenavista concentrator.
Risk
Mexican Permitting and Project Advancement
📅
Ongoing
What to Monitor
Any tangible progress on permits for key Mexican growth projects like El Arco. The absence of a specific project approval in the coming quarters would suggest the "better environment" mentioned by management is not translating into actionable results.
Why It Matters
Mexico represents a significant portion of the company's long-term growth pipeline. A continued inability to advance major projects would delay growth beyond Tia Maria and concentrate geopolitical risk on the Peruvian portfolio.
Operational
Tia Maria Construction Milestones
📅
Ongoing through H1 2027
What to Monitor
Quarterly updates on the percentage of project completion (currently 24%) and the number of jobs created (currently 3,589). Monitor for any reports of labor disputes or community opposition that could disrupt the schedule.
Why It Matters
As the company's foremost growth driver, tracking these tangible completion metrics is the best leading indicator of the project remaining on its mid-2027 start-up schedule and de-risking future production growth.
