Southern Copper Posts Record Sales, Income and Ebitda

The Tip Desk · October 26, 2026 · 4 min read

Third-quarter net sales reached a record $4,696.6 million as metal prices rose and zinc volumes ticked higher.

Southern Copper Corporation (SCCO) reported third-quarter net sales of $4,696.6 million, a 39.1% increase from a year earlier and a new quarterly record, as metal prices rose for all of its products and zinc sales volume increased 0.8%.

The integrated copper producer said those price gains and the zinc volume uptick were slightly offset by lower sales volumes of copper, molybdenum and silver. Year-over-year sales growth slowed from 40.6% in the second quarter.

Net income attributable to SCC was a record $1,801.8 million, up 62.7% from $1,107.6 million in the third quarter of 2025, after a 71.6% year-over-year increase in the second quarter. The net income margin was 38.4%, versus 32.8% a year earlier. Income was $2.15 a share.

Adjusted EBITDA reached a record $3,040.2 million, up 53.9% from $1,975.4 million a year earlier, after a 59.5% year-over-year increase in the second quarter. The adjusted EBITDA margin was 64.7%, versus 58.5% a year earlier.

Cash flow from operating activities was $2,224.3 million, 42.6% above the year-ago quarter, which the company said was mainly attributable to strong cash generation at operations driven by higher sales.

Mined copper production was 232,396 tonnes, up about 0.8% from 230,662 tonnes in the second quarter. Total copper production, including third-party concentrate, was 235,501 tonnes, and copper sales were 233,278 tonnes.

Mexican copper production rose 2.5%, with IMMSA up 14.8% and Buenavista up 5.2% on higher ore grades, partially offset by La Caridad down 7.1%. Peruvian production fell 6.1% on lower ore grades. Smelters increased production 17.8% and refineries 16.1% versus the year-ago quarter.

Mined zinc production was 41,880 tonnes, down 7.9% from 45,482 tonnes a year earlier, after a 14.5% year-over-year decline in the second quarter. Zinc sales volume was 40,388 tonnes. Mined silver production was 6,093 thousand ounces, down 1.9% from 6,212 thousand ounces a year earlier; silver sales volume was 5,555 thousand ounces. Mined molybdenum production was 7,702 tonnes, down 2.2% from 7,874 tonnes a year earlier, after an 11.0% year-over-year decline in the second quarter.

Operating cash cost per pound of copper, net of by-product revenue credits, was $0.09, down 77.4% from $0.42 a year earlier, after a 93% year-over-year decline in the second quarter. The company said the result was mainly driven by a 30.6% increase in by-product revenue credits on better prices.

Capital investments were $515.8 million, up 47.7% from $349.2 million a year earlier, after a 79.4% year-over-year increase in the second quarter, and equaled 28.6% of net income in the quarter.

LME copper averaged $6.41 a pound in the third quarter, up 44.4% from $4.44 a pound a year earlier. COMEX copper averaged $6.48 a pound. Molybdenum averaged $32.93 a pound, zinc $1.74 a pound, silver $62.80 an ounce and gold $4,269.51 an ounce.

On October 15, 2026, the board authorized a quarterly cash dividend of $1.30 a share and a stock dividend of 0.0106 shares a share, payable November 19, 2026, versus a $1.00 cash dividend and 0.0100 stock dividend authorized in April.

As of September 30, 2026, the Tia Maria project was 49.6% complete, with $884.3 million invested in execution and $1,101 million committed. The company said it expects Tia Maria to produce 120,000 tonnes of copper a year in the early years, with operations expected to begin in the first half of 2028.

El Pilar site preparation began in September 2026. The company said the SX-EW project is expected to contribute 36,000 tonnes of copper a year in initial years, with a $551 million capital budget and operations commencing in 2029. However, the release gives a conflicting El Pilar output forecast of 29,000 tons of copper cathode annually. The company's projection that Tia Maria and El Pilar together would add about 156,000 tonnes of refined copper annually and take annual production past one million tonnes uses the 36,000-tonne El Pilar estimate.