Southern Copper posts record $1.8 billion quarterly profit as sales jump 39%

Southern Copper reported its most profitable quarter on record, as higher prices for copper and its by-products lifted sales by nearly 40% even with slightly lower copper volumes.

Third-quarter net income climbed 62.7% to $1.80 billion, or $2.15 a share, from $1.11 billion, or $1.32 a share, a year earlier, according to the earnings release the miner filed with an 8-K on Wednesday. Net sales rose 39.1% to a record $4.70 billion.

The company credited an uptick in prices for all of its products and slightly higher zinc sales volume, partly offset by lower sales volumes of copper, molybdenum and silver.

Adjusted EBITDA, a non-GAAP measure, also set a record at $3.04 billion, up 53.9%, with the margin widening to 64.7% from 58.5%. Operating cash flow rose 42.6% to $2.22 billion.

Cash costs fall

Southern Copper's operating cash cost per pound of copper, net of by-product revenue credits, fell to 9 cents from 42 cents a year earlier. The company said the drop was driven mainly by a 30.6% rise in by-product revenue credits on better prices.

Copper production slipped 1.1% to 232,396 tonnes in the quarter. Output at the Mexican operations rose 2.5%, while production in Peru fell 6.1% on lower ore grades. For the first nine months, copper output was down 2.9% at 693,602 tonnes.

Projects and payout

Capital spending rose 47.7% to $515.8 million. The company said its Tia Maria project in Peru was 49.6% complete as of Sept. 30 and is expected to produce 120,000 tonnes of copper a year in its early years, with operations expected to begin in the first half of 2028.

It also began work in September on its El Pilar project in Sonora, Mexico, which carries an estimated $551 million capital budget, is expected to contribute 36,000 tonnes of copper a year and is slated to start operating in 2029.

"We are very pleased with our strong third-quarter performance, which delivered a record for net sales, adjusted EBITDA and net income," Chairman German Larrea said in the release.

The board authorized a quarterly cash dividend of $1.30 a share plus a stock dividend of 0.0106 shares for each share held, payable Nov. 19 to shareholders of record on Nov. 3, according to the 8-K.

By the numbers

• Net sales: $4.70 billion, up 39.1%
• Net income: $1.80 billion, up 62.7%
• EPS: $2.15, vs. $1.32
• Adjusted EBITDA margin: 64.7%, vs. 58.5%
• Net cash cost per pound of copper: $0.09, vs. $0.42
• Copper production: 232,396 tonnes, down 1.1%

Sources

1. Southern Copper Corporation, Form 8-K (Item 2.02) with Exhibit 99.1 earnings release dated Oct. 20, 2026, filed Oct. 21, 2026, accession 0001104659-26-117588

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