Q3 2025 Southern Copper Corp Earnings Call Transcript
Key Points
- Southern Copper Corp (SCCO) achieved record net sales, adjusted EBITDA, and net income in the third quarter of 2025, driven by increased byproduct production and improved metal prices.
- The company reported a significant rise in zinc production by 46%, silver by 16%, and molybdenum by 8%, contributing to strong financial performance.
- SCCO maintained a low cash cost of $0.42 per pound of copper, one of the industry's lowest, due to higher production volumes and better copper and by-product prices.
- The company is progressing with major projects like Tia Maria, which is expected to generate significant employment and economic benefits upon completion.
- SCCO's sustainability ratings have improved, with notable achievements in transparency, environmental management, and community relations, positioning it as a leader in the mining sector.
- Copper production decreased by 7% compared to the third quarter of 2024, primarily due to lower ore grades and production declines in Peru and Mexico.
- Operating costs and expenses increased by 9% compared to the third quarter of 2024, driven by higher costs in several areas including labor and energy.
- The company faces challenges with illegal mining activities at the Los Chancas project, which could impact future development timelines.
- SCCO's cash position is high, raising questions about capital allocation and the rationale behind maintaining such a large cash reserve.
- Potential social and political risks in Peru, particularly around the Tia Maria project, could pose challenges despite current calm conditions.
Good morning, and welcome to Southern Copper Corporation's third quarter and nine months 2025. With us this morning, we have Southern Copper Corporation, Mr. Raul Jacob, Vice President, Finance, Treasurer and CFO, who will discuss the results of the company for the third quarter and nine months 2025 as well as answer any questions that you may have.
The information discussed on today's call may include forward-looking statements regarding the company's results and prospects, which are subject to risks and uncertainties. Actual results may differ materially from the company cautions not to place undue reliance on these forward-looking statements. Southern Copper Corporation undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. All results are expressed in full US GAAP.
Now I will pass the call to Mr. Raul Jacob.
Thank you very much, Carmen.
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