Southern Copper (SCCO) stock price is $203.91, up 1.06% on the day, as of Oct 20, 2026. It has a market cap of $169.39Bn and a P/E ratio of 29.91, and is classified in the Copper industry (Basic Materials sector).
Enterprise Value
Margins
P/FCF
Key Stats
Market Cap169.39 Bn
P/E29.91
P/S10.73
Div. Yield0.02
Total Debt (Qtr)7.99 Bn
Revenue Growth (1y) (Qtr)40.58
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About
Southern Copper Corporation is an integrated producer of copper, molybdenum, zinc and silver, conducting mining, smelting and refining activities primarily in Peru and Mexico. The company extracts ore, processes it into concentrates, smelts the concentrates and refines the metal to produce copper cathodes and other metal products. Its operations encompass open‑pit and underground mines, smelters, refineries and associated infrastructure.
Revenue is generated from the sale…
Southern Copper Corporation is an integrated producer of copper, molybdenum, zinc and silver, conducting mining, smelting and refining activities primarily in Peru and Mexico. The company extracts ore, processes it into concentrates, smelts the concentrates and refines the metal to produce copper cathodes and other metal products. Its operations encompass open‑pit and underground mines, smelters, refineries and associated infrastructure.
Revenue is generated from the sale of copper cathodes, copper rod, molybdenum concentrate, zinc concentrate, silver and gold. The company sells the majority of its output under long‑term contracts to end‑user customers, with pricing tied to prevailing commodity prices on exchanges such as COMEX and LME. By‑products such as sulfuric acid are also produced and contribute to overall sales.
The company operates through the following segments: Peruvian operations, Mexican open‑pit operations, and Mexican underground mining operations.
Peruvian operations: This segment includes the Toquepala and Cuajone open‑pit mines, the Ilo smelter and refinery, a precious metals plant, an industrial railroad and port facilities. It produces copper cathodes, molybdenum concentrate, silver and other materials from ore mined in the Andes.
Mexican open‑pit operations: This segment comprises the La Caridad and Buenavista mine complexes, associated concentrators, SX‑EW plants, a smelter, refinery, copper rod plant and precious metals facility. It yields copper, zinc, molybdenum concentrate, silver and gold from surface mines in Sonora.
Mexican underground mining operations: Represented by the IMMSA unit, this segment consists of five underground mines that extract zinc, lead, copper, silver and gold, together with a zinc refinery. It supplies zinc metal and related by‑products from deep‑level workings.
Southern Copper Corporation ranks among the world’s largest integrated copper producers, boasting what it describes as the largest copper reserves globally and a leading position in Peru and Mexico. Its competitive advantages stem from high vertical integration, which allows control over the entire production chain from mining to refined products, and a focus on cost control and operational efficiency to navigate copper price cycles. The company faces competition from other copper miners and from substitute materials such as aluminum and plastics, but its scale and integrated structure provide a cost advantage.
The company serves end‑user customers in industries such as construction, power generation and transmission, electronics and telecommunications, automotive manufacturing, and industrial machinery. While specific customer names are not disclosed, the sales strategy emphasizes long‑term contracts with manufacturers and fabricators that require reliable copper, zinc, molybdenum and silver supplies for their production processes.
Sector:Basic MaterialsSector rationaleSouthern Copper is an integrated producer of copper, molybdenum, zinc, and silver, extracting ore and refining it into cathodes and concentrates. These are raw and intermediate materials sold to other manufacturers in industries like construction and electronics, which fits the definition of Basic Materials.Industries:CopperCopperPrimarySouthern Copper is an integrated producer of copper, generating revenue from the sale of copper cathodes and copper rod. It describes itself as one of the world's largest integrated copper producers with the largest copper reserves globally.SilverSilverSecondaryThe company produces and sells silver as a significant output from its Peruvian and Mexican mining operations.Commodity ChemicalsCommodity ChemicalsSecondaryThe company produces sulfuric acid as a by-product of its smelting and refining processes, which contributes to overall sales.Classified using BQ-MICSCIK: 0001001838
Bull & bear
Investment Thesis
▲ Bull case
Southern Copper is positioned to benefit from structural copper market deficits driven by long-term demand growth from electrification, renewable energy, and AI infrastructure, which management underemphasized despite citing a 320,000-ton deficit for 2026. The company's focus on controlling costs and maximizing output aligns perfectly with this environment, as higher copper prices directly flow through to EBITDA and net income given its low operating cash cost of $0.58 per pound net of by-product credits. While management noted flat cost guidance, they did not highlight how operating leverage from existing assets—particularly the high-margin Toquepala and Cuajone mines—will amplify profitability as prices rise, with every $0.10 increase in copper price adding approximately $95 million annually to pre-tax income based on current production levels. This sensitivity is underappreciated by the market, which fixates on near-term production declines without recognizing that SCCO’s asset base is primed for margin expansion in a sustained deficit market.
The Tia Maria project represents a significant hidden catalyst that management framed as routine CapEx execution rather than a transformative growth driver. With $508 million of cash outflow expected in 2026 and first production slated for H2 2027, the project will add 120,000 tons of annual copper capacity—equivalent to a 13% uplift over 2025 output—at an estimated cash cost below $0.40 per pound due to its oxide ore composition and SX-EW efficiency. Despite delays in permitting, the company has already committed $800 million and secured strong community support, with 3,589 jobs created and local engagement described as "very well received," reducing the risk of further social disruption. The market is overlooking how Tia Maria’s low-cost, high-margin output will not only offset declining grades at Peruvian sulfides mines but also accelerate SCCO’s progress toward its 1.6 million ton long-term goal, potentially triggering a re-rating of its valuation multiple as growth resumes post-2027.
By-product synergies, particularly zinc and silver, are providing a durable floor to profitability that management mentioned only passively despite their material impact. In 2025, by-product credits totaled $920 million in Q4 alone ($1.77 per pound), driving net cash costs down to $0.52 per pound—a figure that underscores the company’s ability to generate copper at near-zero effective cost when by-product prices strengthen. Zinc production surged 36% year-on-year in 2025 due to the Buenavista zinc concentrator, and silver sales jumped 106% in Q4 2025 on combined volume and price gains. Crucially, Raul Jacob noted that if current silver prices persist, silver could become the company’s main by-product, implying even greater credit potential. This diversification shields SCCO from pure copper price volatility and creates optionality: as copper prices rise, the relative value of by-product credits increases, further lowering net costs and boosting margins in a way that pure-play copper peers cannot replicate.
Southern Copper is positioned to benefit from structural copper market deficits driven by long-term demand growth from electrification, renewable energy, and AI infrastructure, which management underemphasized despite citing a 320,000-ton deficit for 2026. The company's focus on controlling costs and maximizing output aligns perfectly with this environment, as higher copper prices directly flow through to EBITDA and net income given its low operating cash cost of $0.58 per pound net of by-product credits. While management noted flat cost guidance, they did not highlight how operating leverage from existing assets—particularly the high-margin Toquepala and Cuajone mines—will amplify profitability as prices rise, with every $0.10 increase in copper price adding approximately $95 million annually to pre-tax income based on current production levels. This sensitivity is underappreciated by the market, which fixates on near-term production declines without recognizing that SCCO’s asset base is primed for margin expansion in a sustained deficit market.
The Tia Maria project represents a significant hidden catalyst that management framed as routine CapEx execution rather than a transformative growth driver. With $508 million of cash outflow expected in 2026 and first production slated for H2 2027, the project will add 120,000 tons of annual copper capacity—equivalent to a 13% uplift over 2025 output—at an estimated cash cost below $0.40 per pound due to its oxide ore composition and SX-EW efficiency. Despite delays in permitting, the company has already committed $800 million and secured strong community support, with 3,589 jobs created and local engagement described as "very well received," reducing the risk of further social disruption. The market is overlooking how Tia Maria’s low-cost, high-margin output will not only offset declining grades at Peruvian sulfides mines but also accelerate SCCO’s progress toward its 1.6 million ton long-term goal, potentially triggering a re-rating of its valuation multiple as growth resumes post-2027.
By-product synergies, particularly zinc and silver, are providing a durable floor to profitability that management mentioned only passively despite their material impact. In 2025, by-product credits totaled $920 million in Q4 alone ($1.77 per pound), driving net cash costs down to $0.52 per pound—a figure that underscores the company’s ability to generate copper at near-zero effective cost when by-product prices strengthen. Zinc production surged 36% year-on-year in 2025 due to the Buenavista zinc concentrator, and silver sales jumped 106% in Q4 2025 on combined volume and price gains. Crucially, Raul Jacob noted that if current silver prices persist, silver could become the company’s main by-product, implying even greater credit potential. This diversification shields SCCO from pure copper price volatility and creates optionality: as copper prices rise, the relative value of by-product credits increases, further lowering net costs and boosting margins in a way that pure-play copper peers cannot replicate.
Southern Copper’s 2026 production guidance of 911,400 tons of copper reflects a 4.7% decline from 2025 and signals deeper structural issues at its core Peruvian assets that management attributed solely to temporary lower ore grades. The commentary revealed evasiveness when pressed on Cuajone’s concentrator updates, with Raul Jacob admitting they "haven’t done it yet" regarding investment decisions for expansion, despite acknowledging Cuajone has a "new structural ore grade" that is lower and justifying expansion considerations. This lack of progress on a critical asset—Cuajone contributed meaningfully to historical output—suggests the company is avoiding capital reallocation decisions that could expose lingering grade deterioration or technical limitations, raising concerns that the perceived "temporary" grade decline at Toquepala and Cuajone may be more persistent, undermining long-term production stability.
The company’s reliance on by-product credits to mask rising copper cash costs presents a material risk that was downplayed during the Q&A, particularly when Raul Jacob stated operating costs would be "relatively flat on a per pound basis" despite lower production. Operating cash cost before by-product credits rose to $2.17 per pound in 2025 from $2.13 in 2024, and the Q4 2025 figure of $2.29 per pound shows a worsening trend. With by-product credits contributing $1.77 per pound in Q4 2025, any decline in zinc, silver, or molybdenum prices—or production disruptions at Buenavista—would immediately elevate net cash costs. Notably, molybdenum credits decreased year-over-year, and Buenavista’s zinc concentrator, while boosting output, is diverting focus from copper, creating a scenario where by-product dependence increases even as their volatility introduces downside risk to margins that the market may not be pricing in.
Social and permitting risks around the Los Chancas project remain unaddressed despite being a key future growth pillar, with management offering only vague assurances that "the government will take action" when pressed on illegal mining encroachment. Alfonso Salazar’s question about guidance updates was met with confirmation that long-term forecasts assume Los Chancas will contribute, yet Raul Jacob admitted they "don’t have much to report" on resolving illegal miner presence, signaling a lack of near-term progress. This is especially concerning given Tia Maria’s timeline depends on stable execution in Peru, and any delay or cost escalation at Los Chancas—cited as a $2.5 billion investment for 225,000 tons of annual copper—could derail SCCO’s 2029–2031 production targets of 1,060 million tons, leaving the company overly reliant on a single project (Tia Maria) for growth renewal and exposing it to execution risk in a jurisdiction where social license is increasingly fragile.
Southern Copper’s 2026 production guidance of 911,400 tons of copper reflects a 4.7% decline from 2025 and signals deeper structural issues at its core Peruvian assets that management attributed solely to temporary lower ore grades. The commentary revealed evasiveness when pressed on Cuajone’s concentrator updates, with Raul Jacob admitting they "haven’t done it yet" regarding investment decisions for expansion, despite acknowledging Cuajone has a "new structural ore grade" that is lower and justifying expansion considerations. This lack of progress on a critical asset—Cuajone contributed meaningfully to historical output—suggests the company is avoiding capital reallocation decisions that could expose lingering grade deterioration or technical limitations, raising concerns that the perceived "temporary" grade decline at Toquepala and Cuajone may be more persistent, undermining long-term production stability.
The company’s reliance on by-product credits to mask rising copper cash costs presents a material risk that was downplayed during the Q&A, particularly when Raul Jacob stated operating costs would be "relatively flat on a per pound basis" despite lower production. Operating cash cost before by-product credits rose to $2.17 per pound in 2025 from $2.13 in 2024, and the Q4 2025 figure of $2.29 per pound shows a worsening trend. With by-product credits contributing $1.77 per pound in Q4 2025, any decline in zinc, silver, or molybdenum prices—or production disruptions at Buenavista—would immediately elevate net cash costs. Notably, molybdenum credits decreased year-over-year, and Buenavista’s zinc concentrator, while boosting output, is diverting focus from copper, creating a scenario where by-product dependence increases even as their volatility introduces downside risk to margins that the market may not be pricing in.
Social and permitting risks around the Los Chancas project remain unaddressed despite being a key future growth pillar, with management offering only vague assurances that "the government will take action" when pressed on illegal mining encroachment. Alfonso Salazar’s question about guidance updates was met with confirmation that long-term forecasts assume Los Chancas will contribute, yet Raul Jacob admitted they "don’t have much to report" on resolving illegal miner presence, signaling a lack of near-term progress. This is especially concerning given Tia Maria’s timeline depends on stable execution in Peru, and any delay or cost escalation at Los Chancas—cited as a $2.5 billion investment for 225,000 tons of annual copper—could derail SCCO’s 2029–2031 production targets of 1,060 million tons, leaving the company overly reliant on a single project (Tia Maria) for growth renewal and exposing it to execution risk in a jurisdiction where social license is increasingly fragile.