Southern Copper Corporation reported record financial results for 2025, driven by strong copper prices and robust by-product performance, according to statements made during the company’s fourth quarter earnings call. The mining giant achieved annual copper production of 956,270 tons in 2025, representing a 1.8% decrease from the previous year but falling just 1% short of its production target of 965,000 tons.
The company disclosed that fourth quarter 2025 sales reached $3.9 billion, marking a $1.1 billion increase compared to the same period in 2024. For the full year, net sales hit a record high of $13.4 billion, surpassing 2024 net sales by 17%, the company reported.
Southern Copper Production Performance Shows Mixed Results
Southern Copper production figures reflected varied performance across operations during the quarter. Higher production at La Caridad, Toquepala, Cuajone and IMMSA mines was attributed to better ore grades and recoveries, according to company executives. However, these gains were partially offset by decreased production at Buenavista operations.
The company announced plans to produce 911,400 tons of copper in 2026, representing a 4.7% decrease compared to 2025 annual trends. This reduction is primarily attributable to lower ore grades at Peruvian operations, management explained.
By-Product Revenue Strengthens Financial Position
Molybdenum emerged as the company’s primary by-product, representing 8% of sales value in the fourth quarter. Production increased 10% quarter-over-quarter, driven by higher ore grades at Toquepala and Cuajone mines. The company expects to produce 26,000 tons of molybdenum in 2026.
Silver production delivered particularly strong results, with prices averaging $54.48 per ounce in the quarter, reflecting a 74% increase year-over-year. Mined silver production rose 15% in the fourth quarter, boosted by production growth at all company mines. According to executives, silver could become the main by-product if current pricing trends continue.
Zinc production also showed robust growth, increasing 36% for full year 2025. This expansion was driven by additional production of 52,500 tons from Buenavista zinc operations and increased output at Santa Barbara mine. The company forecasts zinc production of 165,500 tonnes for 2026.
Operating Costs and Profitability Metrics
Operating cash cost per pound of copper before by-product credits reached $2.29 in the fourth quarter, a $0.06 increase from the third quarter. However, net of by-product credits, cash cost was $0.52 per pound, representing a $0.10 increase quarter-over-quarter.
Additionally, adjusted EBITDA for the fourth quarter totaled $2.3 billion, a 53% increase compared to $1.5 billion in the same period of 2024. For the full year 2025, adjusted EBITDA hit a record high of $7.8 billion, reflecting a 22% increase over 2024 figures.
Net income in the fourth quarter reached $1,038 million, representing a 65% increase compared to the fourth quarter of 2024. Meanwhile, annual net income achieved a record high of $4.3 billion, which is 28% above the 2024 figure, driven by increased net sales and cost control measures.
Tia Maria Project Advances Toward 2027 Start-Up
The Tia Maria project in Peru’s Arequipa region continues construction with an estimated capital budget of $1.8 billion. As of December 2025, the project was 24% complete and had created 3,589 jobs, with strong focus on local hiring, according to company statements.
In contrast to earlier forecasts, management indicated that committed expenditures of approximately $800 million will result in cash disbursements of $508 million in 2026, down from initial expectations of nearly $900 million. This reduction is attributable to better payment terms secured with vendors, executives explained.
Construction is expected to finish by mid-2027, with production of approximately 30,000 tons of refined copper planned for the second half of that year. The project will then ramp up to full capacity of 120,000 tons per year in 2028, reaching an annual production level that aligns with the company’s long-term copper production guidance of over 1 million tons by 2028.
The company declared a quarterly cash dividend of $1 per share along with a stock dividend of 0.0085 shares per common share, payable February 27, 2026, to shareholders of record as of February 10. Management continues to review cash position and capital investment plans quarterly to determine appropriate dividend levels.
