Southern Copper posted record third-quarter net sales, net income and adjusted EBITDA as higher metal prices lifted results across the board.
Net sales in the quarter reached $4.70 billion, up 39.1% from $3.38 billion a year earlier. For the first nine months, sales rose 38.6% to $13.24 billion from $9.55 billion.
Net income climbed 62.7% in the third quarter to $1.80 billion from $1.11 billion, pushing the margin to 38.4% from 32.8%. Year to date, net income increased 66.8% to $5.05 billion from $3.03 billion, with the margin widening to 38.1% from 31.7%.
Adjusted EBITDA rose 53.9% in the quarter to a record $3.04 billion from $1.98 billion. The adjusted EBITDA margin expanded to 64.7% from 58.5%. For nine months, adjusted EBITDA increased 56.2% to $8.61 billion from $5.51 billion, while the margin improved to 65.0% from 57.7%.
Operating cash flow increased 42.6% in the quarter to $2.22 billion from $1.56 billion. Nine-month operating cash flow jumped 81.3% to $5.91 billion from $3.26 billion.
Capital spending rose 47.7% in the quarter to $515.8 million from $349.2 million. Year to date, capital investments climbed 52.9% to $1.38 billion from $902.7 million.
Copper production slipped 1.1% quarter over quarter to 232,396 tonnes. In Mexico, output rose 2.5%, led by increases at IMMSA, up 14.8%, and Buenavista, up 5.2%, while La Caridad fell 7.1%. Peru production declined 6.1% in the quarter on lower ore grades. Smelter and refinery output rose 17.8% and 16.1%, respectively.
For the first nine months, copper production fell 2.9% to 693,602 tonnes, reflecting lower output from Peruvian mines. Smelter production increased 15.8% and refining output rose 10.1%.
By-product production was mixed in the quarter. Mined silver fell 1.9%. Zinc production dropped 7.9% to 41,880 tonnes, while molybdenum output declined 2.2%. Year to date, silver production rose 1.5%, while zinc and molybdenum production fell 7.2% and 5.2%, respectively.
Operating cash cost per pound of copper, net of by-product revenue credits, fell to $0.09 in the quarter from $0.42 a year earlier. For nine months, it dropped to $0.01 from $0.61.
The company also said its Tia Maria project was 49.6% complete as of Sept. 30, with $884.3 million invested and $1.10 billion committed. At El Pilar, early site preparation began in September 2026, with production expected to start in the second half of 2029. The market has reacted to these announcements by moving the company's shares 0.28% to a price of $202.34. For more information, read the company's full 8-K submission here.
