Southern Copper Sales Hit $4,696.6 Million in Record Quarter Despite Lower Copper Output
Key Facts
Southern Copper reported record net sales of $4,696.6 million in the third quarter of 2026, up 39.1% from the same period in 2025. Net income also reached a record $1,801.8 million, rising 62.7% year over year. The company said in its filing with the U.S. Securities and Exchange Commission that higher sales drove the increase in net income. Net income margin was 38.4%, compared with 32.8% a year earlier. Adjusted EBITDA also hit a record $3,040.2 million, up 53.9% from the third quarter of 2025.
The company attributed sales growth to higher metal prices across all its products, with a limited contribution from a 0.8% increase in zinc sales volume. It said lower sales volumes of copper, molybdenum and silver capped the increase. The year-over-year comparison reflects the broad impact of prices on quarterly revenue, while sales volume growth was not widespread. The average copper price in the third quarter rose 44.4% on the London Metal Exchange and 34.2% on COMEX compared with the same quarter of 2025. Quarter over quarter, the average price increased 6.1% on the London Metal Exchange and 5.2% on COMEX.
By contrast, mined copper production fell 1.1% quarter over quarter to 232,396 tonnes in the third quarter. The company said output from its Peruvian operations fell 6.1% because of lower ore grades. The production decline tempers the record results, as sales growth came alongside lower copper sales volumes rather than higher ones. Performance in the first nine months showed continued growth in financial results compared with the same period in 2025. Sales rose 38.6% and net income 66.8%, while adjusted EBITDA increased 56.2%.
Cash flow from operating activities totaled $2,224.3 million in the third quarter, up 42.6% from the same quarter of 2025. In the first nine months, operating cash flow reached $5,907.3 million, up 81.3% year over year. Southern Copper said its cash operating cost for copper, net of byproduct revenue, was $0.09 per pound in the third quarter. That was a 77.4% decrease from the comparative period. The company attributed part of the decline to a 30.6% increase in byproduct revenue.
The company spent $515.8 million on capital investments in the third quarter, up 47.7% from the same quarter of 2025. Capital spending totaled $1,380.5 million in the first nine months of the year. Chairman German Larrea said the record results reflected the company’s strategy and cost discipline across its operations. He added: "These achievements were made possible by our strategy and our discipline in controlling costs at the operational level." Alongside lower operating costs, these investments place the results within the company’s expansion trajectory, while declining copper production in Peru remains one of the quarter’s main challenges.
The company expects the Tia Maria project to begin operations in the first half of 2028 and to produce 120,000 tonnes of copper annually in its early years. It also expects the El Pilar project to begin operations in 2029, with annual production capacity of 36,000 tonnes of copper in its early years. Southern Copper estimated El Pilar’s capital budget at $551 million. According to the company’s stated timelines, these projects are expected to add to production once they begin operating. For shareholders, the board authorized a quarterly cash dividend of $1.30 per share and a stock dividend of 0.0106 shares per share, with a record date of November 3, 2026, and payment on November 19, 2026.