SOUTHERN COPPER CORP/
For the period ended Jun 30, 2026. Filed Jul 31, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Jul 31, 2026
SCCO$167.27+1.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-04-30.
0001104659-26-052647
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-07-31.
0001104659-26-089169
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 123 previous paragraphs and 142 current paragraphs.
51 unchanged; 46 reworded; 39 added; 24 removed; 2 previous and 6 current paragraphs rearranged.
Tables are not compared: 79 previous and 89 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (39)
Current report
Net sales in the second quarter of 2026 totaled $4,289.0 million, which represented a 40.6% increase compared to the same period in 2025. This increase, which was primarily driven by higher prices for copper (LME, +39.8%; COMEX, +30.5%), molybdenum (+43.1%), silver (+118.6%), and zinc (+30.8%), occurred despite a decrease in sales volumes of copper (-1.5%), molybdenum (-13.1%), silver (-8.7%) and zinc (-8.8%).
Current report
Net income attributable to SCC for the second quarter of 2026 reached $1,670.0 million, which represented a 71.6% increase compared to the same period in 2025. This increase was primarily driven by higher net sales (+40.6%), reflecting higher metal prices across all our products, while operating costs increased at a considerably lower rate (+13.8%).
Current report
Net sales for the first half of 2026 increased by 38.4% compared to the same period in 2025. This increase, which was primarily driven by higher sales volumes of silver (+1.1%) and zinc (+2.6%), as well as higher prices for copper (LME, +38.8%; COMEX, +28.6%), molybdenum (+33.7%), silver (+137.9%), and zinc (+22.6%), occurred despite a drop in the sales volumes of copper (-1.5%) and molybdenum (-8.0%).
Current report
Net income attributable to SCC for the first half of 2026 increased by 69.2% compared to the same period in 2025. This increase was primarily driven by higher net sales (+38.4%), which reflected higher metal prices across all our products, while operating costs increased at a considerably lower rate (+12.7%).
Current report
Molybdenum production decreased 11.0% in the second quarter of 2026 compared to the same period in 2025. This decline was driven by lower production at all of our operations, Toquepala (-21.9%), Cuajone (-1.4%), Buenavista (-12.4%), and La Caridad (-3.5%), primarily due to lower ore grades.
Current report
Silver mine production decreased 3.8% in the second quarter of 2026 compared to the same period in 2025. This decline was driven by lower production at all our operations: Toquepala (-12.4%), Cuajone (-7.6%), and Buenavista (-6.8%) mines, primarily due to lower ore grades. These declines were partially offset by higher production at our La Caridad (+3.4%) and IMMSA (+2.6%) operations, driven by improved ore grades and recoveries.
Current report
Six months: Mined copper production in the first half of 2026 was 1,016.8 million pounds, which represented a 3.8% decrease compared to the same period in 2025. This decline was primarily attributable to lower production at Toquepala (-11.5%; due to lower ore grades, mineral milled, and SX-EW production) and Cuajone (-9.9%; due to lower ore grades and mineral milled). These declines were partially offset by higher production at our Buenavista (+1.0%; due to increased SX-EW production), La Caridad (+4.7%; due to improved recoveries, higher ore grades, and increased SX-EW production), and IMMSA operations (+2.4%; due to higher ore grades).
Current report
Molybdenum production decreased by 6.7% in the first half of 2026 compared to the same period in 2025. This decline was primarily attributable to lower production at our Toquepala (-8.5%), Cuajone (-0.2%), Buenavista (-15.8%), and La Caridad (-2.2%) mines, driven by lower ore grades.
Current report
Silver mine production increased by 3.3% in the first half of 2026, primarily driven by higher production at our Buenavista (+5.6%), La Caridad (+12.3%), and IMMSA (+6.7%) operations. This increase was partially offset by lower production at our Toquepala (-7.2%) and Cuajone (-7.6%) mines.
Current report
Zinc production decreased by 6.9% in the first half of 2026. This decline was primarily attributable to lower production at our Buenavista zinc concentrator (-11.1%), which was partially offset by higher production at our IMMSA (+1.4%) operations.
Current report
For the first half of 2026, the operating cash cost per pound before by-product revenues increased from $2.08 in 2Q25 to $2.30 (+10.3%). This increase was primarily attributable to the unit effect of lower copper production (-3.5%) and higher production costs (+7.1%), mainly reflecting increases in fuel, labor, and operating material costs, which were partially offset by lower treatment and refining charges due to market conditions. By-product revenues per pound increased by 68.1%, from $1.38 to $2.33. As a result, the operating cash cost per pound net of by-product revenues improved significantly and decreased from a cost of $0.70 per pound to a credit of $(0.03) per pound, supported mainly by higher by-product revenues from silver and molybdenum.
Current report
Project update: As of June 30, 2026, the Company has committed $1,101 million across various project activities, of which $693 million has already been invested. Mass earthworks have moved 13.85 million tonnes of material from La
Current report
Tapada deposit (a 71% progress). Most purchase orders for the project’s major equipment have been issued. With respect to the leaching process, purchase orders have been placed for key state-of-the-art equipment, and procurement activities for the remaining major equipment continue.
Current report
El Pilar - Sonora: This new copper project has obtained the necessary environmental permits and will begin early site preparation works in September 2026 to develop energy lines, water pipelines, roads, workers accommodation, etc. Project construction will commence in the first quarter of 2027, and production is expected to begin in the second half of 2029.
Current report
Project update: Studies to estimate mineral reserves and develop the mine plan, as well as hydrological and hydrogeological assessments, are currently underway. In addition, geotechnical research is progressing and entering its final phase.
Current report
Cularjahuira dam improves agricultural results in Candarave. Over the last five years, the Cularjahuira dam, located in Candarave in southern Peru, has transformed the lives of 18% of farmers of the area and their families by providing year-round access to water. According to the Ministry of Agricultural Development, crop yields in the area have risen around 20%. This infrastructure, with a capacity of 2.5 million cubic meters, was built by our company through an alliance with the Peruvian state and local farmers. We continue to work with authorities to build the Callazas and Calientes dams, also located in Candarave. With these additional dams, more than 90% of farmers’ water needs will be covered.
Current report
**SCC students’ performance in science and mathematics makes Sonora proud.**Students from the Nacozari and Esqueda schools, both in Sonora, Mexico, performed admirably in national and international competitions, including the Mexican Mathematics Olympics and Infomatrix 2026. These achievements reflect the Company’s commitment to education and the development of STEM skills. The Company currently benefits 3,000 students through the 11 education centers it operates in Mexico and Peru.
Current report
Sports drive community integration and wellbeing. To promote integration and wellbeing through sports, our company joined the Global Social Initiative of the Mexican Government. Our efforts, which focus on communities neighboring our operations, have brought together 2,629 participants who are organized into 206 teams of employees and community members, with categories for children and youth. Alongside these initiatives, 580 volunteers worked to create 14 community murals and recondition sports venues, which strengthens harmonious relations, inclusion and the social fabric. These sports and cultural programs cover approximately 41% of the young population close to our Mexican operations.
Current report
Net sales in the second quarter of 2026 totaled $4,289.0 million, which represented a 40.6% increase compared to the same period in 2025. This increase, which was primarily driven by higher prices for copper (LME, +39.8%; COMEX, +30.5%), molybdenum (+43.1%), silver (+118.6%), and zinc (+30.8%), occurred despite a decrease in the sales volumes of copper (-1.5%), molybdenum (-13.1%), silver (-8.7%) and zinc (-8.8%).
Current report
Net income attributable to SCC for the second quarter of 2026 reached $1,670.0 million, which represented a 71.6% increase compared to the same period in 2025. This increase was primarily driven by higher net sales (+40.6%), reflecting higher metal prices across all our products, while operating costs increased at a considerably lower rate (+13.8%).
Current report
Net sales for the first half of 2026 increased 38.4% compared to the same period in 2025. This increase, which was primarily driven by higher sales volumes of silver (+1.1%) and zinc (+2.6%), as well as higher prices for copper (LME, +38.8%; COMEX, +28.6%), molybdenum (+33.7%), silver (+137.9%), and zinc (+22.6%), occurred despite a drop in sales volumes of copper (-1.5%) and molybdenum (-8.0%).
Current report
Net income attributable to SCC for the first half of 2026 increased 69.2% compared to the same period in 2025. This increase was primarily driven by growth in net sales (+38.4%), which were buoyed by higher metal prices across all our products, while operating costs increased at a considerably lower rate (+12.7%).
Current report
Second quarter: Operating costs and expenses were $1,665.8 million for the second quarter of 2026, compared to $1,464.0 million for the same period of 2025. The increase of $201.8 million was primarily due to:
Current report
Six months: Operating costs and expenses were $3,436.8 million for the first six months of 2026, compared to $3,050.4 million for the same period of 2025. The increase of $386.4 million was primarily due to:
Current report
Net sales in the second quarter of 2026 increased $406.2 million compared to the same period in 2025. This increase was primarily driven by higher prices for copper (LME, +39.8%), molybdenum (+43.1%), and silver (+118.6%), despite lower sales volumes of copper (-6.5%), molybdenum (-19.9%), and silver (-27.0%).
Current report
Operating costs and expenses were $648.6 million for the second quarter of 2026 compared to $595.1 million for the same period of 2025. The increase of $53.4 million was primarily due to:
Current report
Net sales in the first six months of 2026 increased $721.5 million compared to the same period in 2025. This increase, which was primarily driven by higher prices for copper (LME, +38.8%), molybdenum (+33.7%), and silver (+137.9%), occurred despite a drop in the sales volumes of copper (-11.4%), molybdenum (-8.0%), and silver (-25.6%).
Current report
Operating costs and expenses were $1,306.1 million for the first six months of 2026 compared to $1,299.6 million for the same period of 2025. The increase of $6.6 million was primarily due to:
Current report
Net sales in the second quarter of 2026 increased $757.2 million compared to the same period in 2025. This increase was primarily driven by higher sales volumes of copper (+2.2%), as well as by higher prices for copper (COMEX, +30.5%), molybdenum (+43.1%), silver (+118.6%), and zinc (+30.8%); the improvement in net sales occurred despite a drop in the sales volumes of molybdenum (-7.1%), silver (-3.0%) and zinc (-30.2%).
Current report
Operating costs and expenses were $901.2 million for the second quarter of 2026 compared to $765.9 million for the same period of 2025. The increase of $135.4 million was primarily due to:
Current report
Net sales in the first six months of 2026 increased $1,451.3 million compared to the same period in 2025. This increase was primarily driven by higher sales volumes of copper (+2.9%) and silver (+10.2%), as well as higher prices for copper (COMEX, +28.6%), molybdenum (+33.7%), silver (+137.9%), and zinc (+22.6%); net sales rose despite a decrease in sales volumes of molybdenum (-8.0%) and zinc (-10.7%).
Current report
Operating costs and expenses were $1,917.2 million for the first six months of 2026 compared to $1,549.7 million for the same period of 2025. The increase of $367.5 million was primarily due to:
Current report
Net sales in the second quarter of 2026 increased $88.7 million compared to the same period in 2025. This increase, which was primarily driven by higher sales volumes of zinc (+0.4%) and higher prices for copper (COMEX, +30.5%), silver (+118.6%), and zinc (+30.8%), occurred despite a drop in the sales volumes of copper (-3.0 %) and silver (-3.6%).
Current report
Operating costs and expenses were $179.9 million for the second quarter of 2026 compared to $161.5 million for the same period of 2025. The increase of $18.4 million was primarily due to:
Current report
Net sales in the first six months of 2026 increased $251.7 million compared to the same period in 2025. This increase was primarily driven by higher sales volumes of copper (+14.9%), silver (+4.4%), and zinc (+4.6%), as well as higher prices for copper (COMEX, +28.6%), silver (+137.9%), and zinc (+22.6%).
Current report
Operating costs and expenses were $357.7 million for the first six months of 2026 compared to $298.5 million for the same period of 2025. The increase of $59.2 million was primarily due to:
Current report
Factoring in both the cash dividend and the equivalent value of the stock dividend (calculated at $2.13 based on the average high and low share price of $177.32 per share on July 16, 2026), the total estimated dividend payment is $3.23 per share.
Current report
The following information updates our significant contractual obligations disclosed in Part II, Item 7 of our 2025 annual report on Form 10-K as filed with the SEC on February 27, 2026:
Current report
In May 2026, the Company entered into a power purchase agreement for a total of 200MW with Orygen Perú S.A.A. (“Orygen”), under which Orygen will supply energy for the Peruvian operations for ten years starting on May 1, 2027 and ending on April 30, 2037. Orygen will initially supply 120MW of power to the Company, effective between May 1, 2027 and April 30, 2029. Beginning on May 1, 2029, and until the contract end date on April 30, 2037, the contract amount will increase to 200MW. It is projected this new contract will reduce power costs for the Peruvian operations by approximately 22%.
Removed paragraphs (24)
Previous report
For 2026, we believe that prices will hold at the current level of about $22.00 per pound due to high demand for stainless steel in China and given its diverse applications in critical industries.
Previous report
Net sales in the first quarter of 2026 totaled $4,251.4 million, representing a 36.2% increase compared to the same period in 2025. This performance was mainly supported by growth in the sales volumes of silver (+11.6%) and zinc (+16.4%), together with higher prices for copper (+37.5% LME; +26.9% COMEX), silver (+157.9%), molybdenum (+24.2%), and zinc (+14.0%). These positive effects were partially offset by a decrease in the sales volumes of copper (-4.9%) and molybdenum (-2.8%).
Previous report
Net income attributable to SCC for the first quarter of 2026 reached $1,576.9 million, representing an increase of 66.7% compared to the same period in 2025. This performance was mainly supported by higher net sales (+36.2%), driven mainly by stronger metal prices. These positive effects were partially offset by higher operating costs (+11.6%) and an increase in income taxes (+67.2%).
Previous report
Silver mine production increased 11.1% in the first quarter of 2026 compared to the same period of 2025. This growth was mainly driven by higher production at our La Caridad (+22.1%), Buenavista (+20.7%) and IMMSA (+10.8%) operations. However, this positive performance was slightly offset by lower production at our Cuajone (-7.5%) and Toquepala (-1.6%) mines.
Previous report
Molybdenum production decreased 2.2% in the first quarter of 2026 compared to the same period in 2025. This decline was mainly driven by lower production at our Buenavista (-19.2%) and IMMSA (-0.9%) operations, primarily due to lower ore grades. These decreases were partially offset by higher production at Toquepala (+5.6%) and Cuajone (+1.0%), reflecting improved ore grades and recoveries.
Previous report
Project update: As of March 31, 2026, the Company has committed $948 million across various project activities. Large-scale earthmoving works have moved 7.5 million tons of material from La Tapada deposit. The majority of purchase orders for major equipment have been issued. Regarding the SX-EW process, purchase orders have been placed for key equipment with state-of-the-art technology.
Previous report
Project update: Development of the geotechnical, hydrological, and hydrogeological studies is ongoing. In addition, studies related to the project’s reserve estimation and mine plan have commenced.
Previous report
Detailed engineering is still underway for the concentrator, SX-EW plant, water desalination facilities, logistics infrastructure and power delivery.
Previous report
**For the fifth consecutive year, S&P Global included SCC in its Sustainability Yearbook,**which recognizes companies that rank within the top 15% for corporate sustainability performance. In 2025, Southern Copper ranked 4th among 256 companies in the Mining and Metals sector and stood in the top 2% of best performers. Notably, SCC also led the ranking for copper mining companies.
Previous report
Southern Copper Corporation was recognized by Morningstar Sustainalytics as an ESG Industry Leader. SCC ranked 7th among 215 companies in the metals sector with diversified operations for its performance in environmental, social and governance risk management.
Previous report
The National Water Authority recognizes our water management efforts in Peru. Southern Peru was awarded the*“Certificado Azul”* and the distinction of “Water-Responsible and Community-Supportive Company” within the framework of the Water Footprint Reduction and Shared Value program, for the efficient management of water at our
Previous report
Toquepala operations and for our contributions to strengthening agriculture in Ilabaya and Candarave (Tacna region), including the restoration of 61 hectares of terraces and traditional crops, benefiting 720 farmers.
Previous report
**Certificate for Conservation.**Tandem Global, an international organization specialized in conservation and habitat management certification, recognized our Buenavista del Cobre Mine (BVC) for its biodiversity conservation efforts in the Sierra La Elenita ecosystem in Cananea, Sonora.
Previous report
We drive talent development through our Scholarship program. Each year, more than 9,000 individuals benefit from our educational, sports, and cultural programs in the communities where we operate. In 2026, we awarded scholarships to seven gifted students to continue their professional education at universities in Mexico and the United States, in recognition of their achievements in disciplines such as music, cinema, and sports.
Previous report
Net sales in the first quarter of 2026 totaled $4,251.4 million, representing a 36.2% increase compared to the same period in 2025. This performance was mainly supported by an increase in the sales volumes of silver (+11.6%) and zinc (+16.4%) and by higher prices for copper (+37.5% LME; +26.9% COMEX), silver (+157.9%), molybdenum (+24.2%), and zinc (+14.0%). These positive effects were partially offset by lower sales volumes of copper (-4.9%) and molybdenum (-2.8%).
Previous report
Net income attributable to SCC for the first quarter of 2026 reached $1,576.9 million, representing an increase of 66.7% compared to the same period in 2025. This performance was mainly supported by higher net sales (+36.2%), which rose mainly on the back of stronger metal prices and by-product volumes (silver/zinc) in the first quarter of 2026. These positive effects were partially offset by increases in operating costs (+11.6%) and income taxes (+67.2%).
Previous report
First quarter: Operating costs and expenses were $1,771.0 million for the first quarter of 2026, compared to $1,586.4 million for the same period of 2025. The increase of $184.7 million was primarily due to:
Previous report
Net sales in the first quarter of 2026 increased by $315.4 million compared to the same period in 2025. This improvement was mainly supported by an increase in sales volumes of molybdenum (+4.5%) and by higher prices for copper (+37.5%, LME), silver (+157.9%), and molybdenum (+24.2%). These positive effects were partially offset by a decrease in the sales volumes of copper (-15.6%) and silver (-24.3%).
Previous report
Operating costs and expenses were $657.6 million for the first quarter of 2026 compared to $704.5 million for the same period of 2025. The decrease of $46.9 million was primarily due to:
Previous report
Net sales in the first quarter of 2026 increased by $694.1 million compared to the same period in 2025. This growth was mainly supported by an increase in the sales volumes of copper (+3.6%), silver (+24.6%) and zinc (+27.4%) and by higher prices for copper (+26.9%, COMEX), silver (+157.9%), zinc (+14.0%), and molybdenum (+24.2%). These positive effects were slightly offset by lower sales volumes of molybdenum (-8.9%).
Previous report
Operating costs and expenses were $1,016.0 million for the first quarter of 2026 compared to $783.9 million for the same period of 2025. The increase of $232.1 million was primarily due to:
Previous report
Net sales in the first quarter of 2026 increased by $163.1 million compared to the same period in 2025. This growth was mainly supported by an increase in the sales volumes of copper (+42.7%), silver (+13.5%) and zinc (+8.7%) and by higher prices for copper (+26.9%, COMEX), silver (+157.9%) and zinc (+14.0%).
Previous report
Operating costs and expenses were $177.8 million for the first quarter of 2026 compared to $137.0 million for the same period of 2025. The increase of $40.7 million was primarily due to:
Previous report
There have been no material changes in our contractual obligations in the first quarter of 2026. Please see item 7 in Part II of our 2025 annual report on Form 10-K.
Reworded paragraphs (46)
Previous wording
Regarding by-products, we expect to produce 166,800 tonnes of zinc in 2026, which is 1% above our initial plan. We also expect to produce 27,400 tonnes of molybdenum in 2026, which represents an increase of 5% compared to our initial plan. For silver, we expect to produce 24 million ounces in 2026, an increase of 1.3% compared our initial goal.
Current wording
Regarding by-products, we expect to produce 163,900 tonnes of zinc in 2026, which is 0.9% below our initial plan. We also expect to produce 27,900 tonnes of molybdenum in 2026, which represents an increase of 7% compared to our initial plan. For silver, we expect to comply with our plan to produce 24 million ounces of this metal.
Previous wording
Earnings**:** The table below highlights key financial and operational data of our Company for the three-month period ended March 31, 2026 and 2025 (in millions, except copper price, percentages and per share amounts):
Current wording
Earnings**:** The table below highlights key financial and operational data of our Company for the three-month and six-month periods ended June 30, 2026 and 2025 (in millions, except copper price, percentages and per share amounts):
Previous wording
Production**:** The table below highlights our mine production data for the three-month period ended March 31, 2026 and 2025:
Current wording
Production**:** The table below highlights our mine production data for the three-month and six-month periods ended June 30, 2026 and 2025:
Previous wording
The table below highlights our copper mine production data for the three-month period ended March 31, 2026 and 2025:
Current wording
The table below highlights our copper mine production data for the three-month and six-month periods ended June 30, 2026 and 2025:
Previous wording
First quarter: Copper mine production in the first quarter of 2026 stood at 508.3 million pounds, reflecting a 4.0% decrease compared to the same period of 2025. This decline was mainly attributed to lower production at Cuajone (-11.9%, which was attributable to a decrease in ore grades and mineral milled); Toquepala (-8.4%; due to lower ore grades); IMMSA (-4.6%; due to lower ore grades) and Buenavista (-0.8%; due to lower ore grades and recoveries). These effects were slightly offset by higher production at La Caridad (+5.5%; driven by improved recoveries, ore grades and increased SX-EW production).
Current wording
Second quarter: Copper mine production in the second quarter of 2026 stood at 508.5 million pounds, reflecting a 3.5% decrease compared to the same period in 2025. This decline was mainly attributed to lower production at Toquepala (-14.7%; which was due to a decrease in ore grades and mineral milled) and Cuajone (-7.8%; due to lower ore grades). These declines were partially offset by higher production at our Buenavista (+2.9%; due to increased SX-EW production), La Caridad (+3.9%; due to improved recoveries, higher ore grades, and increased SX-EW production) and IMMSA operations (+9.9%; due to higher ore grades).
Previous wording
Zinc production increased 2.0% in the first quarter of 2026 compared to the same period in 2025. This growth was mainly driven by higher production at our IMMSA operations (+9.1%). These increases were partially offset by lower production at our Buenavista Zinc concentrator (-1.9%).
Current wording
Zinc production decreased 14.5% in the second quarter of 2026 compared to the same period in 2025. This decline was driven by lower production at our Buenavista zinc concentrator (-18.6%) and the IMMSA operations (-5.9%).
Previous wording
We define operating cash cost per pound of copper produced before by-product revenuesas cost of sales (exclusive of depreciation, amortization and depletion), plus selling, general and administrative charges, treatment and refining charges net of sales premiums; less the cost of purchased concentrates, workers’ participation and other miscellaneous
Current wording
We define operating cash cost per pound of copper produced before by-product revenuesas cost of sales (exclusive of depreciation, amortization and depletion), plus selling, general and administrative charges, treatment and refining charges net of sales premiums; less the cost of purchased concentrates, workers’ participation and other miscellaneous charges, including royalty charges, and the change in inventory levels; divided by total pounds of copper produced by our own mines.
Previous wording
We believe that both of these measures are useful tools for our management and our stakeholders. Our cash costs before by-product revenues allow us to monitor our cost structure and address areas of concern within operating management. The measure operating cash cost per pound of copper produced net of by-product revenues is a common measure used in the copper industry and is a useful management tool that allows us to track our performance and better allocate our resources. This measure is also used in our investment project evaluation process to determine a project’s potential contribution to our operations, its competitiveness and its relative strength in different price scenarios. The expected contribution of by-products is generally a significant factor used by the copper industry to determine whether to move forward or not in the development of a new mining project. As the price of our by-product commodities can have significant fluctuations from period to period, the value of its contribution to our costs can be volatile.
Current wording
We believe that both of these measures are useful tools for our management and our stakeholders. Our cash costs before by-product revenues allow us to monitor our cost structure and address areas of concern within operating management. The measure operating cash cost per pound of copper produced net of by-product revenues is a common measure used in the copper industry and is a useful management tool that allows us to track our performance and better allocate our resources. This measure is also used in our investment project evaluation process to determine a project’s potential
Previous wording
Our operating cash cost per pound of copper produced, before and net of by-product revenues, is presented in the table below for the three-month period ended March 31, 2026 and 2025:
Current wording
Our operating cash cost per pound of copper produced, before and net of by-product revenues, is presented in the table below for the three-month and six-month periods ended June 30, 2026 and 2025:
Previous wording
In the first quarter of 2026, the operating cash cost per pound before by-product revenues increased from $2.05 in 1Q25 to $2.31 (+12.3%). This increase was mainly driven by the unit cost effect of a decline in copper production (-3.7%) and by higher production costs (+11.6%). By-product revenues per pound rose 87.4%, from $1.29 to $2.41. As a result, the operating cash cost per pound net of by-product revenues improved significantly, shifting from a cost of $0.77 per pound to a credit of ($0.11) per pound, boosted primarily by growth in by-product revenues from silver, molybdenum, and zinc.
Current wording
In the second quarter of 2026, the operating cash cost per pound before by-product revenues increased from $2.11 in 2Q25 to $2.29 (+8.3%). This increase was primarily attributable to the unit cost effect of lower copper production (-3.4%) and higher production costs (+4.7%), which reflected an increase in costs for fuel and operating material costs that was partially offset by a decrease in treatment and refining charges due to market conditions. By-product revenues per pound increased by 51.4%, from $1.48 to $2.24. As a result, the operating cash cost per pound net of by-product revenues improved significantly and decreased from a cost of $0.63 per pound to $0.05 per pound, bolstered mainly by higher by-product revenues from silver and molybdenum.
Previous wording
We are subject to market risks arising from the volatility of copper and other metal prices. For the remaining nine months of 2026, assuming that expected metal production and sales are achieved; tax rates remain unchanged and giving no effects relative to potential cost changes, metal price sensitivity factors would indicate the following change in estimated net income attributable to SCC resulting from metal price changes:
Current wording
We are subject to market risks arising from the volatility of copper and other metal prices. For the remaining six months of 2026, assuming that expected metal production and sales are achieved; tax rates remain unchanged and giving no
Previous wording
Capital Investment Programs: We made capital investments of $441.9 million in the first quarter of 2026, compared to $317.8 million in the same period of 2025. In general, the capital investments and investment projects described below are intended to increase production, decrease costs or address social and environmental commitments.
Current wording
Capital Investment Programs: We made capital investments of $864.7 million in the first six months of 2026, compared to $553.5 million in the same period of 2025. In general, the capital investments and investment projects described below are intended to increase production, decrease costs or address social and environmental commitments.
Previous wording
Set forth below are descriptions of some of our current expected capital investment programs. We expect to meet the cash requirements for these projects by utilizing cash on hand; internally generated funds and additional external financing. All capital spending plans will continue to be reviewed and adjusted to respond to changes in the economy and market conditions.
Current wording
Set forth below are descriptions of some of our current expected capital investment programs. We expect to meet the cash requirements for these projects by utilizing cash on hand; internally generated funds and additional external financing, including funding received in June 2026. All capital spending plans will continue to be reviewed and adjusted to respond to changes in the economy and market conditions.
Previous wording
Our investments in Peruvian projects that are being built or for which basic or detail engineering is being conducted could surpass $10.3 billion in the next decade.
Current wording
Our investments in Peruvian projects that are being built or for which basic or detail engineering or environmental studies are being conducted could surpass $10.3 billion in the next decade.
Previous wording
The openness of the Peruvian government and institutions to private investment; the strong support of local communities; and respect for the rule of law underpin our aggressive investment program. With the support and assistance of Peruvian authorities, the Company is moving forward to secure the administrative permits and licenses that are required prior to investment. The projects’ construction and subsequent operating phases will generate new poles of development; create significant job opportunities; and drive growth in tax revenues at both, national and regional levels.
Current wording
The openness of the Peruvian government and institutions to private investment; strong support from local communities; and respect for the rule of law underpin our aggressive investment program. With the backing and assistance of Peruvian authorities, the Company is moving forward to secure the administrative permits and licenses required before initiating investment. The projects’ construction and subsequent operating phases will generate new poles of development; create significant job opportunities; and drive growth in tax revenues at both, national and regional levels.
Previous wording
Tia Maria - Arequipa: This greenfield project, located in Arequipa, Peru, will use state of the art SX-EW technology that meets the highest international environmental standards and has the capacity to produce 120,000 tonnes of SX- EW copper cathodes per year. Operations are expected to begin in the third quarter of 2027.
Current wording
Tia Maria - Arequipa: This greenfield project, located in Arequipa, Peru, will use state of the art SX-EW technology that meets the highest international environmental standards and has the capacity to produce 120,000 tonnes of SX- EW copper cathodes per year. Operations are expected to begin in the second half of 2027.
Previous wording
Regarding energy supply, foundation works at the main electrical substation, as well as work to build the 220kV transmission line, are underway. In parallel, large-scale earthworks for the grading of the main dry and wet area components are in their final stage, setting the groundwork for civil construction in key areas for secondary and tertiary crushing (dry area), solvent extraction (SX), and electrowinning (EW) (wet area) among others.
Current wording
Regarding the power supply, electromechanical works are underway at the main electrical substations and efforts continue to build the 220-kV transmission line. Concurrently, the mass earthworks required to develop both the dry and wet areas are in their final stage. Civil works and steel structure assembly have commenced in key facilities, including the primary, secondary, and tertiary crushing circuits (dry area), as well as the Solvent Extraction (SX) and Electrowinning (EW) facilities (wet area), among others.
Previous wording
At the end of the first quarter of 2026, progress at Tia Maria stood at 32.5%, and 4,207 new jobs have been generated; 815 of these positions were filled with local applicants. To the fullest extent possible, we intend to fill the 5,000 jobs estimated to be required during Tia Maria´s construction phase prioritizing workers from the Islay province.
Current wording
As of June 30, 2026, the Tia Maria project had reached 42% completion, and 5,817 new jobs had been created. Of these positions, 1,254 have been filled by local applicants. To the greatest extent possible, we intend to fill the approximately 6,000 jobs expected to be required during the construction phase of Tia Maria by giving priority to workers from the Islay province.
Previous wording
SCC has several projects in its Mexican pipeline that may boost organic growth if they are found to be of value for both stakeholders and the communities in which we operate. These projects are Angangueo, Chalchihuites and the Empalme Smelter, which are expected to bolster our position as a fully integrated copper producer. We are engaged in talks with the current administration to continue rolling out SCC’s Mexican investments for $10.2 billion.
Current wording
SCC has several projects in its Mexican pipeline that may boost organic growth if they are found to be of value for both stakeholders and the communities in which we operate. We are engaged in talks with the current administration to continue rolling out SCC’s Mexican investments for $10.2 billion.
Previous wording
El Pilar - Sonora: This low-capital intensity copper greenfield project is strategically located in Sonora, Mexico, approximately 45 kilometers from our Buenavista mine. Its copper oxide mineralization contains estimated proven and probable reserves of 317 million tonnes of ore with an average copper grade of 0.249%. We anticipate that El Pilar will operate as a conventional open-pit mine with an annual production capacity of 36,000 tonnes of copper cathodes. This operation will use highly cost efficient and environmentally friendly SX-EW technology.
Current wording
This project is located in Sonora, Mexico, approximately 45 kilometers from Cananea and Buenavista mine. Its copper oxide mineralization contains estimated proven and probable reserves of 317 million tonnes of ore with an average copper grade of 0.249% and a life of mine of 18 years. It will operate as an open-pit mine with an annual production capacity of 36,000 tonnes of copper cathode, utilizing cost-efficient and environmentally friendly SX-EW (Solvent Extraction and Electrowinning) technology. With an investment of $551 million, this project will employ a direct workforce of 450 people during the construction phase and 300 during the operational phase.
Previous wording
Los Chancas - Apurimac: This greenfield project, located in Apurimac, Peru, is a copper and molybdenum porphyry deposit. Current estimates of indicated copper mineral resources are 98 million tonnes of oxides with a copper content of 0.45% and 52 million tonnes of sulfides with a copper content of 0.59%. The Los Chancas project envisions an open-pit mine with a combined operation of concentrator and SX-EW processes that are expected to produce 130,000 tonnes of
Current wording
Los Chancas - Apurimac: This greenfield project, located in Apurimac, Peru, is a copper and molybdenum porphyry deposit. Current estimates of indicated copper mineral resources are 98 million tonnes of oxides with a copper content of 0.45% and 52 million tonnes of sulfides with a copper content of 0.59%. The Los Chancas project envisions an open-pit mine with a combined operation of concentrator and SX-EW processes that are expected to produce 130,000 tonnes of copper and 7,500 tonnes of molybdenum annually. The estimated capital investment is $2,600 million and the project is expected to begin operating in 2031.
Previous wording
Project update: As of March 31, 2026, we continue to implement environmental and social programs in the communities of Tapayrihua and Tiaparo, which are located within the direct area of influence of the Los Chancas Mining Project. Despite these efforts, the presence of illegal miners within the project area has prevented the project from further progress. In this context, the Company continues to work with the relevant authorities to regain control of the project area.
Current wording
Project update: As of June 30, 2026, the presence of illegal miners within the project area continues despite the State’s on-site enforcement efforts through the Environmental Prosecutor’s Office; this has hindered the project's progress. Meanwhile, community development and environmental management programs remain underway in the communities of Tiaparo and Tapayrihua, both located within our direct area of influence.
Previous wording
Michiquillay Project - Cajamarca: In June 2018, Southern Copper signed a contract for the acquisition of the Michiquillay project in Cajamarca, Peru. Michiquillay is a world-class mining project with inferred mineral resources of 2,288 million tonnes and an estimated copper grade of 0.43%. When developed, we expect Michiquillay to produce 225,000 tonnes of copper per year (along with by-products of molybdenum, gold and silver) for an initial mine life of more than 25 years. We estimate an investment of approximately $2.5 billion will be required and expect production start-up by 2032.
Current wording
2,288 million tonnes and an estimated copper grade of 0.43%. When developed, we expect Michiquillay to produce 225,000 tonnes of copper per year (along with by-products of molybdenum, gold and silver) for an initial mine life of more than 25 years. We estimate an investment of approximately $2.5 billion will be required and expect production start-up by 2032.
Previous wording
Our discussion and analysis of financial condition and results of operations, as well as quantitative and qualitative disclosures about market risks, are based upon our consolidated financial statements, which have been prepared in accordance with U.S. GAAP. Preparation of these consolidated financial statements requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. We make our best estimate of the ultimate outcome for these items based on historical trends and other information available when the financial statements are prepared. Changes in estimates are recognized in accordance with the accounting rules for the estimate, which is typically in the period when new information becomes available to management. Areas where the nature of the estimate makes it reasonably possible that actual results could materially differ from amounts estimated include: ore reserves, revenue recognition, ore stockpiles on leach pads and related amortization, estimated impairment of assets, asset retirement obligations, determination of discount rates related to the financial lease liabilities, classification of operating leases versus finance leases, valuation allowances for deferred tax assets, unrecognized tax benefits and fair value of financial instruments. We base our estimates on historical experience and on various other assumptions that we believe reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions.
Current wording
estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. We make our best estimate of the ultimate outcome for these items based on historical trends and other information available when the financial statements are prepared. Changes in estimates are recognized in accordance with the accounting rules for the estimate, which is typically in the period when new information becomes available to management. Areas where the nature of the estimate makes it reasonably possible that actual results could materially differ from amounts estimated include: ore reserves, revenue recognition, ore stockpiles on leach pads and related amortization, estimated impairment of assets, asset retirement obligations, determination of discount rates related to the financial lease liabilities, classification of operating leases versus finance leases, valuation allowances for deferred tax assets, unrecognized tax benefits and fair value of financial instruments. We base our estimates on historical experience and on various other assumptions that we believe reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions.
Previous wording
At the Company’s July 2025 Board of Directors meeting, approval was granted by the Board to terminate the Retirement Benefit Plan for Salaried Employees of Southern Copper Corporation (the “Plan”) effective December 1, 2025. The Termination will proceed as a standard termination. Since November of 2000, the Plan has been frozen and closed to new participants and accruals of benefits. Retirees currently receiving their monthly benefits from The Metropolitan Life Insurance Company (“MetLife”) will continue to receive their monthly benefit from MetLife. Plan participants that will begin drawing their benefits for the first time after October 1, 2025, will receive their benefit from Midland Insurance Company.
Current wording
At the Company’s July 2025 Board of Directors meeting, approval was granted by the Board to terminate the Retirement Benefit Plan for Salaried Employees of Southern Copper Corporation (the “Plan”) effective December 1, 2025. The Termination proceeded as a standard termination. Since November of 2000, the Plan has been frozen and closed to new participants and accruals of benefits. Retirees who received their monthly benefits from The Metropolitan Life Insurance Company (“MetLife”) will continue to receive their monthly benefit from MetLife. Plan participants that begin drawing their benefits for the first time after October 1, 2025, will receive their benefit from Midland Insurance Company.
Previous wording
Settlement charges related to the Plan termination, which will include the recognition of accumulated gains and losses recorded within other comprehensive income on the Company’s balance sheet, are currently expected to occur in the fourth quarter of 2025. The Plan termination is subject to certain conditions, including regulatory review, and the Company has the right to change the effective date of the termination or revoke the termination. It is not expected that the Plan termination will have a material impact on the Company’s financial statements, and the termination process is expected to be completed by April 30, 2026.
Current wording
Settlement charges related to the Plan termination, which included the recognition of accumulated gains and losses recorded within other comprehensive income on the Company’s balance sheet, were recorded in the fourth quarter of 2025. The Plan’s termination had no material impact on the Company’s financial statements; the termination process was completed on April 30, 2026.
Previous wording
The following highlights key financial results for the three-month period ended March 31, 2026 and 2025:
Current wording
The following highlights key financial results for the three-month and six-month periods ended June 30, 2026 and 2025:
Previous wording
The table below outlines the average published market metal prices for our metals for the three-month period ended March 31, 2026 and 2025:
Current wording
The table below outlines the average published market metal prices for our metals for the three-month and six-month periods ended June 30, 2026 and 2025:
Previous wording
The table below provides our metal sales as a percentage of our total net sales for the three-month period ended March 31, 2026 and 2025:
Current wording
The table below provides our metal sales as a percentage of our total net sales for the three-month and six-months periods ended June 30, 2026 and 2025:
Previous wording
The table below provides our copper sales by type of product for the three-month period ended March 31, 2026 and 2025. The difference in value between products is the level of processing. At the market price, concentrates take a discount since they require smelting and refining processes, while refined and rod copper receive premiums due to their purity and presentation.
Current wording
The table below provides our copper sales by type of product for the three-month and six-month periods ended June 30, 2026 and 2025. The difference in value between products is the level of processing. At the market price, concentrates take a discount since they require smelting and refining processes, while refined and rod copper receive premiums due to their purity and presentation.
Previous wording
The table below provides our copper sales volume by type of product as a percentage of our total copper sales volume for the three-month periods ended March 31, 2026 and 2025:
Current wording
The table below provides our copper sales volume by type of product as a percentage of our total copper sales volume for the three-month and six-month periods ended June 30, 2026 and 2025:
Previous wording
Non-operating income (expense) represented a net expense of $36.3 million for the three-month period ended on March 31, 2026, compared to a net expense of $57.0 million for the same period of 2025.
Current wording
Non-operating income (expense) represented a net expense of $(23.8) million and $(60.0) million for the three and six months ended June 30, 2026, compared to a net expense of $(43.1) million and $(100.1) million for the three and six months ended June 30, 2025.
Previous wording
First quarter: The $20.7 million decrease in the expense level was due to:
Current wording
Second quarter: The $19.3 million decrease in the expense level was due to:
Previous wording
The table below presents information regarding the volume of our copper sales by segment for the three-month period ended March 31, 2026 and 2025:
Current wording
The table below presents information regarding the volume of our copper sales by segment for the three-month and six-month periods ended June 30, 2026 and 2025:
Previous wording
The table below presents information regarding the volume of sales by segment of our significant by-products for the three-month period ended March 31, 2026 and 2025:
Current wording
The table below presents information regarding the volume of sales by segment of our significant by-products for the three-month and six-month periods ended June 30, 2026 and 2025:
Previous wording
The following table shows the cash flow for the three-month period ended March 31, 2026 and 2025 (in millions):
Current wording
The following table shows the cash flow for the six-month periods ended June 30, 2026 and 2025 (in millions):
Previous wording
The change in net cash from operating activities for the three-month period ended March 31, 2026 and 2025 include, in millions, the following significant items:
Current wording
The change in net cash from operating activities for the six-month periods ended June 30, 2026 and 2025 include, in millions, the following significant items:
Previous wording
Three-month period ended March 31, 2026: Net income was $1,581.9 million, which represented approximately 93.3% of the net operating cash flow. The cash flow from operating assets and liabilities dropped $56.1 million due to the following:
Current wording
Six-month period ended June 30, 2026: Net income was $3,256.5 million, which represented approximately 88.4% of the net operating cash flow. The cash flow from operating assets and liabilities dropped $24.2 million due to the following:
Previous wording
Three-month period ended March 31, 2025: Net income was $949.1 million, which represented approximately 131.6% of the net operating cash flow. The cash flow from operating assets and liabilities decreased $504.9 million due to the following:
Current wording
Six months ended June 30, 2025: Net income was $1,925.8 million, which represented approximately 113.4% of the net operating cash flow. The cash flow from operating assets and liabilities dropped by $742.7 million due to the following:
Previous wording
Three-month period ended March 31, 2026: Net cash used in investing activities included $441.9 million for capital investments. The capital investments included:
Current wording
Six-month period ended June 30, 2026: Net cash used in investing activities included $864.7 million for capital investments. The capital investments included:
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Rearranged current paragraphs (6)
Current report — wording carried from elsewhere
contribution to our operations, its competitiveness and its relative strength in different price scenarios. The expected contribution of by-products is generally a significant factor used by the copper industry to determine whether to move forward or not in the development of a new mining project. As the price of our by-product commodities can have significant fluctuations from period to period, the value of its contribution to our costs can be volatile.
Current report — wording carried from elsewhere
effects relative to potential cost changes, metal price sensitivity factors would indicate the following change in estimated net income attributable to SCC resulting from metal price changes:
Current report — wording carried from elsewhere
Michiquillay Project - Cajamarca: In June 2018, Southern Copper signed a contract for the acquisition of the Michiquillay project in Cajamarca, Peru. Michiquillay is a world-class mining project with inferred mineral resources of
Current report — wording carried from elsewhere
Additional projects in the Mexican pipeline are Angangueo and Chalchihuites (which are part of the Mexican copper circuit) and the Empalme Smelter, which are expected to bolster our position as a fully integrated copper producer.
Current report — wording carried from elsewhere
Our discussion and analysis of financial condition and results of operations, as well as quantitative and qualitative disclosures about market risks, are based upon our consolidated financial statements, which have been prepared in accordance with U.S. GAAP. Preparation of these consolidated financial statements requires our management to make
Current report — wording carried from elsewhere
Six months: The $40.1 million decrease in the expense level was due to:
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
charges, including royalty charges, and the change in inventory levels; divided by total pounds of copper produced by our own mines.
Previous report — wording carried elsewhere
copper and 7,500 tonnes of molybdenum annually. The estimated capital investment is $2,600 million and the project is expected to begin operating in 2031.