SOUTHERN COPPER CORP/
For the period ended Mar 31, 2025. Filed Apr 30, 2025.
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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.
Mar 31, 2025 · Filed Apr 30, 2025
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 2024-09-30; filed 2024-10-31.
0001558370-24-014045
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-04-30.
0001558370-25-005975
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 138 previous paragraphs and 119 current paragraphs.
48 unchanged; 44 reworded; 26 added; 45 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 87 previous and 77 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 (26)
Current report
In the first quarter of 2025, the copper market registered a significant arbitrage difference between COMEX and LME prices. At its peak in March 26, 2025, the COMEX price was 73 cents per pound or 17% above the LME price. This huge difference reflected the strong possibility that a 25% tariff will be imposed on U.S. copper imports.
Current report
Although we maintain a very positive long-term outlook for copper, we believe an intense commercial war between the U.S. and China will affect economic growth worldwide, consequently impacting copper demand.
Current report
For 2025, we believe that prices will hold at the current level of about $20.00 per pound given its diverse applications in critical industries.
Current report
Net sales in the first quarter of 2025 totaled $3,121.9 million, reflecting a 20.1% increase compared to the same period in 2024. This performance was mainly supported by higher prices for copper (LME, +10.7%), molybdenum (+3.0%), silver (+38.4%), and zinc (+16.2%), along with increased sales volumes of copper (+3.6%), molybdenum (+9.9%), silver (+14.1%), and zinc (+42.4%).
Current report
Molybdenum production increased 8.6% in the first quarter of 2025 compared to the same period in 2024. This growth was largely driven by improved production at our Toquepala (+13.3%), La Caridad (+11.6%), and Buenavista (+10.3%) mines, primarily due to higher ore grades. However, this performance was partially mitigated by a decrease in production at our Cuajone (-9.9%) mine, which was driven by lower ore grades.
Current report
In the first quarter of 2025, the operating cash cost per pound before by-product revenues decreased from $2.11 to $2.05, mainly driven by lower operating costs (-2.8%). By-product revenues per pound increased significantly, rising by 23.5% from $1.04 to $1.29. As a result, the operating cash cost per pound net of by-product revenues declined 28.4% from
Current report
$1.07 to $0.77. This reduction reflects effective cost management and higher by-product revenues, primarily from zinc, silver, and molybdenum due to increases in reported prices and sales volumes.
Current report
Projects in Mexico:
Current report
Minera Mexico is planning to invest more than $600 million in 2025 at both its open pit and underground mines. Half of this investment will be used to guarantee the viability of long-term operations by actively modernizing and updating assets. The remaining funds will target improvements in water usage and tailings management to ensure safety and efficiency in our operations. In addition, we will invest in efforts to bolster optimization and growth.
Current report
The results from experimental pads in the leaching process have confirmed adequate levels of copper recovery and we are evaluating different options for optimization. The Company is engaging in project development and on-site environmental activities. Mine life is estimated at 13 years.
Current report
The Company 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 could bolster our position as a fully integrated copper producer.
Current report
The project is in the early construction phase, with progress on access roads and platforms reaching 61%. The Company will advance these efforts alongside work to set up a temporary camp, engage in massive earthworks, and roll out mine-opening activities. To date, we have installed 59 kilometers of live fence to delimit the property.
Current report
Project update: Detailed engineering is still underway for the concentrator, SX-EW plant, water desalination, logistics infrastructure and power delivery.
Current report
Project update: On February 4, 2025, the Company acquired 3,125 hectares of surface land from the Tiaparo community. This was an important step in securing our stake in the Los Chancas project. Between March 12 and 14, 2025, a group of illegal miners attacked the project's facilities and set fire to our camps in Mazopampa and Patahias, damaging both equipment and facilities. The Company is coordinating with the authorities to remove the 75 illegal miners who are squatting on our property so that project development can continue.
Current report
**We are improving Peru's educational infrastructure.**Two high-performance schools (“COAR”) built by Southern Copper Corporation in the Tacna and Moquegua regions were inaugurated by the President of the Republic of Peru and the Minister of Education. A total of $60 million were invested through the Works for Taxes mechanism. The schools feature top-level services, which have been designed to maximize students' academic, artistic, and athletic abilities. Every year, these COAR will educate 600 outstanding students from vulnerable areas, as we actively contribute to closing educational gaps in the country. Work to build a new COAR in the Apurímac region is slated to begin soon.
Current report
**Our social practices are recognized once again.**For the third consecutive year, we received the Exceptional Company award, which recognizes our commitment to Mexican communities. This distinction, bestowed by the Business Coordinating Council, the Communications Council, and the Institute for the Promotion of Quality, applauds our initiatives to drive regional economic and recreational development by developing the Tamosura and Pinacate urban parks in the mining municipalities of Cananea and Nacozari, Sonora. Every year, more than 50,000 users benefit from the sports, recreational, and cultural facilities developed by the Company.
Current report
We maintain our rating in climate change and water security in the CDP evaluation, the world’s leading environmental disclosure platform. We are part of the more than 24,800 companies that, in 2024, voluntarily reported their environmental impacts to CDP, representing nearly two-thirds of global market capitalization. SCC, as part of
Current report
Grupo Mexico, ranked above the average for both the materials sector and the North America region in evaluations for both categories.
Current report
In the first quarter of 2025 totaled $3,121.9 million, reflecting a 20.1% increase compared to the same period in 2024. This performance was mainly supported by increased sales volumes of copper (+3.6%), molybdenum (+9.9%), silver (+14.1%), and zinc (+42.4%), along with higher prices for copper (LME, +10.7%), molybdenum (+3.0%), silver (+38.4%), and zinc (+16.2%).
Current report
Operating costs and expenses were $1,586.4 million in the first quarter of 2025, compared to $1,410.1 million in the same period of 2024. The increase of $176.3 million was primarily due to:
Current report
NON-OPERATING INCOME (EXPENSE)
Current report
Net sales in the first quarter of 2025 increased $237.3 million compared to the same period in 2024. This significant growth was driven by higher sales volumes of copper (+14.5%), molybdenum (+5.3%), and silver (+22.8%), as well as higher prices for copper (LME, +10.7%), molybdenum (+3.0%), and silver (+38.4%).
Current report
Operating costs and expenses were $704.5 million in the first quarter of 2025 compared to $571.2 million in the same period of 2024. The increase of $133.3 million was primarily due to:
Current report
Net sales in the first quarter of 2025 increased $283.4 million compared to the same period in 2024. This significant growth was mainly driven by higher sales volumes of molybdenum (+14.0%), silver (+8.9%) and zinc. This was supported by full-capacity production at the Buenavista zinc concentrator, which contributed significantly to total production; zinc sales volumes reached 33.0 million pounds in the first quarter of 2025. Additionally, higher prices for copper (COMEX, +18.4%), zinc (+16.2%), molybdenum (+3.0%), and silver (+38.4%) further supported the rise in net sales. However, these positive effects were slightly offset by a decrease in copper sales volumes (-5.5%).
Current report
Operating costs and expenses were $783.9 million in the first quarter of 2025 compared to $715.0 million in the same period of 2024. The increase of $68.9 million was primarily due to:
Current report
Net sales in the first quarter of 2025 increased by $9.1 million compared to the same period in 2024. This growth was driven by higher prices for copper (COMEX, +18.4%), zinc (+16.2%) and silver (+38.4%). However, this effect was partially offset by a decrease in the sales volumes of copper (-33.5%), zinc (-8.1%) and silver (-4.9%).
Removed paragraphs (45)
Previous report
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Previous report
For the short term, we believe molybdenum prices will have good support due to a market deficit and higher demand coming from the aerospace and defense industries.
Previous report
supply is expected to remain stable, growing demand from emerging technologies could lead to a tighter market. This increased demand is likely to sustain higher prices over the long term.
Previous report
Net sales in the third quarter of 2024 totaled $2,930.9 million, which represented a substantial increase of 17.0% compared to net sales in the same period of 2023. This growth was primarily attributable to growth in the sales volumes of copper (+8.2%), molybdenum (+5.6%), silver (+17.4%), and zinc (+50.1%). Higher metal prices for copper (+10.0%, LME), silver (+24.7%), and zinc (+14.5%) further boosted sales. This positive performance was somewhat offset by a decline in molybdenum prices (-8.1%).
Previous report
Net sales for the nine-month period of 2024 increased 13.8% compared to the same period in 2023. This growth was driven by higher sales volumes of copper (+5.5%), molybdenum (+11.6%), silver (+13.7%), and zinc (+39.3%). Better results were also supported by higher prices for copper (+6.2%, LME) and silver (+16.0%), which were nonetheless offset by a drop in prices for molybdenum (-17.4%).
Previous report
Net income attributable to SCC for the nine-month period of 2024 increased by 30.4% compared to the same period in 2023. This performance was mainly driven by a 13.8% increase in sales, reflecting higher sales volumes and metal prices for most of our by-products. However, this growth was tempered by a slight rise in operating costs of 2.9% and a 30.6% increase in income taxes.
Previous report
Molybdenum production increased by 6.0% in the third quarter of 2024 compared to the same period in 2023. This growth was mainly due to higher production at our Toquepala (+51.2%), Cuajone (+47.7%), and Buenavista (+15.0%) mines, which was primarily driven by an increase in ore grades. This performance was somewhat offset by a reduction in production at our La Caridad (-29.9%) mine, which was attributable to a decrease in ore grades.
Previous report
Nine months: Mined copper production in the nine-month period of 2024 increased by 8.6%. This growth was mainly attributable to higher production at our Peruvian operations, where Toquepala was up 19.8% and Cuajone, 13.7%, both on the back of an improvement in ore grades. Production at our Mexican operations also rose over the period, registering growth of 2.8%.
Previous report
Molybdenum production, in the nine-month period of 2024 increased 11.9% compared to the same period in 2023. This growth was primarily driven by growth in output at our Toquepala mine (+65.8%), which reflected better ore grades and recoveries. Our Cuajone (+17.0%) and Buenavista (+10.6%) mines also performed well during this timeframe. Growth in production was, nonetheless, somewhat attenuated by a decline in production at the La Caridad mine, which was down 15.4%.
Previous report
Silver mine production increased by 12.5% in the nine-month period of 2024 compared to the same period in 2023. This was largely attributable to higher output across our operations, including Toquepala (+27.2%), Buenavista (+20.6%), Cuajone (+13.5%), La Caridad (+9.0%), and IMMSA (+1.6%) operations.
Previous report
Zinc production increased 78.8% in the nine-month period of 2024. This growth was primarily driven by production start-up at the Buenavista zinc concentrator, which produced 37,801 tonnes during the period.
Previous report
In the third quarter of 2024, the operating cash cost per pound before by-product revenues dropped from $2.24 to $1.95, reflecting a 13.0% improvement in production efficiency. By-product revenues per pound also saw a slight decrease, going from $1.26 to $1.19. This contributed to a notable reduction in the operating cash cost per pound net of by-product revenues, which dropped from $0.98 to $0.76, a 22.6% decline. This decrease reflects positive cost management measures and higher production volumes, which offset the effect of lower by-product revenues.
Previous report
For the nine-month period of 2024, the operating cash cost per pound before by-product revenues fell from $2.17 to $2.07, representing a 4.7% improvement. Total operating cash costs, however, increased 3.5% to $3,230.6 million, while by-product revenues per pound remained relatively steady, falling marginally from $1.22 to $1.21. As a result, the operating cash cost per pound net of by-product revenues decreased 9.7%, going from $0.95 to $0.86. Copper production increased by 8.6% to 1,559.2 million pounds during this period, which reflects ongoing improvements in operating efficiency and cost controls.
Previous report
Quebrada Honda dam expansion – Tacna: This project aims to enlarge the main and lateral dams in Quebrada Honda and includes the relocation and repowered of some facilities due to dam growth and implementation of other facilities for water recovery, among other factors. The drainage works and removal of Eolic material for the main and lateral dam, as well as complementary operational works are completed. We have also installed two cyclone nests for the main dam, which are currently operating. Additionally, purchases are pending for equipment for tailings hauling. We intend to build administrative facilities down the line. This project has a total budget of $165.0 million, of which we have invested $152.0 million as of September 30, 2024.
Previous report
The Company has consistently promoted the welfare of the population of the Islay province and the Arequipa region. As part of these efforts, we have implemented several successful social programs in education, healthcare and productive development to improve the quality of life in the region.
Previous report
Our current social programs in Islay help reduce the costs of agricultural production by improving productivity with cutting-edge technology. Additionally, we are working to provide internet access to 4,600 school students. On top of this, we are committed to developing health facilities, high performance schools, research centers and roads in the Arequipa region via the “work for taxes” mechanism.
Previous report
In the coming months, we expect to build roads and access points; train operators; update the topographic network; install and delimit properties along the living fence; install a temporary camp; and begin earthmoving activities. In 2025, we expect construction to begin.
Previous report
Project update: The Company has completed the environmental baseline study for the mine, concentrator and industrial facilities and will proceed to submit the Environmental Impact Statement (Manifestacion de Impacto Ambiental “MIA”) to the Secretary of Environment and Natural Resources “SEMARNAT” to request the respective environmental impact permits. The Company is currently preparing studies for the port, power lines, townsites and auxiliary facilities.
Previous report
Project update: The Company continues to engage in coordinated efforts with the Peruvian authorities to eradicate illegal mining activities. Once this process has concluded, we will resume the environmental impact assessment and begin hydrogeological and geotechnical studies. We will also begin a 40,000 meters in-fill drilling campaign to gather additional information on the geological characteristics of the Los Chancas deposit
Previous report
The Company continues to work with the Michiquillay and La Encañada communities based on the guidelines of corresponding social agreements.
Previous report
**Responsible Production.**Our three operations in Peru, Cuajone, Toquepala and Ilo, were awarded with The Copper Mark and The Molybdenum Mark certifications for responsible production following an independent third-party assessment of environmental, social and governance performance (ESG). We are proud to report that all our open pit copper and molybdenum production has been certified under these standards.
Previous report
**Education infrastructure for Arequipa.**We delivered the Center for Research with specialized engineering laboratories to the Universidad Nacional de San Agustín de Arequipa (UNSA), Peru. This facility, which was built under the Works for Taxes mechanism at a cost of $18 million, is equipped with 24 laboratories and will benefit 6,500 students and 174 researchers.
Previous report
**Recognition for the architectural and social value of the Cultural Center in Charcas.**The Cultural Center, located in Charcas, San Luis Potosi, Mexico, obtained first place in the Noldi Schreck awards (350 entries) in the categories “private institutional architecture” and “repurposing of buildings.” This space, which began operations in the summer of 2023, has hosted over 4,700 participants and 120 volunteers across 200 activities related to education, culture, health, and sports. The Cultural Center, which is open to the public, is now considered a cultural attraction and receives visits from tourists, locals and state authorities.
Previous report
**Dr. Vagón has provided more than 80 thousand medical services over the last 10 years.**In September 2024, Dr. Vagón, which is Fundación Grupo México’s health program, visited Cananea to provide more than 6,000 free medical
Previous report
services to 2,050 people. Patients were evaluated by specialists and needy candidates received medicine, eyeglasses and hearing aids. During these interventions,102 elderly residents received cataract surgery to help them recover their sight.
Previous report
NEW ACCOUNTING DISCLOSURE RULES
Previous report
The U.S. Securities and Exchange Commission released its final climate disclosure rule in March 2024. It requires that, when material, annual reports and registration statements include disclosures about greenhouse gas emissions under Scope 1 and Scope 2 as well as other climate-related subjects. The requirements for disclosure will begin phasing in for fiscal years beginning on or after January 1, 2025. As we examine the new rule's impacts, we anticipate updating the climate-related disclosures in our Form 10-K for the fiscal year of adoption when defined.
Previous report
In the third quarter of 2024 totaled $2,930.9 million, which represented a substantial increase of 17.0% compared to net sales in the same period of 2023. This growth was primarily attributable to growth in sales volumes of copper (+8.2%), molybdenum (+5.6%), silver (+17.4%), and zinc (+50.1%). Higher metal prices for copper (+10.0%, LME), silver (+24.7%), and zinc (+14.5%) further boosted sales. This positive performance was somewhat offset by a decline in molybdenum prices (-8.1%).
Previous report
For the nine-month period of 2024, net sales increased 13.8% compared to the same period in 2023. This growth was driven by higher sales volumes of copper (+5.5%), molybdenum (+11.6%), silver (+13.7%), and zinc (+39.3%). Better performance was also bolstered by higher metal prices for copper (+6.2%, LME) and silver (+16.0%), which were offset by a drop in molybdenum (-17.4%) prices.
Previous report
Third quarter: Operating costs and expenses were $1,480.6 million in the third quarter of 2024 compared to $1,436.4 million in the same period of 2023. The increase of $44.2 million was primarily due to:
Previous report
Nine months: Operating costs and expenses were $4,401.7 million for the nine-month period of 2024 compared to $4,276.6 million in the same period of 2023. The increase of $125.1 million was primarily due to:
Previous report
NON-OPERATING INCOME (EXPENSES)
Previous report
Nine months: The $21.2 million decrease in the expense level was principally due to:
Previous report
Net sales in the third quarter of 2024 increased by $253.9 million compared to the same period in 2023. This significant growth was driven by higher sales volumes of copper (+16.8%), molybdenum (+53.7%), and silver (+39.6%). Additionally, higher prices for copper (+10.0%, LME) and silver (+24.7%) contributed positively to this performance, but the result was partially offset by a decline in molybdenum prices (-8.1%).
Previous report
Operating costs and expenses were $640.2 million in the third quarter of 2024 compared to $597.0 million in the same period of 2023. The increase of $43.2 million was primarily due to:
Previous report
Net sales in the nine-month period of 2024 increased by $616.7 million compared to the same period in 2023. This growth primarily reflects positive developments in sales volumes of copper (+15.2%), molybdenum (+47.5%), and silver (+32.7%), along with higher metal prices for copper (+6.2%, LME) and silver (+16.0%). However, this was slightly mitigated by a decrease in molybdenum prices (-17.4%).
Previous report
Operating costs and expenses in the nine-month period of 2024 increased by $94.0 million to $1,837.7 million compared to $1,743.7 million in the same period of 2023. This was primarily due to:
Previous report
Net sales in the third quarter of 2024 increased by $140.5 million compared to the same period in 2023. This growth was driven by higher sales volumes of copper (+2.7%) and silver (+10.7%). Additionally, the start-up of the Buenavista zinc concentrator contributed significantly, with zinc sales volumes reaching 18.1 million pounds during the period. The rise in metal prices for copper (+10.0%, LME), zinc (+14.5%), and silver (+24.7%) further enhanced this strong performance. However, this was slightly tempered by a decrease in molybdenum prices (-8.1%).
Previous report
Operating costs and expenses were $736.5 million in the third quarter of 2024 compared to $709.3 million in the same period of 2023. The increase of $27.2 million was primarily due to:
Previous report
Net sales in the nine-month period of 2024 increased by $406.9 million compared to the same period in 2023. This growth primarily reflects the rise in sales volumes of copper (+0.5%) and silver (+14.6%), along with higher metal prices for copper (+6.2%, LME) and silver (+16.0%). The start-up of the Buenavista zinc concentrator also contributed significantly, with zinc sales volumes reaching 62.3 million pounds during the period. However, this growth was somewhat offset by a decrease in sales volumes of molybdenum (-7.8%) as well as declines in molybdenum (-17.4%) prices.
Showing the first 40 of 45 passages. Open the source sections for the rest.
Reworded paragraphs (44)
Previous wording
We are one of the world’s largest copper mining companies in terms of production and sales and our principal operations are in Peru and Mexico. We also have exploration programs in Chile, Argentina and Ecuador. In addition to copper, we produce significant amounts of other metals, either as a by-product of the copper process or through a number of dedicated mining facilities in Mexico.
Current wording
We are one of the world’s largest copper mining companies in terms of production and sales and our principal operations are in Peru and Mexico. We also have exploration programs in Chile and Argentina. In addition to copper, we produce significant amounts of other metals, either as a by-product of the copper process or through a number of dedicated mining facilities in Mexico.
Previous wording
Molybdenum is mainly used in the production of special alloys for stainless steel that require significant hardness and corrosion and heat resistance. New uses for this metal are associated with lubricants, sulfur filtering of heavy oils and shale gas production.
Current wording
Molybdenum is mainly used in the production of special alloys for stainless steel that require significant hardness, corrosion and heat resistance. New uses for this metal are associated with lubricants, sulfur filtering of heavy oils and shale gas production.
Previous wording
We also expect to produce 28,200 tonnes of molybdenum, which represents an increase of 5.0% over our 2023 production level. In 2024, we expect to produce 20.8 million ounces of silver, an increase of 12.8% compared to 2023 production results. Additionally, we expect to produce 120,300 tonnes of zinc from our mines, which represents an increase of 84.0% compared to our 2023 production level. This growth will be driven by the Buenavista Zinc concentrator. We expect this facility to produce 54,800 tonnes of zinc in 2024. For 2025 and on, we expect to produce over 154,000 tonnes per year.
Current wording
Regarding by-products, we expect to produce 170,100 tonnes of zinc from our mines, up 31% from 2024 production level. This growth will be driven by the production of our Buenavista Zinc concentrator (105,400 tonnes), which is operating at full capacity. We also expect to produce 27,400 tonnes of molybdenum in 2025, which represents a decrease of 5.5% compared to 2024 production levels but is 4.5% above our initial plan. For silver, we expect to produce 22.8 million ounces of this metal, an increase of 9% compared to last year’s production.
Previous wording
Earnings**:** The table below highlights key financial and operational data of our Company for the three and nine-month period ended September 30, 2024 and 2023 (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 periods ended March 31, 2025 and 2024 (in millions, except copper price, percentages and per share amounts):
Previous wording
Net income attributable to SCC for the third quarter of 2024 reached $896.7 million, marking a 44.7% increase compared to the same period in 2023. This strong performance was primarily supported by a 17.0% rise in sales driven by improvements in pricing and higher sales volumes but slightly offset by a 3.1% increase in the cost of sales and a 33.2% rise in income taxes.
Current wording
Net income attributable to SCC for the first quarter of 2025 reached $945.9 million, reflecting a significant increase of 28.5% compared to the same period in 2024. This strong performance was primarily supported by a rise in net sales (+20.1%), driven by improvements in metal prices and sales volumes; this was partially offset by an increase in the cost of sales (+14.0%), primarily associated with inventory variance; higher workers' participation; and an increase in income tax expense (+25.8%).
Previous wording
Production**:** The table below highlights our mine production data for the three and nine-month period ended September 30, 2024 and 2023:
Current wording
Production**:** The table below highlights our mine production data for the three-month periods ended March 31, 2025 and 2024:
Previous wording
The table below highlights our mine production data for the three and nine-month period ended September 30, 2024 and 2023:
Current wording
The table below highlights our mine production data for the three-month periods ended March 31, 2025 and 2024:
Previous wording
Third quarter: Copper mine production in the third quarter of 2024 increased by 11.6%, reaching 556.1 million pounds. This growth was primarily driven by higher production levels at Cuajone (+20.8%; due to higher ore grades and milling), Toquepala (+16.3%; due to higher ore grades), Buenavista (+8.3%; due to higher ore grades and recoveries), and La Caridad (+5.1%; due to higher ore grades) operations. Growth was slightly offset by reduced production at the IMMSA (-8.4%; due to lower ore grades) unit.
Current wording
Copper mine production in the first quarter of 2025 remained stable at 529.6 million pounds, matching the volume registered in the same period of 2024. This level was supported by increased production at Toquepala (+1.7%; due to higher ore grades and milling), Buenavista (+0.6%; due to higher SX-EW production), Cuajone (+0.3%; due to higher ore grades), and IMMSA (+1.5%; due to higher ore grades). These gains were offset by lower production at La Caridad (−6.2%; due to lower ore grades and recoveries).
Previous wording
Silver mine production increased by 21.5% in the third quarter of 2024 compared to the same period in 2023. This growth was attributable to higher production at our Buenavista (+45.6%), Cuajone (+32.2%), Toquepala (+31.4%), and IMMSA (+5.6%) operations. This performance was slightly offset by a decrease in production at our La Caridad (-1.5%) mine.
Current wording
Silver mine production increased 13.8% in the first quarter of 2025 compared to the same period in 2024. This growth was driven by higher production at our Buenavista (+49.1%), IMMSA (+7.5%), and Cuajone (+0.3%) operations. However, this performance was slightly tempered by a decline in production at our La Caridad (-2.9%) and Toquepala (-0.9%) mines.
Previous wording
Zinc production increased by 90.9% in the third quarter of 2024 compared to the same period in 2023. This significant growth was primarily attributed to the production start-up at the Buenavista zinc concentrator, which produced 14,453 tonnes during the period.
Current wording
Zinc production increased 49.3% in the first quarter of 2025 compared to the same period in 2024. This significant growth was primarily driven by full-capacity operations at the Buenavista Zinc concentrator, which produced 25,333 tonnes of zinc in the first quarter of 2025.
Previous wording
In our calculation of operating cash cost per pound of copper produced, net of by-product revenues, we credit against our costs the revenues from the sale of all our by-products, including, molybdenum, zinc, silver, gold, etc. and the net revenue (loss) on sale of metals purchased from third parties. We disclose this measure including the by-product revenues in this way because we consider our principal business to be the production and sale of copper. As part of our copper production process, much of our by-products are recovered. These by-products, as well as the processing of
Current wording
In our calculation of operating cash cost per pound of copper produced, net of by-product revenues, we credit against our costs the revenues from the sale of all our by-products, including, molybdenum, zinc, silver, gold, etc. and the net revenue (loss) on sale of metals purchased from third parties. We disclose this measure including the by-product revenues in this way because we consider our principal business to be the production and sale of copper. As part of our copper production process, much of our by-products are recovered. These by-products, as well as the processing of copper purchased from third parties, are a supplemental part of our production process and their sales value contribute to covering part of our incurred fixed costs. We believe that our Company is viewed by the investment community as a copper company, and is valued, in large part, by the investment community’s view of the copper market and our ability to produce copper at a reasonable cost.
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 and nine-month period ended September 30, 2024 and 2023:
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 periods ended March 31, 2025 and 2024:
Previous wording
We are subject to market risks arising from the volatility of copper and other metal prices. For the remaining three months of 2024, assuming that expected metal production and sales are achieved, tax rates remain unchanged and no effects are generated by potential hedging programs, 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 nine months of 2025, 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:
Previous wording
Business Segments**:** We view our Company as having three reportable segments and manage it on the basis of these segments. These segments are (1) our Peruvian operations, (2) our Mexican open-pit operations and (3) our Mexican underground operations, known as our IMMSA unit. Our Peruvian operations include the Toquepala and Cuajone mine complexes and the smelting and refining plants, industrial railroad and port facilities that service both mines. The Peruvian operations produce copper, with significant by-product production of molybdenum, silver and other material. Our Mexican open-pit operations include La Caridad and Buenavista mine complexes, the smelting and refining plants and support facilities, which service both mines. The Mexican open pit operations produce copper, with significant by-product production of molybdenum, silver and other material. Our IMMSA unit includes five underground mines that produce zinc, lead, copper, silver and gold, and several industrial processing facilities for zinc, copper and silver.
Current wording
Business Segments**:** We view our Company as having three reportable segments and manage it on the basis of these segments. These segments are (1) our Peruvian operations, (2) our Mexican open-pit operations and (3) our Mexican underground operations, known as our IMMSA unit. Our Peruvian operations include the Toquepala and Cuajone mine complexes and the smelting and refining plants, industrial railroad and port facilities that service both mines. The Peruvian operations produce copper, with significant by-product production of molybdenum, silver and other material. Our Mexican open-pit operations include the La Caridad-Pilares and Buenavista mine complexes, the smelting and refining plants and support facilities, which service these mines. The Mexican open-pit operations produce copper, with significant by-product production of molybdenum, silver and other material. Our IMMSA unit includes three operating underground mines and several industrial processing facilities.
Previous wording
Capital Investment Programs: We made capital investments of $792.0 million in the nine-month period of 2024, compared to $753.2 million in the same period of 2023. 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 $317.8 million in the first quarter of 2025, compared to $213.8 million in the same period of 2024. 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
Tia Maria - Arequipa: This greenfield project, located in Arequipa, Peru, will use state of the art SX-EW technology with the highest international environmental standards with a capacity of 120,000 tonnes of SX- EW copper cathodes per year.
Current wording
Tia Maria - Arequipa: This greenfield project, located in Arequipa, Peru, will use state of the art SX-EW technology with the highest international environmental standards with a capacity of 120,000 tons of SX- EW copper cathodes per year.
Previous wording
Tia Maria will generate significant revenues for the Arequipa region from day one of its operations. At current copper prices, we expect to export $17.5 billion and contribute $3.4 billion in taxes and royalties during the first 20 years of operation. The Company is currently reviewing its historical capital budget for Tia Maria of $1.4 billion. We will update this budget by year-end.
Current wording
Tia Maria will generate significant revenues for the Arequipa region from day one of its operations. At current copper prices, we expect to export $18.2 billion and contribute $3.8 billion in taxes and royalties during the first 20 years of operation. The project budget has been set at $1,802 million.
Previous wording
Project update: As of September 30, 2024, the Company had generated more than 422 jobs, 355 of which were filled with local applicants. To the fullest extent possible, we intend to fill the 9,000 jobs estimated to be required during Tia Maria’s construction with workers from the Islay province. When we start operations in 2027, the project will generate 600 direct jobs and 4,800 indirect jobs.
Current wording
Project update: As of March 31, 2025, the Company had generated more than 628 jobs, 503 of which were filled with local applicants. To the fullest extent possible, we intend to fill the 3,500 jobs estimated to be required during Tia Maria’s construction phase prioritizing workers from the Islay province. When we start operations in 2027, the project will generate 764 direct jobs and 5,900 indirect jobs.
Previous wording
El Arco - Baja California: This is a world-class copper deposit located in the central part of the Baja California peninsula with ore reserves of over 1,230 million tonnes with an average ore grade of 0.40% and 141 million tonnes of leach material with an average ore grade of 0.27%. The project includes an open-pit mine with a combined concentrator and SX-EW operations. Annual production is expected to total 190,000 tonnes of copper and 105,000 ounces of gold.
Current wording
El Arco - Baja California: This is a world-class copper deposit located in the central part of the Baja California peninsula with ore reserves of over 1,230 million tonnes with an average ore grade of 0.40% and 141 million tonnes of leach material with an average ore grade of 0.27%. The project includes an open-pit mine with a combined 120 ktpd concentrator and 28 ktpa SX-EW operations.
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
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
Previous wording
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. We continue to engage in social and environmental improvements for the local communities and are working on the project´s environmental impact assessment.
Current wording
expected to begin operating in 2031. We continue to engage in social and environmental improvements for the local communities and are working on the project´s environmental impact assessment.
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) at a competitive cash-cost 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. Michiquillay will become one of Peru´s largest copper mines and will create significant business opportunities in the Cajamarca region; generate new jobs for the local communities; and contribute with taxes and royalties to the local, regional and national governments.
Current 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) at a competitive cash-cost for an initial mine life of more than 25 years.
Previous wording
Project update: As of September 30, 2024, the total progress of the exploration project was 30%. By this date, we have drilled 120,923 meters and obtained 39,234 drill core samples for chemical analysis. Diamond drilling will continue and will provide information for the interpretation of geological sections related to mineralization, geological modeling and mineral resource evaluation. Geo-metallurgical studies are currently underway; hydrological and hydrogeological studies for the project will begin shortly.
Current wording
Project update: As of March 31, 2025, total progress on exploration for the project reached 39%. A total of 145,928 meters were drilled (total program = 148,000 meters), and 47,990 core samples were collected for chemical analysis. Diamond drilling will continue to provide essential data to interpret geological sections related to mineralization; develop geological models; and assess mineral resources. Geo-metallurgical, hydrological and hydrogeological studies have begun, and the geotechnical study for the project is set to begin soon.
Previous wording
The following highlights key financial results for the three and nine-month period ended September 30, 2024 and 2023:
Current wording
The following highlights key financial results for the three-month periods ended March 31, 2025 and 2024:
Previous wording
The table below outlines the average published market metal prices for our metals for the three and nine-month period ended September 30, 2024 and 2023:
Current wording
The table below outlines the average published market metal prices for our metals for the three-month periods ended March 31, 2025 and 2024:
Previous wording
The table below provides our metal sales as a percentage of our total net sales for the three and nine-month period ended September 30, 2024 and 2023:
Current wording
The table below provides our metal sales as a percentage of our total net sales for the three-month period ended March 31, 2025 and 2024:
Previous wording
The table below provides our copper sales by type of product for the three and nine-month period ended September 30, 2024 and 2023. 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 periods ended March 31, 2025 and 2024. 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 and nine-month period ended September 30, 2024 and 2023:
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 period ended March 31, 2025 and 2024:
Previous wording
Non-operating income (expense) represented a net expense of $23.6 million and $134.4 million in the three and nine months ended on September 30, 2024 compared to a net expense of $51.8 million and $155.6 million in the three and nine months ended September 30, 2023.
Current wording
Non-operating income (expense) represented a net expense of $56.9 million in the three-month period ended March 31, 2025, compared to a net expense of $34.2 million in the same period of 2024.
Previous wording
Third quarter: The $28.2 million decrease in the expense level was due to:
Current wording
The $22.7 million increase 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 and nine-month period ended September 30, 2024 and 2023:
Current wording
The table below presents information regarding the volume of our copper sales by segment for the three-month periods ended March 31, 2025 and 2024:
Previous wording
The table below presents information regarding the volume of sales by segment of our significant by-products for the three and nine-month period ended September 30, 2024 and 2023:
Current 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, 2025 and 2024:
Previous wording
Operating costs and expenses were $148.3 million in the third quarter of 2024 compared to $154.8 million in the same period of 2023. The decrease of $6.5 million was primarily due to:
Current wording
Operating costs and expenses were $137.0 million in the first quarter of 2025 compared to $153.2 million in the same period of 2024. The decrease of $16.2 million was primarily due to:
Previous wording
The following table shows the cash flow for the nine-month period ended September 30, 2024 and 2023 (in millions):
Current wording
The following table shows the cash flow for the three-month period ended March 31, 2025 and 2024 (in millions):
Previous wording
The change in net cash from operating activities for the nine-month period ended September 30, 2024 and 2023 include, in millions, the following significant items:
Current wording
The change in net cash from operating activities for the three-month periods ended March 31, 2025 and 2024 include, in millions, the following significant items:
Previous wording
Nine months ended September 30, 2023: Net income was $1,987.5 million, which represented approximately 65.5% of the net operating cash flow. The cash flow from operating assets and liabilities increased by $426.4 million due to the following:
Current wording
Three months 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:
Previous wording
Nine months ended September 30, 2024: Net income was 2,592.4 million, which represented approximately 84.7% of the net operating cash flow. The cash flow from operating assets and liabilities decreased by 182.8 million due to the following:
Current wording
Three months ended March 31, 2024: Net income was $738.8 million, which represented approximately 111.9% of the net operating cash flow. The cash flow from operating assets and liabilities decreased by $310.8 million due to the following:
Previous wording
Nine months ended September 30, 2024: Net cash used in investing activities included $792.0 million for capital investments. The capital investments included:
Current wording
Three months ended March 31, 2025: Net cash used in investing activities included $317.8 million for capital investments. The capital investments included:
Previous wording
Investment activities in the nine months of 2023 included $38.8 million of net purchase of short-term investments.
Current wording
Investment activities in the first three months of 2025 included $27.2 million of net purchase of short-term investments.
Previous wording
Nine months ended September 30, 2023: Net cash used in investing activities included $753.2 million for capital investments. The capital investments included:
Current wording
Three months ended March 31, 2024: Net cash used in investing activities included $213.8 million for capital investments. Capital investments included:
Showing the first 40 of 44 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
We estimate an investment of approximately $2.5 billion will be required and expect production start-up by 2032. Michiquillay will become one of Peru´s largest copper mines and will create significant business opportunities in the Cajamarca region; generate new jobs for the local communities; and contribute with taxes and royalties to the local, regional and national governments.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
copper purchased from third parties, are a supplemental part of our production process and their sales value contribute to covering part of our incurred fixed costs. We believe that our Company is viewed by the investment community as a copper company, and is valued, in large part, by the investment community’s view of the copper market and our ability to produce copper at a reasonable cost.