SOUTHERN COPPER CORP
For the period ended Jun 30, 2025. Filed Jul 31, 2025.
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, 2025 · Filed Jul 31, 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 2025-03-31; filed 2025-04-30.
0001558370-25-005975
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-07-31.
0001558370-25-009879
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 119 previous paragraphs and 143 current paragraphs.
56 unchanged; 45 reworded; 37 added; 16 removed; 2 previous and 5 current paragraphs rearranged.
Tables are not compared: 77 previous and 87 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 (37)
Current report
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Current report
Net sales in the second quarter of 2025 totaled $3,051.0 million, representing a 2.2% decline compared to the same period in 2024. This result was primarily driven by a decrease in sales volumes of copper (-3.0%) and lower LME prices for copper (-2.3%), molybdenum (-5.2%), and zinc (-7.0%). These effects were partially offset by an increase in sales volumes of zinc (+14.0%), molybdenum (+2.7%) and silver (+13.9%), and by higher prices for silver (+16.6%) and COMEX copper (+3.7%).
Current report
Net income attributable to SCC for the second quarter of 2025 reached $973.4 million, marking a 2.4% increase compared to the same period in 2024. This performance was primarily supported by a reduction in total operating costs and expenses (-3.1%), which was mainly attributable to an inventory variance in the cost of sales, and by an increase in interest income (+100.4%) related to higher cash and short-term investment balances. These positive factors were partially offset by the previously mentioned 2.2% decline in net sales, which reflected lower metal prices and reduced copper sales volumes.
Current report
Net sales for the first half of 2025 increased 8.0% compared to the same period in 2024. This growth was driven by higher sales volumes of zinc (+25.3%), copper (+0.3%), molybdenum (+6.1%) and silver (+14.0%) and by higher prices for copper (COMEX +10.5%, LME +3.6%), silver (+26.3%) and zinc (+3.3%). This was slightly offset by a decrease in molybdenum prices (-1.3%).
Current report
Net income attributable to SCC in the first six months of 2025 increased by 13.8% compared to the same period in 2024. This improvement was primarily driven by an 8.0% rise in sales and an 89.2% increase in interest income. These positive factors were partially offset by a 4.4% increase in operating costs, mainly related to variances in workers’ participation and inventory, and by a 10.6% increase in income taxes.
Current report
Six months: Mined copper production in the first six months of 2025 was 1,056.5 million pounds, and represented a slight decrease of 0.7% compared to the same period of 2024. This decline was primarily attributable to lower production at Buenavista (-1.2%, due to lower ore grades and the full allocation of the new concentrator to zinc production), La Caridad (-4.0%; due to lower recoveries) and Cuajone (-0.3%; due to lower ore grades). This was partially offset by an increase in production at our Toquepala (+1.0%; due to higher milling) and IMMSA operations (+3.1%; due to higher ore grades).
Current report
Molybdenum production increased 5.9% in the first six months of 2025 compared to the same period in 2024. This rise was mainly due to higher production at our Toquepala (+10.2%), Buenavista (+5.2%) and La Caridad (+5.1%) mines, reflecting an increase in ore grades. Growth, however, was slightly offset by a 0.9% decrease in production at the Cuajone mine.
Current report
Silver mine production increased 14.6% in the first six months of 2025, primarily due to higher production at our Buenavista (+36.6%), IMMSA (+10.4%), La Caridad (+5.8%) and Cuajone (+4.3%) operations. This growth was slightly offset by a decline in production at our Toquepala mine (-0.8%).
Current report
For the first six months of 2025, the operating cash cost per pound before by-product revenues decreased from $2.13 to $2.08, which was mainly the result of a decrease in treatment and refining charges due to market conditions. In addition, a 13.5% increase in by-product revenues per pound helped reduce the operating cash cost per pound net of by-product
Current report
revenues from $0.91 to $0.70. This 23.6% reduction was mainly supported by higher sales volumes for silver and zinc, along with the aforementioned decrease in operating cash costs.
Current report
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 report
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 report
We are currently expecting to obtain permits and licenses that had been put on hold by the previous government in Mexico. We are conducting talks with the current administration to continue rolling out SCC’s Mexican investments for $10.2 billion.
Current report
Project update: On June 6, 2025, the "Framework Agreement for the Development of the Tiaparo Peasant Community and the Los Chancas Mining Project" was signed with the community of Tiaparo. This agreement will be in effect throughout the construction and operation phases of the project. This agreement, as well as the important steps taken to control illegal mining activities related to the project represent important milestones in the development of our Los Chancas project.
Current report
Project update: As of June 30, 2025, the exploration project’s total progress was 45%. The drilling program was completed, totaling 145,928 meters, and 59,098 core samples were submitted for chemical analysis. Diamond drilling has provided the information necessary to interpret the distribution of mineralization in geological sections and develop geological modeling, which is required for the mineral resource estimate, currently underway. The geometallurgical studies have been successfully completed, and hydrological, hydrogeological, and geotechnical studies for the project are about to begin.
Current report
**SCC continued to strengthen its focus on sustainability and transparency.**For the first time, SCC’s Sustainable Development Report was verified by an independent third party. This verification complies with the standards of ESG rating agencies and bolsters investor confidence by providing detailed information on our performance across 15 material sustainability topics. The most noteworthy results include a 24% reduction in the lost time injury frequency rate
Current report
since 2023; 39% of our electricity consumption was sourced from renewable energy in 2024; and The Copper Mark certification was achieved for all our open-pit operations.
Current report
**SCC was included in the sustainability indices FTSE4Good Developed, FTSE4Good US and FTSE4Good US 100 developed by FTSE Russell.**a subsidiary of the London Stock Exchange Group. This inclusion the Company’s compliance with FTSE Russell’s environmental, social and governance (ESG) standards which are designed to identify companies with exemplary sustainability practices. Southern Copper obtained a score 60% above the average for the nonferrous metals’ subsector. Its presence in the FTSE4Good Developed and FTSE4Good US 100 indices places it among the top sustainability performers in developed markets globally and among the 100 highest-rated companies in the United States, respectively.
Current report
The FTSE4Good Index Series is a series of benchmark and tradable indices for ESG. These indices are used by a wide range of market participants to create and evaluate responsible investment funds and other sustainability-focused financial products. FTSE Russell’s ESG assessment considers a broad set of indicators, including climate change strategy; water security and biodiversity (E); health and safety; labor standards and community engagement (S); corporate governance structure; anti-corruption; and risk management practices (G).
Current report
International recognition for conservation of the Mexican gray wolf. At an event held in Detroit (June 3-4), SCC was recognized by the Tandem Global Awards 2025 in the category of “Mammal Projects.” These awards recognize excellence in corporate conservation by US-based and international companies that implement actions to protect biodiversity and improve natural environments. Buenavista del Cobre’s Environmental Management Unit, located in Cananea (Sonora), was recognized for its participation in the Binational Mexico-United States Program for the Conservation of the the Mexican Gray Wolf. This program focuses on driving genetic recovery and behavioral rehabilitation as well as reintroducing the gray wolf, which is on the brink of extinction, in the natural habitat.
Current report
Tía María: generating sustainable value. As SCC advances in building the Tía María mining project in Arequipa, Peru, we continue to drive development in neighboring communities by generating employment and hiring local suppliers. To date, we have created 1,376 new jobs. 802 were filled with local applicants, which represents 11% of the economically active population (EAP) of the nearby Tambo valley. SCC has also hired 50 local suppliers in the transportation, general services and machinery rental sectors, consequently improving the quality of life of more than 300 families. By creating employment, hiring local suppliers and rolling out Tía María’s local programs, SCC serves the needs of the majority of the Tambo Valley’s population.
Current report
Driving musical education in Mexican communities. As part of our Youth Orchestras and Choirs, professionals from the Academy of Music of the Palacio de Minería impart master classes to all students and teachers from the seven communities in Mexico that participate in the project. SCC also offers scholarships to outstanding students who wish to pursue higher learning in Orchestral Conducting and Pedagogy at the Instituto Superior de Música de Puebla, Mexico. This attests to the Company’s commitment to cultural and educational development.
Current report
In the second quarter of 2025 totaled $3,051.0 million, representing a 2.2% decline compared to the same period of 2024. This result was primarily driven by a decrease in sales volumes of copper (-3.0%) and lower LME prices for copper (-2.3%), molybdenum (-5.2%) and zinc (-7.0%). These effects were partially offset by an increase in sales volumes of zinc (+14.0%), molybdenum (+2.7%) and silver (+13.9%) and by an increase in prices for silver (+16.6%) and COMEX copper (+3.7%).
Current report
For the first half of 2025, net sales increased by 8.0% compared to the same period in 2024. This increase was driven by higher sales volumes of zinc (+25.3%), copper (+0.3%), molybdenum (+6.1%) and silver (+14.0%) and improved market prices for copper (COMEX +10.5%, LME, +3.6%), silver (+26.3%) and zinc (+3.3%). This was slightly offset by a decrease in molybdenum prices (-1.3%).
Current report
Second quarter: Operating costs and expenses were $1,464.0 million in the second quarter of 2025, compared to $1,511.0 million in the same period of 2024. The decrease of $47.0 million was primarily due to:
Current report
Six months: Operating costs and expenses were $3,050.4 million in the first six months of 2025 compared to $2,921.1 million in the same period of 2024. The increase of $129.3 million was primarily due to:
Current report
Net sales in the second quarter of 2025 dropped $68.5 million compared to the same period of 2024. This decline was mainly driven by a decrease in copper sales volume (-5.7%) and by lower prices for copper (LME, -2.3%) and molybdenum (-5.2%). These effects were partially offset by an increase in sales volumes of molybdenum (+8.3%) and silver (+7.7%) and by higher silver prices (+16.6%).
Current report
Operating costs and expenses were $595.1 million in the second quarter of 2025 compared to $626.3 million in the same period of 2024. The decrease of $31.2 million was primarily due to:
Current report
Net sales in the first six months of 2025 increased $168.8 million compared to the same period in 2024. This growth primarily reflects improvements in sales volumes of copper (+4.2%), molybdenum (+6.8%), and silver (+15.0%) as well as an increase in market prices for copper (+3.6%, LME) and silver (+26.3%). However, this was slightly offset by a decrease in molybdenum prices (-1.3%).
Current report
Operating costs and expenses in the first six months of 2025 increased $102.0 million to $1,299.6 million compared to $1,197.6 million in the same period of 2024. This was primarily due to:
Current report
Operating costs and expenses were $765.9 million in the second quarter of 2025 compared to $786.1 million in the same period of 2024. The decrease of $20.2 million was primarily due to:
Current report
Net sales in the first six months of 2025 increased by $299.7 million compared to the same period of 2024. This growth primarily reflects growth in sales volumes of molybdenum (+5.6%), silver (+10.3%) and zinc (+120.0%). Additionally, positive developments for metal prices, mainly copper (+10.5%, COMEX), silver (+26.3%) and zinc (+3.3%) contributed to this performance. Start-up at the Buenavista zinc concentrator played a pivotal role, as zinc sales volumes reached 97.3 million pounds for the period. However, this was partially offset by a decline in the sales volume of copper (-4.4%) and a decrease in molybdenum prices (-1.3%).
Current report
Operating costs and expenses in the first six months of 2025 increased $48.6 million to $1,549.7 million compared to $1,501.1 million in the same period of 2024. This was primarily due to:
Current report
Net sales in the second quarter of 2025 decreased $6.0 million compared to the same period of 2024. This decline was primarily driven by a reduction in the copper sales volume (-16.0%) and by a decrease in zinc prices (-7.0%). However, these effects were partially offset by an increase in sales volumes of silver (+11.3%) and zinc (+0.2%) and by higher prices for copper (COMEX, +3.7%) and silver (+16.6%).
Current report
Operating costs and expenses were $161.5 million in the second quarter of 2025 compared to $134.1 million in the same period of 2024. The increase of $27.4 million was primarily due to:
Current report
Net sales in the first six months of 2025 increased $3.1 million compared to the same period of 2024. This growth primarily reflects favorable metal price trends, primarily for copper (COMEX, +10.5%), silver (+26.3%), and zinc (+3.3%). Growth in silver sales volumes (+3.1%) boosted this performance. However, these positive effects were partially offset by a drop in sales volumes of copper (-23.8%) and zinc (-4.2%).
Current report
Operating costs and expenses in the first six months of 2025 increased by $11.2 million to $298.5 million compared to $287.3 million in the same period of 2024. This was primarily due to:
Removed paragraphs (16)
Previous 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%).
Previous report
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 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.
Previous 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.
Previous report
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 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.
Previous 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.
Previous 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
Previous report
Grupo Mexico, ranked above the average for both the materials sector and the North America region in evaluations for both categories.
Previous 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%).
Previous 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:
Previous 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%).
Previous 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:
Previous 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:
Previous 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%).
Previous report
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:
Reworded paragraphs (45)
Previous wording
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 wording
In the first half of 2025, the copper market registered a significant arbitrage difference between COMEX and LME prices. At its peak in July 11, 2025, the COMEX price was 119 cents per pound or 27% above the LME price. This huge difference reflected the strong possibility that a 50% tariff will be imposed on U.S. copper imports from various countries.
Previous wording
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 wording
Although we maintain a very positive long-term outlook for copper, we believe high tariffs for international trade from the U.S. will affect economic growth worldwide, consequently impacting copper demand in the long run.
Previous 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.
Current wording
Regarding by-products, we expect to produce 173,400 tonnes of zinc from our mines, up 33% from 2024 production level. This growth will be driven by the production of our Buenavista Zinc concentrator (110,700 tonnes), which is operating at full capacity. We also expect to produce 28,700 tonnes of molybdenum in 2025, which represents a decrease of 1.0% compared to 2024 production levels. 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-month periods ended March 31, 2025 and 2024 (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 and six-month periods ended June 30, 2025 and 2024 (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 periods ended March 31, 2025 and 2024:
Current wording
Production**:** The table below highlights our mine production data for the three and six-month periods ended June 30, 2025 and 2024:
Previous wording
The table below highlights our mine production data for the three-month periods ended March 31, 2025 and 2024:
Current wording
The table below highlights our mine production data for the three and six-month periods ended June 30, 2025 and 2024:
Previous 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).
Current wording
Second quarter: Copper mine production in the second quarter of 2025 stood at 526.9 million pounds, a 1.4% reduction compared to the same period of 2024. This decrease was a result of lower production at Buenavista (-2.9%; due to lower ore grades and the fact that the new concentrator is fully dedicated to zinc production), La Caridad (-1.7%; due to lower ore grades and recoveries, partially offset by increased SX-EW production) and Cuajone (-1.0%; due to lower ore grades). These reductions were offset by increased production at Toquepala (+0.5%; due to higher recoveries) and IMMSA (+5.2%; due to higher ore grades).
Previous wording
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 wording
Molybdenum production increased 3.5% in the second quarter of 2025 compared to the same period of 2024. This growth was largely driven by improved production at our Cuajone (+8.9%), Toquepala (+7.4%), and Buenavista (+0.6%) mines, primarily due to higher ore grades. However, this performance was slightly offset by a decrease in production at our La Caridad (-0.5%) operations, which was driven by lower ore grades and recoveries.
Previous 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.
Current wording
Silver mine production increased 15.4% in the second quarter of 2025 compared to the same period of 2024. This growth was driven by higher production at our Buenavista (+27.9%), La Caridad (+15.2%), IMMSA (+13.4%) and Cuajone (+8.4%) operations. However, this performance was slightly tempered by a decline in production at our Toquepala (-0.6%) mine.
Previous 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.
Current wording
Zinc production increased 56.0% in the second 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 30,894 tonnes of zinc (+126.3%) in the second 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 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.
Current wording
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-month periods ended March 31, 2025 and 2024:
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 and six-month periods ended June 30, 2025 and 2024:
Previous wording
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 wording
In the second quarter of 2025, the operating cash cost per pound before by-product revenues fell from $2.15 to $2.11 compared to the same period of 2024, driven mainly by lower operating costs (-2.5%). By-product revenues per pound increased by 6.1% from $1.40 to $1.48. As a result, the operating cash cost per pound net of by-product revenues dropped 16.8%, from $0.76 to $0.63. This reduction reflects effective cost management and higher by-product revenues, primarily from zinc and silver.
Previous 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:
Current wording
We are subject to market risks arising from the volatility of copper and other metal prices. For the remaining six 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
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.
Current wording
Capital Investment Programs: We made capital investments of $553.5 million in the first half of 2025, compared to $545.6 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
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.
Current wording
Project update: As of June 30, 2025, the Company had generated 1,376 new jobs, 802 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 with workers from the Islay province. In 2027, when we start operations, the project will generate 764 direct jobs and 5,900 indirect jobs.
Previous wording
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 wording
The project is in the early construction phase, and progress constructing access roads and platforms has reached 90%. 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.
Previous wording
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 wording
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 that our operations are safe and efficient. In addition, we will invest in efforts to bolster optimization and growth.
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. The budget for El Pilar is $310 million.
Current 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.
Previous wording
We have a number of other projects that we may develop in the future. We continuously evaluate new projects on the basis of our long-term corporate objectives, expected return on investment, environmental concerns, required investment and estimated production, among other considerations. All capital spending plans will continue to be reviewed and adjusted to respond to changes in the economy and market conditions.
Current wording
We have a number of other projects that we may develop in the future. We continuously evaluate new projects on the basis of our long-term corporate objectives, expected return on investment, environmental concerns, required investment
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 copper and 7,500 tonnes of molybdenum annually. The estimated capital investment is $2,600 million and the project is
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. 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
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.
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 ktpy SX-EW operations.
Previous wording
Project update: Detailed engineering is still underway for the concentrator, SX-EW plant, water desalination, logistics infrastructure and power delivery.
Current wording
Detailed engineering is still underway for the concentrator, SX-EW plant, water desalination, logistics infrastructure and power delivery.
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 financial 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
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 financial leases, valuation allowances for deferred tax assets, unrecognized tax benefits and fair value of financial instruments. We base our estimates on historical experience
Previous wording
The following highlights key financial results for the three-month periods ended March 31, 2025 and 2024:
Current wording
The following highlights key financial results for the three and six-month periods ended June 30, 2025 and 2024:
Previous 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:
Current wording
The table below outlines the average published market metal prices for our metals for the three and six-month periods ended June 30, 2025 and 2024:
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, 2025 and 2024:
Current wording
The table below provides our metal sales as a percentage of our total net sales for the three and six-month periods ended June 30, 2025 and 2024:
Previous 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.
Current wording
The table below provides our copper sales by type of product for the three and six-month periods ended June 30, 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-month period ended March 31, 2025 and 2024:
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 and six-month periods ended June 30, 2025 and 2024:
Previous 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.
Current wording
Non-operating income (expense) represented a net expense of $43.1 million and $100.1 million in the three and six months ended on June 30, 2025 compared to a net expense of $76.7 million and $110.8 million in the three and six months ended June 30, 2024.
Previous wording
The $22.7 million increase in the expense level was due to:
Current wording
Second quarter: The $33.6 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 periods ended March 31, 2025 and 2024:
Current wording
The table below presents information regarding the volume of our copper sales by segment for the three and six-month periods ended June 30, 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-month period ended March 31, 2025 and 2024:
Current wording
The table below presents information regarding the volume of sales by segment of our significant by-products for the three and six-month periods ended June 30, 2025 and 2024:
Previous wording
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 wording
Net sales in the second quarter of 2025 increased $16.3 million compared to the same period of 2024. This growth was mainly driven by higher sales volumes of zinc (+63.3%) and silver (+11.5%). This was supported by full-capacity production at the Buenavista zinc concentrator, as zinc sales volumes reached 64.0 million pounds in the second quarter of 2025. Additionally, higher prices for copper (COMEX, +3.7%) and silver (+16.6%) further supported the rise in net sales. However, these positive effects were mostly offset by a decrease in sales volumes of copper (-3.3%) and molybdenum (-1.7%) and by a decrease in prices of molybdenum (-5.2%) and zinc (-7.0%).
Previous wording
The following table shows the cash flow for the three-month period ended March 31, 2025 and 2024 (in millions):
Current wording
The following table shows the cash flow for the six-month periods ended June 30, 2025 and 2024 (in millions):
Previous 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:
Current wording
The change in net cash from operating activities for the six-month periods ended June 30, 2025 and 2024 include, in millions, the following significant items:
Previous 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:
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 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:
Current wording
Six months ended June 30, 2024: Net income was $1,692.6 million, which represented approximately 104.3% of the net operating cash flow. The cash flow from operating assets and liabilities decreased by $513.0 million due to the following:
Previous wording
Three months ended March 31, 2025: Net cash used in investing activities included $317.8 million for capital investments. The capital investments included:
Current wording
Six months ended June 30, 2025: Net cash used in investing activities included $553.5 million for capital investments. The capital investments included:
Previous wording
Investment activities in the first three months of 2025 included $27.2 million of net purchase of short-term investments.
Current wording
Investment activities in the first six months of 2025 included $430.1 million of net purchase of short-term investments.
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Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
Zinc production increased 52.9% in the first six months of 2025. This growth was primarily driven by full-capacity operations at the Buenavista Zinc concentrator, which produced 56,227 tonnes during the period.
Current report — wording carried from elsewhere
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
Current report — wording carried from elsewhere
and estimated production, among other considerations. All capital spending plans will continue to be reviewed and adjusted to respond to changes in the economy and market conditions.
Current report — wording carried from elsewhere
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 report — wording carried from elsewhere
Six months: The $10.7 million decrease in the expense level was due to:
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
$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.
Previous report — wording carried elsewhere
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.