Southern Copper Corporation Shines in Q1 2025: Strong Production, Positive Market Outlook
Southern Copper Corporation has released its first quarter 2025 results, showcasing a strong performance across various product lines. The company's Vice President of Finance, Treasurer and CFO, Mr. Raul Jacob, highlighted the key highlights during a recent conference call.
The copper market witnessed a significant increase in prices, with the London Metal Exchange (LME) price reaching $4.24 per pound, up 11% from last year's average. This trend is expected to continue, with an estimated deficit of around 300,000 metric tons at the end of the year.
The company's copper production remained stable at 240,226 tons for the first quarter of this year. However, positive results were reported at Buenavista's SX-EW cathode production, which increased by 24%, and Toquepala concentrate production, which saw a 2% uptick. These gains were partially offset by a decrease in copper production at La Caridad due to lower ore grades and recovery.
Looking ahead, the company expects to produce 968,200 tons of copper this year, a 2,400-ton increase from its initial plan. Molybdenum prices also showed an encouraging trend, increasing by 3% compared to last year's average, while production rose 9% in the first quarter.
Silver and zinc sales represented 6% and 4% of total sales value, respectively, with silver prices rising by 38% and molybdenum prices up by 3%. The company reported a significant increase in mined zinc production, driven mainly by the new Buenavista zinc concentrator.
Mr. Jacob emphasized that despite some challenges in the market, Southern Copper's positive outlook for copper remains intact. However, an intense commercial war between the U.S. and China is expected to impact economic growth worldwide, consequently affecting copper demand.
In conclusion, Southern Copper Corporation has demonstrated a strong performance in Q1 2025 across various product lines. With a stable copper production, increasing molybdenum prices, and significant gains in silver and zinc sales, the company is well-positioned to meet its growth targets.
