Southern Copper Corporation Smashes Records with Strong Third Quarter Performance
Southern Copper Corporation has just reported a stellar third quarter performance, hitting record highs for net sales, adjusted EBITDA, and net income. This achievement marks the second consecutive quarter that the company has achieved such success.
The copper market played a significant role in this accomplishment, with the LME copper price increasing 44% from an average of $4.24 per pound in the third quarter of 2025 to $6.41 this past quarter. The COMEX market saw a 34% increase, averaging $6.48 per pound for the same period.
According to Southern Copper's estimates, the current supply and demand dynamics suggest a slight deficit or surplus in the copper market for 2026. As of October 9 of this year, global copper inventories sit at 1,105,000 tons, covering approximately 14 days of global demand.
In terms of production, Southern Copper reported a decrease of 1% in copper production compared to the third quarter of 2025, with a total of 232,396 tons produced this past quarter. This was mainly due to lower production at both the Toquepala and Cuajone mines in Peru, driven by lower ore grades and recovery.
However, this decline was partially offset by an increase of 2.5% in production at Mexican operations, primarily fueled by higher production at Buenavista and Encina mines. Copper smelters and refineries increased their production by 18% and 16%, respectively, during the third quarter.
On a year-to-date basis, copper production fell 2.9% to stand at 693,602 tons, mainly driven by decreases in production at Peruvian mines due to lower ore grades. Despite this, smelting and refining facilities increased their production by 16% and 10%, respectively.
Looking ahead to 2026, Southern Copper expects to produce 918,000 tons of copper, a modest increase of 0.7% over initial plans. The company's other metals also saw significant growth during the quarter, with molybdenum prices increasing 36% year-over-year and silver prices rising 59%.
The increased demand for these metals is evident in their sales figures, which represent 12%, 7%, and 5% of Southern Copper's total sales respectively. The company has shown a strong commitment to expanding its operations and meeting the growing demands of its customers.
In conclusion, Southern Copper Corporation's impressive third quarter performance is a testament to the company's dedication to operating excellence and long-term value creation for its stakeholders. As the copper market continues to fluctuate, it will be interesting to see how the company adapts and grows in response."
