Southern Copper (SCCO) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 2025 rose 20.1% year-over-year to $3,122M, driven by higher copper prices and volumes, with copper accounting for 77.9% of sales.

• Net income increased 29% year-over-year to $946M, with EPS up 25.3% to $1.19 and a net margin of 30%.

• Adjusted EBITDA rose 23% to $1,746M, with a margin of 56%.

• Operating costs increased 13% year-over-year, while cash cost per pound of copper net of by-product credits fell 28% to $0.77.

• Capital investments reached $317.8M in Q1 2025, up 48.7% from Q1 2024, focused on growth and modernization.

Financial highlights

• Copper sales rose 19% in value and 4% in volume year-over-year; molybdenum, zinc, and silver sales also increased.

• Operating income grew 29.1% to $1,535.5M; net cash from operating activities was $721.4M, up 9.4% year-over-year.

• Cash and cash equivalents stood at $3,258.1M as of March 31, 2025.

• Quarterly cash and stock dividends totaled $1.40 per share, a 75% increase year-over-year.

• Effective income tax rate was 36.0%, with total income tax provision of $532.8M.

Outlook and guidance

• 2025 copper production is expected at 968,200 tons, in line with 2024, with Pilares project to contribute 32,300 tons.

• Zinc production forecast to rise 31% to 170,100 tons, driven by Buenavista Zinc concentrator; silver at 22.8M ounces (+9%), molybdenum at 27,400 tons (-5.5%).

• Cash cost per pound of copper (after by-product credits) is expected to remain in the $0.75–$0.80 range for 2025.

• Production may dip slightly in 2026 before rising above 1 million tons in 2028 as new projects come online.

• Copper market expected to face a deficit in 2025 due to low inventories and strong demand from decarbonization and AI technologies.