Southern Copper Corporation Q3 2026 Earnings Recap

Southern Copper’s shares fell 2.1% after earnings, a roughly flat reaction. Results benefited from sharply higher metal prices, while copper production declined and operating costs rose; management now sees a slight copper-market surplus in 2026.

Key Takeaways

• Third-quarter sales rose 39% year over year to $4.7 billion, while adjusted EBITDA increased 54% to $3.0 billion; the adjusted EBITDA margin was 65%, versus 59% a year earlier.
• Copper production fell 1% year over year to 232,396 tons in the quarter and 2.9% year to date. The company expects 918,000 tons of copper production in 2026, 0.7% above its initial plan.
• Operating costs and expenses increased 17% year over year, or $223 million, with higher diesel and fuel, labor, power, depreciation, and other costs.
• Production was weaker across several metals: quarterly molybdenum and mined silver each fell 2%, zinc mine production fell 8%, and refined zinc production fell 6% year over year.
• Copper prices rose sharply, with the LME average up 44% year over year to $6.41 per pound. Management estimates a slight copper-market surplus for 2026; global inventories covered approximately 14 days of demand as of October 9.