Southern Copper reports record Q3 2026 profit as copper and by-product prices lift results

Southern Copper posts record quarterly results

Southern Copper Corporation reported record financial results for the third quarter of 2026, with net sales of $4.7 billion, adjusted EBITDA of $3.0 billion and net income of $1.8 billion. The respective year-over-year increases were 39%, 54% and 63%. The adjusted EBITDA margin rose to 65% from 59%, while the net income margin increased to 38% from 33%.

Higher copper and by-product prices more than offset lower copper sales volume and a 17% year-over-year increase in operating costs and expenses. Copper accounted for 74% of quarterly sales. Operating cash flow reached $2.2 billion, up 43% from a year earlier, according to the company earnings-call coverage.

Copper output slips in Peru

Copper production declined 1% year over year to 232,396 tons. Output in Peru fell 6%, which the company attributed to lower grades and recoveries at Toquepala and Cuajone. Production in Mexico increased 2.5%, mainly because of higher output at Buenavista and IMMSA. Smelter and refinery production rose 18% and 16%, respectively.

Southern Copper maintained full-year 2026 copper-production guidance of 918,000 tons, 0.7% above its initial plan. Net cash cost fell 77% to $0.09 per pound of copper because of $1.2 billion in by-product credits. However, cash cost before those credits increased 10% to $2.46 per pound as production and administrative costs rose.

Growth projects remain on schedule

The Tia Maria project was 50% complete as of September 30, with operations scheduled for the first half of 2028. Together, Tia Maria and El Pilar are expected to add 156,000 tons of annual refined-copper production, an estimate rather than realized output.

Management said it was reviewing project budgets for inflation and would provide updated capital-expenditure and 2027-production guidance with the full-year 2026 results. Those updates were pending as of the company’s third-quarter earnings call.