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UNITED STATES SECURITIES AND EXCHANGE COMMISSION Table of Contents Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: September 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-14066 SOUTHERN COPPER CORPORATION (Exact name of registrant as specified in its charter) Delaware 13-3849074 (State o ...

Core Insights - Southern Copper Corporation (SCCO) stock has surged by 57% year-to-date, driven by increased revenue, margin improvements, and a rising P/E multiple, indicating renewed investor confidence [2][3] Revenue and Earnings Performance - Revenue increased by 9.2%, with Q1 2025 sales rising by 20.1% to $3.12 billion and Q3 revenues up by 15.2% to $3.38 billion [3][8] - Net margin improved by 8.4% [3] - Earnings per share (EPS) for Q3 was reported at $1.35 [8] Copper Price and Market Dynamics - Copper prices have surged over 27% year-to-date, reaching record levels above $11,200 per metric ton due to limited supply [8] Project Developments - The Tia Maria project is 23% complete as of October 2025, with an exploitation license granted and production expected by 2027 [8] Cost Efficiency and By-product Growth - Operating cash cost, excluding by-products, decreased to $0.42 per pound in Q3 2025, reflecting a year-over-year decrease of 44.7% [8] - By-product production saw significant increases: zinc by 46.3%, silver by 16.4%, and molybdenum by 8.3% in Q3 2025, contributing to revenue growth [8]

When I wrote my last analysis about Southern Copper Corporation ( SCCO ) at the end of September, the share rounded $118 and my position was of wariness: an excellent company, but with a valuation that nearly discounted perfection. AI’m an economist and independent investor based in Argentina, currently a Ph.D. candidate in Economics at UCEMA. My research and writing connect macroeconomic context with company-level valuation to identify long-term opportunities. Being based in Argentina gives me an inside pe ...

Financial Data and Key Metrics Changes - Southern Copper Corporation achieved record net sales, adjusted EBITDA, and net income in the third quarter of 2025, driven by increased byproduct production and improved metal prices [4] - Adjusted EBITDA for the third quarter was $1,975 million, a 17% increase from $1,685 million in 2024, with an adjusted EBITDA margin of 59% compared to 58% in 2024 [16][17] - Net income for the third quarter was $1,108 million, representing a 23% increase over $897 million in 2024, with a net income margin of 33% versus 31% in the same quarter last year [19][20] Business Line Data and Key Metrics Changes - Copper production decreased by 7% year-over-year to 234,892 tons in the third quarter, primarily due to lower production at Toquepala and Cojone mines [8] - Molybdenum production increased by 8% in the third quarter, driven by higher output at La Carriata and Toquepala mines [11] - Silver production increased by 16% year-over-year, with an average price of $39.56 per ounce, reflecting a 34% increase [12] - Zinc production surged by 46%, totaling 45,482 tons, mainly due to a 108% increase at the Buena Vista zinc concentrator [13][14] Market Data and Key Metrics Changes - The LME copper price rose by 7% to an average of $4.44 per pound in the third quarter, while the COMEX price increased by 14% [5][6] - Global copper inventories were estimated at 609,000 tons, covering approximately eight days of global demand [6] Company Strategy and Development Direction - The company aims to produce 1,600,000 tonnes of copper at the lowest competitive cost per tonne, with a focus on enhancing productivity and cost efficiency [5] - Significant capital investments are planned for Peruvian projects, potentially exceeding $10.3 billion over the next decade [21] - The company is prioritizing organic growth through existing projects rather than pursuing mergers and acquisitions [42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term fundamentals of copper prices despite recent U.S. tariff policy changes having limited impact [7] - The company anticipates a copper market deficit of almost 400,000 tonnes based on current supply and demand dynamics [6] - For 2026, the company forecasts copper production of approximately 911,000 tonnes, with cash costs expected to decrease due to improved production [50][51] Other Important Information - The company announced a quarterly cash dividend of $0.90 per share and a stock dividend of 0.0085 shares per common share, payable on November 28, 2025 [29][30] - Sustainability ratings have improved, with S&P Global increasing the company's rating by four points, positioning it among leaders in the mining sector [26] Q&A Session Summary Question: Expectations for cash costs in Q4 and 2026 - Management expects a decrease in cash costs for Q4 due to a partial recovery of production, estimating costs in the range of $2.15 to $2.20 per pound [32] Question: Purchases of third-party concentrate or cathodes in Q3 - The company maintained purchases of third-party concentrates to blend with its own materials but did not acquire any copper cathodes [34] Question: Company's perspective on negotiations regarding the Rio Sonora spill - Management stated that the matter is largely resolved but remains open to discussions with the government for other objectives [36] Question: Silver production guidance and potential for increased output - The company updated its silver production forecast to 23 million ounces, a 10% increase from the previous year, and is focused on maximizing output [42] Question: Impact of political changes in Peru on operations - Management reported no significant impact from the political situation in Peru and continues to monitor social circumstances [49] Question: Financing plans for the Tia Maria project - The company is evaluating financing options, including potential debt market engagement, for the Tia Maria project [58] Question: Timeline for the Los Chancas and El Arco projects - Los Chancas is expected to be the next project in execution, with Michiquillay also in line for development [59] Question: Rationale for stock dividends - The board's decision to continue stock dividends is based on maintaining cash flow while managing capital needs [81]

Group 1 - Southern Copper Corporation has completed 23% of its $1.8 billion Tia Maria mining project and maintains its target for production in 2027, expecting to produce 120,000 tons of cathode copper annually [2] - The company plans to invest over $10.3 billion in various copper mining projects in Peru over the next decade, including Los Chancas and Michiquillay [2] - Southern Copper is working to secure the necessary administrative permits and licenses with the support of Peruvian authorities [2] Group 2 - China, as the world's largest copper consumer, faces three major challenges: increasing dependence on foreign upstream resources, overcapacity in the midstream processing sector, and suppressed downstream demand due to high copper prices [2]

Financial Performance - 3Q25 net sales reached $3,377.3 million, a 15.2% increase from 3Q24, driven by higher sales volumes of silver (+21.9%), molybdenum (+7.9%), and zinc (+7.3) despite a decline in copper sales (-3.6%) [1] - 3Q25 adjusted EBITDA was $1,975.4 million, up 17.3% from $1,684.6 million in 3Q24, with an adjusted EBITDA margin of 58.5% compared to 57.5% in 3Q24 [2] - Net income for 3Q25 was $1,107.6 million, a 23.5% increase from $896.7 million in 3Q24, resulting in a net income margin of 32.8% [3] - Operating income for Q3 2025 was $1,768.8 million, reflecting a 22.0% increase from $1,450.3 million in Q3 2024 [39] - Net income attributable to Southern Copper Corporation for Q3 2025 was $1,107.6 million, a 23.5% increase from $896.7 million in Q3 2024 [39] - Net income for the third quarter of 2025 was $1,110.9 million, compared to $899.8 million in the same period of 2024, reflecting a growth of 23.4% [41] Production and Sales - Total copper production in Q3 2025 was 237,333 tonnes, a decrease of 6.4% compared to 253,441 tonnes in Q3 2024 [38] - Copper production fell 2.8% year-to-date to 714,098 tonnes, primarily due to lower ore grades in Mexican and Peruvian operations [4] - Molybdenum sales increased by 7.9% to 7,908 tonnes in Q3 2025, compared to 7,327 tonnes in Q3 2024 [38] - Zinc mined increased significantly by 46.3% to 45,482 tonnes in Q3 2025, compared to 31,078 tonnes in Q3 2024 [38] - Year-to-date net sales increased by 10.4% compared to 2024, with molybdenum (+6.7%), silver (+16.6%), and zinc (+18.7%) sales volumes contributing positively [3] Costs and Expenses - Operating cash cost per pound of copper decreased to $0.42 in 3Q25, down 44.7% from $0.76 in 3Q24, primarily due to increased by-product revenue [2] - GAAP cost of sales (exclusive of depreciation, amortization, and depletion) for Q3 2025 was $1,356.8 million, compared to $1,223.1 million in Q3 2024, reflecting a 10.9% increase [55] - Operating cash cost before by-product revenues for Q3 2025 was $1,102.8 million, up from $1,046.1 million in Q3 2024, indicating a 5.4% rise [55] - Operating cash cost, net of by-products revenue, for Q3 2025 was $208.1 million, a decrease of 48.8% from $406.9 million in Q3 2024 [55] - Workers participation costs increased to $116.2 million in Q3 2025 from $79.0 million in Q3 2024, marking a 47.0% rise [55] - Selling, general and administrative expenses for Q3 2025 were $33.7 million, compared to $31.2 million in Q3 2024, reflecting an increase of 8.0% [55] Capital Investments - Capital investments in 3Q25 totaled $349.2 million, a 41.7% increase year-over-year, representing 31.5% of net income for the quarter [8] - The company plans to invest over $15 billion in capital projects over the decade, with more than $10.3 billion allocated to projects in Peru [12][13] - The Tia Maria project in Peru is expected to generate $18.2 billion in exports and $3.8 billion in taxes over its first 20 years, with a budget set at $1,802 million [15] Sustainability and Environmental Impact - The company has reduced greenhouse gas emissions by 180,000 carbon tons in 2025, equivalent to the electricity supply for 40,000 households in Mexico [27] - Southern Copper's sustainability rating increased by 4 points in the 2025 Corporate Sustainability Assessment, positioning the company among the leaders in the mining sector [26] Financial Position - As of September 30, 2025, total assets increased to $20,331.8 million, up from $18,713.4 million as of December 31, 2024, representing an increase of 8.6% [40] - Cash and cash equivalents rose to $3,949.6 million as of September 30, 2025, compared to $3,258.1 million at the end of 2024, indicating a growth of 21.2% [40] - Total current liabilities decreased to $1,698.0 million as of September 30, 2025, down from $2,248.1 million as of December 31, 2024, a reduction of 24.5% [40] - The company reported a total stockholders' equity of $10,449.9 million as of September 30, 2025, compared to $9,171.5 million at the end of 2024, an increase of 13.9% [40] - The number of shares outstanding increased to 812.2 million as of September 30, 2025, from 790.4 million as of December 31, 2024, reflecting a growth of 2.3% [40]

Core Insights - Investors are evaluating Lundin Mining (LUNMF) and Southern Copper (SCCO) for value investment opportunities [1] - Both companies currently hold a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions [3] Valuation Metrics - LUNMF has a forward P/E ratio of 26.07, while SCCO has a forward P/E of 26.55 [5] - LUNMF's PEG ratio is 0.61, compared to SCCO's PEG ratio of 1.24, suggesting LUNMF may be undervalued relative to its growth expectations [5] - LUNMF's P/B ratio is 1.9, significantly lower than SCCO's P/B ratio of 10.64, indicating a better market value relative to book value [6] Value Grades - Based on the valuation metrics, LUNMF has earned a Value grade of B, while SCCO has a Value grade of C, suggesting LUNMF is the more attractive option for value investors [6][7]

Market Overview - Futures are trading higher, driven by positive news regarding a potential trade agreement with China and the TikTok issue resolution [1] - Wall Street is anticipating a significant number of earnings reports this week, particularly from technology giants in the Magnificent 7 [1] - Strong retail participation and new overseas investments are contributing to the momentum towards the S&P 500 reaching 7000 [1] Treasury Yields - Yields are mixed, with shorter maturities trading modestly lower and longer maturities, such as the 30-year and 20-year bonds, showing small gains [2] - The Treasury Market and Wall Street are pricing in a near 100% chance of a 25-basis-point cut this week [2] Oil & Gas - West Texas Intermediate (WTI) and Brent Crude started the week slightly lower after a rally that pushed WTI above $60 [3] - OPEC+ production increases are identified as the main reason for recent pricing dislocation [3] - Analysts expect a jump in gasoline demand as prices drop nationwide heading into the holidays [3] - Natural Gas prices increased over 4%, closing at $3.44 [3] Gold Market - Gold prices fell below $4,000 per ounce after a significant rally, with analysts noting improved risk appetite and profit-taking [4] - A potential correction in Gold prices could last for months, although Central Bank buying may provide support [4] - Some analysts are projecting Gold prices to reach $5,000 and Silver to $60 [4] Analyst Ratings - CrowdStrike Holdings (CRWD) upgraded to Buy with a target price of $706 [5] - Southern Copper (SCCO) target price raised from $89 to $115, but maintains a Sell rating [5] - DTE Energy (DTE) initiated with an Overweight rating and a $157 target price [6] - McDonald's Corporation (MCD) started with a Neutral rating and a target price of $300 [6] - Starbucks Corporation (SBUX) initiated with a Neutral rating and a target price of $84 [6] - Constellation Energy (CEG) initiated with an Overweight rating and a $478 target price [6] - Fox Corporation (FOXA) upgraded to Buy with a target price of $97 [6] - BioMarin Pharmaceutical (BMRN) target price lowered from $90 to $80 while maintaining a Buy rating [6] - Dow Inc. (DOW) target price raised from $24 to $27 while keeping a Neutral rating [6] - Brinker International (EAT) initiated with an Outperform rating and a target price of $155 [6]

Investors interested in Mining - Non Ferrous stocks are likely familiar with Lundin Mining (LUNMF) and Southern Copper (SCCO) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style ...