Financial Performance - 4Q25 net sales reached $3,869.8 million, a 39.0% increase compared to 4Q24, driven by higher sales volumes for copper (+2.8%), molybdenum (+9.6%), zinc (+20.7%), and silver (+11.3%) [1] - 2025 net sales hit a record high of $13,420.0 million, up $1,986.6 million or 17.4% from 2024, primarily due to increased sales volumes for molybdenum (+7.4%), zinc (+19.3%), and silver (+15.3%) [1] - 4Q25 net income was $1,307.9 million, a 64.7% increase from $793.9 million in 4Q24, with a net income margin of 33.8% [1] - 2025 net income reached $4,334.9 million, 28.4% higher than in 2024, with a net income margin of 32.3% [1] - 4Q25 adjusted EBITDA was $2,310.5 million, reflecting a 53.3% increase from $1,506.7 million in 4Q24, with an adjusted EBITDA margin of 59.7% [1] - 2025 adjusted EBITDA reached $7,822.4 million, a 22.1% increase over 2024, with an adjusted EBITDA margin of 58.3% [1] Production and Sales - 2025 copper production totaled 954,270 tons, consistent with the annual plan, with a 1.4% increase in 4Q25 compared to the previous quarter [2] - Total copper production in Q4 2025 was 244,326 tons, up 2.0% from 239,457 tons in Q4 2024 [36] - Molybdenum sales increased by 9.6% in Q4 2025, totaling 7,678 tons compared to 7,008 tons in Q4 2024 [36] - Zinc sales in Q4 2025 were 50,837 tons, a 20.7% increase from 42,120 tons in Q4 2024 [36] - Total pounds of copper produced in Year 2025 reached 2,035.6 million pounds, a decrease from 2,057.7 million pounds in Year 2024, reflecting a 1.1% decline [53] Cash Flow and Investments - Cash flow from operating activities in 2025 was $4,752.1 million, a 7.5% increase from $4,421.7 million in 2024 [3] - Capital investments for the full year 2025 totaled $1,325.3 million, up from $1,027.3 million in 2024, indicating a 29.0% increase [40] - The company invested $28 million in four projects under the Public Works for Taxes program, benefiting over 5,000 people in Peru [28] Shareholder Returns - Dividends paid increased by 57.1% to $1.10 per share in Q4 2025 from $0.70 per share in Q4 2024 [37] - The company paid dividends of $731.0 million in Q4 2025, compared to $549.9 million in Q4 2024, representing a 32.9% increase [40] Assets and Equity - As of December 31, 2025, total assets increased to $21,381.4 million from $18,713.4 million in 2024, representing a growth of 14.1% [38] - Total stockholders' equity rose to $11,038.1 million in 2025 from $9,171.5 million in 2024, reflecting an increase of 20.4% [38] - The number of shares outstanding increased to 819.1 million in 2025 from 790.4 million in 2024, a growth of 3.6% [38] Costs and Expenses - Cost of sales (exclusive of depreciation, amortization, and depletion) for Q4 2025 was $1,471.5 million, compared to $1,211.8 million in Q4 2024, representing a 21.5% increase [53] - Operating cash cost before by-product revenues for Year 2025 was $4,418.8 million, slightly up from $4,389.5 million in Year 2024, indicating a 0.7% increase [53] - Selling, general and administrative expenses for Year 2025 totaled $137.8 million, compared to $130.5 million in Year 2024, reflecting a 5.6% increase [53] - Workers' participation costs for Year 2025 were $463.1 million, significantly higher than $296.5 million in Year 2024, indicating a 56.2% increase [53] - Purchased concentrates from third parties for Year 2025 amounted to $284.0 million, up from $162.4 million in Year 2024, representing a 74.7% increase [53] - Treatment and refining charges net of sales premiums for Year 2025 were $(153.6) million, compared to $(39.5) million in Year 2024, indicating a significant increase in costs [53] - Inventory change for Year 2025 was $(16.7) million, a decrease from $12.8 million in Year 2024, reflecting a shift in inventory management [53] Project Development - The Tía María project is 24% complete with a capital budget of $1.8 billion, expected to generate $20.2 billion in exports and $4.6 billion in taxes over its first 20 years [6] - The company aims to produce 1.6 million tons of copper by 2033, supported by a disciplined investment strategy and project pipeline [7] Recognition and Awards - The company recognized for its commitment to safety with the "Casco de Plata" award for best performance in occupational safety [27]

Financial Data and Key Metrics Changes - Southern Copper achieved record net sales of $13.4 billion in 2025, a 17% increase from 2024 [4][13] - Adjusted EBITDA reached a record high of $7.8 billion, reflecting a 22% increase over 2024 [5][15] - Net income for 2025 was $4.3 billion, which is 28% higher than in 2024 [19][20] - Operating cash cost per pound of copper before by-product credit was $2.17, up from $2.13 in 2024 [18] Business Line Data and Key Metrics Changes - Copper production decreased by 1.8% in 2025 to 956,270 tons, slightly below the planned 965,000 tons [8] - Molybdenum production increased by 7.4% year-over-year in 2025, totaling 31,200 tons [10] - Silver production rose by 15% in 2025, reaching 24 million ounces [11] - Zinc production increased by 36% in 2025, totaling 165,500 tons [12] Market Data and Key Metrics Changes - The average copper price on the London Metal Exchange increased by 21% to $5.03 per pound in Q4 2025 [5][6] - Molybdenum prices averaged $22.75 per pound in Q4 2025, a 5% increase from the previous year [9] - Silver prices surged by 74% in Q4 2025, averaging $54.48 per ounce [10][11] - Zinc prices increased by 4.3% in Q4 2025, averaging $1.44 per pound [12] Company Strategy and Development Direction - The company aims to produce 1.6 million tons of copper at the lowest competitive cost per ton [5] - Southern Copper is focusing on enhancing productivity and cost efficiency while investing over $20.5 billion in capital projects in Peru and Mexico [20][21] - The Tia Maria project is currently under construction, with an estimated capital budget of $1.8 billion and expected to generate significant economic benefits upon completion [21][22] Management's Comments on Operating Environment and Future Outlook - Management anticipates a copper market deficit of about 320,000 tons for 2026, influenced by demand from electric vehicles and AI power centers [6][77] - The company is optimistic about maintaining strong production levels despite challenges in ore grades at certain operations [59][88] - Management believes that the inflationary pressures have stabilized, with currency appreciation being a more significant factor affecting costs than inflation itself [31][32] Other Important Information - The company received various ESG accreditations, including the Copper Mark for compliance with tailings management standards [26][27] - Southern Copper announced a quarterly cash dividend of $1 per share, payable on February 27, 2026 [28] Q&A Session Summary Question: Cost guidance and inflation impact - Management indicated that inflation has stabilized, with currency appreciation being a more significant concern [31][32] Question: Silver production expectations for 2026 - Management confirmed a guidance of 24 million ounces for silver production in 2026, with potential for improvement based on ore grades [34][35] Question: Molybdenum production decline reasons - Management explained that lower ore grades at certain operations are expected to impact molybdenum production in 2026 [40][42] Question: Tia Maria project capital expenditure timing - Management expects to disburse approximately $508 million for Tia Maria in 2026, with construction completion anticipated by mid-2027 [46][50] Question: Long-term production guidance - Management provided a forecast of 911,400 tons for 2026, with expectations for gradual increases in subsequent years [59][60] Question: Copper market dynamics and price sustainability - Management noted a potential copper market deficit and highlighted the impact of demand from electric vehicles and AI [77][78] Question: Strategy for Buenavista concentrator - Management confirmed the focus on zinc production due to favorable ore grades, with flexibility to shift back to copper if price dynamics change [80][81]

Financial Data and Key Metrics Changes - Southern Copper achieved record net sales of $13.4 billion in 2025, a 17% increase from 2024 [4][13] - Adjusted EBITDA reached a record high of $7.8 billion, reflecting a 22% increase over 2024 [5][16] - Net income for 2025 was $4.3 billion, which is 28% higher than the previous year [19][20] - Operating cash cost per pound of copper before by-product credit was $2.17, a slight increase from $2.13 in 2024 [18] Business Line Data and Key Metrics Changes - Copper production for 2025 decreased by 1.8% to 956,270 tons, slightly below the planned 965,000 tons [8] - Molybdenum production increased by 7.4% year-over-year in 2025, totaling 31,200 tons [10] - Silver production rose by 15% in 2025, reaching 24 million ounces [11] - Zinc production increased by 36% in 2025, totaling 165,500 tons [12] Market Data and Key Metrics Changes - The average copper price on the London Metal Exchange increased by 21% to $5.03 per pound in Q4 2025 [5][6] - Molybdenum prices averaged $22.75 per pound in Q4 2025, a 5% increase from the previous year [9] - Silver prices surged by 74% to an average of $54.48 per ounce in Q4 2025 [10][11] - Zinc prices increased by 4.3% to $1.44 per pound in Q4 2025 [11] Company Strategy and Development Direction - The company aims to produce 1.6 million tons of copper at the lowest competitive cost per ton [5] - Significant capital investments exceeding $20.5 billion are planned for projects in Peru and Mexico [20][21] - The Tia Maria project is currently 24% complete and is expected to generate $20.2 billion in exports over its first 20 years [22] Management's Comments on Operating Environment and Future Outlook - Management anticipates a copper market deficit of about 320,000 tons for 2026, influenced by demand from electric vehicles and AI power centers [6][77] - The company is optimistic about maintaining production levels despite lower ore grades at some operations [59] - Management noted that inflation impacts are being mitigated by currency appreciation rather than specific inflation [31] Other Important Information - The company received accreditation from the Copper Mark for compliance with global industry standards on tailings management [26] - A quarterly cash dividend of $1 per share was announced, payable on February 27, 2026 [28] Q&A Session Summary Question: Any updated thoughts on cost guidance? - Management indicated that costs are currently more affected by currency appreciation than inflation [31] Question: Guidance on costs for the next quarter or year? - Costs are expected to remain relatively flat on a per-pound basis, with strong by-product production helping to offset any increases [33] Question: Ability to increase silver production in 2026? - Current guidance for silver production is about 24 million ounces, with potential for improvement based on ore grades [34][35] Question: Reasons for expected decline in molybdenum production in 2026? - Lower ore grades at operations are anticipated to impact molybdenum production [42] Question: Update on Tia Maria project CapEx? - The company plans to disburse approximately $508 million for Tia Maria in 2026, with construction expected to finish by mid-2027 [46][50] Question: Long-term production guidance? - Production is expected to be around 911,400 tons for 2026, with gradual increases projected in subsequent years [59][60] Question: Impact of higher copper prices on project development? - Higher prices generally facilitate project development, but also incentivize illegal mining [70] Question: Current sentiment regarding project licenses in Mexico? - The relationship with the Mexican government is improving, which may expedite project approvals [97]

Financial Data and Key Metrics Changes - Southern Copper achieved record net sales of $13.4 billion in 2025, a 17% increase from 2024 [3][12] - Adjusted EBITDA reached a record high of $7.8 billion, reflecting a 22% increase over 2024 [4][14] - Net income for 2025 was $4.3 billion, which is 28% higher than in 2024 [4][18] - Operating cash cost per pound of copper before by-product credit was $2.17 in 2025, up from $2.13 in 2024 [16][19] Business Line Data and Key Metrics Changes - Copper production for 2025 was 956,270 tons, a decrease of 1.8% year-on-year [6][19] - Molybdenum production increased by 7.4% year-over-year in 2025, totaling 31,200 tons [9][19] - Silver production rose 15% in 2025, reaching 24 million ounces [10][19] - Zinc production for 2025 increased by 36%, totaling 165,500 tons [11][19] Market Data and Key Metrics Changes - The average copper price on the London Metal Exchange increased by 21% to $5.03 per pound in Q4 2025 [4][5] - The COMEX market saw a 22% increase in copper prices, averaging $5.15 per pound [5] - A copper market deficit of approximately 320,000 tons is estimated for 2026 [5][74] Company Strategy and Development Direction - The company aims to produce 1.6 million tons of copper at the lowest competitive cost [4] - Focus on enhancing productivity and cost efficiency while maintaining a strong commitment to sustainable growth [2][4] - Significant capital investment program exceeding $20.5 billion for projects in Peru and Mexico [19][20] Management's Comments on Operating Environment and Future Outlook - Management noted that inflation impacts are being mitigated by currency appreciation rather than specific inflation [29] - The company expects relatively flat operating costs per pound due to strong by-product production [30] - There is optimism regarding the Tia Maria project, which is expected to generate significant economic benefits for the region [21][92] Other Important Information - The company received the Copper Mark accreditation for compliance with global tailings management standards [24] - A quarterly cash dividend of $1 per share was announced, payable on February 27, 2026 [26] Q&A Session Summary Question: Any updated thoughts on cost guidance? - Management indicated that inflation impacts are less significant than currency appreciation effects [29] Question: Guidance on costs for the next quarter or year? - Costs are expected to remain relatively flat on a per-pound basis, supported by strong by-product production [30] Question: Ability to increase silver production in 2026? - Current guidance for silver production is set at 24 million ounces, with potential for improvement based on ore grades [31][32] Question: Reasons for expected decline in molybdenum production in 2026? - Lower ore grades in certain operations are anticipated to impact molybdenum production [36][38] Question: Update on Tia Maria project capital expenditures? - The company plans to disburse approximately $508 million for Tia Maria in 2026, with construction expected to finish by mid-2027 [42][46] Question: Impact of higher copper prices on project development? - Higher prices generally facilitate project development, but illegal mining remains a challenge [68] Question: Overview of copper market dynamics? - A deficit of 320,000 tons is expected in the copper market, with demand driven by electric vehicles and AI [74] Question: Strategy for zinc production at Buenavista? - The focus on zinc production will continue in 2026, with adjustments made based on price dynamics [77][78] Question: Lead time for SX-EW operation at Tia Maria? - The expectation is to have the SX-EW plant operational by the second half of 2027 [88][89] Question: Current relationship with the Mexican government regarding project approvals? - There is a generally improved environment for project approvals in Mexico [95]

4Q25 RESULTS J A N U A R Y 2 0 2 6 Disclaimer The material in this presentation has been prepared Southern Copper Corporation (SCC) and is general background information about SCC's activities current as at the date of this presentation. This information is given in summary form and does not purport to be complete. Information in this presentation, including financial forecasts, should not be considered as advice or a recommendation to investors or prospective investors in relation to holding, purchasing or ...

Group 1 - The target price for Southern Copper Corporation has been raised from $92 to $125 by Bank of Nova Scotia, while maintaining a "underperform" rating [1]

Core Viewpoint - Southern Copper Corporation is positioned as a key player in the copper mining industry, with significant potential to benefit from the rising demand for copper driven by AI technologies [1][5]. Financial Performance - The company is expected to announce quarterly earnings on January 27, 2026, with an earnings per share (EPS) of $1.53 and projected revenue of approximately $3.73 billion [1][5]. - In the third quarter of 2025, Southern Copper produced nearly 235 million tons of copper, demonstrating its capacity to meet increasing demand [2][5]. Market Positioning - Despite a high price-to-earnings (P/E) ratio of 40.56, Southern Copper's strategic positioning in the copper market suggests it could be a hidden winner in the AI sector [3][5]. - The company's price-to-sales ratio stands at 12.51, and its enterprise value to sales ratio is 12.79, indicating a strong market valuation relative to its sales and enterprise value [3]. Financial Health - Southern Copper's earnings yield is 2.47%, and it has a debt-to-equity ratio of 0.71, reflecting a moderate level of debt compared to equity [4]. - The company's current ratio of 4.52 indicates strong liquidity, ensuring it can meet short-term obligations as it expands operations [4].

Group 1 - The focus on technology stocks related to artificial intelligence (AI) often overlooks the essential supply chain components, such as copper, which is critical for AI technologies, highlighting the investment potential in Southern Copper (NYSE: SCCO) [1] - Southern Copper is a copper mining company that requires significant time and capital investment to develop mines, including obtaining approvals and restoring sites post-extraction [2] - The current demand for copper is driven by AI, with Southern Copper estimating that global copper inventories will only cover eight days of demand by the end of Q3 2025, indicating a potential supply deficit [3] Group 2 - Copper prices are influenced by supply and demand dynamics, with rising demand leading to higher prices; despite a decrease in production to 235 million tons in Q3 2025 compared to Q3 2024, Southern Copper still achieved higher sales due to rising copper prices [4] - Southern Copper's stock price has increased by 95% over the past year, reflecting investor awareness of copper market trends; however, resolving the supply-demand imbalance will take time, with new mines expected to open in 2027 and 2028 [5] - The company has plans for additional copper projects beyond the upcoming mines, indicating a long-term growth strategy in the copper market [5][7]

Core Viewpoint - Southern Copper Corporation (NYSE:SCCO) is experiencing an upward trend in price targets and share prices, driven by improved operational efficiencies and strong market demand for copper and other minerals [2][3][4][6] Company Overview - Southern Copper Corporation operates extensively in the mining sector across Peru, Mexico, Argentina, Ecuador, and Chile, focusing on copper production and other minerals like molybdenum, silver, gold, zinc, and lead [1] Price Target Trends - The consensus price target for SCCO has risen from $131.77 last year to $142.71 last quarter, and currently stands at $153, indicating growing optimism among analysts [2][6] Share Price Movement - Recently, SCCO's share price increased by 6.2% in the last trading session, supported by above-average trading volume and aligning with positive earnings estimate revisions [3][6] Market Demand Factors - The demand for copper is closely linked to global economic conditions, particularly from sectors such as construction and electronics, which could enhance Southern Copper's financial performance [4] Operational and Strategic Developments - Operational improvements and strategic initiatives are contributing to the optimistic outlook for SCCO, alongside the favorable market conditions for copper [4][6] Revenue and Profitability Influences - Fluctuations in commodity prices, especially copper, significantly impact SCCO's revenue and profitability, necessitating close monitoring of regulatory and environmental factors in its operating regions [5]

Core Viewpoint - The article summarizes significant analyst rating changes that are expected to impact the market, highlighting upgrades, downgrades, and new coverage ratings for various companies [1][6]. Upgraded Ratings - Merril Lynch upgraded Darden Restaurants (DRI) from "Hold" to "Buy," raising the target price from $240 to $265, citing a value-driven operational strategy leading to stable customer traffic and market share growth [5]. - Mizuho Securities upgraded Procter & Gamble (PG) from "Neutral" to "Outperform," increasing the target price from $157 to $165, indicating potential for accelerated organic sales growth and improved profit margins [5]. - Royal Bank of Canada’s Cowen upgraded Fortinet (FTNT) from "Hold" to "Buy," maintaining a target price of $100, based on stable operational expectations for FY2026 [5]. - Deutsche Bank upgraded Applied Materials (AMAT) from "Hold" to "Buy," significantly raising the target price from $275 to $390, reflecting a favorable outlook for the wafer fabrication equipment industry in 2026-2027 [5]. - JPMorgan upgraded Acushnet Holdings (GOLF) from "Underweight" to "Neutral," increasing the target price from $74 to $96, due to a diversified product portfolio and pricing power [5]. Downgraded Ratings - Citizens Bank downgraded Trade Desk (TTD) from "Outperform" to "Market Perform," without providing a target price, citing increasing market competition and limited short-term catalysts for stock price appreciation [10]. - Deutsche Bank downgraded Sherwin-Williams (SHW) from "Buy" to "Hold," lowering the target price from $390 to $380, indicating potential downward pressure on valuation multiples until earnings growth can be proven [10]. - Jefferies downgraded Li Auto (LI) from "Buy" to "Hold," significantly reducing the target price from $28.80 to $17.50, due to intensified competition in the home SUV segment [10]. - Harbor Research downgraded Cleveland-Cliffs (CLF) from "Buy" to "Neutral," acknowledging improved fundamentals but noting that the current stock price reflects normalized earnings levels [10]. - JPMorgan downgraded Southern Copper (SCCO) from "Neutral" to "Underweight," slightly adjusting the target price from $119.50 to $117.50, indicating limited upside potential based on current copper spot prices [10]. New Coverage Ratings - Citigroup initiated coverage on Elf Beauty (ELF) with a "Buy" rating and a target price of $110, highlighting market share growth and potential from the acquisition of skincare brand Rhode [12]. - Freedom Capital initiated coverage on Hinge Health (HNGE) with a "Buy" rating and a target price of $59, forecasting a 23% revenue growth and an industry-leading profit margin of 82%-83% [12]. - Susquehanna Group initiated coverage on HEICO Corporation (HEI) with a "Neutral" rating and a target price of $385, projecting an 8% revenue CAGR and a 13% free cash flow CAGR from FY2026 to FY2028, while noting a significant valuation premium [12]. - Cantor Fitzgerald initiated coverage on Quanta Services (PWR) with an "Outperform" rating and a target price of $520, citing a multi-year investment cycle driven by modernization and electrification trends [12]. - Texas Capital initiated coverage on MGM China (MLCO) with a "Buy" rating and a target price of $11.50, emphasizing its unique non-gaming business model and alignment with Macau's tourism recovery [12].