Core Viewpoint - Southern Copper Corporation (SCCO) is establishing a multi-year growth trajectory in copper production, despite a slight decrease in near-term output. The company anticipates copper production to reach 958,800 tons in 2025, a 2% decline from 2024, with expectations to rise to 1,084,000 tons by the end of the decade [1][10]. Production Outlook - From 2031 onwards, copper output is projected to accelerate significantly, reaching approximately 1,536,000 tons by 2034, reflecting a 5% compound annual growth rate (CAGR) from 2024. This growth is supported by a robust project pipeline in Peru and Mexico [2][5]. - The Tia Maria project in Peru, with an annual capacity of 120,000 tons, is expected to commence in 2027, utilizing advanced SX-EW technology [3]. - El Pilar in Mexico is set to start in 2028, contributing around 36,000 tons of copper cathodes annually, also employing cost-efficient SX-EW technology [3]. - By 2030, the El Arco project in Mexico is anticipated to be operational, featuring significant ore reserves and a combined concentrator and SX-EW operation [4]. Project Pipeline - The Los Chancas project in Peru is expected to add 130,000 tons of copper starting in 2031, followed by Michiquillay in 2032, which is projected to produce 225,000 tons and become one of Peru's largest copper mines with a mine life exceeding 25 years [5]. Industry Comparison - Peer BHP Group reported record copper output of 2,017,000 tons for fiscal 2025, an 8% year-over-year increase, and expects production between 1,800,000 and 2,000,000 tons in fiscal 2026 [6][7]. - Teck Resources has entered a merger agreement with Anglo American plc to form Anglo Teck, which will have over 70% exposure to copper and is projected to increase combined annual copper production from 1.2 million tons to 1.35 million tons by 2027 [8]. Financial Performance - Southern Copper shares have increased by 55.9% over the past year, outperforming the industry growth of 42.4% [9]. - The company is trading at a forward 12-month price/sales multiple of 8.84X, significantly higher than the industry average of 3.93X [11]. - The Zacks Consensus Estimate for Southern Copper's 2025 earnings is $5.27 per share, indicating a year-over-year growth of 21.7%, with a projected growth of 17.3% for 2026 [12].

Financial Performance & Liquidity - MAC Copper maintained its 2025 copper production guidance of 43-48kt [18] - The company achieved a realized copper price of US$4.04/lb in Q1 2025 [18] - Liquidity stands at approximately US$153 million, including an undrawn revolving facility of around US$59 million [13, 65] - Refinancing resulted in interest cash savings of approximately US$14 million per annum and reduced repayments by approximately US$123 million until 2027 [14, 61] Operational Highlights - Q1 2025 copper production was 8,644 tonnes [18, 28] - C1 cost was US$1.91/lb and total cash cost was US$2.47/lb in Q1 2025 [18] - The company is targeting copper production of over 50kt per annum by 2026 [13, 37] - Ventilation project is progressing, targeting completion by Q3 2026, aiming for an increased production rate of 1.7mt p/a [13, 36, 42] Growth Projects - Merrin Mine development is underway, targeting first ore production by Q4 2025 [14, 19, 36, 43] - US$4.1 million was invested in the Merrin Mine development in Q1 2025 [19]