Southern Copper (SCCO) Q4 2025 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Thu, February 12, 2026 astatine 6:30 AM CST 35 min read

Image source: The Motley Fool.

Tuesday, January 27, 2026 astatine 11 a.m. ET

• Chief Executive Officer and Board Member — Oscar Gonzalez Rocha

• Chief Financial Officer — Raul Jacob

• Board Member — Leonardo Contreras

Raul Jacob: Thank you precise much, Gigi. Good morning, everyone, and invited to Southern Copper's Fourth Quarter and Full Year 2025 Results Conference Call. At today's conference, I'm accompanied by Mr. Oscar Gonzalez Rocha, CEO of Southern Copper and Board member; arsenic good arsenic Mr. Leonardo Contreras, who is besides a Board member. In today's call, we volition statesman with an update connected our presumption of the copper marketplace and past reappraisal Southern Copper's cardinal results related to production, sales, operating costs, fiscal results, enlargement projects and ESG. After this, we volition unfastened the league for questions. Our show successful twelvemonth 2025 delivered caller institution records for nett sales, adjusted EBITDA and nett income.

These milestones are a testament to the spot of our strategy, execution and committedness to sustainable growth. This beardown show was chiefly driven by a emergence successful by-product accumulation and improved metallic prices for each our products. Mined zinc accumulation roseate 36% year-on-year, bolstered by an further 52,500 tons from the Buenavista zinc concentrator. Mined metallic accumulation accrued 15% successful this twelvemonth -- successful past twelvemonth chiefly driven by higher accumulation astatine each our mines. Molybdenum accumulation was 31,200 tons successful 2025, which was 7% supra the fig successful 2024. The operation of higher accumulation volumes and amended copper and by-product prices enabled america to execute grounds income of $13.4 billion.

This is 17% much than successful 2024, a grounds precocious for EBITDA of $7.8 billion, that's 22% connected apical of 2024 and nett income of $4.3 billion, which is 28% higher than 2024. We stay firmly committed to enhancing productivity and outgo ratio driven by strategy anchoring successful subject and absorption connected achieving a semipermanent extremity to nutrient 1.6 cardinal tons of copper astatine the lowest imaginable astir competitory outgo per pound. Looking into the metallic markets and prices. For copper, the London metallic copper terms accrued 21% from an mean of $4.16 per lb successful the 4th fourth of 2024 to $5.03 per lb this past quarter.

For the COMEX market, we saw a 22% increase, averaging during the past 4th $5.15 per pound. Based connected existent proviso and request dynamics, we're presently estimating a copper marketplace shortage of astir 320,000 tons for 2026. Copper inventories worldwide, the sum of the London Metal Exchange, COMEX and Shanghai and bonded warehouses, wherever arsenic of January '26, this past Monday, astir 14 days of planetary demand. Let's look astatine Southern Copper's accumulation for the past quarter. Copper represented 75% of our income successful the 4th fourth of 2025. Copper accumulation registered an summation of 1.4% successful the 4th fourth of past twelvemonth connected a quarter-over-quarter presumption to basal astatine 242,172 tons.