SCCO Q3 2025 Earnings Call Summary

Net Sales: $3.4 billion, up 15% year-over-year.
Adjusted EBITDA: $1.975 billion, a 17% increase from Q3 2024, with an EBITDA margin of 59%.
Net Income: $1.108 billion, representing a 23% increase compared to Q3 2024, with a net income margin of 33%.
Copper Production: 234,892 tons, down 7% year-over-year, primarily due to lower ore grades in Peru and Mexico.
Cash Cost: $0.42 per pound of copper, significantly lower than $0.63 in Q2 2025, aided by byproduct credits totaling $895 million.
Year-to-Date Cash Flow from Operations: $3.258 billion, up 6% from the previous year.

Production Growth: Significant increases in byproduct production, with zinc up 46%, silver up 16%, and molybdenum up 8%.
Expansion Projects:
- Tia Maria: 23% complete, expected to generate significant employment and production starting in 2027.
- Los Chancas: Ongoing social and environmental management programs; illegal mining control efforts are underway.
- Michiquillay: Geological models being audited; further studies ongoing.
ESG Initiatives: Improved sustainability ratings; efforts to reduce greenhouse gas emissions and enhance community relations.

2025 Copper Production Forecast: Expected to reach 960,000 tons, slightly below the original plan.
2026 Expectations: Anticipated copper production of approximately 911,000 tons, with ongoing reviews for potential improvements.
CapEx for 2026: Projected at around $2 billion, including $866 million for Tia Maria.
Cash Costs: Expected to decrease in Q4 2025 to a range of $2.15 to $2.20 per pound due to a recovery in production.

Production Declines: Notable drops in copper production due to lower ore grades, particularly in Peru and Mexico.
Political Risks: Potential social unrest and political challenges in Peru, particularly concerning the Tia Maria project, though current operations remain unaffected.
Market Volatility: Ongoing fluctuations in metal prices and potential impacts from U.S. tariff policies.

Cash Cost Projections: Management expects a decrease in cash costs in Q4 2025 due to improved production.
M&A Strategy: Focus remains on organic growth despite some interest in potential acquisitions if favorable opportunities arise.
Dividend Policy: The Board continues to utilize stock dividends to maintain liquidity while providing cash dividends of $0.90 per share.
Hedging Considerations: No current plans for hedging, though past strategies have been effective during major projects.
Community Engagement: Ongoing efforts to maintain positive relations with local communities, particularly in light of potential protests related to Tia Maria.

This summary encapsulates the key points from SCCO's Q3 2025 earnings call, highlighting both achievements and challenges faced by the company.

SCCO — Southern Copper Corporation