Southern Copper Corporation (SCCO)

Southern Copper Corp.'s stock has trended upwards by 46.76% in the past six months. In Q3 2025, the company reported an EPS of $1.35 and revenue of $3.38 billion, surpassing estimates, and announced a quarterly dividend of $0.90 per share. Record net sales, adjusted EBITDA, and net income were reported, driven by increased byproduct production and improved metal prices, although copper production decreased. The stock gained momentum due to investments in AI infrastructure and rising copper demand. SCCO's stock rose following a rally in copper prices due to supply disruptions and the company confirmed stable production in Peru and committed US$800 million to upcoming projects. Strong Q2 2025 results were delivered, with net profits of $973 million and an adjusted EBITDA of $1.79 billion. Q2 2025 revenue surpassed expectations, with net income rising to $1.22 per share, despite a slight dip in sales volumes due to tariff-related market disruptions. Southern Copper reported a 36% increase in net sales for Q2 2024, driven by higher sales volumes and increased prices.

The demand for Southern Copper Corp.'s products is primarily driven by global industrial activity, infrastructure development, and technological advancements rather than traditional seasonality. There is a strong structural demand for copper linked to electrification, data centers, and the energy transition. Refined copper demand is expected to increase, with a copper market deficit estimated. Demand can be influenced by economic trends, such as an economic slowdown in China. Supply restrictions and growing investments in AI infrastructure also impact demand.

Southern Copper Corporation is an integrated copper producer involved in mining, exploration, smelting, and refining of copper and other minerals. The company operates in the Basic Materials sector, focusing on copper, molybdenum, zinc, silver, gold, and lead. Southern Copper emphasizes copper production, cost control, production enhancement, and maintaining a prudent capital structure.

Southern Copper Corporation's operations are primarily in Peru and Mexico, where it owns copper mines, smelters, and refineries. Key sites in Peru include the Toquepala and Cuajone mines, and a smelter and refinery in Ilo. In Mexico, it operates through Minera Mexico, with assets like the La Caridad and Buenavista mines. Southern Copper also holds exploration concessions in Argentina, Chile, and Ecuador, targeting markets across the Americas, Europe, and Asia.

Southern Copper Corporation has maintained a positive brand reputation, focusing on sustainability and social responsibility. S&P Global increased SCC's rating in the Corporate Sustainability Assessment 2025. The company improved its Sustainability Report and was included in the DJSI sustainability index for the third consecutive year in 2021. Southern Copper is applying for the Copper Mark, with its La Caridad mine being the first to apply with responsible production practices. The company promotes local economic development and invests in environmental protection, safety, and community development.

Southern Copper is predominantly owned by Grupo México S.A.B. de C.V., which holds an 88.9% stake. Major institutional owners include BlackRock, Inc., Capital World Investors and Price T Rowe Associates Inc /md/. Institutional investors collectively hold approximately 8.63% to 8.68% of the company's stock, while retail investors hold around 94.46%. Insider ownership, excluding Grupo Mexico, is relatively small.