BofA-Southern Copper Record 3Q25 on strong momentum；update recommendations-20251103

Revenues growth driven by favorable px across metals

Southern Copper delivered record 3Q25 results with net revenues jumping +15% YoY to $3.4bn despite copper production declining -7% YoY to 235kt. EBITDA reached a record $2.0bn (+19% YoY) while margins expanded to 58.5% (+177bps YoY). The growth was boosted by improved pricing across the portfolio and robust by-product performance and production.

Strong cash cost performance driven by by-products

Notably, operating cash costs net of by-product credits improved to $0.42/lb (-45% YoY)on record-by product revenue credits of $895mn (+40% YoY) or $1.81/lb (+51% YoY) in 3Q25, on higher production and stronger pricing. Cash costs before by-products was up +14% YoY to $2.23/lb, reflecting higher workers’ participation (+47% YoY to $116mn due to profi-sharing), labor costs, and purchased concentrate expenses.