Southern Copper Q4 2025 Southern Copper Corp Earnings Call | AllMind AI Earnings | AllMind AI
Q4 2025 Southern Copper Corp Earnings Call
Five with US. This morning, we have southern Copper Corporation, Mr. Raul, Jacob Vice President Finance, Treasurer, and CFO, who will discuss the results of the company for the fourth quarter and year 2025, as well as answer any questions that you might have the information discussed on today's call may include forward.
[noise] looking statements regarding the company's results and prospects.
Which are subject to risks and uncertainties actual results may differ materially and the company cautions to not place undue reliance on these forward looking statements.
So then copper corporation undertakes no obligation to publicly update or revise any forward looking statement, whether as a result of new information future events or otherwise all results are expressed in full U S. GAAP now I will pass the call on to Mr. Raul Jacob.
Thank you very much <unk> morning, everyone and welcome to southern Copper's fourth quarter and full year 2025 results conference call.
Today's conference on the campaign with Mr. Oscar Gonzalez Rocha CEO program, corporate and board member of Willis, Mr. Lenovo competitor with social Bornemann.
In today's call, we will begin with an update on our view of the copper market and then review southern Copper's key results related to production see operating cost financial results expansion projects and ESG. After this we will open the session for questions.
Poor performance in year 2025 delivered New company Records for net sales adjusted EBITDA and net income. These milestones are testament to the strength of our strategy execution and commitment to sustainable growth. This strong performance was primarily driven by a rise in buy.
Product production and improvement of prices for all our promos mine think production rose 36% year on year.
Bolstered by an additional 52500 tonnes from the win of Easter zinc concentrator.
Mined silver production increased 15% in this year and last year.
Primarily driven by higher production at all our mines.
Molybdenum production was 31200 tons in 2025, which was 7% above the figure in 2024.
The combination of higher production volumes and better corporate on byproduct prices enabled us to achieve record sales of $13 4 billion order. This is 17% more than in 2024, a record high for EBITDA of $7 8 billion.
22% on top of 2024, and net income of $4 3 billion, which is 28% higher than 2000 people.
We remain firmly committed to enhancing productivity and cost efficiency driven by our strategy are incurring discipline and focus on achieving our long term goal to produce one 6 million pounds of copper at the lowest possible most competitive cost per pound.
Looking into the metal markets and prices for copper they don't know metal copper price increased 21% from an average of $4 16 per pound in the fourth quarter of 2024 to five dollar and three per pound these pad.
Last quarter.
The comex market, we saw a 22% increase averaging during the past quarter $5.15 per pound.
Based on current supply and demand dynamics. We're currently estimating a copper market deficit of about 320000 tons for 2026.
Copper inventories worldwide.
So some of the London metal exchange Comber, Comex uninsured Shanghai in bonded warehouses.
We're also <unk>.
Generally 26. This is perhaps this past Monday, approximately 14 days of global demand.
Let's look at southern Copper's production for the past quarter copper represented 75% of our sales in the fourth quarter of 2025.
Corporate production, where you saw an increase of one 4% in the fourth quarter of last year.
On a quarter over quarter terms to 242172 tons.
Our quarterly result reflects higher production of our cardiac stock at Pilar well honed in intermodal.
Which was attributable to better ore grades and recoveries.
These positive results were partially offset by a decrease in production at our Buena Vista operation.
For 2025 copper production decreased one 8%.
Two 956000 270 million tons.
This figure is 1% lower than our 2025 plan of 965000 tons.
Year on year result reflects lower production with our winner of Easter and the Peruvian mines, partially offset by a rise in production at our <unk> and like how do you have in mind.
For 2026, we expect to produce 911400 tons of copper, which represents a decrease of four 7% compared to 2025 on newsprint.
This is slight drop was primarily attributable to lower ore grades at our Peruvian operations.
Yeah.
For molybdenum it represented 8% of the company face value in the fourth quarter of 2025 and is currently our first by product.
<unk> prices averaged $22 75 per pound in the quarter compared to 21 $21.
And 61 in the fourth quarter of 2024.
This represents an increase of 5%.
Molybdenum production increased 10% in the fourth quarter of last year compared to the fourth quarter of 2024.
This was mainly driven.
By an increasing production and pocket Pal and <unk> mines due to higher ore grades at both operations.
These results were partially offset by a decrease in production at the Buenavista and La Caridad mines.
Molybdenum production increased seven 4% year on year in 2025.
Production grew at stockpile on that.
And was partially offset by lower production at <unk>.
In 2026, we expect to produce 26000 tons of molybdenum.
For silver it represented 9% of our sales in the fourth quarter of last year with an average price of $54 48.
For homes in the quarter.
Which is reflected in an increase of 74%.
Silver is currently our second byproduct.
Yes.
Mined silver production increased 15% in the fourth quarter of 2025 versus the same period of the prior year.
This was boosted by production growth at all our mines.
Refined silver production increased 10% quarter over quarter, driven mainly by increased production at all our refineries.
In 2025.
We produced 24 million ounces of silver, which represents an increase of 15% over 2024 production level.
This was due to higher production at all our mines.
In 2026.
We expect to produce 24 million ounces of silver a slight a slight decrease of 2% compared to 2025.
Or think Peter represented 4% of our sales in the fourth quarter of 2025 with an average price of $1 44 per pound in the quarter.
This represents a four 3% increase compared to the fourth quarter of 2024.
<unk> is currently our third byproduct.
Inc mine production.
Increased 7% quarter on quarter in total 46223 tons.
Growth was mainly driven by higher production at the Buenavista zinc concentrator and by an increasing production at San Martin Mine.
Refined zinc production increased 2% in the fourth quarter vis vis the fourth quarter of 2024.
Zinc production for the full year 2025 increased 36% due to additional production of 52500 tonnes from winter at least the thing on an upswing in production at our San <unk> mine.
This was partially offset by lower production at our tower customers some marketing operations.
2025, we expect to produce 165500 tonnes of zinc.
Financial results.
For the fourth quarter of 2025 sales were $3 $9 billion.
One 1 billion higher than sales in the fourth quarter of 2024.
Corporate sales increased 39% and volume was up 3% supported by better prices in the case of SME was 21% higher in the case of <unk>, 22%.
Regarding our main byproducts, we reported higher sales for molybdenum of 6% due to an increase of volume of 10% and better prices.
<unk> increased its values if the value of sales in 23% due to higher volume for 21% and better price.
Silver increase its value in 106% due to an increase in volume of 11% and better price.
2025, net sales hit a record high of $13 4 billion pumping the 2024 net sales by 17%.
This expansion was mainly driven by higher sales volume for molybdenum.
Inc, and silver.
Growth.
In phase volumes remained stable or copper growth in sales volume remained stable in 2000.
Oh.
Operating cost our total operating cost and expenses increased $282 million that is a 19% when compared to the fourth quarter of 2024.
The main cost increments were in workers' participation.
Purchased copper and inventory.
<unk> consumption and operations contractor and scope for parts and services.
We have also in the in the quarter.
A onetime adjustment of $60 million for asset retirement obligations at the Mexican operations, mainly at that would not be stellar.
These cost increments were partially compensated by labor lower labor costs.
Cerulean approach.
The fourth quarter 2025, adjusted the beat that was $2 3 billion.
Which represented an increase of 53% with regard to the $1 5 billion registered in the fourth quarter of 2024.
The adjusted EBITDA margin in the <unk>.
Fourth quarter.
With 60% versus 54% in the fourth quarter of 2024.
For the year 2025, adjusted EBITDA keep a record high of seven 8 billion, reflecting a robust 22% increase over the figure in 2024.
The adjusted EBITDA margin in 2025 was 58% versus 56% in 2020.
Cash cost.
Operating cash cost per pound.
Of copper before byproduct credits was $2.79 per pound in the fourth quarter of 2025. This is <unk> <unk> higher than the value for the third quarter of $2 23 per pound.
These 3% increasing the operating cash cost was driven by higher cost per pound from the production costs administrative expenses and lower premiums, which were partially offset by lower treatment and refining costs.
Southern copper operating cash cost, including the benefit of byproduct credits was <unk> 52 per pound.
Fourth quarter of last year. These.
These cash costs with 10 higher than the cash cost of 42.
For the third quarter of 2025.
Regarding byproducts, we have a total credit of $920 million or $1 77 per pound in the fourth quarter of 2025.
These figures represent a 3% increase when compared to a credit of $895 million or $1 81 per pound in the third quarter of 2025.
Those credits have increased for zinc silver and sulfuric acid.
And decreased for molybdenum.
2025.
The operating cash cost per pound of copper before byproduct credits was $2.17 per pound.
This was.
Okay.
It was higher than the $2 13.
Hence for pound that we reported in 2024 this is a 4% increase.
Napa way productivity 2025 cash costs.
58 cents per pound.
This 31 reduction in the cash cost compared to the 89.
Per pound reported in the fourth quarter.
For the full year excuse me for the full year 2024, and this was mainly attributable to a 34% increase in byproduct revenue Trish.
Yeah.
Net income in the fourth quarter.
1300, $8 million, which represents a 65% increase with regard to the 794 million raised during the fourth quarter of 2010 before.
Net income margin.
In the past quarter was 34% versus 29% in the fourth quarter of 2024.
2025, net income hit a record high of $4 3 billion, which is 20%.
Both the figure in 2020 for this.
These improvements were driven by an increase in net sales and by our strict cost control measures.
Net income margin in 2025 was 32% versus 30% in 2024.
Cash flow from operating activities in 2025 was $4 8 billion, which represented an increase of 8% over the $4 4 billion.
Posted in 2024.
As a result, which was mainly fueled by a higher income was partially offset by an increase in net operating taxes.
Particularly accounts receivables.
For capital investments, our current capital investment program for this decade exceeds $25 billion in.
And includes investments in projects in Peru, and Mexico.
In 2025, we spend $1 3 billion on capital investments, which reflected a 29% increase year on year and represented 30% of net income in 2025.
Given that there is a description of our main capital project in Southern Copper's press release Im going to focus on updating new developments for each of them.
Regarding the Peruvian projects and focusing on the Tia Maria project currently under construction or debt or keep our reunion.
This project represents a landmark investment for Peru, and day to keep our.
The current estimated capital budget is $1 8 billion.
As of the end of 2025, the freight was 24% complete.
At current copper prices Tia Maria will generate $22 billion in exports and $4 6 billion in taxes and royalties over its first 20 years of operation.
The project has already created 3589 jobs with strong focus on local hiring.
When operations beginning in 2027, Tia Maria we provide 764 direct jobs and nearly 6000 indirect jobs, demonstrating our commitment to sustainable growth and long term.
No.
As of December 31 of last year, the company have committed about $800 million to different pre activity.
Largest scale Earth moving works mobilized one 7 million tons of material from the <unk> deposit.
Purchase orders to acquire metallic structures for secondary and tertiary crushing has been issue for the dry area.
The Sx EW process level state of the art technology has been selected for our May four our main equipment.
Access road and platforms as well as temporary contractor comp has been completed.
Regarding energy supply.
<unk> for the electrical main substation has been completed found.
<unk> Foundation worked are currently underway and the transmission line is being built.
Airports will focus on developing the main and secondary components of the projects dry and wet area and setting up a temporary Pam.
Quarter of China cutting our polymer.
Of December of last year, we continued to implement environmental and social programs in the communities of <unk> and <unk>, which are located within the direct area of influence of the those channel cost mining deposit.
Despite these airports the presence of illegal miners within the <unk> area has prevented the praise from our dancing in this context. The company continues to take actions with the relevant authorities to regain control of the project area.
Accordingly, <unk> America also in Peru. This is.
This is a world class Greenfield mining project that we expect to produce 225000 tons of copper per year with an estimated investment of about $2 $5 billion a.
A comprehensive review of the geological information to estimate the project project mineral resources has been duly all of this in accordance with the SEC mining disclosure standards under regulation S. K 1300.
Subsequently the company intends to use this information to estimated mineral reserves and develop the corresponding mine plan.
Regarding environmental social and corporate governance or ESG practices.
The company in recognition of our efforts in the Mdx automation prevention are minimizing risk our buenavista mining Sonora.
Mexico as well as our <unk> mines in Peru received direct radiation from the corporate Mark for compliance with the global industry standard on tailings management set forth by the international currencies on mining and metals.
This accreditation guarantees that best international practices are follow to produce to.
Providing authorities the community neighboring our operations and all of our stakeholders with assurances that operations are safe.
For the Sx EW plant at the La Caridad unit in Sonora, Mexico. This unit has been awarded with the cash flow that plateau.
Silver helmet in the category of metallurgical plan with up to 500 workers business in recognition of its status as one of the country's safest operations. This recognition, which was better but the Mexican mining chamber, none is coming next.
It was.
Sure.
During the opening ceremony of the 36 International mining convention in Mexico.
And this attests to the company's commitment to risk prevention and employee safety.
In the case of the Peruvian branch Southern Peru.
West recognized by the Peruvian government as a mining company with the largest number of projects award under public works for taxes in 2025.
The company is currently rolling out foreign investments for a total of $28 million that would benefit more than 5000 people over time.
Corporate <unk> work on 40 projects through this mechanism and has invested more than $400 million in infrastructure to breach social gaps.
In 2025 also about 5000 residents benefit from the health campaigns conducting the communities near our remaining operations and projects in the Peruvian region sophomore Caillois at a keeper Apurimac and cahaba.
Teams of specialists in internal medicine ophthalmology and.
In gastroenterology among other disciplines visit communities to provide comprehensive medical care. This is on the nearby communities of our operations.
Regarding.
Dividends as you know it is the company policy to review, our cash position expected cash flow generation from operations.
Capital investment plan and other financial needs at each board meeting to determine the appropriate quarterly dividend.
Accordingly on January 22, 2026, Southern Copper Corporation announced a quarterly cash dividend of $1 per share of common stock and the stock dividend 0.008 shares of common stock for sure.
This is payable on February 27 of this year to shareholders of record at the close of business on February 10.
Yes.
Ladies and gentlemen, with these comments we end our presentation today. Thank you very much for joining us and now we will like to open the forum for questions.
Thank you as a reminder to ask a question. Please press star one one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one one again please.
Please stand by while we compile the Q&A roster.
Okay.
Our first question comes from the line of Timna Tanners from Wells Fargo.
Hey, good morning, everyone.
I wanted to start off with any updated thoughts on your cost guidance and how you're seeing that shape up in particular, given that currency inflation year in local currencies.
The dollar or any anything you can do to combat that.
<unk>.
Mhm.
Well.
We I think we have passed the most.
The worst part of the inflation that we have.
After COVID-19.
Mainly.
Our costs are.
Our.
Currently being more affected by currency appreciation for the peso and the Peruvian Sol done specific inflation from from.
Mexico <unk>.
Okay do you have any guidance on when we might see that costs before byproduct set up in the next quarter or the year ahead.
So sorry could you repeat it please.
Oh sure any guidance on how we could expect to see cost shaping up into the next quarter and a year.
Okay.
No.
For core operating costs, we believe it's going to be relatively flat.
On a per pound basis, since we will be producing a little bit less than last year.
It may have some some impact from that.
Then we have.
We have a very strong production of by products, which is something that was.
Consider as part of the as part of our mining operations for last year and this year. So so that is going to help us fill in the credits for sure.
Okay helpful. I'll ask one more and hand it off.
You know this past year, you started out with a lower guidance for silver production and at the end of the year were able to exceed your expectations.
<unk> silver and white hot any ability in light of these strong ties to maybe some more tonnes or ounces I should fans of silver in 2026 and your initial expectations.
Well, we're really gave a guidance on the silver production for this year.
Obviously, we would like to improve on that but at this point that that's basically what we are expecting it to.
It's in silver about 24 million ounces, one thing that we have done in 2025 and were still maintaining means that our new zinc concentrate are of winner of Easter.
That's had.
Has.
<unk> has a right to the mind of the sink area of the mine.
We have found the pocket or very good.
Ore grades for both zinc and silver and that has made us to focus these concentrator that can switch between copper and zinc to focus only on zinc. So that's that's one of the reasons why we have a much.
Stronger the silver production.
In last year regarding silver specifically in sync.
We're still working in that area so well.
That's why we're we were holding to.
Very good.
<unk> petition when production and hopefully could improve.
Okay. That's helpful. Thanks very much.
Sure, let me say that.
If we were to have the prices, we're having for silver.
This year.
<unk>.
The expectation of production that we have let's see where it may become ours our main byproduct.
Thank you. Our next question comes from the line of Emerson Deanna from Goldman Sachs.
Hi, guys. Thanks for the time I have a couple of questions.
First one on <unk>, just trying to understand her better.
And why molybdenum production in 2010 or six should decline.
I understand that you guys have been prioritized Lansing prediction.
Mr. Zinc concentrate are but that relationship also declined 10, 6%.
Just trying to understand here are the reasons for the declining market prediction for next year.
That's a good question and follow up with the remaining ones.
Okay on the on the molybdenum production, you mean that the production because it was a little bit comfortable when you speak of Emerson you meant our molybdenum production.
Yeah, I mean, yeah towards development that if all of us.
<unk> thousand six first of all kind of mix.
Where we're getting into some areas of the operations, where we have we.
We have a lower ore.
Great.
For both copper and molybdenum usefully molybdenum it should it could improve a little bit over.
Useful in this kind of a circumstance if we have a little bit more molybdenum, but at this point. This is what we are forecasting. So hopefully we will be we will be improving on whether I mentioned, that's our forecast towards the year.
Alright, and then second one on the Quad.
Concentrate or can you guys provide us the latest update here when expect.
There's going to be managing for instance.
Well, we havent.
We have to prepare all the all the information on the on a possible <unk> expansion.
And that has to be submitted to our board.
We haven't done it yet we're still working on that on this project.
We see it very profitability, but.
Need to finish our work and presented to the board for a decision.
Alright, and then the last one on Tia Maria.
The committed capex of $800 million.
It's roughly the entire amount.
Should this burst.
This year.
Trying to understand here.
About the timing of this.
I'm, so sorry Emerson.
There is some noise when you speak if you could you repeat it.
Okay.
Okay.
You guys mentioned that there is already $800 million of committed capex.
And that's roughly.
The amount you guys claim.
And this year.
So just trying to understand here the timing if this capex is more skewed towards.
The second half of this year and then in order to deliver the 30000 tons in 2027.
Concentration will be completed in the EUR estimates.
Okay.
As I say, we are we have the <unk>.
Commitments of about $800 million.
Those in terms of cash flow, we should be we should be spending a little bit north of $500 million five.
<unk> hundred $8 million with our current forecast.
Cash out during 2026 related to Cambodia.
Construction should be finished by the by the end of the first half of 2027.
And we are expecting to produce about 30000 tons in the second half of 2027, and then in 2008 unknown unknown at full speed of 120000 tons per year.
Alright.
Confirm my understanding here you mentioned that you expect.
Disbursed, a $500 million in Shanghai in 2010.
Yes.
That's why I say 500, then.
505.
<unk> hundred $8 million in our current markets.
And how does how does that compare to the roughly $900 million.
<unk> disclosed that in the.
Preliminary guidance.
The reason for it.
This cat and about half.
So sorry could.
Could you repeat it please.
Yes, I mean, you mentioned that.
You guys play into this but it's about $100 million.
In 2026, right, but looking at the company's presentation.
The prior guidance.
You mentioned that.
You would expect us to disburse, almost $900 million actually instead of the $500 million.
So just trying to understand.
We have a reason why lower spreads.
We did the when we put a specific purchase orders, which are the commitment of $800 million. We obtained bidder bidder payment terms that we were expecting initially and that's why we have a we have for these positive reduction in our cash out.
For next year in Tia Maria obviously, the budget Hasnt changed significantly. So so we will be spending that money in 2007, usually you kept.
A portion of your budget for final payments once the.
Vendors has or once you have.
Confirm that the equipment that you have to acquire are producing what was oh for the <unk>.
I'm of the same.
Alright, and then does that mean brining nanny postpone them.
<unk>.
The project started up right.
The cash flow that could be delayed by cost reduction.
Another place a faster pace, okay alright.
In line with our with our the pace of the investment we believe it's going to be finished.
As I T.
Basically the midpoint of our 2020, we should be.
<unk> material to the system of Tia Maria and start producing in the second half about I'd say about 30000 tons of refined copper for that year, and then 120000 tons, which is the full capacity of the project.
Okay. Thank you very much for help.
Welcome members.
Thank you one moment for our next question.
Our next question comes from the line of Alfonso Salazar from Scotiabank.
Yes, Hello and problems that they.
I have two questions. The first one is going back to the cash.
Cash cost question.
<unk> product correct me, if I'm wrong, but production close some 5% in 2026, then before by Publix, we should respect and increasing cash costs by like power.
See me that that number right.
And secondly, can you remind us how much of your costs.
In the Mexican.
The mines are in Mexican pesos and St. Paul from Suncor.
Peruvian mines.
In tonnage.
Just to have a sense on how much it could impact the other initiation of a.
A weakening U S dollar.
And the second question is regarding your long term production guidance.
If we look at it.
First of all it seems that these would be updated and generally the last night you or have you made in the website.
Just wanted to make sure that you have.
Any update call and we can continue to work with diesel.
Okay.
We are green, let me answer.
Answer your question first you did win.
Yeah.
In terms of yes, we are.
Having now a reduction in copper production this year, so that will increase.
Yes that one should have an impact in the range of 5% debt.
You mentioned four.
For our production.
We're doing two are taking certain initiatives for us to control.
Cost and possible reduce maintenance expenditures and contractor services.
It will do.
Peruvian and Mexican operations that should help in terms of cost control as you know, we're quite keen on maintaining costs too.
Under control.
The cash.
The cost Mexican pesos is 39% of our costs.
And the cost in Peruvian Sol is is 10% of our costs. So we have about 51% of our call.
In the U S dollar denominated.
Okay.
Okay.
The next bill yet, but that would be the guidance Jeff.
The guidance is.
Basically.
Okay.
Basically the call.
Updating it.
For for this year you already mentioned it's 911000.
<unk>.
For 2027, a little bit north of 900000 tonnes.
We're being affected by by lower ore grades at simultaneously pocket Pal and <unk> the case of the highlights.
Highlights of temporary or are you seeing that's why we are expecting this to correct over time in the case of core holding.
We are considering an expansion of the California operations. So we can bring back.
The lower production, there, where we're having given the current.
Installed capacity accordingly.
Or I'm going to give you the forecast for the next five years. So 911400 for this year.
A little bit north of.
900.
Alison about I believe about the same that where we're building towards <unk> in 2028, we will have the full year, yeah, Maria that we'll bringing 970000 pounds or.
Forecast.
In 2029 1.060 million tons in 2031 St.
Same number $1 million.
Around 116.
Uh huh.
Okay. Thank you.
Helpful and just one quick question.
Our previous guidance, we can see that we're not least thank god you got it.
Production in those two mines, where are you in a downtrend is that going to continue after 2030 or what are you expecting in these two months.
No we will be taking a different actions to two.
Put back on track our production on both sides.
In some cases.
Finding new reserves, which is very.
They are very likely to cut you out to a circumstance in.
In the case of winner of Easter. We May consider also an expansion of the capacity of the operation, but these are things that are still under review so no nothing that I.
Good report on that at this point.
Okay perfect. Thank you very much.
Yeah.
Thank you one moment for our next question.
Yeah.
Our next question comes from the line of David Fang from China International Capital Corporation Limited.
Hello, Hi, good morning, well Victor and team.
Congratulations on the strong results.
My first question is strong.
<unk> management per stock tests.
With a much stronger cash inflow based on current copper price.
Is it possible to bolster our growth plan with the extra cash.
Or is it more likely for you to increase the pull ourselves cash dividend overstock dividend I'll.
I'll come back with my second question.
I think.
In the case of <unk>, it's up to the board. The board has been increasing the cash portion of the dividend.
Prices are sold to.
<unk> are coming in and I guess that they may they may.
The increase of the cash.
First one of it if we have more.
Bidder better results, but that is up to them. So I can't comment on that to match.
Your next question please.
Okay. Thank you very much.
So my second question is with the much higher copper price.
For project site loss Shanghai.
On one hand, the higher price to allow you to leverage more resources to solve the issues related projects, but on the other hand, the higher prices also provide stronger incentives for.
Or illegal miners to continue or even a has their operations. So overall or does the higher copper price.
Make the project development, unlike for loss from Gus easier or more challenging. Thank you.
Okay.
Obviously, you want to have better prices in the works of course prices to more when we project that we have made these oil <unk> has been evaluated with the prices are significantly lower than the ones that we're seeing nowadays.
I think that.
In general.
We are we're happy of having a very good returns with the prices down I'd say, it's more like an average long term view for us.
In the cases this specific case hopeless chunk as we have had some progress.
We had some some.
Initiatives taken by the government they will be held.
Sort of illegal mining, but so far we have we haven't we don't have much to report at this point we.
We believe that the government the Peruvian government would take action.
Although the company to move on with these important projects.
Understood that's really helpful.
Hmm.
Okay, one moment for our next question.
Okay.
Yeah.
Our next question comes from the line of Mattel's Mario <unk> from Bradesco <unk>.
Yeah. Thank you good morning, all and thank you for taking my questions.
My first question is on on the copper market I just wanted to get your overall view on copper market.
We had been seeing of course, the very supportive price environment for corporate ride with prices holding up near historical highs.
However, demand in China appears to be deteriorating at a relatively fast pace right. So just wanted to see.
How do you view these dynamics going forward do you expect that the current price momentum to be sustained. So that's my first question and then I'll come back for the second one.
Okay on the copper market, we are expecting a deficit.
We are expecting a deficit on the market.
Uh huh.
And.
But.
320000 tons so.
Our current view of our commercial team in terms of price it's hard to know.
We have seen that.
The corporate demand is being hold by.
Electric vehicles are.
Artificial intelligence power centers.
And at the same time, we see that.
Well do it.
In several places, particularly in China, the real estate market is not doing well so.
That those are the factors, we were not forecasting copper prices that is not our business or our businesses too to focus on controlling cost and producing as much copper as we can on that.
Competitive space and we tie returns for our shareholders that's our business.
Okay perfect. That's clear and then my second question on the one obvious the concentrator.
I mean I understand you you continue to prioritize zinc production of copper.
Given the stronger zinc grades in the areas that you're currently mining.
Should we expect this strategy to remain in place for 2026.
Especially considering these copper prices at these levels and maybe the question here is there any copper price level.
Had devised you to shift back your production towards copper.
Okay.
After four no neutral for everybody of the call, we do have to concentrate or.
In Buena Vista, one of the.
Yeah.
The concentrate or that it's.
That's our producing with pure copper.
Our copper concentrate or <unk>.
And the other one is.
There is a one zinc zinc concentrated or can switch between zinc and copper in this case, we did an analysis a third important at the beginning of the year as we did prices that we have got and the prices are still holding in terms in royalty.
It turns between the same silver and copper and we found that it was still in the best interest of the.
The company and our shareholders to focus on zinc production.
More with more.
Silver content coming with the sink.
Just to be.
Clear, we do have to concentrate or that produce that are copper concentrate also on one think concentrate I believe that.
Just skip that when I explained this matter so.
We're doing this on a call Oh no no no.
Ongoing basis, if there is a significant change in the relative prices between <unk> silver and copper, we will review, our our strategy, but for now on particularly on the areas that we are at the sink.
Production areas of the mine would have Easter.
It still makes sense to be producing silver and zinc.
Rather than copper, but if they are okay.
We'll do it.
In a way that we produce the best value.
For our shareholders in the Corporation.
Okay perfect that's very clear thank you.
Yes.
Thank you one moment for our next question.
Our next question comes from the line of Alex hacking from Citi.
Yeah, Hi role I just have one question could you maybe discuss the cadence of your copper production next year should we expect.
<unk> to be the strongest.
And <unk> to be the weakest with grades in Peru.
Kind of falling through the year or it's going to be more even than that thank you.
Going to be more even Alex we will be reporting on that.
Basically we're getting into a low low.
Great.
Patch for took upon.
<unk> is more or less stay.
<unk>.
The level that it is.
Now and the reason for that is that.
<unk> has.
A new structural or grades which is lower and that's why we're considering an expansion on this operation.
Yeah.
Thank you.
Youre welcome.
Thank you one moment for our next question.
Our next question comes from the line of Myles Alsop from UBS.
Great. Thank you.
Shinji and some numbers just maybe on Tia Maria to start with.
How what is the lead time to an Sx EW.
Operation.
And what do you see as the key risks in terms of achieving.
The timeline.
Production mid 2027.
Yeah.
Okay.
Well.
We do have.
About five.
Sx EW operations here in the company.
Currently that are that we're working with them, obviously, where we have selected the newest and best to technology that is available for Sx EW operations right now.
No basically we are expecting to have the full plan to assembly and in operation at the second half of 2027, Thats, a little bit more than a year from now.
We think that.
Well at this point, we don't want to have any delays on getting the production that we're looking for 2027, there were expectations is to have everything assemble.
And ready to initiate the tests.
By May or June of 2027.
With that.
Occurring we will be we will be putting charge in the equipment and you start producing.
The refined copper, which is the final protocol and the <unk> operation.
Okay.
It does help us see.
So it moved on the ground I mean, there's a few small price and so I think in December some more planned for March.
Ahead of the elections I mean, what's the sense on the ground in terms of going full steam ahead with the project.
You mean on the Peruvian elections.
It would be around <unk>.
Obviously stepping up production aggressively given what happened last time and the disruption you suffered.
No. We believe that the work we're doing with the local groups the population in the area.
Well, we mentioned that we have our initial expectation was to have about 3500 the workers.
Tia Maria now we do have more than 300 589 jobs have been created we believe that the right number now it's more in the range of of having 5000 workers workers when the.
The project is a true full speed in terms of construction.
This has been very well received by the local population I think we we made at the points that these break now it's going to be a program for them, but a big opportunity for the.
People of the province of her to keep her and what we're seeing is that the end and these are focusing them on getting.
Either.
Europe opportunity or a business opportunity.
Added to the company or the programs that the company has as I mentioned.
Mentioned the company has been investing using the tax for the tax for works mechanism.
Peru.
<unk> $400 million has been invested in that.
Using this mechanism glass all the other programs that the company have so I believe that.
We're bringing in good news to the population and the locals are understanding that correctly.
That's encouraging.
Just a couple of other small questions in terms of percentage of Comex sales.
Has that changed meaningfully since last year or is it broadly unchanged.
We don't make comments on that and so sorry.
Okay. Maybe last question and then just on Mexico, and the ability to get licenses to move projects forward.
I see.
D atmosphere improved is it looking more probable we will see investment in the mining industry in Mexico being announced during 2026.
We're seeing a better generally speaking a better environment.
In our relationship with the Mexican government.
And I think this is going to be also reflected in the speed that we can move on with projects, but so far there is nothing specific to report.
Does it have any open pit its been approved.
Over the last 12 months over the last few years.
I'm, so sorry, couldnt get which is.
Any open pit projects being approved in Mexico over the last few years.
Well there are some projects that has been moving along and we have our own of <unk> loans from other projects.
We will keep working on them, but so far on this matter I'm gonna where projects we have no not much to report at this point.
Okay. Thank you.
You're welcome.
Thank you at this time I'm showing no further questions I would now like to turn the conference back over to Mr. Raul Jacob for closing remarks.
Thank you very much.
This will conclude our conference call for southern Copper's fourth quarter of 2025 and full year results.
We certainly appreciate your participation and hope to have to back with us when we report the first quarter of this year 2026 results.
Thank you very much for being with us today and have a nice day.
This concludes today's conference call. Thank you for participating you may now disconnect.
