Southern Copper Corporation: 2Q in line; Tia Maria & El Pilar progressing

研报英文原文证据摘录

Southern Copper Corporation: 2Q in line; Tia Maria & El Pilar progressing

Global Research

22 July 2026ab

Southern Copper Corporation Equities

Peru2Q in line; Tia Maria & El Pilar progressing

Mining

12-month rating Sell

Another solid quarter; projects appear to be progressing (incl El Pilar)

SCC delivers another solid quarter operationally and financially with 2Q26 copper 12m price target US$160.00

production (~231kt) and EBITDA (~US$2.9b) in line with consensus (Figure 1SCoverviewof2Q26financials,US$mC:overviewof4Q25financials,US$m); lower Cu

production in Peru (-12% q/q) due to grade is largely offset by higher production in

Price (21 Jul 2026) US$188.01

Mexico (+3% q/q); gross unit costs are down slightly q/q (due to one-offs in 1Q) despite

softer volumes q/q and net unit costs remain low due to elevated by-product prices (Ag, RIC: SCCO.N BBG: SCCO US

Mo, Zn). SCCO reassures Tia Maria is still on track for first production in 2H27 (now 42%

Trading data and key metrics

complete, up from 33% in 1Q26); SCCO now expects to start site prep work at El Pilar

52-wk range US$218.85-90.54

(36kt Cu) in Sept-26, We have a Sell rating on the stock due to valuation (~15x 2027E

EV/EBITDA) and as we expect copper prices to consolidate near term though recognise Market cap. US$154b

some of the stock-specific challenges appear to have subsided (Peru election risk, Tia Shares o/s 822m (COM)

Maria construction, new CEO/ governance); we remain positive on the medium-term Free float 11%

fundamental outlook for copper based on supply constraints vs resilient demand (note). Avg. daily volume ('000) 381

We expect no material change to our forecasts from 2Q results. The conference call is at Avg. daily value (m) US$68.7

11am EST on 22 July (link). Common s/h equity (12/26E) US$14.2b