Southern Copper Cuts Net Cash Cost to $0.58 via 36% Zinc Surge
FCX•In 2025, Southern Copper's zinc production jumped 36% year-over-year thanks to the new Buenavista zinc concentrator, boosting by-product revenue credits by $0.34 per pound and lowering copper net cash cost to $0.58 per pound. Management expects copper output to fall 4.7% next year but zinc gains will offset margin pressure.
1. Zinc Production Surge
In 2025, Southern Copper increased mined zinc output by 36% year-over-year, driven largely by commissioning the Buenavista zinc concentrator which targeted high-grade zinc and silver ore pockets.
2. Impact on Copper Costs
The zinc boost raised by-product revenue credits by $0.34 per pound, cutting the company's net cash cost of copper to $0.58 per pound, enhancing profitability despite broader commodity price volatility.
3. Outlook for Copper Output
Management forecasts a 4.7% decline in copper production next year due to lower ore grades at Peruvian mines but plans to leverage by-product contributions to sustain margins.
