Southern Copper’s (SCCO) Cost Reductions Payoff as Net Income Grows

Southern Copper Corporation (NYSE:SCCO) is one of the best copper stocks to buy according to hedge funds. On July 30, the company reported mixed second-quarter 2025 results. While sales were down year-over-year, attributed to lower copper prices, the company posted a modest net income growth.

Net sales for the quarter decreased 2% to $3.05 billion, primarily due to lower copper prices. However, the company delivered a 2% increase in net income to $973 million, affirming a solid cost structure and improved operational efficiency.

Southern Copper achieved a 3% reduction in operating costs to $1.46 billion as cash cost per pound of copper fell 17% to $0.63. Copper production in the quarter was down 1% year-over-year to 238,980 tons. Molybdenum production increased by 4% to 7,919 tons, as zinc production rose 56% to 45,899 tons.

The company has also initiated an ambitious capital investment program designed to enhance production capacity. The board has already approved some projects expected to add 156,000 tons of copper production. The projects include the Tía María project in Peru, with a 120,000-ton copper capacity, and Michiquillay in Peru, with a 225,000-ton copper capacity.

Southern Copper Corporation (NYSE:SCCO) is a mining company focused on copper production. It also produces other metals like molybdenum, silver, and zinc. The company operates mines, smelting, and refining facilities, primarily in Peru and Mexico.

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Disclosure: None. This article is originally published at Insider Monkey.