Southern Copper Corporation

Net sales are driven almost entirely by LME/COMEX-referenced copper prices with no long-term contracts, backlog, or recurring revenue base. Revenue ranged between $9.9B (FY2023) and $13.4B (FY2025) within a single copper price cycle, and government-mandated production halts in Peru and Mexico further disrupted volumes in FY2020.

Copper accounts for approximately 75% of net sales (Q4 FY2025), with molybdenum (approximately 8%), silver (approximately 9%), and zinc (approximately 4%) providing partial offset. All products originate from the same mining operations, limiting true portfolio independence from a single commodity complex.

All mining, smelting, and refining facilities are located in Peru and Mexico, with neither country below roughly 40% of production; both share similar Latin American political and permitting risk profiles. No revenue exposure exists outside the region, and exploration activities remain in the same geographic cluster of Peru, Mexico, Argentina, and Chile.

Fixed-cost mine infrastructure provides some operating leverage when metal prices rise, illustrated by EBITDA margin holding near 56-58% across FY2024-FY2025. Each major production increment requires multi-billion-dollar greenfield investment, as demonstrated by the $1.8B Tia Maria and $2.5B Michiquillay projects currently in the development pipeline.

Copper and by-products are sold at prevailing spot market prices to industrial buyers with no contracted volumes, customer lock-in, or switching friction. All revenue is transactional in nature; the products are exchange-traded commodities, making revenue fully dependent on global price cycles.