Southern Copper Corp.

What it is

Southern Copper is one of the world’s largest copper mining companies by production and sales, with principal operations in Peru and Mexico. It mines copper from open pits, then smelts and refines the metal into finished product — owning the full chain from rock to refined cathode.

The company is an integrated producer of copper and other minerals, operating mining, smelting, and refining facilities in both countries. In Peru it runs the Toquepala and Cuajone mines plus the Ilo refinery; in Mexico, the giant Buenavista and La Caridad operations.

Who owns it

Grupo México owned 88.9% of the company’s capital stock as of the latest filing, leaving a free float of roughly 11%. Germán Larrea Mota-Velasco has been Chairman since 1999, previously serving as CEO from 1999 to 2004; he also chairs Grupo México itself.

Grupo México controls Southern Copper through its mining holding arm, Americas Mining Corporation. The Larrea family’s grip on the company — nearly nine-tenths of shares — means ordinary shareholders ride along with, not alongside, the controlling group’s decisions.

Who runs it

Oscar González Rocha, who had led the company for over two decades, passed away unexpectedly; on April 23, 2026, the Board appointed Leonardo Contreras Lerdo de Tejada as Chief Executive Officer. Raúl Jacob serves as Vice President of Finance, Treasurer, and Chief Financial Officer, a role he has held since the early 1990s.

The leadership change is the most significant internal event in a generation for this company. Contreras remains a board member alongside his new executive role.

The money, in plain words

In 2024, the company reported net sales of $11.43 billion and net income of $3.39 billion — meaning it kept nearly 30 cents of profit from every dollar of revenue, a net profit margin of 29.5% (our calculation) that most industrial companies would not dare to dream about.

Sales rose 15.5% from 2023 (our calculation: $11.43bn vs $9.90bn), driven by higher copper prices and more metal in the ground being turned into output. Total copper production increased 6.9% year-on-year to 973,851 tonnes, with growth coming from both its Peruvian operations (+10.7%) and Mexican operations (+4.3%).

For every dollar shareholders own in the business, the company earns back about 37 cents a year — a return on equity of 36.6% (our calculation), a genuinely exceptional figure for a capital-heavy miner. At roughly 42.6 times annual earnings (our calculation), the market is paying a premium that reflects both the quality of the business and investors’ long-run bet on copper demand.

What it is doing now

The biggest single story is the $1.8 billion Tía María copper project in Peru’s Arequipa region, which has consumed more than two decades of effort. The exploitation permit was voided in March 2026, then reissued in April 2026 — despite the mine being 23% built and targeting 120,000 tonnes of copper per year by early 2027.

As of March 31, 2026, the company had committed $948 million to the project, and earthmoving works had already moved 7.5 million tonnes of material from the La Tapada deposit. Operations are now expected to begin in Q3 2027.

Beyond Tía María, Southern Copper is also developing the Los Chancas and Michiquillay projects in Peru, as part of a planned $10.3 billion investment over the next decade.

What to watch

• Tía María regulatory risk. With 200–400 permits, roughly 30 authorities, and 5–15 year timelines now typical in Peru, operators must price in abrupt legal reversals even after construction approval. The permit was revoked and reissued within five weeks in 2026 — that pace of regulatory reversal is the central risk for this project.
• CEO transition. Oscar González Rocha’s sudden passing ends a long era of operational continuity. Markets will watch whether Leonardo Contreras Lerdo de Tejada maintains the same discipline on costs and capital allocation.
• Copper price leverage. The profitability of operations is heavily dependent on international market prices for copper, molybdenum, zinc, and silver. At a 29.5% net margin, even a modest copper price slide cuts earnings sharply.
• Grupo México concentration. With 88.9% in one family group’s hands, minority shareholders have limited ability to shape strategy — related-party transactions and capital allocation decisions warrant close reading.

This is news, not investment advice.