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RIO vs. SCCO: Which Mining Stock Has Better Growth Prospects?
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Key Takeaways
RIO posted 9% YoY copper output growth in Q1 2026, driven by Oyu Tolgoi ramp-up and Kennecott gains.
SCCO plans $20.5B investment in Peru and Mexico, with major copper projects slated through 2032.
RIO advances lithium, gallium and green aluminum projects, while SCCO faces rising costs.
Rio Tinto Group (RIO - Free Report) and Southern Copper Corporation (SCCO - Free Report) are major players in the Zacks Mining - Miscellaneous industry. Both companies are focused on the extraction of minerals, including copper, iron, zinc, etc. Rio Tinto is headquartered in the United Kingdom, while SCCO is based in Phoenix, AZ.
Both companies are engaged in capital-intensive mining businesses that require long-term project development, regulatory approvals and hefty investment in infrastructure and technology. Let’s take a closer look at their fundamentals, growth prospects and challenges.
The Case for RIO
The company delivered solid growth in copper production in the first quarter of 2026. Per the production results, RIO’s consolidated copper output rose 9% year over year in the quarter. The results were supported by the solid ramp-up at the Oyu Tolgoi site and strong performance at the Kennecott mine.
Rio Tinto Group continues to make progress across its project pipeline. The company achieved its first copper output at the Johnson Camp mine in Arizona in December 2025 using its proprietary Nuton technology. This milestone highlights Nuton’s ability to deliver cleaner, faster and more efficient copper recovery at a commercial scale.
The Johnson Camp deployment includes the design and delivery of a heap leach technology package, targeting approximately 30,000 tons of refined copper over a four-year demonstration period. RIO plans to use Nuton technology to produce copper at this site with the lowest carbon emissions in the US.
Also, the company is actively collaborating with U.S. customers to strengthen the domestic copper supply. In 2026, the company expects its copper production to be 800-870 kt.
In the first quarter, RIO’s iron ore operations in the Pilbara facility showed improvement, with production rising 9% from the previous year. The aluminum production also delivered encouraging results. RIO’s aluminum output rose 1% in the quarter, on a year-over-year basis, as refinery and smelter operations improved.
In April 2026, Rio Tinto installed a new alumina conveyor at its BC Works smelter in Kitimat. The 1.1-km sealed system will carry around 800,000 tonnes of alumina each year and will reduce emissions by 40%.
In March 2026, Rio Tinto announced its plans to extract gallium from its alumina refining process in Quebec. After producing its first gallium with Indium Corp. in 2025, the company plans to build a pilot plant in Canada, which is expected to begin operations in 2027. The project has received conditional funding support from Natural Resources Canada and the Government of Québec. If scaled to commercial production, the facility could produce about 40 tons of gallium annually.
Also, in January 2026, Rio Tinto and Aluminum Corporation of China Limited (Chalco) entered into a deal to acquire Votorantim’s controlling stake in Brazilian aluminium company CBA through a joint venture. The joint venture will be owned 33% by Rio Tinto and 67% by Chalco. The deal will help RIO to expand its green aluminium footprint and strengthen its supply chain.
Several major growth projects of the company are progressing as well. In March 2026, Rio Tinto secured a $1.175 billion financing package from International Finance Corp., IDB Invest, Export Finance Australia and Japan Bank for International Cooperation to support the development of the $2.5 billion Rincon lithium project in Salta Province, Argentina. The project is expected to produce about 60,000 tons of battery-grade lithium carbonate annually, with first production expected in 2028 and a 40-year mine life.
Despite the overall solid performance, the company has faced some challenges and certain headwinds in early 2026. Weather-related disruptions in March 2026 affected iron ore shipments. Planned maintenance activities at some copper mining projects temporarily reduced output, while cost pressures from inflation and higher sustaining capital spending impacted margins.
The Case for SCCO
Southern Copper plans to invest more than $20.5 billion this decade, with most of it focused on Peru as the country is the world’s second-largest copper producer. This includes investments in Tia Maria - Arequipa, Los Chancas - Apurimac and Michiquillay - Cajamarca projects in Peru. The company’s Tia Maria project, with an annual capacity of 120,000 tons of SX- EW copper cathodes, is expected to start in 2027. This project will use state-of-the-art SX-EW technology with the highest international environmental standards. Peru’s Los Chancas project is slated to add 130,000 tons of copper starting in 2031. This will be followed by Michiquillay in 2032 with an expected 225,000 tons of copper. Michiquillay is expected to become one of Peru's largest copper mines with an expected mine life of more than 25 years.
In Mexico, the El Pilar project is expected to contribute around 36,000 tons of copper cathodes annually. Its operation is expected to start in 2028 and the facility will use highly cost-efficient and environmentally friendly SX-EW technology.
By 2030, El Arco in Mexico is expected to become operational. It is a world-class copper deposit located in the central part of the Baja California peninsula with ore reserves of more than 1,230 million tons with an average ore grade of 0.40% and 141 million tons of leach material with an average ore grade of 0.27%. The project includes an open-pit mine with a combined 120 ktpd concentrator and 28 ktpy SX-EW operations. The company also has several projects in its pipeline in Mexico, such as Angangueo, Chalchihuites and the Empalme Smelter, which could solidify its position as a fully integrated copper producer.
However, Southern Copper’s total operating costs rose 9% year over year in 2025 due to an increase in other costs of sales, including workers’ participation, repairing materials (mainly heavy equipment spare parts), inventory variance and exchange rate variance.
Also, high labor costs, along with ongoing inflation for repair materials, operating materials, inventory consumption, operation contractors and services, will likely continue to weigh on SCCO’s margins.
How Does the Zacks Consensus Estimate Compare for RIO & SCCO?
The Zacks Consensus Estimate for RIO’s 2026 sales implies a year-over-year increase of 12.8%, while the same for earnings per share (EPS) indicates growth of 25.6%. The company’s EPS estimates have increased 3.9% over the past 60 days for 2026.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for SCCO’s 2026 sales and EPS implies year-over-year growth of 15.6% and 29.6%, respectively. The company’s EPS estimates for 2026 have increased 6.8% over the past 60 days.
Image Source: Zacks Investment Research
Price Performance and Valuation of RIO & SCCO
In the past six months, RIO’s shares have risen 38.3%, while SCCO stock has surged 30.4%.
Image Source: Zacks Investment Research
Rio Tinto is trading at a forward 12-month price-to-earnings ratio of 2.04X while Southern Copper’s forward earnings multiple sits at 9.86X.
Image Source: Zacks Investment Research
Final Take
Rio Tinto and Southern Copper are well placed to capitalize on long-term growth in the copper market, backed by strong asset portfolios and expanding production pipelines. RIO’s near- to mid-term prospects are supported by increasing copper output, progress at the Nuton-driven Johnson Camp project and its diversified presence in iron ore and aluminum, while Southern Copper’s growth outlook is anchored in a solid pipeline of large-scale projects expected to come online over the next decade.
However, Rio Tinto’s attractive valuation makes it a better pick for investors than Southern Copper currently. Also, RIO stock outperformed SCCO in the past six months, reflecting stronger investor confidence. Both companies currently have a Zacks Rank #3 (Hold).
View the Zacks #1 Rank List
Image: Bigstock
RIO vs. SCCO: Which Mining Stock Has Better Growth Prospects?
Key Takeaways
Rio Tinto Group (RIO - Free Report) and Southern Copper Corporation (SCCO - Free Report) are major players in the Zacks Mining - Miscellaneous industry. Both companies are focused on the extraction of minerals, including copper, iron, zinc, etc. Rio Tinto is headquartered in the United Kingdom, while SCCO is based in Phoenix, AZ.
Both companies are engaged in capital-intensive mining businesses that require long-term project development, regulatory approvals and hefty investment in infrastructure and technology. Let’s take a closer look at their fundamentals, growth prospects and challenges.
The Case for RIO
The company delivered solid growth in copper production in the first quarter of 2026. Per the production results, RIO’s consolidated copper output rose 9% year over year in the quarter. The results were supported by the solid ramp-up at the Oyu Tolgoi site and strong performance at the Kennecott mine.
Rio Tinto Group continues to make progress across its project pipeline. The company achieved its first copper output at the Johnson Camp mine in Arizona in December 2025 using its proprietary Nuton technology. This milestone highlights Nuton’s ability to deliver cleaner, faster and more efficient copper recovery at a commercial scale.
The Johnson Camp deployment includes the design and delivery of a heap leach technology package, targeting approximately 30,000 tons of refined copper over a four-year demonstration period. RIO plans to use Nuton technology to produce copper at this site with the lowest carbon emissions in the US.
Also, the company is actively collaborating with U.S. customers to strengthen the domestic copper supply. In 2026, the company expects its copper production to be 800-870 kt.
In the first quarter, RIO’s iron ore operations in the Pilbara facility showed improvement, with production rising 9% from the previous year. The aluminum production also delivered encouraging results. RIO’s aluminum output rose 1% in the quarter, on a year-over-year basis, as refinery and smelter operations improved.
In April 2026, Rio Tinto installed a new alumina conveyor at its BC Works smelter in Kitimat. The 1.1-km sealed system will carry around 800,000 tonnes of alumina each year and will reduce emissions by 40%.
In March 2026, Rio Tinto announced its plans to extract gallium from its alumina refining process in Quebec. After producing its first gallium with Indium Corp. in 2025, the company plans to build a pilot plant in Canada, which is expected to begin operations in 2027. The project has received conditional funding support from Natural Resources Canada and the Government of Québec. If scaled to commercial production, the facility could produce about 40 tons of gallium annually.
Also, in January 2026, Rio Tinto and Aluminum Corporation of China Limited (Chalco) entered into a deal to acquire Votorantim’s controlling stake in Brazilian aluminium company CBA through a joint venture. The joint venture will be owned 33% by Rio Tinto and 67% by Chalco. The deal will help RIO to expand its green aluminium footprint and strengthen its supply chain.
Several major growth projects of the company are progressing as well. In March 2026, Rio Tinto secured a $1.175 billion financing package from International Finance Corp., IDB Invest, Export Finance Australia and Japan Bank for International Cooperation to support the development of the $2.5 billion Rincon lithium project in Salta Province, Argentina. The project is expected to produce about 60,000 tons of battery-grade lithium carbonate annually, with first production expected in 2028 and a 40-year mine life.
Despite the overall solid performance, the company has faced some challenges and certain headwinds in early 2026. Weather-related disruptions in March 2026 affected iron ore shipments. Planned maintenance activities at some copper mining projects temporarily reduced output, while cost pressures from inflation and higher sustaining capital spending impacted margins.
The Case for SCCO
Southern Copper plans to invest more than $20.5 billion this decade, with most of it focused on Peru as the country is the world’s second-largest copper producer. This includes investments in Tia Maria - Arequipa, Los Chancas - Apurimac and Michiquillay - Cajamarca projects in Peru. The company’s Tia Maria project, with an annual capacity of 120,000 tons of SX- EW copper cathodes, is expected to start in 2027. This project will use state-of-the-art SX-EW technology with the highest international environmental standards. Peru’s Los Chancas project is slated to add 130,000 tons of copper starting in 2031. This will be followed by Michiquillay in 2032 with an expected 225,000 tons of copper. Michiquillay is expected to become one of Peru's largest copper mines with an expected mine life of more than 25 years.
In Mexico, the El Pilar project is expected to contribute around 36,000 tons of copper cathodes annually. Its operation is expected to start in 2028 and the facility will use highly cost-efficient and environmentally friendly SX-EW technology.
By 2030, El Arco in Mexico is expected to become operational. It is a world-class copper deposit located in the central part of the Baja California peninsula with ore reserves of more than 1,230 million tons with an average ore grade of 0.40% and 141 million tons of leach material with an average ore grade of 0.27%. The project includes an open-pit mine with a combined 120 ktpd concentrator and 28 ktpy SX-EW operations. The company also has several projects in its pipeline in Mexico, such as Angangueo, Chalchihuites and the Empalme Smelter, which could solidify its position as a fully integrated copper producer.
However, Southern Copper’s total operating costs rose 9% year over year in 2025 due to an increase in other costs of sales, including workers’ participation, repairing materials (mainly heavy equipment spare parts), inventory variance and exchange rate variance.
Also, high labor costs, along with ongoing inflation for repair materials, operating materials, inventory consumption, operation contractors and services, will likely continue to weigh on SCCO’s margins.
How Does the Zacks Consensus Estimate Compare for RIO & SCCO?
The Zacks Consensus Estimate for RIO’s 2026 sales implies a year-over-year increase of 12.8%, while the same for earnings per share (EPS) indicates growth of 25.6%. The company’s EPS estimates have increased 3.9% over the past 60 days for 2026.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for SCCO’s 2026 sales and EPS implies year-over-year growth of 15.6% and 29.6%, respectively. The company’s EPS estimates for 2026 have increased 6.8% over the past 60 days.
Image Source: Zacks Investment Research
Price Performance and Valuation of RIO & SCCO
In the past six months, RIO’s shares have risen 38.3%, while SCCO stock has surged 30.4%.
Image Source: Zacks Investment Research
Rio Tinto is trading at a forward 12-month price-to-earnings ratio of 2.04X while Southern Copper’s forward earnings multiple sits at 9.86X.
Image Source: Zacks Investment Research
Final Take
Rio Tinto and Southern Copper are well placed to capitalize on long-term growth in the copper market, backed by strong asset portfolios and expanding production pipelines. RIO’s near- to mid-term prospects are supported by increasing copper output, progress at the Nuton-driven Johnson Camp project and its diversified presence in iron ore and aluminum, while Southern Copper’s growth outlook is anchored in a solid pipeline of large-scale projects expected to come online over the next decade.
However, Rio Tinto’s attractive valuation makes it a better pick for investors than Southern Copper currently. Also, RIO stock outperformed SCCO in the past six months, reflecting stronger investor confidence. Both companies currently have a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.