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Can Southern Copper's Peru Projects Drive Long-Term Output Growth?
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Key Takeaways
Southern Copper's three major Peruvian projects represent a combined investment of $10.3B.
Tia Maria is 49.6% complete and targets an H1'28 start-up with an annual capacity of 120,000 tons.
Los Chancas, Michiquillay and Cuajone projects may support output growth toward 1.6 million tons by 2033-2034.
Southern Copper Corporation (SCCO - Free Report) is advancing projects that support its long-term production targets in Peru.
Southern Copper is collaborating with Peru's government to drive economic and social progress. This will be achieved by advancing the company’s Peruvian projects, Tía María, Los Chancas and Michiquillay, which represent a total investment of $10.3 billion.
SCCO expects to spend $1.8 billion on the Tia Maria project located in the Peruvian region of Arequipa, which is designed to produce 120,000 tons of copper cathodes per year. As of Sept. 30, 2026, it was 49.6% complete, with $884.3 million invested and $1.10 billion committed. Major earthworks have finished, and electrical and processing facilities are progressing. The company targets start-up for the first half of 2028.
Southern Copper expects to invest $2.6 billion in the Los Chancas, which is expected to produce 130,000 tons of copper and 7,500 tons of molybdenum annually from 2031. The company’s Michiquillay mine requires $2.5 billion in investment and expects to produce 225,000 tons of copper annually from 2032 over an initial mine life exceeding 25 years.
The company is also adding an expansion of the Cuajone operation to its Peruvian operations project pipeline. This is expected to maintain and potentially increase production levels for the Cuajone operation. Cuajone expansion studies envisage 55,000 tons of copper and 1,400 tons of molybdenum annually at $680 million in costs.
Along with its Mexican operations, the Peru project gives Southern Copper multiple sources of organic production growth beyond current mine grades. Moreover, these developments provide tangible milestones for the company’s broader expansion program across both operating countries over time. Southern Copper maintains a strong long-term outlook, with production expected to increase to 1.6 million tons by 2033 or 2034.
Project Updates of Southern Copper Peers
Freeport-McMoRan Inc. (FCX - Free Report) is advancing the permitting process for a significant expansion opportunity to include a major mill facility at El Abra in Chile that could potentially support a major mill project similar to the large-scale concentrator at Cerro Verde, with an estimated resource of approximately 20 billion recoverable pounds of copper. Freeport-McMoRan expects the expansion to result in the addition of more than 700 million pounds of copper production annually.
Freeport-McMoRan has a strong liquidity profile and generates substantial cash flows, providing ample flexibility to fund expansion projects, reduce debt and enhance shareholder returns.
Teck Resources Ltd (TECK - Free Report) continues to advance projects toward sanction readiness while prioritizing Quebrada Blanca and the Highland Valley Copper Mine Life Extension. Highland Valley construction progressed in the third quarter of 2026. The project is expected to extend mine life to 2046 and support average annual copper production of about 132,000 tons.
Teck Resources maintains its 2026 copper production guidance of 455-530 thousand tons, whereas it produced 453.5 thousand tons in 2025. This will be driven by higher output at QB, Highland Valley Copper and Antamina. Teck Resources’ long-term outlook for copper is positive as demand is expected to grow, partly driven by electric vehicles, renewable energy and infrastructure investments.
SCCO’s Price Performance, Valuations & Estimates
Southern Copper shares have gained 24.6% in a year compared with the Zacks Mining - Non Ferrous industry’s rise of 18.9%. During this time, the Basic Materials sector has risen 12.6% and the S&P 500 has returned 9.3%.
Image Source: Zacks Investment Research
The Southern Copper stock is currently trading at a forward 12-month earnings multiple of 21.77X, which is a premium to the industry average of 18.99X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Southern Copper’s 2026 sales is $17.78 billion, indicating a 32.4% year-over-year jump. The consensus mark for the year’s earnings is pegged at $8.01 per share, suggesting a rally of 53%.
The Zacks Consensus Estimate for 2027 sales implies a 1.5% year-over-year dip. The same for earnings suggests a fall of 2.7%.
Earnings estimates for 2026 and 2027 have moved up over the past 60 days.
View the Zacks #1 Rank List
Image: Bigstock
Can Southern Copper's Peru Projects Drive Long-Term Output Growth?
Key Takeaways
Southern Copper Corporation (SCCO - Free Report) is advancing projects that support its long-term production targets in Peru.
Southern Copper is collaborating with Peru's government to drive economic and social progress. This will be achieved by advancing the company’s Peruvian projects, Tía María, Los Chancas and Michiquillay, which represent a total investment of $10.3 billion.
SCCO expects to spend $1.8 billion on the Tia Maria project located in the Peruvian region of Arequipa, which is designed to produce 120,000 tons of copper cathodes per year. As of Sept. 30, 2026, it was 49.6% complete, with $884.3 million invested and $1.10 billion committed. Major earthworks have finished, and electrical and processing facilities are progressing. The company targets start-up for the first half of 2028.
Southern Copper expects to invest $2.6 billion in the Los Chancas, which is expected to produce 130,000 tons of copper and 7,500 tons of molybdenum annually from 2031. The company’s Michiquillay mine requires $2.5 billion in investment and expects to produce 225,000 tons of copper annually from 2032 over an initial mine life exceeding 25 years.
The company is also adding an expansion of the Cuajone operation to its Peruvian operations project pipeline. This is expected to maintain and potentially increase production levels for the Cuajone operation. Cuajone expansion studies envisage 55,000 tons of copper and 1,400 tons of molybdenum annually at $680 million in costs.
Along with its Mexican operations, the Peru project gives Southern Copper multiple sources of organic production growth beyond current mine grades. Moreover, these developments provide tangible milestones for the company’s broader expansion program across both operating countries over time. Southern Copper maintains a strong long-term outlook, with production expected to increase to 1.6 million tons by 2033 or 2034.
Project Updates of Southern Copper Peers
Freeport-McMoRan Inc. (FCX - Free Report) is advancing the permitting process for a significant expansion opportunity to include a major mill facility at El Abra in Chile that could potentially support a major mill project similar to the large-scale concentrator at Cerro Verde, with an estimated resource of approximately 20 billion recoverable pounds of copper. Freeport-McMoRan expects the expansion to result in the addition of more than 700 million pounds of copper production annually.
Freeport-McMoRan has a strong liquidity profile and generates substantial cash flows, providing ample flexibility to fund expansion projects, reduce debt and enhance shareholder returns.
Teck Resources Ltd (TECK - Free Report) continues to advance projects toward sanction readiness while prioritizing Quebrada Blanca and the Highland Valley Copper Mine Life Extension. Highland Valley construction progressed in the third quarter of 2026. The project is expected to extend mine life to 2046 and support average annual copper production of about 132,000 tons.
Teck Resources maintains its 2026 copper production guidance of 455-530 thousand tons, whereas it produced 453.5 thousand tons in 2025. This will be driven by higher output at QB, Highland Valley Copper and Antamina. Teck Resources’ long-term outlook for copper is positive as demand is expected to grow, partly driven by electric vehicles, renewable energy and infrastructure investments.
SCCO’s Price Performance, Valuations & Estimates
Southern Copper shares have gained 24.6% in a year compared with the Zacks Mining - Non Ferrous industry’s rise of 18.9%. During this time, the Basic Materials sector has risen 12.6% and the S&P 500 has returned 9.3%.
The Southern Copper stock is currently trading at a forward 12-month earnings multiple of 21.77X, which is a premium to the industry average of 18.99X.
The Zacks Consensus Estimate for Southern Copper’s 2026 sales is $17.78 billion, indicating a 32.4% year-over-year jump. The consensus mark for the year’s earnings is pegged at $8.01 per share, suggesting a rally of 53%.
The Zacks Consensus Estimate for 2027 sales implies a 1.5% year-over-year dip. The same for earnings suggests a fall of 2.7%.
Earnings estimates for 2026 and 2027 have moved up over the past 60 days.
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.