Southern Copper Surges 77.4% Despite Regulatory Setbacks

Southern Copper's stock price has skyrocketed by 77.4% over the past year, including dividends. This move might seem puzzling given the regulatory setbacks in Peru and leadership changes at the company.

Investors had to weigh two competing narratives: one bullish on Southern Copper's prospects, citing projects like Tía María and Los Chancas, which could lift copper output and keep costs low; the other more cautious, focusing on risks such as US-China trade conflicts, potential tariffs, and significant capital spending in Mexico and Peru.

Southern Copper has beaten both narratives on profitability. Revenue increased from $3.051 billion in Q2 2025 to $4.289 billion in Q2 2026, while net income rose from $973.4 million to $1.670 million, with a widening net margin of 31.9% to 38.9%.

The key takeaway is that when a story relies on cost discipline and pricing power, it's essential to track net margin alongside volume headlines and project news to see if it's actually increasing over time.