According to Grupo Mexico, the parent company of Southern Copper, the division is expected to produce over 1 million metric tons of copper by 2027. This represents a significant increase from the company’s earlier production forecasts.
Leonardo Contreras, the Chief Financial Officer of Southern Copper, revealed these production projections during the company’s earnings call on Friday. Contreras stated that the division’s copper output is expected to reach 949,000 tons in 2024, up from the previously estimated 935,900 tons.
The executive then estimated that Southern Copper’s production will dip slightly to 920,000 tons over the next two years as the company ramps up its projects. However, by 2027, the division is expected to reach an output of 1.02 million tons of copper.
Contreras attributed the improved production outlook to better-than-expected execution of the company’s projects. “One of the reasons we are upgrading our numbers is because we are seeing a much better (project) execution than before,” he said.
Grupo Mexico, one of the world’s largest copper producers, owns mines in Peru, the United States, Spain, and Mexico. The conglomerate is controlled by billionaire German Larrea.
The company’s stock rose 3.6% on Friday to close at 106.71 pesos per share, as investors reacted positively to the improved copper production forecast from the Southern Copper division.
This announcement comes a day after Grupo Mexico reported a decline in its first-quarter earnings, which the company attributed to lower prices for base metals, including copper, molybdenum, and zinc.