Copper Producers Retreat as Metal Prices Slip After Southern Copper’s Record Quarter
Southern Copper shares dropped 7.3% on Thursday, while Freeport-McMoRan and Teck Resources also fell as copper futures declined about 2.7%. The selloff followed Southern Copper’s record third-quarter results, which showed net income up 63% to $1.8 billion. Analysts expect earnings to peak in 2026, and the stock’s premium valuation left little cushion for weaker copper prices.
Southern Copper’s 7.3% decline came two days after it posted $4.7 billion in quarterly sales, up 39%, and $1.8 billion in profit, up 63%. Management said the period set company records for sales, adjusted EBITDA and earnings for a second straight quarter. Higher product prices drove the sales gain even as copper, molybdenum and silver volumes fell over the first nine months of 2026.
The shares entered Thursday at 26 times forward earnings, versus a five-year average of 22 times, and the selloff left them near 24 times. Consensus normalized EPS is $7.92 for 2026 and $7.34 for 2028. Teck also faced a strike notice at Highland Valley Copper, with a possible walkout from Saturday, October 24.
A sharp copper-price pullback could affect more than shareholders in these miners. It may pressure mining revenues, project timelines and jobs in copper-producing regions, while a strike at Teck’s Highland Valley operation could disrupt output and local incomes. Investors, workers and communities tied to copper could feel the shift first; consumers may see effects only if lower metal prices feed through to industrial costs over time.