January 27th, 2026

The call emphasized multiple record financial results (net sales, adjusted EBITDA, net income), strong cash flow and significant by-product volume and price tailwinds that materially improved margins and shareholder returns. Operationally, the company faces near-term challenges: a modest decline in copper production with a lower 2026 guidance, rising operating costs and one-time charges, project-level impediments (illegal miners at Los Chancas) and strategically chosen production shifts at Buenavista that affect copper and molybdenum volumes. On balance the positive financial outcomes, robust margins, strong cash generation, and clear project progress (Tia Maria) outweigh the operational headwinds.

Company Guidance

The company guided that 2026 copper production is expected at 911,400 tons (a 4.7% decline versus 2025’s 956,270 tons and ~1% below the 2025 plan of 965,000 tons), with 2027 roughly in line (a little north of 900,000 tons) and a multi‑year ramp to ~970,000 tons in 2028 and ~1,060,000 tons by 2029–2031 as Tía María and other projects come online; Tía María’s budget remains $1.8 billion (24% complete at end‑2025), with $800 million committed, a 2026 cash out forecast of $508 million, construction to finish by H1‑2027, ~30,000 tons of refined copper in H2‑2027 and 120,000 tons/year from 2028. For by‑products the company expects molybdenum ~26,000 tons in 2026 (vs 31,200 tons in 2025), silver ~24 million ounces in 2026 (flat to down ~2% vs 2025), and zinc production/support that helped 2025 zinc rise ~36% (2025 zinc ~165,500 tonnes); Q4‑2025 copper averaged $5.03/lb (LME) and $5.15/lb (COMEX), the firm estimates a 2026 market deficit of ~320,000 tons and global inventories near ~14 days of demand. Cost guidance: operating cash cost per lb before by‑product credits was $2.29 in Q4 and $2.17 for 2025 (net of by‑product credits $0.58/lb for 2025; Q4 by‑product credits were $920M or $1.77/lb), and management expects operating costs to be “relatively flat on a per‑pound basis” in 2026 while noting currency appreciation pressure (cost mix ~39% MXN, 10% PEN, 51% USD). Financial and capital metrics referenced include record 2025 net sales $13.4B, adjusted EBITDA $7.8B (58% margin; Q4 adj. EBITDA $2.3B, 60% margin), 2025 net income $4.3B, 2025 capex $1.3B (part of a >$20.5B decade program), and a Jan‑2026 dividend of $1.00 cash + 0.0085 share stock (payable Feb‑27 to holders of record Feb‑10).