Freeport-McMoRan Inc. (FCX) and Southern Copper Corporation (SCCO) are significant players in the copper mining industry, both benefiting from rising copper prices, which recently approached an unprecedented high of nearly $6.9 per pound amid robust demand from the U.S. and China. As of the latest data, copper prices remain above $6.7 per pound, reflecting an increase of over 40% year-on-year, propelled by heightened consumption due to electric vehicle production and renewable energy projects.
In 2025, Freeport reported operating cash flows of $5.6 billion and maintained a strong liquidity position with $4.1 billion in cash, while managing a net debt of $2.1 billion. Conversely, Southern Copper generated $4.75 billion in net cash from operations in 2025, with an improved outlook for 2026 projecting production at 917,000 tons. Despite near-term production challenges, SCCO plans to invest $20.5 billion over the next decade to support its growth strategy, while FCX highlights expansion potential capable of adding 700 million pounds to its annual capacity.
Both companies currently hold a Zacks Rank of #3 (Hold), but FCX’s attractive valuation and higher growth forecasts suggest it may present better investment potential in a strong copper market. Southern Copper’s dividend yield stands at 2.4%, compared to Freeport’s 0.4%, reflecting differing strategies in capital return to shareholders.
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