Southern Copper Corp. and Brazil’s Vale SA posted cash costs for copper that are effectively negative, thanks to soaring by‑product revenues from gold, silver and other metals. In the January‑March quarter Southern recorded a net cash cost of ‑11 cents per pound, down from 77 cents a year earlier. The result is the company earns money by extracting ore, before copper prices are even considered.

The by‑product windfall stems from a year‑long rally in precious and base metals; silver has more than doubled and gold is up about 40%. Vale’s all‑in copper cost also slipped into negative territory, while peers with less diversified deposits still report positive costs. By‑product sales generated roughly $1.2 billion for Southern, fully covering its copper production expenses.

These cost dynamics arrive as copper demand accelerates, driven by electrification, data‑center expansion and AI‑related hardware. Southern’s integrated operations and status as a net seller of sulfuric acid, a key leaching agent disrupted by the Iran conflict, further insulate its margins from input‑price inflation. The negative cash cost underscores how diversified asset structures can turn commodity volatility into profit.