Skip to content

SCCO · SOUTHERN COPPER CORP/

41 filings

10-K

SCCO 10-K Annual Reports

SOUTHERN COPPER CORP/ - 41 annual reports

Filing record · 2016–202610-K1510-Q328-K86

2025
SOUTHERN COPPER CORP/ Annual Report, Year Ended Dec 31, 2025
Southern Copper Corporation (SCCO) reported strong financial performance for the year ended December 31, 2025, driven by record net sales and net income. This growth was primarily fueled by higher metal prices for copper, silver, and molybdenum, coupled with increased sales volumes for by-products like zinc and silver. The company's robust operational execution, including effective cost management, contributed significantly to its profitability. SCCO continues to focus on its organic growth plan to increase copper production and has approved a substantial capital investment program for 2026, signaling confidence in future production and market demand. The company also highlighted its commitment to ESG practices, noting improvements in sustainability ratings and a continued focus on occupational health and safety, which resulted in a reduction in lost-time injuries. The robust cash flow generation supports ongoing capital investments and shareholder returns.
Feb 27, 2026
2024
SOUTHERN COPPER CORP/ Annual Report, Year Ended Dec 31, 2024
Southern Copper Corporation (SCCO) reported strong financial performance for the year ended December 31, 2024, driven by higher commodity prices and increased sales volumes across its key products, particularly copper and zinc. Net sales reached a record high of $11.43 billion, a 15.5% increase year-over-year, primarily due to a 7.8% rise in the average LME copper price and significant volume growth in zinc production, largely from the full operational capacity of the Buenavista Zinc concentrator. The company's proactive approach to cost management resulted in a decrease in operating cash costs per pound of copper, both before and net of by-product revenues. Despite a slight increase in overall operating costs, the strong revenue growth led to a substantial increase in operating income, which grew by 32.5% to $5.55 billion. Net income attributable to SCCO surged by 39.2% to $3.38 billion. SCCO also demonstrated a robust commitment to shareholder returns, with substantial dividend payments and ongoing share repurchase authorizations. The company continues to invest heavily in capital projects, aiming to expand production capacity and enhance operational efficiency, with a forward-looking capital investment program of $1.6 billion approved for 2025. SCCO's significant mineral reserves, located primarily in Peru and Mexico, coupled with its integrated mining, smelting, and refining operations, position it favorably within the global copper market. The company's focus on operational discipline, sustainability, and community engagement, as evidenced by its strong ESG ratings and investments in local development, further underscores its commitment to long-term value creation. While facing commodity price volatility and operational risks inherent in the mining industry, SCCO's strategic investments and robust operational execution in 2024 provide a positive outlook.
Mar 3, 2025
2023
SOUTHERN COPPER CORP/ Annual Report, Year Ended Dec 31, 2023
Southern Copper Corporation (SCCO) reported a solid operational performance for the fiscal year ending December 31, 2023, despite a slight decrease in net sales primarily due to lower copper and zinc prices and reduced sales volumes for silver and zinc. However, these were partially offset by increased copper and molybdenum sales volumes and higher prices for molybdenum and silver. The company's net income attributable to SCC was $2.43 billion, a decrease from $2.64 billion in 2022, mainly influenced by increased costs of sales and slightly lower sales volumes. SCCO maintained its position as a leading global copper producer with robust production figures, with copper mine production increasing by 1.8% year-over-year, driven by higher grades at its Peruvian operations and contributions from new projects like Pilares. The company is strategically investing in its growth program, with capital investments of $1.01 billion in 2023, targeting increased copper production to 1.3 million tonnes by the end of the decade. Key development projects include the Buenavista Zinc project in Mexico and the Tia Maria project in Peru, with significant social and community investments highlighted as part of their development. Financially, the company reported total debt of $6.25 billion at year-end 2023. SCCO's commitment to shareholder returns is evident through its consistent dividend payouts, with a $4.00 per share dividend paid in 2023. The company maintains a strong focus on ESG practices, achieving high sustainability ratings and demonstrating commitment to environmental stewardship and community development.
Feb 29, 2024
2022-A
SOUTHERN COPPER CORP/ Annual Report (Amendment), Year Ended Dec 31, 2022
This filing is Amendment No. 1 (Form 10-K/A) to Southern Copper Corporation's Annual Report for fiscal year 2022, which was originally filed on February 28, 2023. The signature date on this amendment is also February 28, 2023, not March 1, 2023 as stated in the request. The amendment was filed solely to submit seven Technical Report Summaries (Exhibits 96.1, 96.2, 96.6, 96.7, 96.11, 96.12, and 96.13) that exceeded SEC file-size limits. It does not amend any other item, and it contains no income statement, balance sheet, cash flow, or MD&A content. Investors looking for FY2022 financial results should consult the Original Filing. The content that is present covers filer status and capital structure. Southern Copper is a large accelerated filer with an effective internal control attestation, is not a shell company, and reports no error corrections or restatements. As of February 28, 2023, 773,101,669 common shares were outstanding. The non-affiliate market value was approximately $4,274.5 million, measured at the June 30, 2022 closing price. The exhibit index also lists the company's senior notes outstanding, including $1.0 billion of 7.500% notes due 2035, $1.1 billion of 6.750% notes due 2040, 5.250% notes due 2042, 3.875% notes due 2025, and 5.875% notes due 2045. The signing officer is CEO Oscar Gonzalez Rocha. The mineral technical reports in this amendment cover the Cuajone, Toquepala, Buenavista del Cobre, La Caridad, Charcas, Santa Barbara, and San Martin operations. These reports provide the reserve and resource support for the company's copper, molybdenum, zinc, silver, and other metal disclosures, which investors use to assess long-term production potential and asset life.
Mar 1, 2023
2022
SOUTHERN COPPER CORP/ Annual Report, Year Ended Dec 31, 2022
Southern Copper Corporation (SCCO) reported solid financial results for the fiscal year ending December 31, 2022. While net sales saw a modest decrease compared to the record performance in 2021, primarily due to lower volumes and prices for copper and silver, the company maintained strong profitability. This was supported by higher prices for molybdenum and zinc, increased sales volumes for zinc, and effective cost management, despite rising fuel, energy, and contractor costs. SCCO continues its significant capital investment program, focusing on expanding production capacity and improving operational efficiencies. The company boasts substantial mineral reserves, positioning it favorably for long-term copper supply, particularly given copper's critical role in the clean energy transition. Key operational highlights include strong production across its Peruvian and Mexican segments, with ongoing efforts to optimize mining and processing methods. However, investors should note the company's exposure to commodity price volatility and operational risks in its primary mining jurisdictions of Peru and Mexico, including potential community relations and regulatory challenges.
Feb 28, 2023
2021-A2
SOUTHERN COPPER CORP/ Annual Report (Amendment), Year Ended Dec 31, 2021
This document is Amendment No. 2 (Form 10-K/A) to Southern Copper Corporation's (NYSE: SCCO) annual report for fiscal year 2021. It was filed for one narrow purpose: to submit Exhibits 96.10 to 96.13, which are technical report summaries of mineral resources for the El Arco project, Charcas Mine, Santa Barbara Mine, and San Martin Mine. These exceeded the SEC's file size limit for a single submission. The amendment does not change any other item in the original 10-K, which was filed on March 7, 2022. It contains no financial statements, operating results, MD&A, or risk factor disclosures, so it should be read alongside the original filing. The cover page confirms key profile data. SCCO is a large accelerated filer, is not a shell company, and has an effective audit of internal control over financial reporting under SOX 404(b). As of March 4, 2022, 773,086,869 common shares were outstanding. The aggregate market value of non-affiliate shares was about $5.52 billion, measured at June 30, 2021. The exhibit index shows a substantial debt stack, including 7.500% notes due 2035 ($600 million and $400 million), 6.750% notes due 2040, 5.250% notes due 2042, 5.875% notes due 2045, 3.875% notes due 2025, and 3.500% notes due 2022. The exhibit index also lists the Mexican-based auditor, Galaz, Yamazaki, Ruiz Urquiza (Deloitte member firm), and the Cuajone, Toquepala, Tia Maria, and other project technical reports. For investors, the main takeaway is that this filing adds regulatory support for SCCO's mineral reserve and resource disclosures at several Mexican and Peruvian sites. It does not offer new information on earnings, cash flow, or capital allocation. Those items are in the original Form 10-K and the Annual Report exhibits, which should be reviewed for investment decisions.
Mar 8, 2022
2021-A
SOUTHERN COPPER CORP/ Annual Report (Amendment), Year Ended Dec 31, 2021
This is Amendment No. 1 (Form 10-K/A) to Southern Copper Corporation's (SCCO) Annual Report for fiscal year 2021. Its sole purpose, per the explanatory note, is to file Exhibits 96.1 through 96.9, the Technical Report Summaries for mineral reserves and resources at several mines and projects, which exceeded the SEC's file size limit for a single submission. The amendment does not change any other item or disclosure in the original 10-K. The filing provided contains no financial statements, MD&A, or operating results, so it cannot be used to assess 2021 revenue, earnings, cash flow, or balance sheet strength. The note states the original report was filed March 7, 2022, although the submission date given is March 8, 2022. The cover page shows 773,086,869 common shares outstanding as of March 4, 2022. The aggregate market value of non-affiliate shares, based on the June 30, 2021 closing price, was approximately $5,519.0 million. SCCO is a large accelerated filer with an auditor attestation on internal control over financial reporting. It is not a shell company. For investors, the main value of this amendment is the technical support for SCCO's reported reserve and resource base. The reports cover the Cuajone, Toquepala, Tia Maria, Los Chancas, Michiquillay, Buenavista del Cobre, La Caridad, Pilares, and El Pilar projects. Four more reports (El Arco, Charcas, Santa Barbara, and San Martin, Exhibits 96.10 to 96.13) were deferred to a later amendment, so the mineral disclosure is not yet complete. Investors should review the full FY2021 Form 10-K for financial results and the Technical Report Summaries for reserve and resource detail.
Mar 8, 2022
2021
SOUTHERN COPPER CORP/ Annual Report, Year Ended Dec 31, 2021
Southern Copper Corporation (SCCO) reported strong financial performance for the fiscal year ending December 31, 2021, driven by significantly higher commodity prices, particularly for copper. The company's net sales reached a historic high of $10.9 billion, an increase of 36.9% compared to 2020, primarily due to robust price increases across its key products: copper (+51.1%), molybdenum (+81.0%), zinc (+32.0%), and silver (+22.1%). Despite some volume decreases in copper and other metals, the favorable price environment translated into a substantial increase in profitability, with net income attributable to SCC soaring by 116.3% to $3.4 billion. SCCO's operational efficiency and cost management remain a key focus, as evidenced by the operating cash cost per pound of copper, net of by-product revenues, decreasing by 2.9% to $0.67. The company also demonstrated a strong commitment to growth and shareholder returns, with capital investments increasing by 50.7% to $892.3 million in 2021, supporting ongoing development projects and future production expansions. The company announced an ambitious capital investment program of $1.54 billion for 2022, signaling confidence in future growth and favorable market conditions.
Mar 7, 2022
2020
SOUTHERN COPPER CORP/ Annual Report, Year Ended Dec 31, 2020
Southern Copper Corporation (SCCO) reported strong financial performance in its 2020 10-K filing, highlighting record net sales of $7.98 billion, an increase of 9.6% year-over-year. This growth was driven by higher sales volumes of copper, silver, and molybdenum, coupled with improved copper and silver prices, despite a decrease in molybdenum and zinc prices. The company's operating income saw a significant increase of 13.4% to $3.12 billion, reflecting effective cost management and improved production efficiencies. SCCO maintains a robust balance sheet with substantial cash reserves and a well-managed debt-to-equity ratio. The company's operational focus remains on cost control and production enhancement, as it navigates the dynamic commodity market. With a strong reserve position and strategic capital investment programs for future growth, SCCO appears well-positioned to capitalize on the anticipated positive outlook for the copper market in 2021 and beyond.
Feb 26, 2021
2019-A
SOUTHERN COPPER CORP/ Annual Report (Amendment), Year Ended Dec 31, 2019
This filing is an amendment to Southern Copper Corporation's (SCCO) 2019 10-K, specifically updating Part III concerning Directors, Executive Officers, Corporate Governance, Executive Compensation, and Security Ownership. The amendment was necessitated because the company opted not to incorporate its proxy statement by reference. The filing provides detailed biographical information on the company's directors, highlighting their extensive experience in the mining, financial, and business sectors, often with significant ties to Grupo Mexico, the majority shareholder. It also details the compensation structure for named executive officers, emphasizing compliance with Peruvian and Mexican labor laws, discretionary bonuses, and mandated profit-sharing. The company noted a strong shareholder approval for its executive compensation approach at the previous annual meeting. Key for investors is the confirmation of SCCO's controlled company status by Grupo Mexico, owning 88.9% of the shares, which impacts certain corporate governance exemptions. The compensation details, while complex due to international operations and legal requirements, show a focus on retaining executives through a mix of base salary, discretionary bonuses, and legally mandated benefits. The company also disclosed related-party transactions, primarily with Grupo Mexico and its affiliates, for various operational and support services, amounting to significant sums, but all reviewed and approved by the Audit Committee and subject to internal policies designed to manage potential conflicts of interest.
Apr 29, 2020
2019
SOUTHERN COPPER CORP/ Annual Report, Year Ended Dec 31, 2019
Southern Copper Corporation (SCCO) reported strong operational performance for the year ending December 31, 2019, with record net sales of $7.3 billion. This growth was driven by increased sales volumes across its key products, particularly copper, molybdenum, and silver. Despite a slight dip in copper and molybdenum prices, the company's focus on cost control and production efficiency, coupled with robust copper reserve positions, positions it favorably within the global mining industry. SCCO's capital investment program remains significant, with substantial spending allocated to expanding production capacity and maintaining operational excellence across its Peruvian and Mexican facilities. The company also highlighted its commitment to social and environmental responsibility, continuing to invest in community programs and sustainable practices. While facing some market volatility and operational risks inherent in the mining sector, SCCO's integrated business model, substantial reserves, and ongoing investment in growth projects suggest a resilient operational outlook. Investors can monitor copper price fluctuations and the company's progress on its extensive capital project pipeline for key performance indicators.
Feb 28, 2020
2018
SOUTHERN COPPER CORP/ Annual Report, Year Ended Dec 31, 2018
Southern Copper Corporation (SCCO) is a leading global copper producer with substantial operations in Peru and Mexico, reporting its fiscal year 2018 results. The company highlights record net sales of $7.1 billion, driven by strong performance across its mining segments and aided by favorable metal prices for copper and molybdenum. SCCO emphasizes its commitment to growth through significant capital investments, totaling $1.12 billion in 2018, with plans for further expansion to increase copper production significantly by 2025. The company maintains a robust and extensive copper reserve base, considered among the largest globally. Despite operational successes and record sales, investors should note the company's sensitivity to volatile commodity prices and ongoing risks associated with foreign operations, labor relations, and environmental regulations. SCCO's financial health remains strong, supported by a prudent capital structure and substantial cash flow generation, allowing for significant dividend payouts and share repurchases, although the latter has been inactive since 2016.
Mar 1, 2019
2017
SOUTHERN COPPER CORP/ Annual Report, Year Ended Dec 31, 2017
Southern Copper Corporation (SCCO) in its 2017 10-K filing highlights its position as a leading global copper producer with significant operations in Peru and Mexico. The company reported strong revenue growth driven by higher metal prices, particularly for copper, and increased sales volumes for copper and zinc. Despite a significant one-time tax expense related to the U.S. Tax Cuts and Jobs Act of 2017, the company demonstrated operational resilience, with production levels remaining robust and cost management efforts showing positive results. SCCO also provided an optimistic outlook for 2018, anticipating further production increases and continued demand for its products, supported by global economic growth and expected market deficits in copper supply. The filing details substantial capital investment programs focused on expanding production capacity and improving operational efficiencies across its Peruvian and Mexican assets. The company maintains a significant and high-quality copper reserve base, further underpinning its long-term viability. While acknowledging various operational and market risks, including commodity price volatility and labor relations, SCCO's management expresses confidence in its ability to navigate these challenges and deliver value to shareholders through strategic investments and disciplined cost control.
Mar 1, 2018
2016
SOUTHERN COPPER CORP/ Annual Report, Year Ended Dec 31, 2016
Southern Copper Corporation (SCCO) reported its 2016 annual results, highlighting a robust operational performance with significant increases in copper production, driven largely by expansions at its Mexican operations, particularly Buenavista. Despite a challenging market environment characterized by lower copper and molybdenum prices compared to prior years, the company maintained strong net sales and operating income, demonstrating effective cost management and operational efficiency. Financially, SCCO showed a slight increase in net income attributable to the company, reaching $776.5 million, up from $736.4 million in 2015. The company's significant capital investment program continued, with $1,118.5 million invested in 2016, primarily focused on expanding production capacity and improving operational efficiency across its Peruvian and Mexican assets. SCCO also highlighted its substantial copper reserves, reinforcing its position as a leading global copper producer. The company's outlook for 2017 was cautiously optimistic, anticipating a structural supply deficit in the copper market due to underinvestment and growing demand.
Mar 1, 2017
2015
SOUTHERN COPPER CORP/ Annual Report, Year Ended Dec 31, 2015
Southern Copper (SCCO) reported FY2015 results marked by sharply lower metal prices and a heavy capital program. Net sales fell 12.8% to $5,045.9 million from $5,787.7 million, and operating income dropped 36.7% to $1,414.4 million. Net income attributable to SCC fell 44.8% to $736.4 million, or $0.93 per share, as copper's average LME price declined 19.6% to $2.50/lb and molybdenum fell 41.7%. Copper still made up roughly 79% of sales, and copper output hit a record 742,993 tons (mined copper volumes rose about 9.8%), with Buenavista's new concentrator and SX-EW III driving growth. Operating cash cost per pound with by-product credits rose to $1.12 from $1.07, as by-product revenue fell, while cost without by-products improved to $1.66 from $1.89. The balance sheet shows a clear shift toward leverage. Total debt rose to $5.95 billion from $4.18 billion after a $2.0 billion senior notes issuance in April 2015, and net debt to net capitalization climbed to 48.9% from 37.3%. Cash from operations fell to $879.8 million from $1,355.9 million, and capital investments of $1.25 billion (including the $100.4 million El Pilar acquisition) exceeded operating cash flow. The company also repurchased $1.0 billion of shares and paid $271 million in dividends, which were cut to $0.34 per share from $0.46. Grupo Mexico controls about 88.6% of the stock, which remains a governance consideration for minority investors. Forward-looking items include 2016 copper production guidance of 903,300 tons (up 21.6%), a $1,577.8 million capital budget, and a target of 1.2 million tons of annual capacity by 2018, anchored by the Toquepala expansion and the stalled Tia Maria project. Risk factors include a reported material weakness in 2014 that was remediated in 2015, ongoing environmental and labor disputes (including Mexican strikes at San Martin and Taxco since 2007), a $400 million uncertain tax liability tied to U.S. matters, and contingent liabilities from the Peruvian labor share litigation.
Feb 26, 2016
2014
SOUTHERN COPPER CORP/ Annual Report, Year Ended Dec 31, 2014
Southern Copper Corporation (SCCO), a majority-owned subsidiary (84.6%) of Grupo Mexico, reported FY2014 results that reflected weaker metal prices and rising costs. Net sales fell 2.8% to $5,787.7 million and net income attributable to SCC declined 17.6% to $1,333.0 million ($1.61 per share), as copper (78% of sales), silver and zinc prices dropped and a $91.4 million environmental remediation charge followed the August 2014 copper sulfate spill at Buenavista. Copper production and sales volumes rose (mined copper up 9.7% to 1.49 billion pounds; sales up 4.7%), and molybdenum output grew, partly offsetting the price pressure. Operating cash cost with by-product credits rose to $1.05/lb from $1.00/lb, while cash cost before by-products was roughly flat at $1.89/lb. The balance sheet shows heavy investment: capital expenditures were $1,534.8 million, and management plans about $2.7 billion in 2015 to lift copper capacity roughly 89% to 1,165,000 tons by 2018, mainly via the Buenavista expansion, the Toquepala concentrator expansion and the Tia Maria project. Cash fell to $364 million from $1.67 billion, and net debt rose to $3.84 billion (net debt to net capitalization of 39.7%, up from 31.3%). Dividends were cut to $0.46 per share from $0.68 in 2013 and $4.06 in 2012, which reflected the 2012 special distribution. The Board also raised the buyback authorization to $3 billion and approved a $0.10 dividend for March 2015. Key risks include a material weakness in internal control over financial reporting related to access controls in the Mexican ERP system (an adverse auditor opinion on ICFR), the Buenavista spill and related litigation, a long-running strike at the Taxco and San Martin mines, and Peruvian and Mexican labor, tax and community-relations pressures. Investors will focus on whether the large capex program is delivered on time and budget, whether free cash flow can sustain dividends and buybacks given higher leverage, and whether the control weakness is remediated during 2015.
Mar 2, 2015
2013
SOUTHERN COPPER CORP/ Annual Report, Year Ended Dec 31, 2013
Southern Copper Corporation (SCCO), one of the world's largest integrated copper producers, reported FY2013 results with net sales of $5.95 billion, down 10.7% from $6.67 billion in 2012, driven by lower copper, molybdenum, and silver prices. Operating income fell 18.5% to $2.53 billion and net income attributable to SCC declined to $1.62 billion ($1.92 per share) from $1.93 billion ($2.28 per share). Copper accounted for 78.2% of sales, and the company's operating cash cost per pound rose to $1.92 without by-product credits and $1.00 with them, up from $1.73 and $0.69 respectively, reflecting higher labor, fuel, and power costs. The filing is dominated by an aggressive growth program. Capital expenditures reached a record $1.70 billion in 2013 (61.9% above 2012), and management plans $2.3 billion for 2014 to lift copper capacity roughly 87% to about 1.175 million tons by 2017. Key projects include the Buenavista expansion (new concentrator, SX-EW III, and molybdenum plant), Quebrada Honda tailings work, and the Tia Maria and Toquepala expansion projects in Peru, which face community and permitting delays. Free cash flow is therefore constrained: operating cash flow of $1.86 billion did not cover capex, and cash fell $787 million to $1.67 billion. Net debt rose to $2.53 billion, lifting the net debt to net capitalization ratio to 31.3% from 26.8%. Investors should weigh the company's strong reserve base and low-cost positioning against several risks: its majority parent Grupo Mexico controls 82.3% of the stock and can direct dividends and related-party dealings; labor strikes at the Taxco and San Martin mines have persisted since 2007; Mexico enacted new mining royalties and water-fee increases effective 2014; and Peruvian community opposition continues to affect project timelines. Dividends were cut sharply to $0.68 per share in 2013 from $4.06 in 2012, which was inflated by a one-time payment tied to the shareholder derivative lawsuit settlement.
Feb 27, 2014
2012
SOUTHERN COPPER CORP/ Annual Report, Year Ended Dec 31, 2012
Southern Copper Corporation (SCCO), a majority-owned subsidiary of Grupo Mexico (81.3% ownership), reported 2012 net sales of $6.67 billion, only 2.2% below the record 2011 level, despite a roughly 10% decline in average LME copper prices. Net income attributable to SCC fell to $1.93 billion (about $2.28 per share) from $2.34 billion, largely because of a one-time $316.2 million legal fee payment tied to the shareholder derivative lawsuit. Excluding that charge, earnings would have been about $2.3 billion, a decline of roughly 3.7%. Operating income was $3.11 billion, and the operating cash cost per pound of copper net of by-products rose to $0.713 from $0.517, driven mainly by lower by-product prices. The company is in a heavy investment phase. Capital expenditures reached a record $1.05 billion in 2012, up 72%, and management budgeted about $1.8 billion for 2013, mostly for Buenavista in Mexico. The plan is to lift copper capacity from about 640,000 to 1.2 million tons by 2017. Financing was strengthened by $1.5 billion of new unsecured notes issued in November 2012, and Fitch upgraded the unsecured debt to BBB+. Cash rose to $2.46 billion, while total debt reached $4.21 billion, lifting the debt-to-capitalization ratio to 46.8%. A $2.1 billion receipt from AMC under the Delaware court judgment supported liquidity during the year. Key risks include copper and by-product price volatility, Peruvian community opposition that has delayed Tia Maria (now rescheduled to 2016) and the Toquepala expansion, the long-running strikes at the San Martin and Taxco mines, and the controlling-shareholder relationship with Grupo Mexico. The company raised its quarterly dividend to $0.24 for early 2013 after a 2012 total of $4.06 per share, which included special distributions.
Feb 28, 2013
2011
SOUTHERN COPPER CORP/ Annual Report, Year Ended Dec 31, 2011
Southern Copper Corporation (SCC), a majority-owned subsidiary of Grupo Mexico (80.9% ownership), reported record results for fiscal 2011, with net sales of $6,818.7 million (up 32% from $5,149.5 million) and net income attributable to SCC of $2,336.4 million (up 50%). Earnings per share were $2.76 versus $1.83 in 2010. The growth was driven mainly by the full restoration of the Buenavista mine after a roughly three-year strike, which lifted copper sales volume 19.3%, together with higher average copper (+17%) and silver (+74%) prices. Copper production rose to 1,295 million pounds from 1,055 million, although Peruvian output fell on lower ore grades at Cuajone. The key pressures are rising costs and a heavier capital program. Operating cash cost per pound excluding by-products rose to 165.7 cents from 152.0 cents, and including by-product credits it rose to 41.5 cents from 18.0 cents. The company budgeted $1.5 billion of 2012 capital spending, with a five-year program to expand Buenavista to 488,000 tons of copper annually. Net debt rose to $1.9 billion from $568 million, and net debt to net capitalization reached 32% from 12.7%, as cash fell after a $2.08 billion dividend and $274 million of buybacks. Several projects face permitting and community opposition in Peru, including Tia Maria (start-up pushed to 2015) and the Toquepala expansion. Large legal exposures also remain, including the Lemon Bay derivative judgment of about $1.35 billion plus $685 million of interest, which is under appeal, and the Peruvian labor-share claims. For investors, the filing shows a highly profitable copper producer with a 53.2% operating margin, strong operating cash flow of $2.07 billion, and an S&P upgrade to BBB in January 2012. Against that, the dividend, large capex, and litigation outcomes will determine how much of the earnings reaches shareholders.
Feb 27, 2012
2010
SOUTHERN COPPER CORP/ Annual Report, Year Ended Dec 31, 2010
Southern Copper Corporation (SCC) reported a strong fiscal 2010, with net sales of $5,149.5 million (up 38% from $3,734.3 million in 2009) and net income attributable to SCC of $1,554.0 million, or $1.83 per share, up about 67%. The increase was driven mainly by sharply higher metal prices: the average LME copper price rose 46% to $3.42/lb, molybdenum rose 43%, and silver rose 38%. Copper accounted for about 73% of 2010 revenue, molybdenum about 13%, and silver about 6%. Operating cash flow reached $1.92 billion, and the company ended the year with $2.19 billion in cash against $2.76 billion of total debt. The filing also highlights a set of forward-looking items. Management guides to 2011 copper production of about 630,000 tons, a 26% increase, driven by the full restart of the Buenavista mine after its roughly three-year strike. It plans a $1.7 billion capital program for 2011, including the Tia Maria project in Peru (about $934 million total budget, first copper expected in Q4 2012, EIA approval expected Q2 2011). Management has hedged about 61% of 2011 copper sales. Dividends were $1.68 per share for 2010, and the Board declared a 58-cent dividend payable March 1, 2011. Key investor risks include: (1) a pending non-binding all-stock combination proposal from parent AMC (Grupo Mexico, which owns 80%) under which SCC shares would convert at 1.237 AMC shares each, now under review by a special committee; (2) ongoing labor disputes and strikes at Taxco and San Martin; (3) community opposition to Tia Maria and new Mexican environmental litigation rules; (4) a sharp rise in debt after the $1.5 billion bond issuance in April 2010; and (5) class-action suits tied to both the 2005 merger and the proposed AMC combination.
Mar 1, 2011
2009
SOUTHERN COPPER CORP/ Annual Report, Year Ended Dec 31, 2009
Southern Copper Corporation (SCC, ticker changed from PCU to SCCO on February 17, 2010) reported a sharp earnings decline for fiscal 2009 as metal prices fell from 2008 levels, even though copper sales volume held roughly flat. Net sales fell 23% to $3,734.3 million from $4,850.8 million, operating income dropped about 33% to $1,485.1 million, and net income attributable to SCC fell 34% to $929.4 million ($1.09 per share). The decline was driven mainly by lower molybdenum (down about 62%) and zinc prices, and by the absence of the 2008 copper derivative gains. Copper prices recovered strongly through 2009, closing the year at $3.33 per pound, which supports the company's outlook. The main operating overhang is the Cananea mine in Mexico, which has been shut by a labor strike since July 2007. A Mexican federal labor court ruled in the company's favor on February 11, 2010, but restarting production will take months. Cananea's assets were not impaired at year-end, though the filing warns that a longer-than-expected delay or a sharp fall in metal prices could trigger a write-down. The Tia Maria project in Peru (about $934 million budget) faces delayed environmental approval amid community opposition, and the company approved a $2.8 billion capital program for 2010-2012 intended to add about 342,000 tons of annual copper output. Financially, SCC remains strong, with cash of $772 million, total debt of about $1.28 billion, and a net debt to capitalization ratio of 11.6%. The company is 80% owned by Grupo Mexico, which creates related-party and control risks for minority holders. Operating cash flow declined to $963 million, and the 2010 dividend was set at $0.43 per share.
Feb 26, 2010
2008
SOUTHERN COPPER CORP/ Annual Report, Year Ended Dec 31, 2008
Southern Copper Corporation (SCCO) reported a sharp earnings decline for fiscal 2008 as the global commodity downturn hit its results. Net sales fell 20.3% to $4.85 billion from $6.09 billion, and net earnings dropped 36.5% to $1.41 billion from $2.22 billion. The decline was driven by a roughly 16% drop in copper sales volume, largely from the ongoing illegal work stoppage at the Cananea mine in Mexico, and by lower metal prices late in the year. Fourth-quarter results were a net loss of $124.7 million, the first loss since the 2005 combination with Minera Mexico. A provisional-pricing adjustment that reduced 2008 net sales by about $403.5 million amplified the fourth-quarter weakness. The company remains financially strong by its own account, with $716.7 million in cash, $1.3 billion in debt, no significant principal payments until 2015, and proven and probable reserves. Management has suspended most new capital projects, cut 2009 exploration to $22.7 million, and expects capex of about $392.6 million in 2009. Dividends were $1.94 per share for 2008 (about $1.7 billion total), and the board declared a reduced $0.117 quarterly dividend for March 2009. Management expects future dividends to be lower than in recent years. Grupo Mexico's ownership rose to 79.0% (79.5% by February 23, 2009) after the company's buyback and purchases by its parent's affiliate. For investors, the key issues are labor disruption at Cananea, Taxco, and San Martin, the trajectory of copper and molybdenum prices, the dividend outlook, and the controlling-shareholder dynamics with Grupo Mexico. The filing also flags ongoing litigation, including the Asarco-related fraudulent conveyance matter and derivative suits over the Minera Mexico acquisition. Investors should weigh the company's low-cost reserves and balance sheet against near-term earnings pressure and operational uncertainty.
Mar 2, 2009
2007
SOUTHERN COPPER CORP/ Annual Report, Year Ended Dec 31, 2007
Southern Copper Corporation (SCCO) reported record results for fiscal 2007, with net sales of $6,085.7 million (up 11.5% from 2006) and net earnings of $2,216.4 million (up 8.8%), both the highest in the company's history. Growth was driven by higher average prices for copper (up 4.2% to 5.9%), molybdenum (up 22.7%) and silver (up 16%), along with a 40.2% rise in molybdenum sales volume. Operating income reached $3,497.4 million, and diluted EPS was $7.53. Cash provided by operations was $2,703.5 million, and year-end cash was $1,409.3 million. The key risk is the Mexican labor situation. Strikes at Cananea, Taxco and San Martin beginning in July 2007 cost the company an estimated 178.4 million pounds of copper, 25.6 million pounds of zinc and $487.5 million of operating income. A Mexican federal court declared the Cananea strike illegal in January 2008, and the company expects about three months to return Cananea to full production, with an appeal pending. Taxco is on standby and San Martin depends on litigation. Management also approved a roughly $2.1 billion investment program focused on Peru (Tia Maria, concentrator and smelter expansions), targeting 270,000 additional tons of annual copper output by 2011, while Mexican growth projects were put on hold. Capital return is also substantial. Dividends paid in 2007 totaled $6.80 per share (about $2.0 billion), and the Board declared a $1.40 dividend payable February 29, 2008. A new share repurchase program of up to $300 million was authorized. Grupo Mexico controls about 75.1% of the stock, which creates governance and related-party considerations for minority investors.
Feb 29, 2008
2006
SOUTHERN COPPER CORP/ Annual Report, Year Ended Dec 31, 2006
Southern Copper Corporation (SCCO) reported a record 2006 fiscal year, with net sales rising 33.5% to $5,460.2 million and net earnings up 45.5% to $2,037.6 million (diluted EPS of $6.92, after a two-for-one split in October 2006). The surge was driven by sharp increases in metal prices: copper rose roughly 83% on average (LME averaged $3.05/lb versus $1.67 in 2005), zinc rose about 136%, and silver rose about 58%. Molybdenum prices fell about 21.5% from their 2005 peak, though it remained a major byproduct contributor. Operating margin expanded to 55.9% from 50.6%, reflecting high realized prices against a cash cost base that rose as purchased copper, workers' profit sharing, and Peruvian royalties increased. Volumes were weaker. Total mine copper output fell 12.2% to 1,335 million pounds, largely because of prolonged strikes at the La Caridad (125 days) and Cananea (47 days) mines in Mexico, and the Pasta de Conchos underground coal mine was closed after a February 2006 explosion that killed 65 workers. Management also announced a large increase in Peruvian ore reserves (Toquepala reserves up 83%, extending mine life 23 years), which partly offsets longer-term production concerns. Capital expenditures were $455.8 million, mainly for the Ilo smelter modernization, which was completed in January 2007, and the Cananea SX/EW III plant. Cash from operations reached $2.06 billion, and cash and marketable securities totaled $1.30 billion. Total debt rose to about $1.55 billion after a $400 million notes issuance in May 2006. For investors, the key considerations are the company's heavy exposure to commodity prices, its controlling shareholder Grupo Mexico (about 75.1% ownership), and its high payout policy. Dividends paid in 2006 totaled $5.13 per share, and a further $1.70 per share dividend was declared in January 2007. The filing also flags risks including labor disputes in Mexico and Peru, political and currency risk in both countries, Peruvian royalty exposure, Asarco-related litigation involving the parent, and reserve estimate uncertainty.
Mar 1, 2007
2005-A2
SOUTHERN COPPER CORP/ Annual Report (Amendment), Year Ended Dec 31, 2005
Southern Copper Corporation's (SCC) Amendment No. 2 to its 2005 Form 10-K (filed August 2006) restates the full annual report to amend Items 1 and 2, update the corporate address, and fix typos; it does not change previously reported financials. The headline story for 2005 is the April 1, 2005 acquisition of Minera México from Grupo México's subsidiary AMC, accounted for like a pooling of interests, which lifted Grupo México's stake to about 75.1% and roughly doubled reserves and production. Net sales rose 32.8% to $4.11 billion and net earnings rose 42.5% to $1.40 billion ($9.51 per share), driven by copper prices up about 29% and molybdenum up about 95%. Byproducts, especially molybdenum, now make up over a third of sales. The filing also flags several issues investors should weigh. Operating cash cost without byproduct credits rose to $1.005 per pound from $0.852, and a January 1, 2006 adoption of the EITF stripping-cost consensus will reverse $499.5 million of capitalized costs, with a $322.9 million net charge to retained earnings and higher near-term operating costs. Other risks include a February 2006 mine accident at Pasta de Conchos that killed 65 miners, a Peruvian royalty charge, Asarco's Chapter 11 bankruptcy with potential claims against the parent group, the controlling-shareholder conflicts inherent in Grupo México's 75.1% ownership, and an ongoing IRS audit. Financially, SCC ended 2005 with $876 million in cash, debt of $1.17 billion, and a net debt to total capitalization ratio of 8.2%, and it paid $5.80 per share in dividends for the year.
Aug 30, 2006
2005-A
SOUTHERN COPPER CORP/ Annual Report (Amendment), Year Ended Dec 31, 2005
Southern Copper Corporation (SCCO) filed this Form 10-K/A (Amendment No. 1) for fiscal 2005 to correct typographical and computational errors in its original 10-K filed March 13, 2006. The amendment re-files the full report, but the corrections are mostly minor (drill-hole spacing, capex and dividend figures, a note on a customer's receivable share, and a share count). The company's financial results are unchanged by the amendment. The headline story is transformational: the April 1, 2005 acquisition of Minera Mexico from Grupo Mexico's Americas Mining Corporation, which lifted annual copper output by roughly 81% and increased reserves by about 107%, and turned SCC into a three-segment (Peru, Mexican open-pit, Mexican IMMSA underground) producer of copper, molybdenum, zinc and silver. Financially, 2005 was a record year. Net sales rose 32.8% to $4.11 billion and net earnings rose 42.5% to $1.40 billion ($9.51 per share), driven by higher copper prices (about 30%) and a 94.7% jump in molybdenum prices, which made molybdenum a major earnings driver. Operating cash flow reached $1.64 billion, and cash and marketable securities were $876 million. Dividends paid totaled $5.80 per share in 2005 versus $1.30 in 2004, and a further $2.75 dividend was declared in January 2006. Grupo Mexico controls about 75.1% of the stock, so minority investors face governance and related-party concerns. Key risks for investors include a January 1, 2006 accounting change (EITF 04-06) that reversed $499.5 million of capitalized stripping and leach inventory costs and produced a $322.9 million after-tax charge to retained earnings, which will weigh on future operating costs. Other risks include a fatal gas explosion at the Pasta de Conchos coal mine in Mexico in February 2006 (65 miners trapped and presumed dead), Peruvian royalty and Mexican profit-sharing cost increases, Peru's 2006 presidential election, the Asarco bankruptcy and its links to the parent group, and ongoing labor disputes.
Mar 28, 2006
2005
SOUTHERN COPPER CORP/ Annual Report, Year Ended Dec 31, 2005
Southern Copper Corporation's (SCCO) 2005 Form 10-K is dominated by two developments: the April 1, 2005 acquisition of Minera México from Grupo México's Americas Mining Corporation, and a sharp rise in copper and molybdenum prices. The combined company is now a leading integrated producer of copper, molybdenum, zinc and silver, operating in Peru and Mexico. Because the deal was accounted for like a pooling of interests under common control, all periods are presented on a combined basis, which makes year-over-year comparisons reflect the enlarged company. Net sales rose 32.8% to $4.11 billion and net earnings rose 42.5% to $1.40 billion, or $9.51 per share, with operating margin of about 51%. Byproduct molybdenum sales, which rose about 95% in average price, were a major driver of the increase. The filing also highlights several risks and one-time items that matter for valuation. On January 1, 2006 the company adopted the EITF stripping-cost consensus, which reversed $499.5 million of capitalized stripping and leachable material and produced a $322.9 million after-tax charge to retained earnings; management expects higher operating costs in future periods. Liquidity is strong, with cash and marketable securities of $876 million and debt of about $1.17 billion, and capital expenditures rose to $470.6 million, largely for the Ilo smelter modernization. Shareholder distributions were heavy: $5.80 per share was paid in 2005, and a $2.75 dividend was declared for March 2006. Grupo México controls about 75.1% of the stock, which creates governance and related-party considerations. The Asarco bankruptcy, Peruvian royalty disputes, IRS and SUNAT tax challenges, and a derivative lawsuit over the Minera México deal are the principal contingencies. The filing also reports the February 19, 2006 gas explosion at the Pasta de Conchos coal mine, which killed 65 miners. This is a material operational and reputational event that investors should weigh against the otherwise strong financial results, and the filing does not quantify its financial impact.
Mar 13, 2006
2004
SOUTHERN COPPER CORP/ Annual Report, Year Ended Dec 31, 2004
Southern Peru Copper Corporation (SCCO, NYSE: PCU) reported a dramatic 2004 turnaround driven by commodity prices. Net sales rose to $1,715.9 million from $798.4 million, and net earnings reached $596.8 million ($7.46 per share), up roughly 394% from $119.2 million in 2003. Copper production increased 6.1% to 876 million pounds, and molybdenum prices rose about 208%, which contributed $495.6 million to net sales. Operating cash flow was $717.3 million, and cash and marketable securities grew to $591.3 million while debt fell to $289 million, leaving a debt-to-capitalization ratio of 14.3%. Management also declared a special $100 million dividend paid March 1, 2005. The central event for investors is the proposed acquisition of Minera Mexico from Grupo Mexico's subsidiary, Americas Mining Corporation, in exchange for about 67.2 million new SPCC shares. The deal would lift Grupo Mexico's ownership from 54.2% to roughly 75%, and it requires approval by two-thirds of outstanding shares at a special meeting scheduled for March 28, 2005. Because it is a related-party transaction, minority shareholders face fairness questions, and three derivative lawsuits in Delaware seek to enjoin the deal. Management describes the combination as making SPCC the third-largest copper producer in the world, roughly doubling its sales and asset base. Key risks include a new Peruvian royalty tax (SPCC booked a $17.6 million charge, and the company is contesting it in court), an expected roughly 8% decline in 2005 copper volume due to lower Cuajone ore grades, a $500 million Ilo smelter modernization project required under the PAMA environmental program with a January 2007 deadline, concentration of all operations in southern Peru, a 12-day labor strike in 2004, and significant pending tax disputes with Peruvian and U.S. authorities. Effective tax rates were 34.4%, and workers' participation consumed a substantial share of pre-tax earnings.
Mar 16, 2005
2003-A3
SOUTHERN COPPER CORP/ Annual Report (Amendment), Year Ended Dec 31, 2003
Southern Peru Copper Corporation (SCCO, NYSE: PCU) filed this amended and restated 10-K/A (Amendment No. 3) for fiscal 2003 on February 25, 2005. The amendment revises portions of Items 1, 2, 7 and 8 and presents the full report, but all information is stated as of December 31, 2003 and does not reflect later events. The 2003 results were strong: net sales rose 20% to $798.4 million, operating income nearly doubled to $216.8 million, and net earnings reached $119.2 million ($1.49 per share, versus $0.76 in 2002). Mine copper output grew 8.1% to 826 million pounds, and the operating cash cost fell to 39.9 cents per pound (58.1 cents without by-product credits), driven largely by molybdenum by-product revenue of $147.9 million. The balance sheet strengthened, with cash and marketable securities of $295 million against total debt of $349 million, and stockholders' equity of $1.315 billion. Operating cash flow was $191 million. The company's largest pending obligation is the Ilo smelter modernization, now estimated at $320 million (down from over $600 million) and due before January 2007 under a Peruvian environmental (PAMA) deadline. Other items that matter to investors include a 3-point increase in the Peruvian tax rate to 30%, which led to a $10.1 million deferred tax charge; open tax disputes with the IRS and SUNAT; long-running investment-share litigation in Peru; and a February 2004 proposal from controlling shareholder Grupo Mexico to acquire Minera Mexico in exchange for new SPCC shares, which a special committee of disinterested directors was evaluating. The filing is historical. It concerns a fiscal year that ended more than two years before the filing date, so investors should treat its figures as a reference point rather than current guidance.
Feb 25, 2005
2003-A2
SOUTHERN COPPER CORP/ Annual Report (Amendment), Year Ended Dec 31, 2003
Southern Peru Copper Corporation (SCCO) filed an amendment to its 2003 Form 10-K, primarily to incorporate information related to its Savings Plan for Salaried Employees. This amendment does not introduce new financial performance data for the fiscal year ended December 31, 2003, but rather provides additional disclosures under the SEC's filing requirements. Investors should note that the core financial and operational details for 2003 would have been presented in the original 10-K filing. This filing indicates SCCO is an accelerated filer and has met its reporting obligations. The company's Common Stock is listed on the New York Stock Exchange and the Lima Stock Exchange. As of February 29, 2004, the company had approximately $533 million in non-affiliate market value for its Common Stock, with over 14 million shares outstanding. Class A Common Stock, convertible to Common Stock, also had a significant number of shares outstanding.
Jun 28, 2004
2003-A
SOUTHERN COPPER CORP/ Annual Report (Amendment), Year Ended Dec 31, 2003
Southern Peru Copper Corporation (now Southern Copper Corp.) is filing an amendment (10-K/A) to its 2003 Annual Report. This amendment is specifically to correct a typographical error in Exhibit 23.2, which is the consent of their independent auditor, Deloitte & Touche LLP. The original filing incorrectly stated the consent covered the financial statements for the period ended December 31, 2003, when another accounting firm's consent was actually relevant for that period. The corrected consent is being filed with this amendment. For investors, this filing primarily addresses a procedural correction and does not introduce new financial or operational performance data for the fiscal year ended December 31, 2003. The core financial performance and business operations would be detailed in the original 10-K filing. Investors should review the original 10-K for substantive analysis of the company's financial health, copper production, and market position.
Apr 15, 2004
2003
SOUTHERN COPPER CORP/ Annual Report, Year Ended Dec 31, 2003
Southern Peru Copper Corporation (SCCO/PCU) reported a strong 2003 as copper prices rose and volumes and by-product credits improved. Net sales rose 20% to $798.4 million from $664.6 million, operating income nearly doubled to $216.8 million from $119.0 million, and net earnings reached $119.2 million, or $1.49 per share, versus $60.6 million ($0.76) in 2002. Mine copper output increased 8.1% to 826 million pounds, and operating cash cost fell to 39.9 cents per pound from 45.6 cents, helped by molybdenum by-product credits. Cash rose to $295 million, operating cash flow was $191 million, and total debt increased to $349 million. The filing's most important forward-looking items are the Ilo smelter modernization, now estimated at $320 million (down from over $600 million) and due for completion before January 2007 under a PAMA deadline, and the Toquepala leach dump project, budgeted at $69.7 million. Budgeted 2004 capital expenditures are $290.1 million. Investors should also note the 3% increase in the Peruvian income tax rate to 30%, which required a $10.1 million deferred tax charge, and the pending Grupo Mexico proposal, announced February 3, 2004, to sell Minera Mexico to the company in exchange for new shares. A special committee of disinterested directors is evaluating that proposal, and it could create a single listed class of common stock. Ownership is concentrated, with Grupo Mexico's indirect affiliate holding 54.2% after the March 2003 transfer from Southern Peru Holdings to AMC. Risks include copper price volatility, Peruvian political and tax exposure, concentration of all operations in southern Peru, and the unresolved IRS and SUNAT tax disputes. Dividends were $0.57 per share in 2003, and a $0.27 dividend was declared for March 2004.
Mar 12, 2004
2002-A
SOUTHERN COPPER CORP/ Annual Report (Amendment), Year Ended Dec 31, 2002
This is Southern Peru Copper Corporation's (SCCO) Form 10-K/A for fiscal year 2002, filed June 27, 2003. It is a narrow amendment, not a full annual report. Its sole purpose is to add the Form 11-K annual report for the Savings Plan of Southern Peru Copper Corporation and Participating Subsidiaries, a defined contribution plan. The filing contains no consolidated operating results, revenue, earnings, cash flow, or balance sheet for the company, so it provides little direct information on SCCO's operating performance or valuation. The amendment does disclose capital structure data as of February 28, 2003: 14,108,387 shares of Common Stock and 65,900,833 shares of Class A Common Stock outstanding, with Class A convertible one-for-one into Common Stock. Non-affiliate market value of the Common Stock was approximately $217 million. The Class A shares make up most of the total share count, so the economic interest held by public Common Stock holders is smaller than the headline share total suggests. For the savings plan, net assets in liquidation fell from $1,043,308 at December 31, 2001 to $214,039 at December 31, 2002, driven mainly by $787,395 in benefit payments and a $47,925 net depreciation in investments. The plan was terminated effective November 15, 2000, and 7 participants had not completed withdrawal paperwork at year-end 2002. Management expects the termination to be completed by year-end 2003. The plan's SPCC Common Stock Fund held $36,288 at year-end 2002, down from $158,116 a year earlier. Investors should treat this filing as a compliance and disclosure amendment rather than a source of new operating information.
Jun 27, 2003
2002
SOUTHERN COPPER CORP/ Annual Report, Year Ended Dec 31, 2002
Southern Peru Copper Corporation (SCCO, NYSE: PCU) reported 2002 net earnings of $60.6 million, or $0.76 per diluted share, up about 30% from $46.6 million ($0.58) in 2001, with net sales of $664.6 million versus $657.5 million. The improvement was driven mainly by higher molybdenum and silver prices, which offset slightly lower copper prices and volumes, along with cost reductions. Operating break-even cost fell 3.7 cents per pound to 45.6 cents, and total copper output rose 1.2% to 764 million pounds. Interest expense dropped sharply after the company prepaid $121 million of debt in early 2002, though the prepayment triggered an $11.4 million penalty and an $8.5 million after-tax extraordinary loss. Cash, marketable securities and total debt fell to $148 million and $299 million respectively, leaving the balance sheet less levered, with debt at 19.3% of total capitalization. The most material risk for investors is the Ilo smelter modernization. Peru's Ministry of Energy and Mines (MEM) rejected the company's request to reschedule the project in February 2003, and in March 2003 issued a 90-day notice requiring compliance with the PAMA environmental commitments, including $77.4 million of investment. The project's cost was previously estimated above $600 million and has not been finalized, with only $63 million spent through 2002 and capital expenditures planned at about $194 million for 2003. Financing will rely partly on the Peruvian bond program and partly on international markets. Other exposures include Peruvian tax assessments from SUNAT, a pending IRS challenge on leach dump valuation, labor litigation involving former employees' investment shares, and heavy concentration of operations in southern Peru. The company also disclosed a change in auditors to PricewaterhouseCoopers and a move by the controlling holder to transfer SPCC's stock to a subsidiary of Americas Mining Corporation. For investors, the story combines improved near-term profitability and a stronger balance sheet with a sizable, uncertain capital commitment and regulatory pressure on the smelter. Copper prices, which averaged 71 cents per pound on the LME in 2002, remain the dominant driver of earnings, and management estimates that each one-cent change in copper price moves annual earnings by about $0.06 per share.
Mar 31, 2003
2001-A2
SOUTHERN COPPER CORP/ Annual Report (Amendment), Year Ended Dec 31, 2001
This filing is a 10-K/A for fiscal 2001 from Southern Peru Copper Corporation (NYSE and Lima: SCCO), signed July 9, 2002. It does not contain the company's full annual report. The amendment only adds the Form 11-K for the Savings Plan of Southern Peru Copper Corporation and Participating Subsidiaries, which was required under Rule 15d-21. The filing therefore offers no operating results, revenue, earnings, or balance sheet for the mining company itself. The header's name, "SOUTHERN COPPER CORP/", differs from the registrant name on the cover page, which is Southern Peru Copper Corporation. The only financial data is for the employee savings plan, which is small relative to the company. Net assets in liquidation fell from $2,123,560 at December 31, 2000 to $1,043,308 at December 31, 2001. The decline reflects $907,559 in benefit payments and a $219,138 net depreciation in investment value, partly offset by $46,445 in income. The plan's holding of SPCC common stock was worth $158,116 at year-end, down from $202,811. The plan made no company contributions in 2001. The filing also shows the cover-page share count of 14,103,157 common shares and 65,900,833 Class A shares, which are convertible one-to-one. Non-affiliate market value was about $156 million as of February 28, 2002. For investors, the amendment is largely administrative. It contains no new information about the company's business or financial condition, and the plan termination has no material bearing on the company's valuation.
Jul 12, 2002
2001-A
SOUTHERN COPPER CORP/ Annual Report (Amendment), Year Ended Dec 31, 2001
This 10-K/A filing from Southern Peru Copper Corporation (SCCO) for the fiscal year ended December 31, 2001, is an amendment focused on Part III, which details director nominees, executive compensation, and related party transactions. The company operates in the mining sector, with significant ties to Grupo Mexico. A substantial portion of the filing pertains to the composition of the Board of Directors and the executive management team, highlighting individuals with extensive experience in mining, finance, and international trade. Compensation structures for executives are noted as being largely influenced by Peruvian law and the guidelines of Grupo Mexico, with a focus on base salary and mandated bonuses and benefits. The filing also clarifies that no stock options were granted or exercised in 2001, and long-term incentive compensation was not awarded during that year. Key investor considerations from this amendment include the significant influence of Grupo Mexico and its affiliates, evidenced by board representation, management roles, and extensive related party transactions. These transactions involve the purchase and sale of copper products and support services, with amounts totaling millions of dollars. While management asserts these transactions are conducted on an arm's-length basis, investors should be aware of the potential for conflicts of interest and the continuous nature of these dealings. The company also provides a five-year cumulative total return comparison, indicating mixed performance against market indices.
Apr 30, 2002
2001
SOUTHERN COPPER CORP/ Annual Report, Year Ended Dec 31, 2001
Southern Peru Copper Corporation (SCCO/PCU) reported 2001 net earnings of $46.6 million, or $0.58 per diluted share, down 49.9% from $92.9 million ($1.16) in 2000. The decline was driven mainly by lower copper prices (LME average fell from 82 to 72 cents per pound), partly offset by record production, higher sales volumes and cost reductions. Net sales fell 7.5% to $657.5 million, operating income dropped to $89.2 million from $149.6 million, and operating breakeven cost improved to 49.3 cents per pound from 51.4 cents. Copper output rose 0.5% to 755 million pounds, with record blister and cathode production at the Ilo smelter and refinery. The balance sheet is solid but more leveraged. Cash and equivalents rose to $212.9 million and stockholders' equity to $1.21 billion, while total debt increased to $396 million, lifting debt-to-capitalization to 24.5% from 22.4%. Operating cash flow was $198.4 million, and 2002 capital expenditures are planned at roughly $194 million, mainly for the Ilo smelter modernization, the Toquepala concentrator expansion and Cuajone leaching. The company has also refinanced its debt, prepaying a $400 million credit facility and the $150 million Secured Export Notes, funded partly through new Peruvian bond issues. Investors should weigh the company's dependence on copper prices and on a single operating region in southern Peru, against its large expansion program, which includes an estimated $672 million smelter project to meet PAMA environmental standards by 2007. Ownership is concentrated, with Grupo Mexico's Southern Peru Holdings controlling 54.2% of the company, and ongoing litigation includes claims from former employees seeking investment shares.
Mar 27, 2002
2000-A2
SOUTHERN COPPER CORP/ Annual Report (Amendment), Year Ended Dec 31, 2000
This is a Form 10-K/A amendment, not a full annual report, for Southern Peru Copper Corporation (SCCO) for fiscal year 2000, filed June 29, 2001. Its sole purpose is to add the Form 11-K annual report for the company's Savings Plan for Salaried Employees and Participating Subsidiaries (Exhibit 99). The filing contains no operating results, revenue, earnings, production, reserve, or balance sheet data for the company itself, so it provides little direct information for evaluating SCCO's business or valuation. Investors seeking those metrics should refer to the original FY2000 Form 10-K. The amendment does disclose that the Board approved termination of the employee Savings Plan on May 9, 2000, and that the plan moved to a liquidation basis of accounting. Plan net assets fell from $3,999,045 at December 31, 1999 to $2,123,560 at December 31, 2000, a net decrease of $1,875,485. That decline reflected $1,788,408 in benefit payments, $357,610 in net investment depreciation, and $272,392 in additions from investment income and contributions. The company's own stock fund (SPCC Common Stock Fund) was valued at $202,811 at year-end 2000, down from $461,988 a year earlier. This plan-level activity is small relative to the company and has no material bearing on its financial position. For share count context, the filing reports 14,100,192 Common Stock shares and 65,900,833 Class A Common Stock shares outstanding as of February 28, 2001. Class A shares are convertible one-for-one into Common Stock. Aggregate market value of Common Stock held by non-affiliates was approximately $204 million. Arthur Andersen LLP issued the audit report on the plan's financial statements dated June 22, 2001, and the amendment was signed June 27, 2001 by President Oscar Gonzalez Rocha.
Jun 29, 2001
2000-A
SOUTHERN COPPER CORP/ Annual Report (Amendment), Year Ended Dec 31, 2000
Southern Peru Copper Corporation (SCCO/PCU) filed this amended 2000 Form 10-K/A primarily to insert Part III information (directors, executive officers, compensation, ownership, and related-party transactions). The underlying financials show a strong recovery year: net sales rose to $711.1 million from $584.5 million, and net earnings reached $92.9 million ($1.16 per share) versus $29.4 million in 1999. Higher copper prices (LME average 82 cents per pound versus 71 cents), modestly higher volumes, and a cost-reduction program that cut operating breakeven costs to 54.0 cents per pound from 56.1 cents drove the improvement. Operating income rose to $149.6 million, and cash from operations was $183.6 million. The balance sheet and capital plan point to heavy investment and rising leverage. Total debt increased to $347.2 million from $222.5 million, and the debt-to-capitalization ratio rose to 22.4% from 16.3%. Cash and equivalents climbed to $149.1 million. Management plans about $360 million of 2001 capital expenditures for the Ilo smelter modernization, the Toquepala concentrator expansion, and Cuajone leaching work, with the goal of lifting output above 900 million pounds of copper per year by 2004. Dividends were $0.340 per share for 2000, and a $0.143 quarterly dividend was declared in February 2001. Investors should weigh several risks. The company is controlled by Grupo Mexico through ASARCO and has extensive related-party sales and service arrangements. Nearly all operations are concentrated in southern Peru, exposing the company to political, currency, and inflation risk. Peruvian tax reform could reduce the statutory rate from 30% to 20% for later years, and pending labor-share litigation and a New York personal injury lawsuit add contingent exposure. Covenants restrict dividends to 50% of quarterly net income and require minimum equity of $750 million.
Apr 30, 2001
2000
SOUTHERN COPPER CORP/ Annual Report, Year Ended Dec 31, 2000
Southern Peru Copper Corporation (SCCO, NYSE: PCU) reported a sharp recovery in fiscal 2000, with net earnings of $92.9 million ($1.16 per diluted share), up from $29.4 million ($0.37) in 1999. Net sales rose 21.6% to $711.1 million on higher copper prices (LME averaged 82 cents/lb vs. 71 cents in 1999) and 4% higher volume of copper sold (780.8 million lbs). Management credits cost reductions, with operating breakeven cost falling to 54.0 cents/lb from 56.1 cents, along with better sales conditions for the earnings improvement. Operating income more than tripled to $149.6 million, and operating cash flow rose to $183.6 million. The balance sheet reflects a company in heavy investment mode. Capital expenditures were $131.7 million in 2000, and management plans roughly $360 million in 2001 for the Ilo smelter modernization, Toquepala concentrator expansion, and Cuajone leaching work, with the broader smelter project estimated at $672 million through 2006. To fund this, total debt climbed to $347.2 million from $222.5 million, and debt rose to 22.4% of total capitalization from 16.3%. Cash and equivalents increased to $149.1 million. Covenants limit dividends to 50% of quarterly net income, and the company is subject to a minimum stockholders' equity requirement of $750 million, though it was in compliance at year-end. Key risks for investors include concentration of all operations in southern Peru, exposure to Peruvian sol inflation, dependence on copper prices, and ongoing litigation brought by former employees over investment shares. Ownership is highly concentrated: Grupo Mexico's affiliates hold about 54.2% of the company through Southern Peru Holdings Corporation, with additional stakes held by Cerro Trading and Phelps Dodge. The Board declared a $0.143 per share dividend payable April 4, 2001.
Apr 2, 2001
1999
SOUTHERN COPPER CORP/ Annual Report, Year Ended Dec 31, 1999
Southern Peru Copper Corporation (SCCO, NYSE: PCU) reported a sharp earnings decline for fiscal 1999, with net earnings falling to $29.4 million ($0.37 per diluted share) from $54.6 million ($0.68) in 1998 and $185.7 million ($2.32) in 1997. Net sales dropped 7% to $584.5 million, driven primarily by the LME copper price averaging 71 cents per pound versus 75 cents in 1998 and 103 cents in 1997. Operating income fell 35% to $45.6 million, and the company's dividend was cut to $0.152 per share from $0.51. Management attributed the decline to lower copper prices and higher depreciation, partially offset by cost-reduction savings of roughly $29 million pre-tax. Operationally, the company grew volumes: total mined copper rose 11.9% to 745.6 million pounds, driven by the Cuajone mine expansion (completed in 1999 at a cost of $245 million) and the Toquepala SX/EW expansion. Total refined copper production reached 662 million pounds. Capital spending remained heavy at $250 million, and the company plans roughly $269 million in 2000 capex, including the Ilo smelter modernization and feasibility work on Toquepala and Cuajone expansions that could lift output above 900 million pounds annually. Cash fell sharply to $10.6 million from $198 million, and operating cash flow dropped to $90 million, leaving the company dependent on existing credit facilities and external financing to fund its expansion program. The filing also reports a major ownership change: Grupo Mexico acquired ASARCO in November 1999, indirectly gaining control of SPCC's 54.2% stake through Southern Peru Holdings Corporation. Investors should weigh the strong operational growth and long-lived reserve base against the earnings pressure from low copper prices, the cash depletion, the 2000 dividend policy review, the ongoing Peruvian litigation over investment shares, and the covenant constraints tied to ASARCO's voting interest.
Mar 15, 2000