10-KPeriod: FY2010

SOUTHERN COPPER CORP/ Annual Report, Year Ended Dec 31, 2010

Filed March 1, 2011For Securities:SCCO

Summary

Southern Copper Corporation (SCCO) reported robust financial performance for the fiscal year ending December 30, 2010, as detailed in their 2011 10-K filing. The company demonstrated significant revenue growth, primarily driven by strong copper prices and increased sales volumes. This performance underscores SCCO's position as a leading global producer of copper and its ability to capitalize on favorable market conditions in the mining sector. Investors would note the company's strategic focus on operational efficiency and expansion projects aimed at sustaining long-term growth and profitability. The report highlights the company's commitment to resource development and its solid financial footing, suggesting a positive outlook for shareholders.

Financial Highlights

53 data points
Beta

Revenue

$5.15B

53.2% Gross Margin

Net Income

$1.55B

30.2% Net Margin

EPS (Diluted)

$1.83

Total Assets

$8.13B

Cash & Equivalents

$848.12M

Free Cash Flow

$1.51B

Financial Statements
Beta
Revenue$5.15B
Cost of Revenue$2.13B
Gross Profit$2.74B
SG&A Expenses$100.29M
Operating Expenses$2.55B
Operating Income$2.60B
Net Income$1.55B
EPS (Basic)$1.81
EPS (Diluted)$1.83
Shares Outstanding (Basic)859.00M
Shares Outstanding (Diluted)859.00M

Key Highlights

  • 1Strong revenue growth driven by higher copper prices and increased sales volumes.
  • 2Significant operational improvements and efficiency gains across SCCO's mining and smelting operations.
  • 3Expansion projects in Peru and Mexico are progressing, indicating future production capacity growth.
  • 4Solid cash flow generation supporting ongoing investments and potential shareholder returns.
  • 5Successful management of operating costs despite inflationary pressures.
  • 6Reinforced market position as a major global producer of copper and a significant producer of molybdenum, zinc, and silver.

Frequently Asked Questions

The primary drivers were strong global copper prices and an increase in sales volumes, which significantly boosted revenues. Operational efficiencies and effective cost management also contributed positively to the company's profitability.

Yes, Southern Copper is actively pursuing expansion projects in both Peru and Mexico. These projects are designed to increase production capacity and support the company's long-term growth strategy.

Southern Copper demonstrated effective cost management, successfully navigating inflationary pressures. They focused on operational efficiency and optimization across their mining and smelting operations to control expenses.

Based on the 2010 performance and ongoing expansion efforts, the outlook appears positive. The company is well-positioned to benefit from favorable commodity prices and has a strategic plan for sustained growth and profitability.