10-KPeriod: FY2013

SOUTHERN COPPER CORP/ Annual Report, Year Ended Dec 31, 2013

Filed February 27, 2014For Securities:SCCO

Summary

Southern Copper Corporation (SCCO) reported its 2013 fiscal year results, highlighting a challenging operating environment characterized by lower commodity prices, particularly for copper. Despite these headwinds, the company demonstrated resilience through effective cost management and continued investment in its growth projects. Investors should note that while profitability was impacted by market conditions, SCCO maintained a strong balance sheet and pursued strategic initiatives aimed at long-term value creation. The filing also provides insights into the company's significant mining assets and its commitment to environmental, social, and governance (ESG) practices. The company's performance in 2013 was largely shaped by the prevailing global economic conditions that influenced copper demand and pricing. SCCO's strategic focus on operational efficiency and the advancement of its development pipeline underscore its commitment to navigating market volatility and positioning itself for future growth. Investors will find detailed information regarding the company's production levels, capital expenditures, and outlook for its various mining operations across Peru and Mexico.

Financial Highlights

49 data points
Beta

Revenue

$5.95B

45.1% Gross Margin

Net Income

$1.62B

27.2% Net Margin

EPS (Diluted)

$1.92

Total Assets

$10.97B

Cash & Equivalents

$1.67B

Free Cash Flow

$155.80M

Financial Statements
Beta
Revenue$5.95B
Cost of Revenue$2.87B
Gross Profit$2.69B
SG&A Expenses$102.50M
Operating Expenses$3.42B
Operating Income$2.53B
Net Income$1.62B
EPS (Basic)$1.92
Shares Outstanding (Basic)842.70M

Key Highlights

  • 1SCCO operates primarily in Peru and Mexico, with significant copper, molybdenum, and zinc production.
  • 2The company experienced lower average realized prices for copper and other key metals in 2013 compared to prior periods.
  • 3Despite price pressures, SCCO focused on operational efficiencies and cost control measures.
  • 4Significant capital expenditures were directed towards growth projects, including the expansion of existing mines and development of new ones, particularly the Toquepala mine expansion.
  • 5The company maintained a solid financial position, with prudent debt management.
  • 6SCCO reported on its environmental compliance and sustainability initiatives, reflecting a commitment to responsible mining practices.

Frequently Asked Questions

The primary drivers were lower average realized prices for copper and other key commodities, which impacted revenue and profitability. However, the company's focus on cost management and operational efficiencies helped to mitigate some of these negative effects.

SCCO's major growth initiatives include the expansion of existing operations, notably the Toquepala mine expansion in Peru, and the development of new projects aimed at increasing production capacity in the coming years.

The company implemented various cost control measures and focused on improving operational efficiencies across its mining and smelting operations to reduce production costs on a per-unit basis.

Southern Copper Corporation's principal mining operations are located in Peru and Mexico, making it a significant producer in these regions.