10-KPeriod: FY2015

SOUTHERN COPPER CORP/ Annual Report, Year Ended Dec 31, 2015

Filed February 26, 2016For Securities:SCCO

Summary

Southern Copper Corporation (SCCO) presents its 2015 annual report, highlighting a year marked by significant operational performance despite a challenging commodity price environment. The company maintained robust production levels across its key copper and molybdenum segments, demonstrating operational resilience. While revenues saw a decline primarily due to lower commodity prices, the company's strategic focus on cost management and operational efficiency helped to mitigate the impact on profitability and maintain a healthy cash flow position. SCCO's investment in growth projects, particularly the expansion of its mining operations in Peru and Mexico, remains a key strategic focus, positioning the company for future growth as market conditions improve. The company's strong balance sheet and commitment to shareholder returns through dividends underscore its financial strength and investor-friendly approach. Investors should note the company's continued emphasis on safe and sustainable operations, a critical factor in the mining industry.

Financial Highlights

51 data points
Beta

Revenue

$5.05B

31.9% Gross Margin

Net Income

$736.40M

14.6% Net Margin

EPS (Diluted)

$0.93

Total Assets

$12.59B

Cash & Equivalents

$274.50M

Free Cash Flow

-$269.80M

Financial Statements
Beta
Revenue$5.05B
Cost of Revenue$2.93B
Gross Profit$1.61B
SG&A Expenses$99.40M
Operating Expenses$3.63B
Operating Income$1.41B
Net Income$736.40M
EPS (Basic)$0.93
Shares Outstanding (Basic)794.70M

Key Highlights

  • 1Maintained strong operational performance and production levels in copper and molybdenum despite lower commodity prices.
  • 2Reported a decrease in net sales and earnings primarily driven by adverse price movements in copper and other metals.
  • 3Successfully managed operating costs and expenses, demonstrating a commitment to efficiency.
  • 4Continued strategic investment in significant growth projects in Peru and Mexico, indicating a focus on long-term expansion.
  • 5Generated solid cash flow from operations, supporting financial stability and dividend payments.
  • 6Maintained a strong balance sheet with prudent financial management.
  • 7Emphasized commitment to safety, environmental stewardship, and social responsibility in its operations.

Frequently Asked Questions

Lower commodity prices, particularly for copper, significantly impacted Southern Copper's net sales and earnings in 2015. The company reported a decline in revenue and profitability due to these adverse market conditions, although strong operational performance helped to mitigate some of the impact.

Southern Copper's primary growth strategy involves continued investment in major expansion projects at its mining operations in Peru and Mexico. These projects are designed to increase production capacity and ensure long-term resource development, positioning the company to capitalize on future market demand.

Yes, the company generated solid cash flow from operations and maintained its commitment to shareholder returns by continuing its dividend payments throughout 2015, reflecting its financial health and investor-focused approach.

Southern Copper places a strong emphasis on operational efficiency and cost management. The company actively works to control operating costs and expenses to maintain profitability, even in challenging market environments characterized by lower commodity prices.