Summary
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.
Financial Highlights
51 data points| Revenue | $10.93B |
| Cost of Revenue | $3.89B |
| Gross Profit | $7.04B |
| SG&A Expenses | $125.20M |
| Operating Expenses | $4.87B |
| Operating Income | $6.07B |
| Net Income | $3.40B |
| EPS (Basic) | $4.39 |
| EPS (Diluted) | $4.39 |
| Shares Outstanding (Basic) | 773.10M |
| Shares Outstanding (Diluted) | 773.10M |
Key Highlights
- 1Record Net Sales: Achieved historical high net sales of $10.9 billion in 2021, a 36.9% increase year-over-year, driven by strong commodity prices.
- 2Significant Profitability Growth: Net income attributable to SCC surged by 116.3% to $3.4 billion, reflecting higher metal prices and effective cost control.
- 3Improved Cash Costs: Operating cash cost per pound of copper, net of by-product revenues, decreased by 2.9% to $0.67, demonstrating operational efficiency.
- 4Increased Capital Investments: Capital expenditures rose by 50.7% to $892.3 million in 2021, with a planned investment of $1.54 billion for 2022, indicating a focus on growth and expansion.
- 5Strong Balance Sheet: Maintained a solid financial position with a net debt to net capitalization ratio of 27.1% as of December 31, 2021.
- 6Substantial Mineral Reserves: Holds significant mineral reserves, with approximately 93.5 billion pounds of copper contained in ore reserves, positioning the company for long-term production.
- 7Strategic Growth Projects: Advancing several key development projects, including Buenavista Zinc, Pilares, and El Pilar in Mexico, and Tia Maria in Peru, to support future production increases.