Summary
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.
Financial Highlights
51 data points| Revenue | $10.05B |
| Cost of Revenue | $4.65B |
| Gross Profit | $5.40B |
| SG&A Expenses | $125.00M |
| Operating Expenses | $5.61B |
| Operating Income | $4.44B |
| Net Income | $2.64B |
| EPS (Basic) | $3.41 |
| EPS (Diluted) | $3.41 |
| Shares Outstanding (Basic) | 773.10M |
| Shares Outstanding (Diluted) | 773.10M |
Key Highlights
- 1Southern Copper Corporation generated $10.05 billion in net sales for the year ended December 31, 2022, a decrease of 8.1% from $10.93 billion in 2021, primarily due to lower sales volumes of copper, molybdenum, and silver, and a decrease in copper and silver prices.
- 2Net income attributable to SCCO was $2.64 billion for 2022, down from $3.40 billion in 2021, impacted by higher operating costs and lower sales volumes.
- 3Operating cash cost per pound of copper produced, net of by-product revenues, increased by 16.5% to $0.78 in 2022, primarily due to increased production costs and a decrease in copper production volume.
- 4The company reported significant capital investments of $948.5 million in 2022, with a planned $1.1 billion for 2023, focused on expanding production and improving operational efficiency.
- 5SCCO holds substantial mineral reserves, with 99,502 million pounds of contained copper as of December 31, 2022, indicating strong long-term production potential.
- 6Production volumes for copper decreased by 6.6% in 2022 compared to 2021, largely attributed to lower output at the Cuajone, Toquepala, and La Caridad mines.
- 7The company remains committed to ESG initiatives, achieving improved sustainability assessment scores and pursuing ISO certifications for its environmental and safety management systems.