01—Abstract
Summary
Summary of the 10-K filed March 3, 2025. Cited figures are marked; the original filing is the authoritative source.
Southern Copper Corporation (SCCO) reported strong financial performance for the year ended December 31, 2024, driven by higher commodity prices and increased sales volumes across its key products, particularly copper and zinc.
Net sales reached a record high of $11.43 billiona, a 15.5% increase year-over-year, primarily due to a 7.8% rise in the average LME copper price and significant volume growth in zinc production, largely from the full operational capacity of the Buenavista Zinc concentrator. The company's proactive approach to cost management resulted in a decrease in operating cash costs per pound of copper, both before and net of by-product revenues. Despite a slight increase in overall operating costs, the strong revenue growth led to a substantial increase in operating income, which grew by 32.5% to $5.55 billion.
Net income attributable to SCCO surged by 39.2% to $3.38 billionb. SCCO also demonstrated a robust commitment to shareholder returns, with substantial dividend payments and ongoing share repurchase authorizations. The company continues to invest heavily in capital projects, aiming to expand production capacity and enhance operational efficiency, with a forward-looking capital investment program of $1.6 billion approved for 2025.
SCCO's significant mineral reserves, located primarily in Peru and Mexico, coupled with its integrated mining, smelting, and refining operations, position it favorably within the global copper market. The company's focus on operational discipline, sustainability, and community engagement, as evidenced by its strong ESG ratings and investments in local development, further underscores its commitment to long-term value creation. While facing commodity price volatility and operational risks inherent in the mining industry, SCCO's strategic investments and robust operational execution in 2024 provide a positive outlook.
02—Key points
Key Highlights
- Achieved record net sales of $11.43 billion, a 15.5% increase year-over-year, driven by higher commodity prices (copper, silver, zinc) and increased sales volumes.
- Reported a 39.2% year-over-year increase in net income attributable to SCCO, reaching $3.38 billion, supported by strong revenue growth and effective cost management.
- Experienced significant growth in zinc production, up 98.5% year-over-year, primarily due to the full operational capacity of the Buenavista Zinc concentrator.
- Maintained a strong operational cost structure, with operating cash costs per pound of copper before by-product revenues decreasing by 2.5% to $2.13, and net of by-product revenues decreasing by 13.9% to $0.89.
- Announced a significant capital investment program of $1.6 billion for 2025, focused on expanding production capacity and improving operational efficiency across its Mexican and Peruvian assets.
- Demonstrated strong shareholder returns through substantial dividend payments and a continued share repurchase authorization, with $1.64 billion in dividends paid in 2024.
- Maintained a robust mineral reserve position, totaling 112,668 million pounds of contained copper as of December 31, 2024, supporting long-term production and growth.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Southern Copper Corp kept $0.30.
- Revenue$11.43B100.0%
- Cost of revenue−$4.84B42.3%
- Gross profit$6.59B57.7%
- Operating costs−$1.04B9.1%
- Operating income$5.55B48.6%
- Interest, other & tax−$2.18B19.0%
- Net income$3.38B29.5%
Where FY2024 revenue went
$11.43B- Cost of revenue: $4.84B, 42% of revenue
- Net income: $3.38B, 30% of revenue
- Interest, other & tax: $2.18B, 19% of revenue
- SG&A: $130.5M, 1.1% of revenue
- Other operating costs: $906.8M, 7.9% of revenue
Kept 30% as net incomeSG&A $130.5M · 1.1%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed March 3, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $11.43B$9.90B | +15.5% |
| Cost of Revenue | $4.84B$4.69B | +3.3% |
| Gross Profit | $6.59B$5.21B | +26.6% |
| SG&A Expenses | $130.50M$127.20M | +2.6% |
| Operating Expenses | $5.88B$5.70B | +3.1% |
| Operating Income | $5.55B$4.19B | +32.5% |
| Net Income | $3.38B$2.43B | +39.2% |
| EPS (Basic) | $4.21$3.05 | +38.0% |
| EPS (Diluted) | $4.21$3.05 | +38.0% |
| Shares Outstanding (Basic) | 802.90M795.30M | +1.0% |
| Shares Outstanding (Diluted) | 802.90M795.30M | +1.0% |
05—Questions
Frequently Asked Questions
What were Southern Copper's key financial results for the year ended December 31, 2024?
Southern Copper reported record net sales of $11.43 billion, a 15.5% increase year-over-year. Net income attributable to SCCO rose by 39.2% to $3.38 billion. Operating income increased by 32.5% to $5.55 billion. The company also saw a significant increase in zinc production and maintained competitive operating cash costs.
How did commodity prices impact SCCO's performance in 2024?
Higher prices for copper (up 7.8% LME), silver (up 20.7%), and zinc (up 5.0%) were primary drivers of the increased net sales. These were partially offset by a decline in molybdenum prices (down 10.6%).
What are SCCO's major capital investment plans for 2025?
Southern Copper has approved a capital investment program of $1.6 billion for 2025. Key investments include approximately $600 million for its Mexican operations to modernize assets and improve water and tailings management, and significant investments in Peruvian projects like the Tia Maria project ($1.8 billion budget) and Los Chancas project.
How does SCCO manage its operational costs?
SCCO focuses on cost control and production enhancement. In 2024, the company achieved a 2.5% decrease in operating cash cost per pound of copper before by-product revenues to $2.13 and a 13.9% decrease in operating cash cost per pound of copper net of by-product revenues to $0.89, driven by increased production and improved by-product revenue credits.
What is SCCO's outlook for copper prices and demand in 2025?
SCCO is optimistic about copper prices in 2025, expecting demand to grow around 4%, driven by economic measures in China, resilient U.S. consumption, and new demand from the energy transition and AI technologies. The company anticipates a market deficit of approximately 250,000 tonnes for the year, with inventories covering about one week of global demand.
06—Continue