Summary
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 billion, 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 billion. 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.
Financial Highlights
51 data points| Revenue | $11.43B |
| Cost of Revenue | $4.84B |
| Gross Profit | $6.59B |
| SG&A Expenses | $130.50M |
| Operating Expenses | $5.88B |
| Operating Income | $5.55B |
| Net Income | $3.38B |
| EPS (Basic) | $4.34 |
| EPS (Diluted) | $4.34 |
| Shares Outstanding (Basic) | 780.40M |
| Shares Outstanding (Diluted) | 780.40M |
Key Highlights
- 1Achieved 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.
- 2Reported 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.
- 3Experienced significant growth in zinc production, up 98.5% year-over-year, primarily due to the full operational capacity of the Buenavista Zinc concentrator.
- 4Maintained 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.
- 5Announced 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.
- 6Demonstrated strong shareholder returns through substantial dividend payments and a continued share repurchase authorization, with $1.64 billion in dividends paid in 2024.
- 7Maintained a robust mineral reserve position, totaling 112,668 million pounds of contained copper as of December 31, 2024, supporting long-term production and growth.