Summary
Southern Copper Corporation (SCCO) reported a significant increase in net sales and net income for the nine months ended September 30, 2011, compared to the same period in 2010. This growth was driven by higher average copper prices and the full restoration of production at the Buenavista mine. Net sales rose by 41.1% to $5.15 billion, and net income attributable to SCC more than doubled to $1.80 billion, leading to a substantial increase in earnings per share. The company maintained a strong liquidity position with $1.8 billion in cash and short-term investments, while managing its debt effectively. Capital expenditures remained robust, with significant investments in expansion and modernization projects in both Peru and Mexico, aimed at increasing future production and operational efficiency. Despite some challenges, including a suspension of the Tia Maria project and ongoing discussions regarding community relations for other projects, SCCO demonstrated resilience and operational strength.
Financial Highlights
49 data points| Revenue | $1.75B |
| Cost of Revenue | $677.26M |
| Gross Profit | $996.10M |
| SG&A Expenses | $24.38M |
| Operating Expenses | $783.82M |
| Operating Income | $962.10M |
| Net Income | $663.10M |
| EPS (Basic) | $0.78 |
| Shares Outstanding (Basic) | 852.25M |
| Shares Outstanding (Diluted) | 852.25M |
Key Highlights
- 1Net sales increased by 41.1% to $5.15 billion for the nine months ended September 30, 2011, compared to $3.65 billion in the prior year.
- 2Net income attributable to SCC more than doubled, increasing by 69.5% to $1.80 billion from $1.06 billion in the comparable period.
- 3Earnings per share (EPS) rose significantly to $2.12 from $1.25, reflecting improved profitability.
- 4The company reported strong operating cash flow, driven by higher metal prices and increased production volumes, particularly from the Buenavista mine.
- 5SCCO's liquidity remained strong, with $1.8 billion in cash and short-term investments as of September 30, 2011.
- 6Significant capital expenditures were made towards expansion projects in Peru and Mexico, underscoring a commitment to future growth.
- 7The Tia Maria project in Peru faced suspension due to environmental impact assessment process issues, but management remains confident in its eventual completion.