Summary
Southern Copper Corporation (SCCO) reported a strong first quarter for 2012, with net sales increasing by 12.7% year-over-year to $1.8 billion. This growth was primarily driven by a significant 23% increase in copper production volumes, alongside higher production of by-products like molybdenum, zinc, and silver. Despite lower average commodity prices for copper, molybdenum, and zinc compared to the prior year, the company achieved a 29.9% increase in net income attributable to SCC, reaching $621.4 million, or $0.73 per share. The company's operational performance was boosted by higher production across its open-pit mines, particularly at Buenavista, and improved ore grades and recoveries at its Peruvian operations. SCCO also generated substantial operating cash flow, which supported significant capital expenditures of $177.4 million focused on expansion projects at its Buenavista, Toquepala, and Cuajone mines, underscoring a commitment to organic growth and long-term value creation.
Financial Highlights
47 data points| Revenue | $1.81B |
| Cost of Revenue | $721.93M |
| Gross Profit | $1.01B |
| SG&A Expenses | $25.43M |
| Operating Expenses | $833.03M |
| Operating Income | $972.90M |
| Net Income | $621.40M |
| EPS (Basic) | $0.73 |
| Shares Outstanding (Basic) | 849.98M |
| Shares Outstanding (Diluted) | 849.98M |
Key Highlights
- 1Net sales increased by 12.7% to $1.8 billion in Q1 2012 compared to Q1 2011.
- 2Net income attributable to SCC rose by 29.9% to $621.4 million, or $0.73 per diluted share.
- 3Copper production volume increased by 23% year-over-year.
- 4Molybdenum, zinc, and silver production also saw significant increases of 8%, 13%, and 17%, respectively.
- 5Operating cash flow generation was strong, supporting $177.4 million in capital expenditures.
- 6Despite lower commodity prices, the company's focus on production volume and cost control drove improved financial results.
- 7The company continues to invest in major expansion projects at its Buenavista, Toquepala, and Cuajone mines.