Summary
Southern Copper Corporation (SCCO) reported a significant improvement in financial performance for the first quarter of 2021 compared to the same period in 2020. Net sales surged by 47.3% to $2.53 billion, driven primarily by a substantial increase in commodity prices, particularly copper, which saw a 50.4% rise in LME prices. This favorable pricing environment, coupled with stable operating costs, led to a remarkable 255.6% increase in net income attributable to SCC, reaching $763.8 million, or $0.99 per diluted share. The company also demonstrated strong operational execution, with capital investments increasing by 130.3% to $232.6 million, signaling a commitment to growth and expansion projects. Despite a slight decrease in copper sales volume, the robust market conditions and efficient cost management positions SCCO favorably for continued performance in the near term.
Financial Highlights
48 data points| Revenue | $2.53B |
| Cost of Revenue | $943.80M |
| Gross Profit | $1.59B |
| SG&A Expenses | $30.10M |
| Operating Expenses | $1.18B |
| Operating Income | $1.35B |
| Net Income | $763.80M |
| EPS (Basic) | $0.99 |
| EPS (Diluted) | $0.99 |
| Shares Outstanding (Basic) | 773.10M |
| Shares Outstanding (Diluted) | 773.10M |
Key Highlights
- 1Net sales increased by 47.3% to $2.53 billion in Q1 2021 compared to Q1 2020.
- 2Net income attributable to SCC significantly increased by 255.6% to $763.8 million, with EPS rising to $0.99.
- 3Strong commodity prices, particularly copper (+50.4% LME price), molybdenum (+17.1%), silver (+55.8%), and zinc (+28.9%), were key drivers of revenue growth.
- 4Operating cash costs per pound of copper, net of by-product revenues, decreased by 3.9% to $0.74.
- 5Capital expenditures increased by 130.3% to $232.6 million, reflecting investment in growth projects.
- 6The company maintained strong liquidity with cash and cash equivalents of $2.27 billion at the end of the quarter.