Summary
Southern Copper Corporation (SCCO) reported strong financial performance for the nine months ended September 30, 2021, with net sales increasing by 43.9% to $8.11 billion and net income attributable to SCC growing by a substantial 161.6% to $2.56 billion year-over-year. This robust growth was primarily driven by significantly higher metal prices, particularly for copper, molybdenum, silver, and zinc, which more than offset a decrease in sales volumes for most key commodities. The company also saw a notable increase in operating income, which more than doubled to $4.53 billion. The company's financial health remains solid, with operating cash costs per pound of copper, net of by-product revenues, decreasing by 7.2% to $0.64. SCCO continues to invest in its future, with capital expenditures for the nine-month period totaling $695.5 million, up 99.4% from the prior year, focusing on projects in both Mexico and Peru aimed at increasing production and efficiency. Despite some operational challenges like lower ore grades impacting copper production volumes and global supply chain disruptions, the company's outlook remains positive due to strong commodity prices and strategic investments.
Financial Highlights
48 data points| Revenue | $2.68B |
| Cost of Revenue | $927.50M |
| Gross Profit | $1.75B |
| SG&A Expenses | $31.30M |
| Operating Expenses | $1.17B |
| Operating Income | $1.51B |
| Net Income | $867.60M |
| EPS (Basic) | $1.12 |
| EPS (Diluted) | $1.12 |
| Shares Outstanding (Basic) | 773.10M |
| Shares Outstanding (Diluted) | 773.10M |
Key Highlights
- 1Net sales for the nine months ended September 30, 2021, increased by 43.9% to $8.11 billion compared to the same period in 2020.
- 2Net income attributable to Southern Copper Corporation (SCC) more than doubled, increasing by 161.6% to $2.56 billion for the first nine months of 2021.
- 3Operating income saw a significant increase of 120.7%, reaching $4.53 billion for the nine-month period.
- 4Higher average commodity prices, especially for copper (+57.4% LME), molybdenum (+71.4%), silver (+33.4%), and zinc (+35.1%), were the primary drivers of revenue growth.
- 5Capital expenditures increased significantly by 99.4% to $695.5 million for the nine-month period, reflecting continued investment in growth projects.
- 6Operating cash cost per pound of copper, net of by-product revenues, decreased by 7.2% to $0.64 for the first nine months of 2021, indicating improved cost efficiency.
- 7The company reported a positive outlook driven by strong commodity prices and strategic project developments, despite a slight decrease in copper sales volume.