Summary
Southern Copper Corporation (SCCO) reported a decrease in net sales and net income for the third quarter and first nine months of 2022 compared to the prior year, largely driven by lower average commodity prices, particularly for copper. While copper prices saw a significant decline, SCCO's sales volume for copper increased slightly year-over-year in the third quarter. By-product revenues, including molybdenum, silver, and zinc, also experienced price and volume decreases in many cases. Despite the revenue headwinds, the company's focus on cost control and operational efficiency remains evident. Operating costs increased, impacting profitability, with higher fuel, power, and foreign currency effects contributing to the rise. SCCO continues to invest in capital projects aimed at increasing production and reducing costs, with significant progress reported on projects in Mexico and Peru. The company also announced a quarterly dividend of $0.50 per share.
Financial Highlights
49 data points| Revenue | $2.16B |
| Cost of Revenue | $1.14B |
| Gross Profit | $1.02B |
| SG&A Expenses | $30.20M |
| Operating Expenses | $1.37B |
| Operating Income | $787.20M |
| Net Income | $519.00M |
| EPS (Basic) | $0.67 |
| EPS (Diluted) | $0.67 |
| Shares Outstanding (Basic) | 773.10M |
| Shares Outstanding (Diluted) | 773.10M |
Key Highlights
- 1Net sales for Q3 2022 decreased by 19.5% to $2.16 billion, and for the nine months ended September 30, 2022, decreased by 10.9% to $7.23 billion, primarily due to lower metal prices.
- 2Net income attributable to SCCO for Q3 2022 decreased by 40.2% to $519.0 million, and for the nine months ended September 30, 2022, decreased by 32.3% to $1.74 billion, largely impacted by lower sales and higher operating costs.
- 3Copper production for the nine months ended September 30, 2022, decreased by 9.3% to 1.44 billion pounds, mainly due to lower ore grades and recoveries at several operations and a mine stoppage at Cuajone.
- 4Operating cash cost per pound of copper produced, net of by-product revenues, increased significantly by 77.9% in Q3 and 41.1% for the nine months of 2022, driven by higher production costs and lower by-product revenues.
- 5Capital expenditures for the nine months ended September 30, 2022, were $657.6 million, a decrease of 5.4% compared to the same period in 2021, with ongoing investments in projects like Buenavista Zinc and Pilares.
- 6The company's liquidity remains strong with $2.18 billion in cash and cash equivalents as of September 30, 2022.
- 7A quarterly dividend of $0.50 per share was authorized on October 20, 2022.