SOUTHERN COPPER CORP/ Quarterly Report for Q2 Ended Jun 30, 2023

Summary

Southern Copper Corporation (SCCO) reported its second quarter and first six months of 2023 financial results. For the second quarter, net sales were $2.30 billion, a slight decrease of 0.3% year-over-year, primarily due to lower metal prices, particularly for copper and zinc. However, net income attributable to SCC saw a significant increase of 26.6% to $547.5 million, driven by improved operating cost efficiencies and higher sales volumes of copper and zinc, which offset the impact of lower average metal prices. For the first six months of 2023, net sales increased by 0.5% to $5.09 billion. Net income attributable to SCC also grew by 11.8% to $1.36 billion, reflecting higher sales volumes across most metal products, cost reductions, and a notable decrease in income taxes. The company continues to invest in capital projects, with $490.6 million spent in the first half of 2023, and has announced a $1.00 per share dividend for the third quarter.

Key Highlights

• 1Net sales for Q2 2023 were $2.30 billion, a slight decrease of 0.3% compared to Q2 2022, impacted by lower copper and zinc prices.
• 2Net income attributable to SCC increased significantly by 26.6% to $547.5 million in Q2 2023, driven by cost efficiencies and higher sales volumes.
• 3For the first six months of 2023, net sales were $5.09 billion, up 0.5% year-over-year.
• 4Net income attributable to SCC for the first six months of 2023 rose 11.8% to $1.36 billion, supported by cost reductions and lower taxes.
• 5Capital expenditures for the first six months of 2023 totaled $490.6 million, an increase of 14.2% year-over-year.
• 6The company announced a Q3 2023 dividend of $1.00 per share, a decrease from the $1.25 per share paid in Q2 2022.
• 7Copper production increased by 9.2% in Q2 2023 and 6.6% for the first six months of 2023 compared to the prior year periods.

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