Summary
Southern Copper Corporation (SCCO) reported robust financial results for the second quarter and first half of 2024, demonstrating significant year-over-year improvements. Net sales saw a substantial increase of 35.5% in Q2 2024 and 12.2% for the first half, driven by higher commodity prices, particularly for copper, and increased sales volumes across key metals like copper, molybdenum, zinc, and silver. Net income attributable to SCC surged by 73.6% in Q2 and 23.9% for the first half, reflecting strong operational performance and effective cost management. The company also announced the restart of construction activities for the Tia Maria project in Peru, a significant development for future growth. Dividends remain a focus for shareholders, with the Board authorizing both a cash and stock dividend for the upcoming payment. SCCO's operational highlights include significant production increases in copper, molybdenum, silver, and zinc, largely due to improved ore grades and the ramp-up of new facilities such as the Buenavista Zinc concentrator. The company continues to invest in capital projects aimed at increasing production and reducing costs, with substantial expenditures in both Mexican and Peruvian operations. Despite some increases in operating costs, driven by factors like repairs and labor, the company has managed to maintain competitive operating cash costs, especially when factoring in by-product revenues.
Financial Highlights
49 data points| Revenue | $3.12B |
| Cost of Revenue | $1.25B |
| Gross Profit | $1.87B |
| SG&A Expenses | $33.90M |
| Operating Expenses | $1.51B |
| Operating Income | $1.61B |
| Net Income | $950.20M |
| EPS (Basic) | $1.21 |
| EPS (Diluted) | $1.21 |
| Shares Outstanding (Basic) | 785.60M |
| Shares Outstanding (Diluted) | 785.60M |
Key Highlights
- 1Net sales increased by 35.5% in Q2 2024 and 12.2% year-to-date, driven by higher commodity prices (copper, molybdenum, zinc, silver) and increased sales volumes.
- 2Net income attributable to SCC rose significantly by 73.6% in Q2 2024 and 23.9% year-to-date, reflecting strong operational performance and improved pricing.
- 3Production saw substantial year-over-year increases across key metals, including copper (+7.1% YTD), molybdenum (+15.1% YTD), silver (+8.2% YTD), and zinc (+72.7% YTD), bolstered by new concentrator facilities and improved ore grades.
- 4The company announced the restart of construction for the Tia Maria project in Peru, a significant step towards future production capacity.
- 5Operating cash cost per pound of copper, net of by-product revenues, decreased by 2.8% year-to-date to $0.91, showcasing effective cost management and the benefit of strong by-product sales.
- 6SCCO declared both a cash dividend of $0.60 per share and a stock dividend of 0.0056 shares per share, indicating a continued focus on returning value to shareholders.