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SOUTHERN COPPER CORP/ 8-K Report, Financial Results (Feb 12, 2025)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed February 12, 2025
Period End
February 11, 2025
Security
SCCO
In the record · 2016–202610-K1510-Q328-K86

SCCO filed 15 annual reports (10-K), 32 quarterly reports (10-Q) and 86 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Jul ’19Jul ’19
  2. Leadership change8-K · Jul ’21Jul ’21
  3. Material agreement8-K · Jun ’26Jun ’26

01—Abstract

Summary

Summary of the 8-K filed February 12, 2025. Cited figures are marked; the original filing is the authoritative source.

Southern Copper (SCCO) reported record 2024 net sales of $11,433.4 milliona, up 15.5% year over year, with fourth-quarter net sales of $2,784.3 million (+21.3%).

Growth was driven by higher copper (+5.5%), zinc (+44.6%), and silver (+15.7%) sales volumes and by better copper, zinc, and silver prices, partly offset by lower molybdenum prices (-10.6%). Full-year net income attributable to SCC rose 39.2% to $3,376.8 millionb, and adjusted EBITDA grew 27.4% to $6,406.1 million, with the adjusted EBITDA margin expanding to 56.0% from 50.8%. Operating cash cost net of by-product credits fell to $0.89 per pound of copper from $1.03, helped by higher by-product revenue and a larger copper base.

Operating cash flow rose 23.7% to $4,421.7 millionc. The filing itself (Item 2.02) is a furnished earnings release and dividend notice. The Board authorized a $0.70 per share quarterly cash dividend plus a 0.0073-share stock dividend per share, payable February 27, 2025, to holders of record on February 11, 2025, with fractional shares settled in cash at $95.86.

Separately, subsidiary Minera Mexico issued a $1 billiond 7-year senior unsecured note at 5.625% due 2032 on February 5, 2025, with orders of $3.5 billion (3.5x covered). Looking ahead, management guided 2025 copper output to 967,000 tons (roughly flat), zinc to 171,700 tons (+32%), silver to 23 million ounces (+10%), and molybdenum to 26,200 tons (-10%).

The company reiterated a capital investment program exceeding $15 billion this decade, including Tia Maria (budget raised to $1,802 million, construction expected to begin in 2025) and Los Chancas, Michiquillay, and El Pilar projects. Net debt is manageable given cash of $3,258.1 million against total debt of roughly $6.26 billion at year-end.

02—Key points

Key Highlights

  1. Record 2024 net sales of $11,433.4 million (+15.5%); Q4 sales of $2,784.3 million (+21.3%), driven by volume gains in copper, zinc, and silver.
  2. 2024 net income attributable to SCC of $3,376.8 million (+39.2%); Q4 net income of $793.9 million (+78.4%), with a 28.5% Q4 net margin.
  3. Adjusted EBITDA of $6,406.1 million for 2024 (+27.4%), with margin expanding to 56.0% from 50.8%.
  4. Operating cash cost net of by-product credits fell to $0.89/lb of copper in 2024 from $1.03/lb, aided by a 9-cent rise in by-product revenue credits.
  5. Quarterly dividend of $0.70 per share plus a 0.0073-share stock dividend, payable February 27, 2025 (record date February 11, 2025).
  6. Issued $1 billion 7-year senior notes at 5.625% due 2032 via Minera Mexico on February 5, 2025, with $3.5 billion in orders (3.5x covered).
  7. 2025 guidance: copper 967,000 tons (flat), zinc 171,700 tons (+32%), silver 23 million oz (+10%), molybdenum 26,200 tons (-10%); capital program exceeds $15 billion this decade.

03—Questions

Frequently Asked Questions

  1. What drove the strong 2024 results?

    Higher sales volumes across copper (+5.5%), molybdenum (+7.9%), zinc (+44.6%, aided by the full ramp-up of the Buenavista zinc concentrator), and silver (+15.7%), combined with higher copper (+7.8%), zinc (+5.0%), and silver (+20.7%) prices. Molybdenum prices fell 10.6%, partially offsetting gains. Strict cost controls also supported margins.

  2. How much is the dividend and when will it be paid?

    The Board authorized a $0.70 per share quarterly cash dividend and a 0.0073-share stock dividend per share, payable February 27, 2025, to shareholders of record at the close of February 11, 2025. Fractional shares are paid in cash based on a $95.86 reference price. Note that the cash dividend of $0.70 is lower than the $1.00 paid in Q4 2023, and 2024 total cash dividends were $2.10 per share versus $4.00 in 2023.

  3. Why did the company issue new debt, and what are the terms?

    On February 5, 2025, subsidiary Minera Mexico issued $1 billion of 7-year fixed-rate senior unsecured notes due 2032 at 5.625%. Demand reached $3.5 billion, and proceeds will fund Mexican capital expenditures and Minera Mexico's general corporate purposes, adding liquidity.

  4. What is the 2025 production outlook?

    Management expects copper output of about 967,000 tons, roughly flat with 2024. Zinc is guided to 171,700 tons (+32%) and silver to 23 million ounces (+10%), while molybdenum is expected to fall 10% to 26,200 tons, reflecting the mix shift and lower expected molybdenum output.

  5. What are the major growth projects and their timelines?

    Tia Maria (Peru, 120,000 tons/year SX-EW copper) has a revised budget of $1,802 million, with construction expected to begin in 2025 and operations in 2027. Los Chancas (Peru, operations expected 2031, est. $2.6 billion), Michiquillay (Peru, production start-up by 2032, est. $2.5 billion), and El Pilar (Mexico, $310 million) are also in development. Management says the capital program exceeds $15 billion this decade.

04—Continue

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