Southern Copper Reports Significant Growth

By Bobby Samwell • Saturday, July 20 06:05 • Permanent Link

Southern Copper Corporation (NYSE and BVL: SCCO) has reported its second-quarter and six-month 2024 financial results, showing significant growth in net sales and net income compared to the same periods in 2023. Here are the key highlights from the press release:

Net sales for the second quarter of 2024 were $3,118.3 million, marking a substantial increase of 35.5% compared to the second quarter of 2023. Additionally, year-to-date net sales for 2024 were higher than in 2023, driven by increased sales volumes for copper (+4.1%), molybdenum (+14.8%), silver (+12.0%), and zinc (+33.7%).
Second-quarter net income reached $950.2 million, representing a remarkable 73.6% increase over the $547.5 million recorded in the second quarter of 2023. The net income margin in the second quarter of 2024 stood at 30.5%, a significant improvement from 23.8% in the same period in 2023. On a year-to-date basis, net income was 23.9% higher than in 2023.
Adjusted EBITDA for the second quarter of 2024 was $1,797.0 million, reflecting a substantial increase of 61.1% compared to the second quarter of 2023. The adjusted EBITDA margin in the second quarter of 2024 stood at 57.6%, up from 48.5% in the same period in 2023. Year-to-date adjusted EBITDA for 2024 was 19.8% higher than in 2023.
Despite the strong financial performance, cash flow from operating activities in the first half of 2024 decreased by 18.2% compared to the same period in 2023, primarily due to a significant increase in working capital driven by higher accounts receivable at the Mexican operations.
The company's copper production saw a notable increase of 6.6% in the second quarter of 2024 compared to the previous quarter, reaching 242,474 tons. On a year-over-year basis, copper production rose by 7.1% in 2024.
By-product production also demonstrated positive growth, with mined zinc production increasing by 70.8% and molybdenum production increasing by 20.8% in the second quarter of 2024 compared to the same period in 2023.
The company reported a significant decrease in operating cash cost per pound of copper, net of by-product revenue credits, which was $0.76 in the second quarter of 2024, representing a 29% reduction compared to the first quarter of 2024.
Capital investments in the second quarter of 2024 totaled $331.8 million, reflecting a 31.4% increase over the figure reported in the second quarter of 2023.
The board of directors authorized a quarterly cash dividend of $0.60 per share of common stock and a stock dividend of 0.0056 shares of common stock per share of common stock, payable on August 26, 2024.
Southern Copper Corporation highlighted its commitment to driving improvements in health and educational services in the Arequipa region, as well as the resumption of activities at the Tía María project, which is expected to create significant economic and social opportunities.

In addition, the company provided updates on various projects, including Tia Maria in Arequipa and Los Chancas in Apurimac, Peru, and the Michiquillay project in Cajamarca, Peru. The company also highlighted its environmental, social, and corporate governance (ESG) practices and initiatives, such as renewable energy adoption, transparency, and accountability efforts.

The company's second-quarter earnings conference call is scheduled for Monday, July 22, 2024. The market has reacted to these announcements by moving the company's shares 0.3% to a price of $104.3. If you want to know more, read the company's complete 8-K report here.

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