Southern Copper Corporation (NYSE and BVL: SCCO) released its third-quarter financial results, showing a significant increase in net sales. The company reported net sales of $2,930.9 million for the third quarter of 2024, marking a 17.0% increase compared to the same period in 2023. Year-to-date, the net sales represented a growth of 13.8% over the base in 2023.
The company's net income for the third quarter of 2024 was $896.7 million, a substantial 44.7% increase compared to the $619.5 million registered in 3Q23. For the nine months ending in September 2024, net income stood at $2,582.9 million, representing a growth of 30.4% compared to the same period in 2023.
The adjusted EBITDA for the third quarter of 2024 was $1,684.6 million, marking a 30.5% increase over the same period in 2023. Year-to-date, the adjusted EBITDA was $4,899.3 million, a 23.3% increase compared to the prior year.
Copper production in the third quarter of 2024 saw a significant increase, standing at 252,219 tons, an 11.5% increment compared to the third quarter of 2023. By-product production also showed positive growth, with mined zinc production rising by 90.9% and mined silver production registering an increase of 21.5% in 3Q24 compared to the same period in 2023.
The company's operating cash cost per pound of copper, including by-product revenue credits, decreased by 22.6% in 3Q24 compared to the same period in 2023, standing at $0.76.
In terms of capital investments, Southern Copper Corporation spent $792.0 million on capital investments in the first nine months of 2024, reflecting a 5.2% uptick in capital expenses year over year.
Moreover, the company's board of directors authorized a quarterly cash dividend of $0.70 per share of common stock and a stock dividend of 0.0062 shares of common stock per share of common stock, payable on November 21, 2024.
The company's chairman of the board, Mr. German Larrea, expressed encouragement over the company's third-quarter results, citing a 45% increase in net earnings compared to 3Q23. He also highlighted the company’s achievements in production levels for zinc and silver, along with the low cash costs for copper production.
Southern Copper Corporation's current capital investment program for the decade exceeds $15 billion, including investments in projects in Mexico and Peru. Notably, the Tia Maria project in Arequipa, Peru, is expected to generate significant revenues for the region and create employment opportunities.
Additionally, the company has been recognized for its responsible production practices and ongoing efforts in environmental, social, and governance (ESG) matters. Southern Copper's commitment to sustainable production is further demonstrated through its various social programs and infrastructure development initiatives.
The company's third-quarter earnings conference call is scheduled for October 23, 2024, where further insights into the financial results and future outlook are expected to be discussed. Following these announcements, the company's shares moved 0.8%, and are now trading at a price of $113.28. For the full picture, make sure to review Southern Copper's 8-K report.
