Southern Copper Corporation (NYSE and BVL: SCCO) has reported impressive financial results for the first quarter of 2025, with net sales reaching $3,121.9 million, marking a significant growth of 20.1% compared to the same period in the previous year. The robust sales performance was primarily driven by increased sales volumes of various metals, including copper (+3.6%), molybdenum (+9.9%), zinc (+42.4%), and silver (+14.1%), coupled with higher metal prices across the board.
Net income for the first quarter stood at $945.9 million, representing a remarkable 28.5% improvement over the previous year. Additionally, adjusted EBITDA surged by 23.1% to $1,745.6 million, further underlining the company's strong financial performance. The company's operating cash cost per pound of copper, net of by-product revenue credits, decreased by 28.5% from the same period in the previous year, reaching $0.77.
In terms of production, copper production remained stable compared to the same period last year, with Buenavista’s SX-EW cathode production witnessing a notable recovery. By-product production also demonstrated positive trends, with mined zinc and molybdenum production increasing by 49.3% and 8.5% respectively, compared to the first quarter of 2024.
The company's capital investments also saw a significant uptick, reaching $317.8 million, reflecting a 48.6% increase compared to the first quarter of 2024. This investment represented 34% of net income for the quarter, indicative of the company's commitment to future growth and development.
Beyond the financials, Southern Copper Corporation remains committed to its long-term growth and sustainability objectives. The company's capital investment program for the current decade exceeds $15 billion, with significant investments planned for projects in Mexico and Peru.
In Mexico, the company plans to invest over $600 million in 2025, focusing on modernizing assets, water usage improvements, and optimization initiatives. Furthermore, the company has several projects in its Mexican pipeline, including the Angangueo, Chalchihuites, and the Empalme smelter, which could significantly contribute to its integrated copper production capabilities.
In Peru, the Tia Maria and Los Chancas projects are set to play a crucial role in the company's growth strategy. The Tia Maria project, with a budget of $1,802 million, is expected to generate substantial revenues for the Arequipa region and create numerous job opportunities. The Los Chancas project, with an estimated capital investment of $2.6 billion, aims to produce significant quantities of copper and molybdenum annually.
The company's commitment to environmental, social, and corporate governance (ESG) practices was also evident, with investments in educational infrastructure and recognition for its social initiatives, such as the development of urban parks in mining municipalities.
Following these announcements, the company's shares moved -2.0%, and are now trading at a price of $93.96. Check out the company's full 8-K submission here.
