Southern Copper (SCCO) Q3 2024 earnings summary

Executive summary

• Q3 2024 net sales reached $2,931 million, up 17% year-over-year, driven by higher copper, zinc, and silver volumes and prices, with copper accounting for 77% of sales.

• Net income for Q3 2024 was $897 million, a 44.7% increase year-over-year, with a net margin of 31%.

• Adjusted EBITDA for Q3 2024 was $1,685 million, up 31% year-over-year, with a margin of 57%.

• Copper production reached 252,219 tons in Q3 2024, up 11.5% quarter-over-quarter and 4% year-over-year, with strong contributions from Peru and Mexico.

• Major capital projects in Peru and Mexico are progressing, including Tia Maria, Los Chancas, and Michiquillay, with a 2025 CapEx budget of $920 million under review.

Financial highlights

• Net income for the first nine months of 2024 was $2,583 million, up 30% year-over-year.

• Cash flow from operating activities in Q3 2024 was $1,440 million, up 37% year-over-year.

• Operating costs and expenses increased 3% year-over-year, mainly due to higher repair materials, labor, and fuel costs.

• Operating income for Q3 2024 was $1,450 million, up 35.6% year-over-year.

• Capital investments for the first nine months of 2024 totaled $792 million, up 5.2% year-over-year.

Outlook and guidance

• 2024 copper production expected at 975,000 tons, rising to 978,300 tons in 2025.

• Zinc production forecasted at 120,300 tons in 2024 and 154,600 tons in 2025.

• Silver output projected to grow from 20.8 million ounces in 2024 to 22.9 million ounces in 2025.

• Cash cost per pound of copper in Q3 2024 was $0.76, down 22.6% year-over-year.

• Management expects copper demand to remain strong, supported by decarbonization, AI, and resilient US economic activity.