On October 25, 2023, Southern Copper Corp (SCCO, Financial) released its earnings report for the third quarter of 2023. The company reported net sales of $2,505.6 million, representing a 16.2% increase from the same period in 2022. This growth was primarily driven by higher metal prices for copper (+8.0%), molybdenum (+47.4%), and silver (+23.6%). However, the sales volume for molybdenum increased (+12.5%) but fell for copper (-4.5%), silver (-7.2%), and zinc (-10.8%).
Financial Performance
SCCO's net income for the quarter was $619.5 million, marking a 19.4% increase from 3Q22. The company's operating income was $1,069.2 million, a 35.8% increase from the same period last year. The company's cost control measures resulted in a quarterly reduction of 12.4% compared with 2Q23 and 5.3% compared with 3Q22.
"Thanks to our focus on cost control against inflation, our Cash Cost has begun to reflect favorable results and posted a quarterly reduction of 12.4% compared with 2Q23 and 5.3% compared with 3Q22. Southern Copper expects to maintain strong cost competitiveness as we increase our production capacity over the next ten years to 1.6 million tons of copper and bolster production of our main by-products: molybdenum, zinc and silver." - Mr. German Larrea, Chairman of the Board
Capital Investments and Projects
SCCO's capital investments for the quarter amounted to $262.7 million, a 15.3% increase from 3Q22. The company's current capital investment program for this decade exceeds $15 billion and includes investments in various projects in Mexico and Peru. These projects aim to increase the company's production capacity and competitiveness in the market.
Environmental, Social & Corporate Governance (ESG) Practices
The company also highlighted its commitment to ESG practices, including building drinking water infrastructure, focusing on prevention and risk management, and aiming to achieve net-zero emissions by 2050. The company has invested US$77 million in Mexico and Peru over the last 5 years for sustainable development.
The company's third quarter earnings conference call will be held on October 25, 2023, beginning at 11:00 AM – EST (10:00 AM Lima and 9:00 AM Mexico City time).
Explore the complete 8-K earnings release (here) from Southern Copper Corp for further details.
