Q2 2024 Southern Copper Corp Earnings Call Transcript
Key Points
- Southern Copper Corp (SCCO) reported a 36% increase in net sales for the second quarter of 2024, driven by higher sales volumes and increased prices for copper, molybdenum, silver, and zinc.
- Copper production increased by 15% in Peru, with significant growth at the Toquepala mine due to higher ore grades.
- The company's adjusted EBITDA for the second quarter of 2024 was $1,797 million, a 61% increase compared to the same period in 2023, with an adjusted EBITDA margin of 58%.
- Southern Copper Corp (SCCO) completed the ramp-up of the Buenavista Zinc concentrator, which is now operating at full capacity and contributing significantly to zinc production.
- The company is making progress on its Tia Maria project, which is expected to generate significant economic and social benefits for the Arequipa region, with plans to start operations in 2027.
- Despite the increase in sales, Southern Copper Corp (SCCO) experienced an 8% rise in total operating costs and expenses, driven by higher costs in workers' participation, repair materials, and contractors.
- The company reported a decrease in cash flow from operating activities by 18% in the first half of 2024 compared to the same period in 2023, primarily due to an increase in working capital.
- Southern Copper Corp (SCCO) is facing challenges with weak copper demand from China, particularly from its real estate market, which could impact future sales.
- The company is revising its capital budget for the Tia Maria project due to inflation and additional facilities, which could lead to increased capital expenditures.
- There is uncertainty regarding the environmental approval for the Tia Maria project, which could introduce new risks and potentially complicate the project's progress.
Good morning, and welcome to Southern Copper Corporation's second quarter and 6 months 2024 Results Conference Call. With us this morning, we have Southern Copper Corporation's Mr. Raul Jacob, Vice President, Finance, Treasurer and CFO, who will discuss the results of the company for the second quarter and 6 months 2024 as well as answer any questions that you may have.
The information discussed on today's call may include forward-looking statements regarding the company's results and prospects, which are subject to risks and uncertainties. Actual results may differ materially, and the company cautions not to place undue reliance on these forward-looking statements.
Southern Copper Corporation undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. All results are expressed in full US GAAP. Now I will pass the call on to Mr. Raul Jacob.
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