NYSE$SCCO

Southern Copper Corp · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Southern Copper's financial performance increased due to higher metal prices, partially offset by decreased sales volumes.

Southern Copper Corporation reported a 9.1% increase in net sales for Q1 2022 compared to Q1 2021, driven by higher metal prices, although sales volumes for copper, molybdenum, and silver decreased. The company faced operational challenges due to protests in the Moquegua region of Peru, but operations have since resumed at full capacity.

  • Net sales increased by 9.1% compared to 1Q21, reaching $2,763.8 million.
  • Metal prices increased for copper (+17.7%), molybdenum (+69.7%), zinc (+36.0%), and gold (+4.2%).
  • Operations at the Cuajone mining unit resumed at full capacity after protests and vandalism.
  • The company is progressing with several projects in Peru and Mexico, including Tia Maria, Los Chancas, Michiquillay, Buenavista Zinc, Pilares, El Pilar and El Arco.

Headline financials

Total Revenue

$2.76B

Previous: $2.53B+9.1%
EPS (adj)

$0.99

Previous: $0.96+3.1%
Capital Expenditures

-$205M

Previous: -$233M+11.8%
Free Cash Flow

$583M

Previous: $535M+9.0%
Net Income

$788M

Previous: $767M+2.7%
Operating Income

$1.47B

Previous: $1.35B+8.8%
Gross Profit

$1.71B

Previous: $1.59B+7.4%
Cash & Equivalents

$2.85B

Previous: $2.27B+25.6%
Total Assets

$17.9B

Previous: $17.2B+4.0%

Revenue & EPS history

Southern Copper · Revenue · Quarterly

$2.76B

Q1 2022+9.1%vs Q1 2021
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Southern Copper · $4.68M total across 4 segments · Q3 2023

  • Silver Sales Volume (000sounces)
    $4.42M
  • Copper Sales Volume (tons)
    $225K
  • Zinc Sales Volume (tons)
    $24.9K
  • Molybdenum Sales Volume (tons)
    $6.94K

Forward guidance

Southern Copper is focused on advancing its project portfolio in Peru and Mexico, aiming to increase production capacity and generate economic opportunities in the regions where it operates. The company also emphasizes its commitment to environmental, social, and governance (ESG) practices and sustainable development.

Tailwinds

  • Cuajone facilities and industrial railroad are now operating at full capacity.
  • Formal dialogue process with the communities will shortly begin, bodes well for a satisfactory solution for all concerned.
  • Initiation of construction activities at Tia Maria will generate significant economic opportunities.
  • Michiquillay will become one of Peru´s largest copper mines and will create significant business opportunities in the Cajamarca region.
  • Pilares project will significantly improve the overall mineral ore grade

Headwinds

  • Protests in the Moquegua region disrupted operations at the Cuajone mining unit.
  • Decrease in the sales volume of copper, molybdenum and silver.
  • After several unsuccessful attempts by the authorities to restore order through dialogue, on April 20, 2022, the Peruvian government declared a state of emergency in the Moquegua region.
  • The Company resumed control of the water supply and the railway, which had been vandalized by protesters.
  • COVID-19 has had an impact on the progress of the Buenavista Zinc project.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+0.6%

Avg return

Earnings day

+0.1%

Avg return

5 days after

+1.8%

Avg return

30 days after

51%

37 / 73 earnings

Positive

+7.1%

Q2 2015

Best reaction

-6.5%

Q3 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.9%+1.5%+14.9%
Q4 2025-4.5%-1.0%+12.9%
Q3 2025+4.1%+4.4%+0.8%
Q2 2025-2.7%+1.0%+3.1%
Q1 2025+0.1%-1.8%+2.1%
Q4 2024+0.2%+3.4%+2.0%
Q3 2024+1.5%+2.2%-8.2%
Q2 2024+1.2%-2.9%+0.9%
Q1 2024+7.1%+6.8%+7.6%
Q4 2023-4.9%-2.1%-3.7%
Q3 2023-0.9%+1.9%+7.2%
Q2 2023+1.4%+1.0%-7.4%
Q1 2023-0.1%+1.8%-11.0%
Q4 2022-3.4%-4.6%+0.3%
Q3 2022-4.2%+1.7%+19.5%
Q2 2022-1.8%+1.2%+2.9%
Q1 2022+0.8%-1.4%-0.4%
Q4 2021+0.2%-1.1%+17.7%
Q3 2021-6.5%-8.5%-9.6%
Q2 2021+0.7%+1.5%-5.4%
Q1 2021+0.2%-4.8%-5.1%
Q4 2020-1.8%-6.5%+10.5%
Q3 2020+0.0%+0.8%+15.5%
Q2 2020-3.9%-5.1%+0.5%
Q1 2020+5.5%+12.2%+13.9%
Q4 2019-3.0%-6.9%-21.4%
Q3 2019-0.3%+1.8%+5.0%
Q2 2019+0.1%-0.7%-19.8%
Q1 2019-1.3%-3.0%-12.3%
Q4 2018-1.8%+4.3%+19.0%
Q3 2018-0.6%-3.5%-13.6%
Q2 2018+6.9%+7.8%-2.6%
Q1 2018+2.4%-1.3%-4.8%
Q4 2017+3.1%+12.2%+20.0%
Q3 2017+0.3%+0.8%-0.8%
Q2 2017-0.1%-0.0%+3.5%
Q1 2017-0.6%-0.1%+1.9%
Q4 2016-0.4%-1.7%-3.5%
Q3 2016+0.8%-4.8%+19.3%
Q2 2016-1.7%-2.2%-1.2%
Q1 2016-0.1%
Q4 2015-2.9%
Q3 2015+1.5%
Q2 2015+7.1%
Q1 2015+4.0%
Q4 2014+2.9%
Q3 2014-0.7%
Q2 2014-1.2%
Q1 2014+1.6%
Q4 2013+5.9%
Q3 2013-0.2%
Q2 2013+4.3%
Q1 2013-2.0%
Q4 2012-1.5%
Q3 2012+2.9%
Q2 2012+3.7%
Q1 2012+0.2%
Q4 2011-0.7%
Q3 2011-3.2%
Q2 2011-1.3%
Q1 2011-1.0%
Q4 2010-1.0%
Q3 2010+3.0%
Q2 2010-2.1%
Q1 2010+3.5%
Q4 2009+4.3%
Q3 2008-2.9%
Q3 2009-2.9%
Q4 2008+5.3%
Q4 2007+5.3%
Q2 2008+5.3%
Q1 2009+5.3%
Q2 2009+5.3%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro