NYSE$SCCO

Southern Copper Corp · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Southern Copper's financial performance was marked by increased sales volumes and net income, despite some challenges.

Southern Copper Corp. reported a 1.1% increase in net sales to $2,793.9 million, driven by higher sales volumes of copper, silver, and zinc. Net income rose by 3.6% to $813.2 million. The company is progressing with expansion projects, including Pilares mine and Buenavista zinc concentrator, and is optimistic about long-term copper demand.

  • Net sales increased by 1.1% compared to 1Q22, reaching $2,793.9 million.
  • Net income grew by 3.6% year-over-year to $813.2 million, with a net income margin of 29.1%.
  • Operating cash flow increased by 44.4% to $1,185.2 million, driven by strong cash generation and cost-control efficiencies.
  • Capital investments for 1Q23 were $238.1 million, up 16.0% compared to 1Q22.

Headline financials

Total Revenue

$2.79B

Previous: $2.76B+1.1%
EPS (adj)

$1.02

Previous: $0.99+3.0%
Operating Cash Cost per Pound of Copper

$0.76

No prior period
Capital Expenditures

-$238M

Previous: -$205M-16.0%
Free Cash Flow

$578M

Previous: $583M-0.8%
Net Income

$816M

Previous: $788M+3.6%
Operating Income

$1.35B

Previous: $1.47B-7.9%
Gross Profit

$1.6B

Previous: $1.71B-6.2%
Cash & Equivalents

$2.3B

Previous: $2.85B-19.2%
Total Assets

$17.3B

Previous: $17.9B-3.2%

Revenue & EPS history

Southern Copper · Revenue · Quarterly

$2.79B

Q1 2023+1.1%vs Q1 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Southern Copper · $5.39M total across 4 segments · Q1 2023

  • Silver Sales Volume (000sounces)
    $5.13M
  • Copper Sales Volume (tons)
    $229K
  • Zinc Sales Volume (tons)
    $26.5K
  • Molybdenum Sales Volume (tons)
    $6.49K

Forward guidance

Southern Copper is focused on expansion projects and believes that current copper prices will be supported by low worldwide inventories. In the long term, the company expects strong demand due to copper's role in the global shift to clean energy.

Tailwinds

  • Pilares mine is operating since 4Q22, increasing annual copper production capacity by 35,000 tons.
  • New zinc concentrator at Buenavista is projected to initiate ramp up in 3Q23, expected to elevate yearly production by 100,000 tons of zinc and 20,000 tons of copper.
  • El Pilar project (+36,000 tons of copper) is under development, with ongoing onsite environmental activities.
  • Experimental pads in the leaching process have confirmed adequate levels of copper recovery.
  • Company believes current copper prices will be supported by the fact that available inventories are low worldwide.

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 2023

Historical avgQ1 2023

+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%

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