NYSE$SCCO

Southern Copper Corp · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Net sales decreased due to lower market metal prices and unusual events, including production losses and inventory adjustments.

Southern Copper Corporation's Q2 2022 net sales were $2,306.9 million, a 20.4% decrease compared to Q2 2021 due to lower metal prices and unusual events. The company faced challenges including decreased production at Peruvian operations, impacting quarterly financial results.

  • Net sales for Q2 2022 were $2,306.9 million, a 20.4% decrease compared to Q2 2021.
  • Lower market metal prices for copper and silver negatively impacted net sales.
  • Unusual events, including production losses and inventory adjustments, affected sales volumes.
  • The company is committed to creating added value for shareholders and communities despite challenges.

Headline financials

Total Revenue

$2.31B

Previous: $2.9B-20.4%
EPS (adj)

$0.55

Previous: $1.18-53.4%
Capital Expenditures

-$225M

Previous: -$220M-2.2%
Free Cash Flow

$210M

Previous: $717M-70.8%
Net Income

$434M

Previous: $936M-53.6%
Operating Income

$809M

Previous: $1.68B-51.7%
Gross Profit

$1.06B

Previous: $1.91B-44.5%
Cash & Equivalents

$2.11B

Previous: $2.39B-11.7%
Total Assets

$17.1B

Previous: $17.7B-3.2%

Revenue & EPS history

Southern Copper · Revenue · Quarterly

$2.31B

Q2 2022-20.4%vs Q2 2021
Beat estimate in 10 of 16 quarters(63%)
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 believes that economic slowdowns have temporarily weakened copper demand, leading to price reductions. However, they expect the underlying demand for copper to be strong in the long-term due to its role in the global shift to clean energy, anticipating a short-lived cycle of low prices.

Tailwinds

  • Company believes the current cycle of low prices should be short-lived.
  • Company has a strong financial position.
  • Company has low cash cost.
  • Company has operating costs efficiency programs.
  • Company has a significant copper reserve.

Headwinds

  • Economic slowdowns in the U.S., China and Europe have temporarily weakened the demand for copper.
  • Economic slowdowns are driving reductions in current prices.
  • Quarterly results were affected by a 25,624-tonne decrease in copper production at Peruvian operations.
  • Financial results this quarter have been impacted by unusual circumstances.
  • Company registered a significant mark-to-market adjustment to open sales.

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 Q2 2022

Historical avgQ2 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%

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