NYSE$SCCO

Southern Copper Corp · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Net income increased due to a reduction in cost of sales.

Southern Copper Corporation reported a slight decrease in net sales compared to 2Q22, primarily due to lower metal prices for copper and zinc, and a decrease in sales volumes for silver; this was partially offset by higher metal prices for molybdenum and silver. Net income increased due to a reduction in cost of sales.

  • Net sales were $2,300.7 million, slightly below 2Q22.
  • Net income was $547.5 million, a 26.6% increase compared to 2Q22.
  • Adjusted EBITDA was $1,115.5 million, a 9.2% increase compared to 2Q22.
  • Operating cash cost per pound of copper, net of by-product revenue credits, was $1.12.

Headline financials

Total Revenue

$2.3B

Previous: $2.31B-0.3%
EPS (adj)

$0.70

Previous: $0.55+27.3%
Net Income Margin

23.8%

No prior period
Capital Expenditures

-$253M

Previous: -$225M-12.4%
Free Cash Flow

$297M

Previous: $210M+41.7%
Net Income

$550M

Previous: $434M+26.6%
Operating Income

$901M

Previous: $809M+11.4%
Gross Profit

$1.15B

Previous: $1.06B+8.8%
Cash & Equivalents

$2.2B

Previous: $2.11B+4.1%
Total Assets

$16.9B

Previous: $17.1B-1.1%

Revenue & EPS history

Southern Copper · Revenue · Quarterly

$2.3B

Q2 2023-0.3%vs Q2 2022
Beat estimate in 8 of 15 quarters(53%)
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 expects to produce 481,300 tons of copper; 11,400 tons of molybdenum; 76,000 tons of zinc; and 10.9 million ounces of silver in the second half of 2023.

Tailwinds

  • Company is well positioned to leverage strengths
  • Production and sales volumes rose for copper and zinc despite lower market prices.
  • Net earnings rose 26.6% in a quarter-on-quarter terms
  • Operating the Pilares mine since 4Q22 increased annual copper production capacity by 35,000 tons
  • New zinc concentrator at Buenavista has already received material to process and ramping up is underway.

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 2023

Historical avgQ2 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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