NYSE$SCCO

Southern Copper Corp · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Reported a 25.9% increase in net sales compared to Q3 2020, primarily due to higher metal prices.

Southern Copper Corporation's Q3 2021 net sales increased by 25.9% compared to Q3 2020, driven by higher metal prices for copper, molybdenum, and zinc. The company is progressing with its investment projects in Peru and Mexico and is committed to environmental and social responsibility.

  • Net sales increased 25.9% compared to Q3 2020 due to higher metal prices.
  • 91.4% of the workforce was vaccinated as of October 10, 2021, allowing for resumption of activities and efficiency improvements.
  • The company is recovering normal operating levels at all mines and increasing capital investment execution.
  • Social agreements are in progress with the Michiquillay and La Encañada communities to improve quality of life and enable exploration programs.

Headline financials

Total Revenue

$2.68B

Previous: $2.13B+25.9%
EPS (adj)

$1.09

Previous: $0.64+70.3%
Capital Expenditures

-$243M

Previous: -$135M-80.7%
Free Cash Flow

$628M

Previous: $374M+68.1%
Net Income

$871M

Previous: $508M+71.5%
Operating Income

$1.51B

Previous: $944M+59.7%
Gross Profit

$1.75B

Previous: $1.18B+48.6%
Cash & Equivalents

$2.58B

Previous: $2.15B+20.4%
Total Assets

$18.1B

Previous: $16.2B+11.5%

Revenue & EPS history

Southern Copper · Revenue · Quarterly

$2.68B

Q3 2021+25.9%vs Q3 2020
Beat estimate in 8 of 16 quarters(50%)
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 anticipates strong support for copper and other metals due to infrastructure investment in the United States and global climate change initiatives and expects to control the COVID-19 crisis worldwide.

Tailwinds

  • Projections for copper demand due to growth in public infrastructure investment in the United States.
  • Global initiatives to address climate change.
  • Strong support for copper and other metals.
  • Resumption of activities and capture opportunities for efficiencies.
  • Recovery of normal operating levels at all of our mines.

Headwinds

  • Concerns about Chinese copper consumption in the short term due to real estate troubles.
  • Power shortages in China.
  • Highly challenging context due to COVID-19.
  • COVID-19 crisis.
  • Potential volatility in by-product commodity prices.

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 Q3 2021

Historical avgQ3 2021

+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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