NYSE$SCCO

Southern Copper Corp · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Southern Copper's financial performance improved, with increased copper production and net income, despite lower metal prices.

Southern Copper Corporation reported a 6.5% decrease in net sales compared to the previous quarter, due to lower metal prices. However, copper production increased by 10.6% compared to 2Q22, and net income increased by 20.1% to $432.2 million. The company is progressing with several projects in Peru and Mexico.

  • Net sales volume increased by 20.4% compared to the previous quarter, but was offset by lower metal prices.
  • Net income increased by 20.1% compared to the previous quarter.
  • Copper production increased by 10.6% compared to the previous quarter.
  • Operating cash cost per pound of copper decreased by 5.7% compared to the previous quarter.

Headline financials

Total Revenue

$2.16B

Previous: $2.68B-19.5%
EPS (adj)

$0.66

Previous: $1.09-39.4%
Adjusted EBITDA Margin

47.2%

No prior period
Net Income Margin

24.1%

No prior period
Capital Expenditures

-$228M

Previous: -$243M+6.3%
Free Cash Flow

$293M

Previous: $628M-53.4%
Net Income

$521M

Previous: $871M-40.2%
Operating Income

$787M

Previous: $1.51B-47.8%
Gross Profit

$1.02B

Previous: $1.75B-41.9%
Cash & Equivalents

$2.18B

Previous: $2.58B-15.5%
Total Assets

$17.1B

Previous: $18.1B-5.7%

Revenue & EPS history

Southern Copper · Revenue · Quarterly

$2.16B

Q3 2022-19.5%vs Q3 2021
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 is focused on advancing its projects in Peru and Mexico, with a commitment to social and environmental responsibility. The company expects to benefit from increased production and cost efficiencies in the coming years.

Tailwinds

  • Advancing Tia Maria project in Arequipa, Peru, expecting to generate 9,000 jobs during construction.
  • Los Chancas project in Apurimac, Peru, expected to begin operating in 2027.
  • Michiquillay project in Cajamarca, Peru, expected to start production by 2029.
  • Buenavista Zinc project in Sonora, Mexico, expected to initiate operations in 2H23.
  • Pilares project in Sonora, Mexico, has initiated operations and is currently mining copper oxides and mineral to be processed.

Headwinds

  • Illegal miners occupied a portion of the Los Chancas project’s land.
  • Attack on the Los Chancas project mining camp caused a fire that completely destroyed the installations.
  • Part of the Los Chancas project´s land continued to be occupied by illegal miners as of September 30, 2022.
  • Lower metal prices negatively impacted net sales.
  • External headwinds and atypical events in the second quarter.

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 2022

Historical avgQ3 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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