NYSE$SCCO

Southern Copper Corp · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Southern Copper's Q4 2019 financial performance reflected an increase in net sales and net income compared to the previous year.

Southern Copper Corp. reported a 9.4% increase in net sales, reaching $1,854.6 million, and a 4.3% increase in net income, amounting to $305.7 million for Q4 2019. The increases were driven by higher sales volumes of copper, molybdenum, and silver, as well as improved silver prices, although decreases in metal prices partially offset these gains.

  • Copper production increased by 9.1% to 256,461 tons due to higher production at the Toquepala mine.
  • Net sales increased by 9.4% to $1,854.6 million, driven by higher sales volumes of copper, molybdenum and silver.
  • Net income increased by 4.3% to $305.7 million.
  • Molybdenum, silver and zinc production all increased compared to Q4 2018.

Headline financials

Total Revenue

$1.86B

Previous: $1.7B+9.4%
EPS (adj)

$0.40

Previous: $0.38+5.3%
Copper Production (tons)

256.5K

Previous: 235.0K+9.1%
Molybdenum Mined (tons)

7.9K

Previous: 5.7K+39.3%
Zinc Mined (tons)

20.4K

Previous: 17.6K+15.8%
Silver Mined (000sounces)

5.7M

Previous: 4.3M+31.7%
Adjusted EBITDA Margin

42.4%

Previous: 46.8%-9.4%
Capital Expenditures

$171M

No prior period
Free Cash Flow

$370M

No prior period
Net Income

$306M

No prior period
Operating Income

$632M

No prior period
Gross Profit

$682M

No prior period
Cash & Equivalents

$1.93B

No prior period
Total Assets

$16.4B

No prior period

Revenue & EPS history

Southern Copper · Revenue · Quarterly

$1.86B

Q4 2019+9.4%vs Q4 2018
Beat estimate in 5 of 16 quarters(31%)
ActualEstimate

Revenue by segment

Southern Copper · $5.6M total across 4 segments · Q4 2019

  • Silver Sales Volume (000sounces)
    $5.31M+0.8%
  • Copper Sales Volume (tons)
    $253K+11.3%
  • Zinc Sales Volume (tons)
    $26.8K-1.8%
  • Molybdenum Sales Volume (tons)
    $8.03K+41.0%

Forward guidance

Southern Copper is focused on expanding production capacity and advancing key projects in Peru and Mexico. The company aims to increase copper production to 1.5 million tons by 2028.

Tailwinds

  • Toquepala expansion project completed and in full production.
  • Construction permit received for the Tia Maria project.
  • Buenavista Zinc project progressing with expected operations in 3Q22.
  • Pilares project construction underway with expected production in the first half of 2022.
  • El Pilar project pilot plant production tests have begun, with expected production in 2023.

Headwinds

  • Challenges remain for the Tia Maria project due to community concerns.
  • Metal price decreases for copper, molybdenum and zinc impacted revenues.
  • Operating cash cost per pound of copper increased slightly.
  • Capital investments decreased compared to the previous year.
  • Net income margin decreased compared to the previous year.

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 Q4 2019

Historical avgQ4 2019

+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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro