NYSE$SCCO

Southern Copper Corp · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Net sales aligned with the previous year, while net income and copper production increased.

Southern Copper Corporation reported Q4 2022 net sales of $2,820.3 million, consistent with Q4 2021. Net income increased by 8.3% to $902.4 million. Copper production saw a slight increase of 1.6%.

  • Net sales were $2,820.3 million, in line with 4Q21.
  • Net income increased 8.3% to $902.4 million.
  • Adjusted EBITDA decreased 4.6% to $1,647.5 million.
  • Copper production increased 1.6%.

Headline financials

Total Revenue

$2.82B

Previous: $2.82B-0.1%
EPS (adj)

$1.14

Previous: $1.05+8.6%
Operating Cash Cost per Pound of Copper

$0.45

Previous: $0.67-32.8%
Capital Expenditures

$291M

Previous: $197M+47.8%
Free Cash Flow

$791M

Previous: $1.03B-23.3%
Net Income

$902M

Previous: $3.39B-73.4%
Operating Income

$1.37B

Previous: $6.85B-80.0%
Gross Profit

$1.41B

Previous: $1.58B-10.4%
Cash & Equivalents

$2.07B

Previous: $3B-31.1%
Total Assets

$17.3B

Previous: $18.3B-5.6%

Revenue & EPS history

Southern Copper · Revenue · Quarterly

$2.82B

Q4 2022-0.1%vs Q4 2021
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Southern Copper · $5.47M total across 4 segments · Q4 2022

  • Silver Sales Volume (000sounces)
    $5.21M
  • Copper Sales Volume (tons)
    $233K
  • Zinc Sales Volume (tons)
    $28.9K
  • Molybdenum Sales Volume (tons)
    $6.76K

Forward guidance

Southern Copper Corporation is focused on expansion projects, including the Pilares mine, expected to contribute 35,000 tonnes of copper annually, and the Buenavista zinc concentrator, anticipated to produce 100,000 tons of zinc and 20,000 tons of copper per year.

Tailwinds

  • Delivery of ore to the Caridad concentrator from the Pilares mine is expected in 2Q23, contributing 35,000 tonnes of copper annually.
  • The new zinc concentrator at Buenavista is expected to begin operations in 2H23, generating 100,000 tons of zinc and 20,000 tons of copper per year.
  • Focus on expansion projects.
  • Pilares project will improve the overall mineral ore grade.
  • La Caridad and Sonora Metallurgical Complex received Copper Mark certification.

Headwinds

  • Political upheaval in Peru could impact operations.
  • Roadblocks are scattered throughout Peru, negatively affecting business.
  • Part of the Los Chancas project land continued to be occupied by illegal miners.
  • Molybdenum production decreased 15.6% due to lower production at the Toquepala mine.
  • Mined zinc production decreased 7.4% due to a drop in production at the Charcas unit.

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 2022

Historical avgQ4 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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