NYSE$SCCO

Southern Copper Corp · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Southern Copper's net sales and net income decreased due to lower sales volumes and prices for certain metals.

Southern Copper Corporation's Q4 2023 net sales decreased by 18.6% compared to Q4 2022, with net income falling by 50.7%. Sales volumes decreased for copper, silver and zinc, while prices were down for molybdenum and zinc. Copper production also saw a slight decrease.

  • Net sales decreased by 18.6% versus 4Q22.
  • Net income decreased 50.7% versus 4Q22.
  • Adjusted EBITDA decreased 35.3% under the $1,631.4 million registered in 4Q22.
  • Copper production registered a decrease of 3.0% in 4Q23.

Headline financials

Total Revenue

$2.3B

Previous: $2.82B-18.6%
EPS (adj)

$0.57

Previous: $1.14-50.0%
Copper Production (tons)

234.1K

No prior period
Molybdenum Mined (tons)

7.2K

No prior period
Zinc Mined (tons)

16.9K

No prior period
Silver Mined (000sounces)

4.8K

No prior period
Adjusted EBITDA Margin

46.0%

No prior period
Net Income Margin

19.4%

No prior period
Operating Cash Cost per Pound of Copper

$1.25

Previous: $0.45+177.8%
Capital Expenditures

-$255M

Previous: $291M-187.8%
Net Income

$445M

Previous: $902M-50.7%
Operating Income

$869M

Previous: $1.37B-36.6%
Gross Profit

$902M

Previous: $1.41B-36.3%

Revenue & EPS history

Southern Copper · Revenue · Quarterly

$2.3B

Q4 2023-18.6%vs Q4 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 anticipates a volatile copper market in 2024, initially expecting a surplus but now foreseeing potential deficits due to production cuts by some producers and low inventories. They believe copper prices should have good support through 2024 and are focused on developing capital projects and controlling costs.

Tailwinds

  • Copper prices should have good support through 2024.
  • Focus on developing capital projects.
  • Keeping costs controlled at a very competitive level.
  • Pilares project drove to full capacity in 2023.
  • Initiated ramp-up at the Buenavista zinc concentrator.

Headwinds

  • Highly volatile copper market.
  • Initial estimates for 2024 called for a surplus.
  • Significant reduction in copper production was announced by some producers.
  • Market expectations for a surplus ceased.
  • Concerns about potential deficits due to low available inventories.

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 2023

Historical avgQ4 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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