Loading...
•
Mar 31, 2022
Southern Copper Q1 2022 Earnings Report
Southern Copper's financial performance increased due to higher metal prices, partially offset by decreased sales volumes.
Key Takeaways
Southern Copper Corporation reported a 9.1% increase in net sales for Q1 2022 compared to Q1 2021, driven by higher metal prices, although sales volumes for copper, molybdenum, and silver decreased. The company faced operational challenges due to protests in the Moquegua region of Peru, but operations have since resumed at full capacity.
Net sales increased by 9.1% compared to 1Q21, reaching $2,763.8 million.
Metal prices increased for copper (+17.7%), molybdenum (+69.7%), zinc (+36.0%), and gold (+4.2%).
Operations at the Cuajone mining unit resumed at full capacity after protests and vandalism.
The company is progressing with several projects in Peru and Mexico, including Tia Maria, Los Chancas, Michiquillay, Buenavista Zinc, Pilares, El Pilar and El Arco.
Forward Guidance
Southern Copper is focused on advancing its project portfolio in Peru and Mexico, aiming to increase production capacity and generate economic opportunities in the regions where it operates. The company also emphasizes its commitment to environmental, social, and governance (ESG) practices and sustainable development.
Positive Outlook
- Cuajone facilities and industrial railroad are now operating at full capacity.
- Formal dialogue process with the communities will shortly begin, bodes well for a satisfactory solution for all concerned.
- Initiation of construction activities at Tia Maria will generate significant economic opportunities.
- Michiquillay will become one of Peru´s largest copper mines and will create significant business opportunities in the Cajamarca region.
- Pilares project will significantly improve the overall mineral ore grade
Challenges Ahead
- Protests in the Moquegua region disrupted operations at the Cuajone mining unit.
- Decrease in the sales volume of copper, molybdenum and silver.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...