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Mar 31, 2024

Southern Copper Q1 2024 Earnings Report

Southern Copper's financial performance improved in Q1 2024, marked by increased net sales and net income compared to the prior quarter, but a decrease compared to the same quarter last year.

Key Takeaways

Southern Copper Corporation reported a net sales of $2,599.8 million for Q1 2024, a 13.3% increase compared to 4Q23, but a 6.9% decrease compared to 1Q23. Net income was $736.0 million, up 65.4% from 4Q23, but down 9.5% from 1Q23. Adjusted EBITDA was $1,417.7 million, a 34.3% increase compared to 4Q23, but down 9.6% from 1Q23. The company's performance was driven by higher sales volumes of copper and silver and an increase in metal prices, offset by lower prices for copper, molybdenum and zinc, coupled with a decrease in the sales volumes for zinc and silver.

Net sales for 1Q24 were $2,599.8 million, representing a 13.3% increase compared to 4Q23 but a 6.9% decrease compared to 1Q23.

Net income for 1Q24 was $736.0 million, a 65.4% increase compared to 4Q23 but a 9.5% decrease compared to 1Q23.

Adjusted EBITDA for 1Q24 was $1,417.7 million, a 34.3% increase compared to 4Q23 but a 9.6% decrease compared to 1Q23.

Operating cash cost per pound of copper, net of by-product revenue credits, was $1.07, down 14.2% with regard to 4Q23.

Total Revenue
$2.6B
Previous year: $2.79B
-7.0%
EPS
$0.92
Previous year: $1.02
-9.8%
Adjusted EBITDA margin
54.5%
Gross Profit
$1.22B
Previous year: $1.4B
-12.6%
Cash and Equivalents
$1.25B
Previous year: $2.3B
-45.6%
Free Cash Flow
$446M
Previous year: $947M
-52.9%
Total Assets
$16.8B
Previous year: $17.3B
-3.1%

Southern Copper

Southern Copper

Forward Guidance

Southern Copper is focused on organic growth and cost control, anticipating strong long-term copper demand due to downward revisions in global production projections, a resilient US economy, decarbonization technologies, and artificial intelligence.

Positive Outlook

  • Focus on organic growth
  • Commitment to maintaining competitive cost levels
  • Downward revisions to global copper production projections for 2024
  • Strong market demand due to a resilient US economy
  • New demand from decarbonization technologies and artificial intelligence