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Southern Copper Q1 2025 Earnings Report
Southern Copper Corporation reported a significant increase in net sales and income for the fourth quarter and full year 2024, driven by higher sales volumes and better prices for its main products.
Key Takeaways
Southern Copper Corporation achieved record-high net sales of $11,433.4 million for the full year 2024, a 15.5% increase from 2023. Fourth-quarter net sales rose 21.3% to $2,784.3 million. Net income for 4Q24 increased by 78.4% to $793.9 million, contributing to a 39.2% increase in full-year net income to $3,376.8 million. This growth was primarily attributed to higher sales volumes of copper, zinc, and silver, along with improved prices for all main products.
4Q24 net sales increased by 21.3% to $2,784.3 million, driven by higher sales volumes for copper, zinc, and silver, and better prices for all main products.
Net income in 4Q24 surged by 78.4% to $793.9 million, with the net income margin improving to 28.5% from 19.4% in 4Q23.
Adjusted EBITDA in 4Q24 increased by 42.7% to $1,506.7 million, with the margin rising to 54.1% from 46% in 4Q23.
Copper production increased by 2.1% in 4Q24 quarter-on-quarter, primarily due to higher production at Buenavista, IMMSA, and Cuajone mines, despite a decrease at Toquepala and La Caridad.
Revenue by Segment
Forward Guidance
For 2025, Southern Copper Corporation expects to maintain current copper activity levels and anticipates increased production of zinc and silver, while molybdenum production is projected to decrease.
Positive Outlook
- Expected copper production of 967,000 tons, in line with 2024 levels.
- Anticipated 32% increase in zinc production to 171,700 tons.
- Projected 10% increase in silver production to 23 million ounces.
- Minera Mexico plans to invest over $600 million in 2025 for modernizing assets and improving water usage and tailings management.
- El Pilar project is expected to begin construction in 2025, starting with roads, access points, and a temporary camp.
Challenges Ahead
- Molybdenum production is expected to decrease by 10% to 26,200 tons.
- No specific negative forward guidance was provided beyond the molybdenum production decrease.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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