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Jun 30, 2022
Southern Copper Q2 2022 Earnings Report
Net sales decreased due to lower market metal prices and unusual events, including production losses and inventory adjustments.
Key Takeaways
Southern Copper Corporation's Q2 2022 net sales were $2,306.9 million, a 20.4% decrease compared to Q2 2021 due to lower metal prices and unusual events. The company faced challenges including decreased production at Peruvian operations, impacting quarterly financial results.
Net sales for Q2 2022 were $2,306.9 million, a 20.4% decrease compared to Q2 2021.
Lower market metal prices for copper and silver negatively impacted net sales.
Unusual events, including production losses and inventory adjustments, affected sales volumes.
The company is committed to creating added value for shareholders and communities despite challenges.
Southern Copper
Southern Copper
Forward Guidance
Southern Copper believes that economic slowdowns have temporarily weakened copper demand, leading to price reductions. However, they expect the underlying demand for copper to be strong in the long-term due to its role in the global shift to clean energy, anticipating a short-lived cycle of low prices.
Positive Outlook
- Company believes the current cycle of low prices should be short-lived.
- Company has a strong financial position.
- Company has low cash cost.
- Company has operating costs efficiency programs.
- Company has a significant copper reserve.
Challenges Ahead
- Economic slowdowns in the U.S., China and Europe have temporarily weakened the demand for copper.
- Economic slowdowns are driving reductions in current prices.
- Quarterly results were affected by a 25,624-tonne decrease in copper production at Peruvian operations.
- Financial results this quarter have been impacted by unusual circumstances.
- Company registered a significant mark-to-market adjustment to open sales.