Southern Copper Q2 2023 Earnings Report
Key Takeaways
Southern Copper Corporation reported a slight decrease in net sales compared to 2Q22, primarily due to lower metal prices for copper and zinc, and a decrease in sales volumes for silver; this was partially offset by higher metal prices for molybdenum and silver. Net income increased due to a reduction in cost of sales.
Net sales were $2,300.7 million, slightly below 2Q22.
Net income was $547.5 million, a 26.6% increase compared to 2Q22.
Adjusted EBITDA was $1,115.5 million, a 9.2% increase compared to 2Q22.
Operating cash cost per pound of copper, net of by-product revenue credits, was $1.12.
Southern Copper
Southern Copper
Forward Guidance
Southern Copper expects to produce 481,300 tons of copper; 11,400 tons of molybdenum; 76,000 tons of zinc; and 10.9 million ounces of silver in the second half of 2023.
Positive Outlook
- Company is well positioned to leverage strengths
- Production and sales volumes rose for copper and zinc despite lower market prices.
- Net earnings rose 26.6% in a quarter-on-quarter terms
- Operating the Pilares mine since 4Q22 increased annual copper production capacity by 35,000 tons
- New zinc concentrator at Buenavista has already received material to process and ramping up is underway.