Southern Copper Q3 2020 Earnings Report

Southern Copper's quarterly results demonstrated a robust operational and financial standing amidst a volatile economic climate and the impacts of the COVID-19 pandemic.

Key Takeaways

Southern Copper Corporation reported strong quarterly results, highlighting a competitive cash cost per pound of $0.65, net of by-product credits. The company is successfully progressing with projects despite the challenging environment, with operations in compliance with emergency measures and a gradual return of the workforce. The company maintains a positive outlook on the copper market, driven by consumption growth in China and other emerging economies.

Molybdenum production increased 19.4% in 9M20 compared to 9M19 due to higher production at open pit mines.

Mined silver production increased 10.4% due to growth in production at all mines.

The company's cash cost per pound was at a competitive $0.65, net of by-product credits.

The company is successfully developing projects despite the current challenging environment.

Total Revenue
$2.13B
Previous year: $1.86B
+14.5%
EPS
$0.64
Previous year: $0.5
+28.0%

Southern Copper

Southern Copper

Forward Guidance

Southern Copper is focused on promoting the development of local communities and countries where it operates to share prosperity in a safe and sustainable environment, while promoting the wellbeing of these communities.

Positive Outlook

  • Continued focus on cost reduction efforts.
  • Commitment to promoting the development of local communities.
  • Focus on sharing the benefits of operations with shareholders through dividends.
  • Positive view on the evolution of the copper market.
  • Sustained consumption growth in China and other emerging economies.

Challenges Ahead

  • Volatile economic environment.
  • Impacts of the COVID-19 pandemic.
  • Some activities have been pushed back or scaled down in locations where infections are on the rise.
  • Potential delays in project execution due to COVID-19.
  • Dependency on the evolution of the COVID-19 pandemic.