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Sep 30, 2021

Southern Copper Q3 2021 Earnings Report

Reported a 25.9% increase in net sales compared to Q3 2020, primarily due to higher metal prices.

Key Takeaways

Southern Copper Corporation's Q3 2021 net sales increased by 25.9% compared to Q3 2020, driven by higher metal prices for copper, molybdenum, and zinc. The company is progressing with its investment projects in Peru and Mexico and is committed to environmental and social responsibility.

Net sales increased 25.9% compared to Q3 2020 due to higher metal prices.

91.4% of the workforce was vaccinated as of October 10, 2021, allowing for resumption of activities and efficiency improvements.

The company is recovering normal operating levels at all mines and increasing capital investment execution.

Social agreements are in progress with the Michiquillay and La Encañada communities to improve quality of life and enable exploration programs.

Total Revenue
$2.68B
Previous year: $2.13B
+25.9%
EPS
$1.09
Previous year: $0.64
+70.3%
Gross Profit
$1.55B
Cash and Equivalents
$2.58B
Free Cash Flow
$977M
Total Assets
$18.1B

Southern Copper

Southern Copper

Forward Guidance

Southern Copper anticipates strong support for copper and other metals due to infrastructure investment in the United States and global climate change initiatives and expects to control the COVID-19 crisis worldwide.

Positive Outlook

  • Projections for copper demand due to growth in public infrastructure investment in the United States.
  • Global initiatives to address climate change.
  • Strong support for copper and other metals.
  • Resumption of activities and capture opportunities for efficiencies.
  • Recovery of normal operating levels at all of our mines.

Challenges Ahead

  • Concerns about Chinese copper consumption in the short term due to real estate troubles.
  • Power shortages in China.
  • Highly challenging context due to COVID-19.
  • COVID-19 crisis.
  • Potential volatility in by-product commodity prices.