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Sep 30, 2022
Southern Copper Q3 2022 Earnings Report
Southern Copper's financial performance improved, with increased copper production and net income, despite lower metal prices.
Key Takeaways
Southern Copper Corporation reported a 6.5% decrease in net sales compared to the previous quarter, due to lower metal prices. However, copper production increased by 10.6% compared to 2Q22, and net income increased by 20.1% to $432.2 million. The company is progressing with several projects in Peru and Mexico.
Net sales volume increased by 20.4% compared to the previous quarter, but was offset by lower metal prices.
Net income increased by 20.1% compared to the previous quarter.
Copper production increased by 10.6% compared to the previous quarter.
Operating cash cost per pound of copper decreased by 5.7% compared to the previous quarter.
Forward Guidance
Southern Copper is focused on advancing its projects in Peru and Mexico, with a commitment to social and environmental responsibility. The company expects to benefit from increased production and cost efficiencies in the coming years.
Positive Outlook
- Advancing Tia Maria project in Arequipa, Peru, expecting to generate 9,000 jobs during construction.
- Los Chancas project in Apurimac, Peru, expected to begin operating in 2027.
- Michiquillay project in Cajamarca, Peru, expected to start production by 2029.
- Buenavista Zinc project in Sonora, Mexico, expected to initiate operations in 2H23.
- Pilares project in Sonora, Mexico, has initiated operations and is currently mining copper oxides and mineral to be processed.
Challenges Ahead
- Illegal miners occupied a portion of the Los Chancas project’s land.
- Attack on the Los Chancas project mining camp caused a fire that completely destroyed the installations.
- Part of the Los Chancas project´s land continued to be occupied by illegal miners as of September 30, 2022.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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