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Dec 31, 2019
Southern Copper Q4 2019 Earnings Report
Southern Copper's Q4 2019 financial performance reflected an increase in net sales and net income compared to the previous year.
Key Takeaways
Southern Copper Corp. reported a 9.4% increase in net sales, reaching $1,854.6 million, and a 4.3% increase in net income, amounting to $305.7 million for Q4 2019. The increases were driven by higher sales volumes of copper, molybdenum, and silver, as well as improved silver prices, although decreases in metal prices partially offset these gains.
Copper production increased by 9.1% to 256,461 tons due to higher production at the Toquepala mine.
Net sales increased by 9.4% to $1,854.6 million, driven by higher sales volumes of copper, molybdenum and silver.
Net income increased by 4.3% to $305.7 million.
Molybdenum, silver and zinc production all increased compared to Q4 2018.
Revenue by Segment
Forward Guidance
Southern Copper is focused on expanding production capacity and advancing key projects in Peru and Mexico. The company aims to increase copper production to 1.5 million tons by 2028.
Positive Outlook
- Toquepala expansion project completed and in full production.
- Construction permit received for the Tia Maria project.
- Buenavista Zinc project progressing with expected operations in 3Q22.
- Pilares project construction underway with expected production in the first half of 2022.
- El Pilar project pilot plant production tests have begun, with expected production in 2023.
Challenges Ahead
- Challenges remain for the Tia Maria project due to community concerns.
- Metal price decreases for copper, molybdenum and zinc impacted revenues.
- Operating cash cost per pound of copper increased slightly.
- Capital investments decreased compared to the previous year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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