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Dec 31, 2022
Southern Copper Q4 2022 Earnings Report
Net sales aligned with the previous year, while net income and copper production increased.
Key Takeaways
Southern Copper Corporation reported Q4 2022 net sales of $2,820.3 million, consistent with Q4 2021. Net income increased by 8.3% to $902.4 million. Copper production saw a slight increase of 1.6%.
Net sales were $2,820.3 million, in line with 4Q21.
Net income increased 8.3% to $902.4 million.
Adjusted EBITDA decreased 4.6% to $1,647.5 million.
Copper production increased 1.6%.
Southern Copper
Southern Copper
Southern Copper Revenue by Segment
Revenue by Segment
Copper Sales Volume (tons) Revenue
CapyFin.comMolybdenum Sales Volume (tons) Revenue
CapyFin.comZinc Sales Volume (tons) Revenue
CapyFin.comSilver Sales Volume (000sounces) Revenue
CapyFin.com Forward Guidance
Southern Copper Corporation is focused on expansion projects, including the Pilares mine, expected to contribute 35,000 tonnes of copper annually, and the Buenavista zinc concentrator, anticipated to produce 100,000 tons of zinc and 20,000 tons of copper per year.
Positive Outlook
- Delivery of ore to the Caridad concentrator from the Pilares mine is expected in 2Q23, contributing 35,000 tonnes of copper annually.
- The new zinc concentrator at Buenavista is expected to begin operations in 2H23, generating 100,000 tons of zinc and 20,000 tons of copper per year.
- Focus on expansion projects.
- Pilares project will improve the overall mineral ore grade.
- La Caridad and Sonora Metallurgical Complex received Copper Mark certification.
Challenges Ahead
- Political upheaval in Peru could impact operations.
- Roadblocks are scattered throughout Peru, negatively affecting business.
- Part of the Los Chancas project land continued to be occupied by illegal miners.
- Molybdenum production decreased 15.6% due to lower production at the Toquepala mine.
- Mined zinc production decreased 7.4% due to a drop in production at the Charcas unit.
Revenue & Expenses
Visualization of income flow from segment revenue to net income