Southern Copper's Q3 Earnings Surpass Expectations, Revenue Slightly Below Forecasts

Southern Copper Corp. (NYSE:SCCO) announced that its third-quarter earnings surpassed analyst expectations, although revenue came in slightly below forecasts. Following the announcement, the company's shares rose by 1.43%. Southern Copper reported an adjusted earnings per share of 1.15₺ for the third quarter, exceeding the analyst consensus of 1.11₺ by 0.04₺. The total revenue for the period amounted to 2.93 billion₺, just below the predicted 2.94 billion₺.

Citi noted that the Q3 2024 EBITDA aligned with both Citi and consensus estimates at 1.7 billion₺. "Mining copper production reached 253,000 tons, marking a year-on-year increase of 12% and a quarterly rise of 5%, delivering the best quarterly performance since 2020. This increase was due to better grades in both Mexico and Peru. Cash cost before by-products fell from 2.15₺/lb in Q2 2024 to 1.95₺/lb, influenced by higher production. After by-products, it stood at 0.76₺/lb. Free cash flow was notably positive, at approximately 1.2 billion₺, supported by working capital improvements," stated Citi analysts.

Regarding the Tia Maria Project, the company is currently reviewing the historical capital budget of 1.4 billion₺. The budget update is expected to be completed by the end of the year. The company also plans to construct roads and access points; train operators; update the topographic network; establish and delineate properties along the live fence; set up a temporary camp; and initiate earthworks in the coming months. Construction is scheduled to begin in 2025.