Southern Copper Reports Q4 2024 Earnings Growth Despite Missing Estimates
Southern Copper Corporation (SCCO) posted fourth-quarter 2024 earnings of $1.01 per share, slightly below the Zacks Consensus Estimate of $1.02 but up 74% year-over-year. The company’s results were driven by increased sales volumes of copper, zinc, and silver, along with improved pricing, though a decline in molybdenum sales volume partially offset gains.
Total sales reached $2.784 billion, surpassing the Zacks Consensus Estimate of $2.780 billion and reflecting a 21.3% year-over-year increase. Operating profit grew 50.5% to $1.31 billion, with a margin improvement from 37.8% to 47%. Adjusted EBITDA rose 42.7% to $1.51 billion, with a margin of 54.1%.
Production Overview:
- Copper: Mined 238,888 tons in Q4, up 2.1% YoY; sales increased 5.4% to 229,206 tons. Annual production totaled 973,851 tons, up 6.9%.
- Molybdenum: Mined 6,994 tons in Q4, down 2.6% YoY; sales declined 2.1% to 7,008 tons. Full-year production rose 8.1% to 28,997 tons.
- Zinc: Q4 production surged 154.9% to 43,148 tons; sales climbed 59.4% to 42,120 tons. Annual production nearly doubled to 130,011 tons.
- Silver: Q4 production grew 18.3% to 5.68 million ounces; sales rose 21.6% to 5.39 million ounces. Full-year production was up 14% to 20.98 million ounces.
SCCO’s net cash from operating activities rose to $4.42 billion in 2024, up from $3.57 billion in 2023, with cash reserves increasing to $3.26 billion. Long-term debt fell to $5.76 billion from $6.25 billion.
2025 Guidance:
- Copper: 967,000 tons, maintaining 2024 levels.
- Zinc: 171,700 tons, up 32%.
- Silver: 23 million ounces, up 10%.
- Molybdenum: 26,200 tons, down 10%.
SCCO shares gained 19.9% in the past year, outperforming the industry’s 12.4% growth.
