• Net Sales: $3,818 million, a growth of 36% compared to the second quarter of the previous year.

• Copper Production: 242,474 tons in the second quarter, with a 15% increase in Peru.

• Molybdenum Production: Increased by 21% in the second quarter compared to the same period last year.

• Silver Production: Mined silver increased by 8%, and refined silver increased by 28% quarter-over-quarter.

• Zinc Production: Increased by 71% quarter-on-quarter, totaling 29,419 tons.

• Adjusted EBITDA: $1,797 million, a 61% increase from the same period in 2023.

• Adjusted EBITDA Margin: 58% in the second quarter, up from 49% in the same period of 2023.

• Net Income: $950 million, a 74% increase compared to the second quarter of the previous year.

• Net Income Margin: 31% in the second quarter, up from 24% in the second quarter of 2023.

• Operating Cash Cost: $0.76 per pound in the second quarter, a 29% reduction from the first quarter of 2024.

• Cash Flow from Operating Activities: $1,622 million for the first half of the year, an 18% decrease compared to the first half of 2023.

• Capital Investments: $332 million in the second quarter, a 31% increase over the second quarter of 2023.

• Warning! GuruFocus has detected 6 Warning Signs with KKOYF.

Release Date: July 22, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Southern Copper Corp (NYSE:SCCO) reported a 36% increase in net sales for the second quarter of 2024, driven by higher sales volumes and increased prices for copper, molybdenum, silver, and zinc.

• Copper production increased by 15% in Peru, with significant growth at the Toquepala mine due to higher ore grades.

• The company's adjusted EBITDA for the second quarter of 2024 was $1,797 million, a 61% increase compared to the same period in 2023, with an adjusted EBITDA margin of 58%.

• Southern Copper Corp (NYSE:SCCO) completed the ramp-up of the Buenavista Zinc concentrator, which is now operating at full capacity and contributing significantly to zinc production.

• The company is making progress on its Tia Maria project, which is expected to generate significant economic and social benefits for the Arequipa region, with plans to start operations in 2027.

Negative Points

• Despite the increase in sales, Southern Copper Corp (NYSE:SCCO) experienced an 8% rise in total operating costs and expenses, driven by higher costs in workers' participation, repair materials, and contractors.

• The company reported a decrease in cash flow from operating activities by 18% in the first half of 2024 compared to the same period in 2023, primarily due to an increase in working capital.

• Southern Copper Corp (NYSE:SCCO) is facing challenges with weak copper demand from China, particularly from its real estate market, which could impact future sales.

• The company is revising its capital budget for the Tia Maria project due to inflation and additional facilities, which could lead to increased capital expenditures.

• There is uncertainty regarding the environmental approval for the Tia Maria project, which could introduce new risks and potentially complicate the project's progress.