- Southern Copper reported a net income of $1.11 billion for the third quarter, surpassing estimates of $1 billion by 11% and showing a 24% increase year-over-year.
- Sales reached $3.38 billion, beating expectations of $3.21 billion and marking a 15% increase compared to the same period last year.
- The company achieved an adjusted EBITDA of $1.98 billion, exceeding the projected $1.88 billion and reflecting a 17% year-over-year growth.
- Adjusted EBITDA margin was recorded at 58.5%, slightly below the estimate of 58.9%, but improved from the previous year’s 57.5%.
- Copper production declined by 6.4% year-over-year to 237,333 tonnes.
- Zinc production increased significantly by 46% year-over-year to 45,482 tonnes, surpassing the estimate of 43,635 tonnes.
- Silver production rose by 16% year-over-year to 6.21 million ounces, exceeding the forecasted 5.92 million ounces.
- The company’s capital investments totaled $349.2 million, surpassing estimates of $329.4 million and showing a 42% increase from the previous year.
- Operating income was $1.77 billion, 22% higher year-over-year and above the anticipated $1.66 billion.
- The current investment ratings for Southern Copper include 4 buys, 12 holds, and 6 sells.
Southern Copper on Smartkarma
Analyzing the independent analyst coverage of Southern Copper on Smartkarma reveals a bullish sentiment towards the company amidst the current copper market dynamics. Sameer Taneja, a prominent analyst, emphasizes the seasonal strength of copper, predicting a rally onward to $12,000 per ton. Supply disruptions and increasing demand are cited as key drivers behind this trajectory, with Southern Copper identified as one of the top beneficiaries alongside Antofagasta PLC.
Furthermore, insights from Baptista Research shed light on Southern Copper‘s future performance beyond 2025, highlighting their extensive exploration ventures in northern Chile. The meticulous ground study of the Especularita copper-gold project showcases the company’s strategic focus on unlocking value from metallic-rich regions, positioning them for long-term growth and sustainability in the sector.
A look at Southern Copper Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores for Southern Copper, the company seems to have a promising long-term outlook. With high scores in Growth, Resilience, and Momentum, Southern Copper appears well-positioned for future success. The company’s focus on expanding and developing its operations, along with its ability to withstand market fluctuations and maintain momentum, bodes well for its continued growth.
Southern Copper Corporation, known for conducting mining operations in Peru and Mexico, owns and operates mines producing copper, molybdenum, zinc, and precious metals. The combination of its operations and the favorable Smart Scores in Growth, Resilience, and Momentum suggests that Southern Copper may be a solid investment choice for those looking at the long-term prospects in the mining sector.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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