- Southern Copper‘s net income for Q4 was $793.9 million, marking a 78% increase year-over-year, but falling short of the $850.3 million estimate.
- Earnings per share (EPS) were reported at $1.01, up from 58 cents year-over-year, yet below the expected $1.07.
- Sales reached $2.78 billion, a 21% increase from the previous year, but did not meet the anticipated $2.91 billion.
- Adjusted EBITDA was $1.51 billion, showing a 43% rise year-over-year, but lower than the $1.65 billion estimate.
- The adjusted EBITDA margin was 54.1%, compared to 46% the previous year, missing the projected 58.2%.
- Copper production stood at 239,457 tonnes, with a marginal increase of 0.6% year-over-year.
- Zinc production surged to 43,148 tonnes, significantly surpassing the previous year’s 16,930 tonnes and the 36,274 tonnes estimate.
- Silver production was 5.68 million ounces, an 18% increase year-over-year, exceeding the estimated 5.61 million ounces.
- Operating income improved by 50% year-over-year to $1.31 billion but was under the $1.5 billion estimate.
- The company expects to start construction of the TIA Maria Project in 2025.
- Chairman German Larrea expressed satisfaction with record net sales in 2024, attributed to higher sales volumes and prices.
- Southern Copper implemented strict cost-control measures to support its financial performance.
- Looking ahead, the company plans to produce 967,000 tonnes of copper in 2025.
- Analyst recommendations for the company include 4 buys, 8 holds, and 9 sells.
Southern Copper on Smartkarma
Analyst coverage of Southern Copper on Smartkarma highlights the insights provided by Baptista Research. In their report titled “Southern Copper Corporation: Expansion of Key Mining Projects & Other Major Drivers,” they discuss the notable progress and financial growth of Southern Copper in the third quarter of 2024. The report emphasizes the company’s positive advancements, including a robust 11% increase in copper production, amidst fluctuating market conditions.
Furthermore, Baptista Research shares their analysis in another report titled “Southern Copper Corporation: Exploration and Development of New Deposits! – Major Drivers.” This report delves into Southern Copper Corporation’s performance in the second quarter of 2024, pointing out both positive and negative attributes. With a 15% surge in London Metal Exchange copper prices, production cuts, and market deficit, the company is seen to be on a resilient path despite challenges like weak demand from China. Overall, Southern Copper anticipates a 0.6% increase in copper supply for 2024 as per the insightful coverage by Baptista Research on Smartkarma.
A look at Southern Copper Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
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
Investors looking at the long-term outlook for Southern Copper Corporation may find a moderately positive picture based on the Smartkarma Smart Scores. With a Value score of 2, the company may not be considered heavily undervalued, but it still presents some potential from an investment standpoint. The Dividend, Growth, Resilience, and Momentum scores all sit at a comfortable level of 3, indicating a balanced performance across different factors. This suggests that Southern Copper has solid prospects for steady growth and resilience in the face of market fluctuations.
Southern Copper Corporation is engaged in mining operations in Peru and Mexico, extracting copper, molybdenum, zinc, and precious metals from its open pit mines and metallurgical complexes. While not scoring the highest in terms of value, the company’s overall Smartkarma Smart Scores paint a picture of stability and moderate growth potential. Investors may view Southern Copper as a reliable player in the mining industry with a solid foundation for long-term success.
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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