Southern Copper reports Q3 earnings beat, revenue slightly misses

NEW YORK - Southern Copper Corp. (NYSE:SCCO ) reported third quarter earnings that surpassed analyst expectations, while revenue came in just shy of estimates. The company's stock rose 1.43% following the announcement.

Southern Copper posted adjusted earnings per share of $1.15 for the third quarter, beating the analyst consensus of $1.11 by $0.04. Revenue for the period totaled $2.93 billion, narrowly missing the $2.94 billion estimate.

Following the report, Citi noted that 3Q24 EBITDA of $1.7bn came inline w/ Citi & cons at $1.7bn. "Mined copper production was 253kt, +12% YoY, +5% QoQ, the best quarter since 2020 driven by better grades in both Mexico & Peru. Cash cost before byproducts was $1.95/lb vs $2.15/lb in 2Q24 — helped by higher production. After byproducts, was $0.76/lb. FCF was strongly positive (~$1.2bn) supported by working capital," analysts at Citi said.

On the Tia Maria Project, the Company is currently reviewing its historical capital budget for Tia Maria of $1.4 billion.

An update to the budget is expected by year-end. The company also said that in the coming months, it intends to build roads and access points; train operators; update the topographic network; install and delimit properties along the living fence; install a temporary camp; and begin earthmoving activities.

Construction is set to begin in 2025.

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Source: Investing.com