Southern Copper Corporation (SCC) reported record-high net sales of $11.4 billion for the year ended December 31, 2024, a 15.5% increase compared to 2023. This surge was driven by higher prices for copper (up 7.8% on the London Metal Exchange), silver (up 20.7%), and zinc (up 5.0%), coupled with increased sales volumes across several key products. The company's net income attributable to SCC rose by 39.2% to $3.4 billion, exceeding the $2.4 billion reported in 2023. However, this growth was partially offset by a decline in molybdenum prices (down 10.6%) and a $77.6 million downward adjustment related to provisionally priced sales.
SCC's copper production increased by 6.9% in 2024 to 2,147 million pounds, exceeding the 2,008 million pounds produced in 2023. This increase stemmed from higher production across all its operations, primarily due to improved ore grades and recoveries at Toquepala and Cuajone mines, and increased volumes processed at La Caridad and Buenavista mines. Molybdenum production rose by 8.1% to 63.9 million pounds, while mined zinc production saw a substantial 98.5% increase, largely attributed to the full-capacity operation of the Buenavista Zinc concentrator. Mined silver production also increased by 14.0% to 20.98 million ounces.
The company's operating cash cost per pound of copper produced before by-product revenues decreased by 2.5% to $2.13 in 2024, primarily due to increased production and lower treatment and refining charges. The operating cash cost per pound net of by-product revenues saw a more significant decrease of 13.9% to $0.89, driven by lower production costs and higher by-product revenue credits. SCC's capital investments totaled $1.0 billion in 2024, a 1.9% increase compared to 2023, representing 30.3% of net income. The Board of Directors approved a capital investment program of $1.6 billion for 2025.
SCC's 2025 outlook anticipates copper production reaching 965,800 tonnes (a slight decrease from 2024), driven by the Pilares project's full contribution. Zinc production is projected to increase by 32.0% due to the Buenavista Zinc concentrator's output, while molybdenum production is expected to decrease by 9.7%. Silver production is forecast to rise by 10.1% to 23.1 million ounces. The company expects a market deficit of approximately 250,000 tonnes of copper in 2025, with inventories covering about one week of global demand. The company's financial performance remains highly sensitive to fluctuations in copper and other metal prices.
SCC highlighted its commitment to environmental, social, and governance (ESG) practices, noting its high sustainability rating and various initiatives to improve occupational safety, support agricultural communities, and implement best practices for tailings management. The company also detailed its climate change strategy, including the integration of renewable energy sources and progress toward emission reduction targets. The filing included extensive disclosures on legal proceedings, including lawsuits related to the Tia Maria project in Peru and the 2014 Buenavista mine spill in Mexico, as well as information on labor relations and significant contractual obligations.
About SOUTHERN COPPER CORP/
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