Southern Copper Corporation Reports 20.1% Revenue Growth to $3.12 Billion in Q1 2025

Southern Copper Corporation (SCC) reported a significant increase in financial performance for the first quarter of 2025, with net sales reaching $3.12 billion, a 20.1% rise from $2.60 billion in the same period of 2024. This growth was primarily driven by higher prices for copper, molybdenum, silver, and zinc, alongside increased sales volumes of these metals. The company’s net income attributable to SCC also saw a notable increase, rising 28.5% to $945.9 million compared to $736.0 million in the prior year. Earnings per share improved to $1.19 from $0.95, reflecting the company's strong operational performance.

Operating income for the quarter was reported at $1.54 billion, up 29.1% from $1.19 billion in the previous year. The increase in operating income was attributed to a combination of higher sales volumes and improved metal prices, although operating costs also rose by 12.5% to $1.59 billion, influenced by factors such as inventory variances and increased labor costs. The effective income tax rate decreased slightly to 36.0% from 36.6%, contributing to the overall increase in net income.

In terms of operational developments, SCC maintained stable copper production levels at 529.6 million pounds, matching the output from the first quarter of 2024. The company anticipates a slight decrease in total copper production for 2025, projecting 968,200 tonnes, primarily due to the full capacity operation of the Pilares project. Additionally, molybdenum production increased by 8.6%, while zinc production surged by 49.3%, driven by the Buenavista Zinc concentrator operating at full capacity.

Strategically, SCC has committed to significant capital investments, totaling $317.8 million in the first quarter of 2025, a 48.7% increase from the previous year. These investments are aimed at enhancing production capabilities and addressing environmental and social commitments. The company is also advancing several key projects, including the Tia Maria project in Peru, which is expected to generate substantial revenues and employment opportunities upon completion. Furthermore, SCC has initiated exploration activities at the Michiquillay project, with ongoing commitments to local communities and environmental sustainability.

Looking ahead, SCC remains optimistic about its growth prospects, bolstered by favorable market conditions for copper and other metals. The company is focused on maintaining operational efficiency and capitalizing on its strategic investments to drive future profitability. The management's outlook reflects confidence in navigating potential market challenges, including geopolitical tensions and fluctuating commodity prices, while continuing to enhance shareholder value through disciplined financial management and operational excellence.