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Introduction & Market Context
Southern Copper Corporation (NYSE:SCCO) presented its third-quarter 2024 results on October 23, showing strong performance across all key metrics amid favorable copper market conditions. The company reported that copper prices increased 10% year-over-year, reaching $4.2 per pound in Q3 2024 compared to $3.8 in Q3 2023.
The mining giant highlighted several positive market factors in its outlook, including a resilient US economy, the Federal Reserve’s interest rate reduction cycle, and China’s stimulus package. Additionally, the company noted new demand emerging from decarbonization technologies and artificial intelligence infrastructure, despite expectations of a market surplus in 2024.
As shown in the following copper market overview:
Quarterly Performance Highlights
Southern Copper delivered impressive production growth across its portfolio of metals. Copper production, the company’s primary focus, increased 12% year-over-year to 252,219 tons in Q3 2024. The company also reported substantial growth in other metals, with zinc production surging 91% to 31,078 tons, silver production rising 21% to 5.3 million ounces, and molybdenum output increasing 6% to 7,271 tons.
The production results are illustrated in the following chart comparing Q3 2024 to Q3 2023:
On a sequential basis, copper production improved 4% compared to Q2 2024, demonstrating continued operational momentum throughout the year.
Detailed Financial Analysis
The strong production results translated into robust financial performance. Net sales reached $2.93 billion in Q3 2024, a 17% increase from $2.51 billion in Q3 2023. More impressively, net income jumped 45% year-over-year to $897 million, while EBITDA grew 31% to $1.69 billion.
The company’s cost management was particularly noteworthy, with cash cost per pound of copper decreasing 22% year-over-year to $0.76. Operating costs increased by just 3% despite the significant production growth, highlighting improved operational efficiency.
The comprehensive financial results are shown in the following table:
When compared to the previous quarter (Q2 2024), Southern Copper experienced a 6% decline in sales, EBITDA, and net income, though cash costs remained stable. This sequential performance reflects typical industry fluctuations while maintaining the strong year-over-year growth trajectory.
The financial highlights for Q3 2024 are summarized in this slide:
Strategic Initiatives
Southern Copper outlined an ambitious capital investment program spanning through 2032, with major projects in both Peru and Mexico. These investments aim to significantly expand the company’s production capacity over the coming years.
In Peru, key projects include Tia Maria (120,000 tons of copper by 2027), the Ilo Smelter (targeted for 2029 with a $1.3 billion investment), Los Chancas (130,000 tons of copper by 2031), and Michiquillay (225,000 tons of copper by 2032).
Mexican projects include El Pilar (36,000 tons of copper by 2027), the Empalme Smelter (2029), and El Arco (190,000 tons of copper by 2030). Together, these projects represent a substantial expansion of Southern Copper’s production capabilities.
The capital investment timeline is illustrated in this slide:
The company also highlighted its commitment to environmental, social, and governance (ESG) initiatives. Three operations in Peru—Cuajone, Toquepala, and Ilo—received The Copper Mark and The Molybdenum Mark certifications, recognizing the company’s adherence to responsible production practices. Additional social investments included research facilities in Peru and cultural centers in Mexico.
Shareholder Returns
Southern Copper announced a fourth-quarter dividend of $1.40 per share, representing a significant increase from previous quarters in 2024 ($0.80 in Q1, $1.20 in Q2 and Q3). This progressive dividend policy underscores the company’s commitment to returning value to shareholders amid strong operational performance.
Despite the rising absolute dividend value, the annual dividend yield has decreased from 5.7% in 2022 to 4.2% in 2024, likely reflecting the appreciation in Southern Copper’s share price over this period.
The dividend history and announcement are presented in this chart:
Forward-Looking Statements
Looking ahead, Southern Copper appears well-positioned to capitalize on growing demand for copper driven by energy transition technologies and AI infrastructure development. The company’s extensive capital investment program aims to significantly increase production capacity over the next eight years.
While the company acknowledges an expected market surplus in 2024, it remains optimistic about long-term copper demand fundamentals. The ongoing expansion projects, coupled with operational efficiency improvements as evidenced by decreasing cash costs, should support Southern Copper’s growth trajectory in the coming years.
As of July 3, 2025, Southern Copper’s stock (NYSE:SCCO) was trading at $106.09, down slightly by 0.22% for the day. The stock has traded between $74.11 and $118.64 over the past 52 weeks, indicating significant price appreciation over the longer term despite short-term fluctuations.
Full presentation:
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