SOUTHERN COPPER CORP
For the period ended Jun 30, 2024. Filed Aug 2, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 2, 2024
SCCO$167.27+1.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-04-30.
0001558370-24-006251
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-02.
0001558370-24-010710
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 122 previous paragraphs and 142 current paragraphs.
62 unchanged; 37 reworded; 39 added; 21 removed; 2 previous and 4 current paragraphs rearranged.
Tables are not compared: 78 previous and 87 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (39)
Current report
Net sales in the second quarter of 2024 totaled $3,118.3 million, which represented a substantial increase of 35.5% compared to net sales in the same period of 2023. This increase was influenced by higher prices of copper (+14.8%. LME), molybdenum (+3.9%), zinc (+12.2%) and silver (+18.9%) and was also impacted by growth in the sales volumes of copper (+5.5%), molybdenum (+21.4%), zinc (+78.1) and silver (+31.6%). The increase in the sales volumes of zinc was mainly driven by Buenavista Zinc, which was working at full capacity.
Current report
Net income attributable to SCC for the second quarter of 2024 was $950.2 million, representing a significant 73.6% increase compared to the same period in 2023. This notable growth, which was primarily driven by a 35.5% rise in sales due to improved pricing, was slightly offset by a 8.8% growth in the cost of sales and a 96.5% increase in income taxes.
Current report
Net sales for the first half of 2024 increased by 12.2% compared to the same period in 2023. This increase was driven by higher prices for copper (+4.6%, LME) and silver (+11.5%), as well as higher sales volumes of copper (+4.1%),
Current report
molybdenum (+14.8%), zinc (+33.7%), and silver (+12.0%). This was partially offset by a decrease in prices for molybdenum (-21.5%) and zinc (-7.0%).
Current report
Net income attributable to SCC in the first six months of 2024 increased by 23.9% compared to the same period in 2023. This rise was primarily driven by a sales increase of 12.2%, but was partially offset by a slight growth in operating costs of 2.8% and a 29.3% increase in income taxes.
Current report
Second quarter: Copper mine production in the second quarter of 2024 increased by 6.6%, reaching 534.6 million pounds. This growth was primarily driven by higher production levels at Toquepala (+21.1%; due to higher ore grades and recoveries), Cuajone (+7.3%; due to higher recoveries), and La Caridad (+7.1%; due to higher ore grades and recoveries). Growth was slightly offset by reduced production at the Buenavista (-0.8%; due to lower ore grades) and IMMSA (-6.0%; due to lower ore grades) operations
Current report
Six months: Mined copper production in the first six months of 2024 rose by 7.1%. This increase was primarily attributable to higher production at our Peruvian operations, with Toquepala up by 21.6% and Cuajone by 10.4%, driven by higher ore grades. Production at our Mexican operations increased by 0.6% during the same period, despite a 1.9% decline at the Buenavista mine due to water supply difficulties.
Current report
Molybdenum production increased by 15.1% in the first six months of 2024 compared to the same period in 2023. This rise was mainly due to higher production at our Toquepala mine (+74.2%), reflecting an increase in ore grades. Our
Current report
Buenavista (+8.4%) and Cuajone (+5.2%) mines also performed well during this period. Growth, however, was partially offset by lower production at the La Caridad mine, which saw a decrease of 6.9%.
Current report
Silver mine production increased by 8.2% in the first six months of 2024, primarily due to higher production at our Toquepala (+25.0%), La Caridad (+14.5%), Buenavista (+9.7%), and Cuajone (+5.9%) operations. This growth was slightly offset by a decline in production at our IMMSA operations (-0.4%).
Current report
Zinc production increased by 72.7% in the first six months of 2024. This growth was primarily driven by the production start-up at the Buenavista zinc concentrator, which produced 23,348 tonnes during the period.
Current report
In the second quarter of 2024 there was a slight decrease in operating cash cost per pound before by-product revenues, which fell from $2.19 to $2.15, indicating a minor improvement in production efficiency. By-product revenues per pound significantly increased from $1.07 to $1.40, resulting in a substantial reduction in operating cash cost per pound net of by-product revenues, which fell from $1.12 to $0.76. This reflects improved cost management and operational efficiency, with higher by-product revenues significantly offsetting overall production costs.
Current report
For the first six months of 2024, the operating cash cost per pound before by-product revenues slightly decreased from $2.14 to $2.13, a 0.3% improvement, even as total operating cash costs increased by 6.7% to $2,184.4 million. The increase of 1.6% in by-product revenues per pound helped reduce the operating cash cost per pound net of by-product revenues from $0.94 to $0.91, a 2.8% decrease. This growth was supported by a 7.0% increase in copper production, which totalled 1,024.0 million pounds at period-end versus 957.4 million pounds in the same period of 2023, and reflects the positive impacts of improvements in cost management and operational efficiency.
Current report
Project update: On July 1, 2024, the Company has restarted activities at the Tía María project, which reflects advances on the social and political fronts in the province of Islay, the Arequipa region and at the national level. We reiterate our view that Tia Maria will generate significant economic and social opportunities for the Islay province and the Arequipa region. In 2024, the Company will, among other scheduled activities, install a live fence as well as 1,000 fog catchers. SCC will also roll out digging activities this year. All these activities will generate 350 direct jobs in 2024 for the local population. In 2025, we expect to begin mine construction, which will generate 1,100 direct jobs over the year. To the fullest extent possible, we intend to fill the 9,000 jobs that we expect to generate during Tia Maria’s construction with workers from the Islay province. We expect to start operations in 2027, at that time we will generate 600 direct jobs and 4,800 indirect jobs.
Current report
Our social programs in Islay totaled $6.3 million in the last two years. Our current programs promote a reduction in the cost of agricultural production by improving productivity with cutting-edge technology. On top of this, we are working to provide internet access to 4,600 school students. In addition to these efforts, we are currently committed to developing health facilities, high performance schools, research centers and roads in the Arequipa region via the “work for taxes” program.
Current report
Tia Maria will generate significant revenues for the Arequipa region from day one of its operations. At current copper prices, we expect to export $17.5 billion and contribute $3.4 billion in taxes and royalties during the first 20 years of operation.
Current report
**Renewable energy.**On August 1, 2024, the Company will start receiving eolic energy from the Fenicias wind park, operated by Grupo Mexico Infraestructura. This will reduce our CO2 emission by approximately 250.000 tons per year, which is a 7% reduction in SCC’s carbon footprint.
Current report
**Transparency and accountability.**SCC recently published its second Sustainability Development Report. This year, we significantly improved the granularity and specificity of information on our commitment to and development of efforts on the environmental, social and governance fronts.
Current report
**Responsible production.**Our Buenavista mine in Sonora, Mexico has received Copper Mark and the Zinc Mark certifications for responsible production following a third-party independent evaluation of our performance in environmental, social and governance (ESG) matters. Consequently, the vast majority of our open pit Mexican copper production now complies with Copper and Zinc Mark standards.
Current report
**Education.**Our IMPULSA program seeks to provide our workers in Mexico with opportunities to qualify for certification of attainment of primary and secondary education and bachelors degrees. From 2022 to date, more than 970
Current report
people have participated in this program and 430 have successfully graduated. Currently, there are 540 workers actively participating in the IMPULSA program.
Current report
**Human Development.**Our coach and sports advisor for our swimming team at the Sonora operations, Jorge Iga, has qualified for the Paris 2024 Olympic Games after breaking the Mexican record for the 100-meter freestyle. Thanks to Mr. Iga's support, in 2024, 17 students from our academies participated in 6 top-level competitions.
Current report
In the second quarter of 2024 totaled $3,118.3 million, which represented an increase of 35.5% compared to net sales in the same period of 2023. This increase was influenced by higher prices of copper (+14.8%, LME), molybdenum (+3.9%), zinc (+12.2%) and silver (+18.9%), as well as increase in sales volumes of copper (+5.5%), molybdenum (+21.4%), zinc (+78.1) and silver (+31.6%). The increase in the sales volumes of zinc was mainly driven by Buenavista Zinc, which began operating at full capacity.
Current report
For the first half of 2024, net sales increased by 12.2% compared to the same period in 2023. This increase was driven by higher prices for copper (+4.6%, LME) and silver (+11.5%), as well as higher sales volumes of copper (+4.1%), molybdenum (+14.8%), zinc (+33.7%), and silver (+12.0%). This was partially offset by a decrease in prices for molybdenum (-21.5%) and zinc (-7.0%).
Current report
Second quarter: Operating costs and expenses were $1,511.0 million in the second quarter of 2024 compared to $1,400.0 million in the same period of 2023. The increase of $111.0 million was primarily due to:
Current report
Six months: Operating costs and expenses were $2,921.1 million in the first six months of 2024 compared to $2,840.2 million in the same period of 2023. The increase of $80.9 million was primarily due to:
Current report
Six months: The $7.1 million increase in the expense level was principally due to:
Current report
Net sales in the second quarter of 2024 increased $359.8 million compared to the same period in 2023. This remarkable growth was fueled by increased sales volumes of copper (+14.2%), molybdenum (+53.1%), and silver (+36.4%). Higher prices for copper (+14.8%, LME), molybdenum (+3.9%), and silver (+18.9%) also helped boost this performance.
Current report
Operating costs and expenses were $626.3 million in the second quarter of 2024 compared to $570.2 million in the same period of 2023. The increase of $56.1 million was primarily due to:
Current report
Net sales in the first six months of 2024 increased by $362.8 million compared to the same period in 2023. This growth primarily reflects positive developments in metal prices for copper (+4.6%, LME) and silver (+11.5%). An uptick in sales volumes of copper (+14.3%), molybdenum (+43.7%), and silver (+31.8%) also played a role in this performance. However, this was partially offset by a decrease in molybdenum prices (-21.5%).
Current report
Operating costs and expenses in the first six months of 2024 increased by $50.8 million to $1,197.5 million compared to $1,146.7 million in the same period of 2023. This was primarily due to:
Current report
Net sales in the second quarter of 2024 increased by $427.3 million compared to the same period in 2023. This significant increase was driven by higher prices for copper (+14.8%, LME), molybdenum (+3.9%), zinc (+12.2%), and silver (+18.9%). Growth in sales volumes of copper (+1.7%), molybdenum (+4.4%), and silver (+36.4%) also drove this strong performance. The start-up of the Buenavista zinc concentrator also played a crucial role, with zinc sales volumes reaching 39.4 million pounds for the period.
Current report
Operating costs and expenses were $786.1 million in the second quarter of 2024 compared to $706.0 million in the same period of 2023. The increase of $80.1 million was primarily due to:
Current report
Net sales in the first six months of 2024 increased by $266.3 million compared to the same period in 2023. This growth primarily reflects positive developments for metal prices, namely copper (+4.6%, LME) and silver (+11.5%). Additionally, growth in the sales volumes of silver (+15.7%) also contributed to this performance. Start-up at the Buenavista zinc concentrator also played a crucial role, with zinc sales volumes reaching 44.2 million pounds for the period. However, this was partially offset by decreases in molybdenum (-21.5%) and zinc (-7.0%) prices, as well as declines in sales volumes of copper (-0.6%) and molybdenum (-1.7%).
Current report
Operating costs and expenses in the first six months of 2024 increased by $84.0 million to $1,501.1 million compared to $1,417.1 million in the same period of 2023. This was primarily due to:
Current report
Net sales in the second quarter of 2024 increased by $44.0 million compared to the same period in 2023. This notable growth was driven by higher prices for copper (+14.8%, LME), zinc (+12.2%), and silver (+18.9%). Growth in sales volumes of copper (+64.4%) as contributed significantly to this performance. However, this was partially offset by a decrease in sales volumes of zinc (-3.5%).
Current report
Operating costs and expenses were $134.1 million in the second quarter of 2024 compared to $144.1 million in the same period of 2023. The decrease of $10.0 million was primarily due to:
Current report
Net sales in the first six months of 2024 increased by $10.9 million compared to the same period in 2023. This growth primarily reflects positive developments in metal prices, such as copper (+4.6%, LME) and silver (+11.5%). Growth in sales volumes of copper (+57.1%) contributed to this performance. However, this was partially offset by decreases in zinc prices (-7.0%) as well as a decrease in sales volumes of zinc (-7.8%) and silver (-5.7%).
Current report
Operating costs and expenses in the first six months of 2024 decreased by $34.9 million to $287.3 million compared to $322.2 million in the same period of 2023. This was primarily due to:
Removed paragraphs (21)
Previous report
It is important to emphasize that copper plays a leading role in the global shift to clean energy, which correlates positively with our assertion that the underlying demand for copper will be strong in the long-term. In this scenario, we believe the current cycle of low prices should be short-lived.
Previous report
Net sales in the first quarter of 2024 totaled $2,599.8 million, which represented a slight decrease of 6.9% compared to net sales in the same period of 2023. This decrease was influenced by lower prices of copper (-5.4% - LME), molybdenum (-38.1%) and zinc (-21.8%) and by a reduction in the sales volumes of silver (-3.4%) and zinc (-3.1%). The aforementioned drop in net sales was partially offset by higher sales volumes for copper (+2.8%) and molybdenum (+8.4%) and by an uptick in prices for silver (+3.6%).
Previous report
Net income in the first quarter of 2024, attributable to SCC, was $736.0 million, reflecting a 9.5% decrease from the same period in 2023. This decline was primarily driven by a drop in sales due to low prices in the period, which was slightly offset by a 3.1% drop in the costs of sales.
Previous report
Copper mine production in the first quarter of 2024 increased 7.6% to stand at 529.6 million pounds. This increase was primarily driven by an uptick in production levels at Toquepala (+22.2% due to higher ore grades and recoveries), Cuajone (+13.7% due to an increase in processed mineral), La Caridad (+12.9% due to higher ore grades) and IMMSA (+22.4%; higher ore grades). This was partially offset by a reduction in production at the Buenavista (-3.0%) mine; this result was driven primarily by a drop in SX-EW cathode production and ore grades, which was partially offset by copper production from the new zinc concentrator. Additionally, we reported that our Buenavista operation experienced difficulties with its water supply during the last quarter of 2023. During the first quarter of 2024, we took action to procure the water requirements for this facility. Therefore, we believe we have ensured sufficient provisions to operate our Mexican facilities as forecasted in our annual plan.
Previous report
In the first quarter of 2024, our per-pound cash cost, excluding by-product revenues rose 9.2% year-over-year. This growth was primarily driven by an increase in production costs, which was partially offset by the unit effect generated by a 8.0% increase in pounds of copper produced. Our cash cost per pound net of by-product revenue for the first quarter of 2024 increased 40.8% year-over-year. This was attributable to a decrease in by-product revenue credits this quarter.
Previous report
Buenavista Zinc - Sonora: This project is located within the Buenavista deposit, where we have built a new concentrator plant. This facility has a production capacity of 100,000 tonnes of zinc and 20,000 tonnes of copper per year. When operating, the concentrator will double the Company’s zinc production capacity and will provide more than 2,000 jobs on the operating front.
Previous report
Project update: the capital budget for the project is $439 million, of which $382.9 million had been invested as of March 31, 2024. Concentrator operation began in the first quarter of 2024. We expect to produce 54,500 tonnes of zinc and 11,900 tonnes of copper in 2024 and an average of 90,200 tonnes of zinc and 20,000 tonnes of copper per year in the next five years.
Previous report
We reiterate our view that the initiation of construction activities at Tia Maria will generate significant economic opportunities for the Islay province and the Arequipa region. Given the current Peruvian economic situation, it is crucial to move ahead on projects that will stimulate a sustainable growth cycle. We expect to begin the construction phase of the project in the near future. We will make it a priority to hire local labor to fill the 9,000 jobs that we expect to generate during Tia Maria’s construction. Additionally, from day one of our operations, we will generate significant contributions to revenues in the Arequipa region.
Previous report
Performance on ESG assessments conducted by rating agencies. For the third consecutive year, we were included in S&P Global's Sustainability Yearbook. This means that thanks to our performance in this agency’s Corporate Sustainability Assessment evaluation, we are ranked among the top 15% of the best-rated companies in sustainability in mining and metals. Regarding the ESG Risk Ratings Report evaluation by Sustainalytics, SCC reduced its risk level by improving its score within the medium risk category from 27.5 in 2023 to 23.4 in 2024.
Previous report
Climate action. In the first quarter of 2024, we received clean energy certificates from one of our electricity suppliers in Peru. With this, all the electrical energy we consumed in Peru in 2023 came from renewable sources. Measurements indicate that consumption of renewable electrical energy at SCC increased from 23% to 36% in 2023, which means we have already hit our 2027 target to ensure that 25% of our electricity supply is derived from renewable sources. Over the same period, greenhouse gas emissions dropped 7.5% in 2023 compared to 2022.
Previous report
Climate Governance. Recently, a briefing from Chapter Zero, home of the Climate Governance Initiative, was held for the directors and management of Southern Copper Corporation to inform them about the risks and opportunities associated with climate change. This initiative, developed in collaboration with the World Economic Forum, aims to support non-executive directors and chairs in integrating climate action into their business strategy.
Previous report
Exceptional Company. For the second consecutive year, we received the “Exceptional Company” award in Mexico, presented by the Business Coordinating Council, the Communication Council, and the Institute for the Promotion of Quality. On this occasion, the success of our Educational Center model was recognized after outstanding results were reported for mathematics and Spanish and English languages, which are above the national and regional average for the cohort of two thousand students from the four basic level schools sponsored by the Company in Mexico under a voluntary initiative to benefit our employees.
Previous report
Adding educational quality. We inaugurated the High Performance School (COAR) in Tacna, the Peruvian region where our Toquepala mine operates. This campus houses three hundred outstanding students of the state educational system. Many of these students come from the most vulnerable areas of the region. The COAR facilities will allow them to continue their studies in state-of-the art classrooms, laboratories, libraries, residences and sports areas, thanks to an investment of $26.0 million through the works for taxes modality.
Previous report
Net sales in the first quarter of 2024 totaled $2,599.8 million, which represented a slight decrease of 6.9% compared to net sales in the same period of 2023. This decrease was influenced by the drop reported for prices of copper (-5.4% - LME), molybdenum (-38.1%) and zinc (-21.8%) and by a reduction in the sales volumes of silver (-3.4%) and zinc (-3.1%). The aforementioned was partially offset by higher sales volumes for copper (+2.8%) and molybdenum (+8.4%) and by an uptick in prices for silver (+3.6%).
Previous report
First quarter: Operating costs and expenses were $1,410.1 million in the first quarter of 2024 compared to $1,440.2 million in the same period of 2023. The decrease of $30.1 million was primarily due to:
Previous report
Net sales in the first quarter of 2024 increased by $3.0 million versus the figure in 2023. This increase was driven by an uptick in sales volumes of copper (+14.5%), molybdenum (+35.2%), and silver (+27.3%), alongside a by higher silver prices (+3.6%). This positive effect was nonetheless offset by lower prices for copper (-5.4% - LME) and molybdenum (-38.1%).
Previous report
Operating costs and expenses were $571.2 million in the first quarter of 2024 compared to $576.5 million in the same period of 2023. The decrease of $5.3 million was primarily due to:
Previous report
Net sales in the first quarter of 2024 decreased by $160.9 million versus the figure in 2023. This drop was driven by a reduction in the sales volumes of copper (-2.8%) and molybdenum (-7.9%) and by lower prices for copper (-5.4% - LME) and molybdenum (-38.1%). Higher silver prices (+3.6%) and production start-up at the new zinc concentrator slightly offset the aforementioned reduction.
Previous report
Operating costs and expenses were $715.0 million in the first quarter of 2024 compared to $711.1 million in the same period of 2023. The increase of $3.9 million was primarily due to:
Previous report
Net sales in the first quarter of 2024 decreased by $33.1 million versus the figure in 2023. This decline was primarily fueled by reduced sales volumes of zinc (-11.3%) and silver (-10.5%) and by lower prices for copper (-5.4% - LME) and zinc (-21.8%). Growth in sales volumes of copper (+49.1%) and higher silver prices (+3.6%) slightly offset the aforementioned decline.
Previous report
Operating costs and expenses were $153.2 million in the first quarter of 2024 compared to $178.1 million in the same period of 2023. The decrease of $24.9 million was primarily due to:
Reworded paragraphs (37)
Previous wording
We also expect to produce 26,100 tonnes of molybdenum, which represents an increase of 2.4% over our 2023 production level. In 2024, we expect to produce 20.5 million ounces of silver, an increase of 11.4% compared to 2023 production results. Additionally, we expect to produce 120,300 tonnes of zinc from our mines, which represents an increase of 83.7% compared to our 2023 production level. This growth will be driven by the Buenavista Zinc concentrator. We expect this facility to produce 54,500 tonnes of zinc in 2024 and an average of 90,200 tonnes of zinc and 20,000 tonnes of copper per year over the next five years.
Current wording
We also expect to produce 27,400 tonnes of molybdenum, which represents an increase of 2.0% over our 2023 production level. In 2024, we expect to produce 20.6 million ounces of silver, an increase of 12.0% compared to 2023 production results. Additionally, we expect to produce 121,800 tonnes of zinc from our mines, which represents an increase of 86.0% compared to our 2023 production level. This growth will be driven by the Buenavista Zinc concentrator. We expect this facility to produce 55,400 tonnes of zinc in 2024. For 2025 and on, we expect to produce over 178,000 tonnes per year.
Previous wording
Earnings**:** The table below highlights key financial and operational data of our Company for the three-month period ended March 31, 2024 and 2023 (in millions, except copper price, percentages and per share amounts):
Current wording
Earnings**:** The table below highlights key financial and operational data of our Company for the three and six-month period ended June 30, 2024 and 2023 (in millions, except copper price, percentages and per share amounts):
Previous wording
Production**:** The table below highlights our mine production data for the three-month period ended March 31, 2024 and 2023:
Current wording
Production**:** The table below highlights our mine production data for the three and six-month period ended June 30, 2024 and 2023:
Previous wording
The table below highlights our mine production data for the three-month period ended March 31, 2024 and 2023:
Current wording
The table below highlights our mine production data for the three and six-month period ended June 30, 2024 and 2023:
Previous wording
Molybdenum production increased 9.5% in the first quarter of 2024 versus the figure in the same period in 2023. This was attributable to higher production at our Toquepala (+58.2%), Cuajone (+4.9%) and Buenavista (+2.6%) mines, which was primarily fueled by an increase in ore grades. This effect was offset mainly by a reduction in production at our La Caridad (-10.8%) mine, which was in turn driven by a drop in ore grades and recoveries.
Current wording
Molybdenum production increased by 20.8% in the second quarter of 2024 compared to the same period in 2023. This rise was mainly due to higher production at our Toquepala (+91.7%), Cuajone (+5.6%), and Buenavista (+14.4%) mines, primarily driven by an increase in ore grades. This was somewhat offset by a reduction in production at our La Caridad (-3.3%) mine, which was due to a decline in ore grades.
Previous wording
Silver mine production increased 8.4% in the first quarter of 2024 compared to the same period of 2023. This was attributable to higher production at our Toquepala (+25.0%), La Caridad (+22.9%), Cuajone (+11.7%) and IMMSA (+10.9%) operations in quarter-on-quarter terms. This was slightly offset by a decrease in production at our Buenavista (-9.5%) mine.
Current wording
Silver mine production increased by 8.0% in the second quarter of 2024 compared to the same period in 2023. This increase was attributable to higher production at our Buenavista (+28.9%), Toquepala (+24.9%), La Caridad (+6.7%), and Cuajone (+0.6%) operations. This was slightly offset by a decrease in production at our IMMSA (-10.1%) mine.
Previous wording
Zinc production increased 74.9% in the first quarter of 2024 versus the figure for the same period in 2023. This result was attributable to production start-up at Buenavista zinc concentrator, which produced 9,695 tonnes over the period.
Current wording
Zinc production increased by 70.8% in the second quarter of 2024 compared to the same period in 2023. This growth was primarily due to the production start-up at the Buenavista zinc concentrator, which produced 13,653 tonnes during the period.
Previous wording
charges net of sales premiums; less the cost of purchased concentrates, workers’ participation and other miscellaneous charges, including royalty charges, and the change in inventory levels; divided by total pounds of copper produced by our own mines.
Current wording
We define operating cash cost per pound of copper produced before by-product revenuesas cost of sales (exclusive of depreciation, amortization and depletion), plus selling, general and administrative charges, treatment and refining charges net of sales premiums; less the cost of purchased concentrates, workers’ participation and other miscellaneous charges, including royalty charges, and the change in inventory levels; divided by total pounds of copper produced by our own mines.
Previous wording
We believe that both of these measures are useful tools for our management and our stakeholders. Our cash costs before by-product revenues allow us to monitor our cost structure and address areas of concern within operating management. The measure operating cash cost per pound of copper produced net of by-product revenues is a common measure used in the copper industry and is a useful management tool that allows us to track our performance and better allocate our resources. This measure is also used in our investment project evaluation process to determine a project’s potential contribution to our operations, its competitiveness and its relative strength in different price scenarios. The expected contribution of by-products is generally a significant factor used by the copper industry to determine whether to move forward or not in the development of a new mining project. As the price of our by-product commodities can have significant fluctuations from period to period, the value of its contribution to our costs can be volatile.
Current wording
We believe that both of these measures are useful tools for our management and our stakeholders. Our cash costs before by-product revenues allow us to monitor our cost structure and address areas of concern within operating management. The measure operating cash cost per pound of copper produced net of by-product revenues is a common measure used in the copper industry and is a useful management tool that allows us to track our performance and better allocate our resources. This measure is also used in our investment project evaluation process to determine a project’s potential contribution to our operations, its competitiveness and its relative strength in different price scenarios. The expected contribution of by-products is generally a significant factor used by the copper industry to determine whether to move
Previous wording
Our operating cash cost per pound of copper produced, before and net of by-product revenues, is presented in the table below for the three-month period ended March 31, 2024 and 2023:
Current wording
Our operating cash cost per pound of copper produced, before and net of by-product revenues, is presented in the table below for the three and six-month period ended June 30, 2024 and 2023:
Previous wording
We are subject to market risks arising from the volatility of copper and other metal prices. For the remaining nine months of 2024, assuming that expected metal production and sales are achieved, tax rates remain unchanged and no effects are generated by potential hedging programs, metal price sensitivity factors would indicate the following change in estimated net income attributable to SCC resulting from metal price changes:
Current wording
We are subject to market risks arising from the volatility of copper and other metal prices. For the remaining nine months of 2024, assuming that expected metal production and sales are achieved, tax rates remain unchanged and no
Previous wording
Capital Investment Programs: We made capital investments of $213.8 million in the first quarter of 2024, compared to $238.1 million in the same period of 2023. In general, the capital investments and investment projects described below are intended to increase production, decrease costs or address social and environmental commitments.
Current wording
Capital Investment Programs: We made capital investments of $545.6 million in the first six months of 2024, compared to $490.6 million in the same period of 2023. In general, the capital investments and investment projects described below are intended to increase production, decrease costs or address social and environmental commitments.
Previous wording
Quebrada Honda dam expansion – Tacna: This project aims to enlarge the main and lateral dams in Quebrada Honda and includes the relocation and repowered of some facilities due to dam growth and implementation of other facilities for water recovery, among other factors. The drainage works and removal of Eolic material for the main and lateral dam, as well as complementary operational works are completed. We have also installed two cyclone nests for the main dam, which are currently operating. Additionally, purchases are pending for equipment for tailings hauling. We intend to build administrative facilities down the line. This project has a total budget of $165.0 million, of which we have invested $152.3 million as of March 31, 2024.
Current wording
Quebrada Honda dam expansion – Tacna: This project aims to enlarge the main and lateral dams in Quebrada Honda and includes the relocation and repowered of some facilities due to dam growth and implementation of other facilities for water recovery, among other factors. The drainage works and removal of Eolic material for the main and lateral dam, as well as complementary operational works are completed. We have also installed two cyclone nests for the main dam, which are currently operating. Additionally, purchases are pending for equipment for tailings hauling. We intend to build
Previous wording
Tia Maria - Arequipa: This greenfield project, located in Arequipa, Peru, will use state of the art SX-EW technology with the highest international environmental standards to produce 120,000 tonnes of SX- EW copper cathodes per year. The estimated capital budget for the project is $1.4 billion.
Current wording
Tia Maria - Arequipa: This greenfield project, located in Arequipa, Peru, will use state of the art SX-EW technology with the highest international environmental standards to produce 120,000 tonnes of SX- EW copper cathodes per year. The Company is currently reviewing its budget of 1.4 billion, we expect to update this budget by year end.
Previous wording
The Company has been consistently working to promote the welfare of the population of the Islay province. As part of these efforts, we have implemented successful social programs in education, healthcare and productive development to improve the quality-of-life in the region. We have also promoted agricultural and livestock activities in the Tambo Valley and supported growth in manufacturing, fishing and tourism in Islay.
Current wording
The Company has consistently promoted the welfare of the population of the Islay province and the Arequipa region. As part of these efforts, we have implemented successful social programs in education, healthcare and productive development to improve the quality of life in the region.
Previous wording
Project update: The Company has completed the environmental baseline study for the mine, concentrator and industrial facilities and will proceed to submit the Environmental Impact Statement (Manifestacion de Impacto Ambiental “MIA”)
Current wording
Project update: The Company has completed the environmental baseline study for the mine, concentrator and industrial facilities and will proceed to submit the Environmental Impact Statement (Manifestacion de Impacto Ambiental “MIA”) to the Secretary of Environment and Natural Resources “SEMARNAT” to request the respective environmental impact permits. The Company is currently preparing studies for the port, power lines, townsites and auxiliary facilities.
Previous wording
Los Chancas - Apurimac: This greenfield project, located in Apurimac, Peru, is a copper and molybdenum porphyry deposit. Current estimates of indicated copper mineral resources are 98 million tonnes of oxides with a copper content of 0.45% and 52 million tonnes of sulfides with a copper content of 0.59%. The Los Chancas project envisions an open-pit mine with a combined operation of concentrator and SX-EW processes to produce 130,000 tonnes of copper and 7,500 tonnes of molybdenum annually. The estimated capital investment is $2,600 million and the project is expected to begin operating in 2030. We continue to engage in social and environmental improvements for the local communities and work on the project´s environmental impact assessment.
Current wording
Los Chancas - Apurimac: This greenfield project, located in Apurimac, Peru, is a copper and molybdenum porphyry deposit. Current estimates of indicated copper mineral resources are 98 million tonnes of oxides with a copper content of 0.45% and 52 million tonnes of sulfides with a copper content of 0.59%. The Los Chancas project envisions an open-pit mine with a combined operation of concentrator and SX-EW processes to produce 130,000 tonnes of copper and 7,500 tonnes of molybdenum annually. The estimated capital investment is $2,600 million and the project is expected to begin
Previous wording
Project update: As of March 31, 2024, we had drilled 80,000 meters and obtained 27,902 core samples for chemical analysis. Diamond drilling is underway, which will provide data for cross-section interpretation, geological modeling and resource evaluation. We expect to begin hydrogeological and geotechnical studies soon, and will also assess the results of metallurgical testing at the deposit.
Current wording
Project update: As of June 30, 2024, total advancement on the exploration project stood at 30%. We had drilled 104,000 meters and obtained 33,991 core samples for chemical analysis. Diamond drilling is underway, which will provide data for cross-section interpretation, geological modeling and resource evaluation. We expect to begin hydrogeological and geotechnical studies soon, and will also assess the results of metallurgical testing at the deposit.
Previous wording
The following highlights key financial results for the three-month period ended March 31, 2024 and 2023:
Current wording
The following highlights key financial results for the three and six-month period ended June 30, 2024 and 2023:
Previous wording
The table below outlines the average published market metals prices for our metals for the three-month period ended March 31, 2024 and 2023:
Current wording
The table below outlines the average published market metal prices for our metals for the three and six-month period ended June 30, 2024 and 2023:
Previous wording
The table below provides our metal sales as a percentage of our total net sales for the three-month period ended March 31, 2024 and 2023:
Current wording
The table below provides our metal sales as a percentage of our total net sales for the three and six-month period ended June 30, 2024 and 2023:
Previous wording
The table below provides our copper sales by type of product for the three-month period ended March 31, 2024 and 2023. The difference in value between products is the level of processing. At the market price, concentrates take a discount since they require smelting and refining processes, while refined and rod copper receive premiums due to their purity and presentation.
Current wording
The table below provides our copper sales by type of product for the three and six-month period ended June 30, 2024 and 2023. The difference in value between products is the level of processing. At the market price, concentrates take a discount since they require smelting and refining processes, while refined and rod copper receive premiums due to their purity and presentation.
Previous wording
The table below provides our copper sales volume by type of product as a percentage of our total copper sales volume for the three-month period ended March 31, 2024 and 2023:
Current wording
The table below provides our copper sales volume by type of product as a percentage of our total copper sales volume for the three and six-month period ended June 30, 2024 and 2023:
Previous wording
Non-operating income (expense) represented a net expense of $34.2 million in the three-month period ended March 31, 2024 compared to a net expense of $50.9 million in the same period of 2023.
Current wording
Non-operating income (expense) represented a net expense of $76.7 million and $110.8 million in the three and six months ended on June 30, 2024 compared to a net expense of $52.8 million and $103.7 million in the three and six months ended June 30, 2023.
Previous wording
First quarter: The $16.7 million decrease in the expense level was due to:
Current wording
Second quarter: The $23.9 million increase in the expense level was due to:
Previous wording
The table below presents information regarding the volume of our copper sales by segment for the three-month period ended March 31, 2024 and 2023:
Current wording
The table below presents information regarding the volume of our copper sales by segment for the three and six-month period ended June 30, 2024 and 2023:
Previous wording
The table below presents information regarding the volume of sales by segment of our significant by-products for the three-month period ended March 31, 2024 and 2023:
Current wording
The table below presents information regarding the volume of sales by segment of our significant by-products for the three and six-month period ended June 30, 2024 and 2023:
Previous wording
The following table shows the cash flow for the three-month period ended March 31, 2024 and 2023 (in millions):
Current wording
The following table shows the cash flow for the six-month period ended June 30, 2024 and 2023 (in millions):
Previous wording
The change in net cash from operating activities for the three-month period ended March 31, 2024 and 2023 include, in millions, the following significant items:
Current wording
The change in net cash from operating activities for the six-month period ended June 30, 2024 and 2023 include, in millions, the following significant items:
Previous wording
Three months ended March 31, 2024: Net income was $738.8 million, which represented approximately 111.9% of the net operating cash flow. The cash flow from operating assets and liabilities decreased by $310.8 million due to the following:
Current wording
Six months ended June 30, 2024: Net income was 1,692.6 million, which represented approximately 104.3% of the net operating cash flow. The cash flow from operating assets and liabilities decreased by 513.0 million due to the following:
Previous wording
Three months ended March 31, 2023: Net income was $815.9 million, which represented approximately 69% of the net operating cash flow. The operating cash flow increased by $163.6 million due to the following variances in operating assets and liabilities:
Current wording
Six months ended June 30, 2023: Net income was $1,365.6 million, which represented approximately 68.9% of the net operating cash flow. The cash flow from operating assets and liabilities increased by $161.3 million due to the following:
Previous wording
Three months ended March 31, 2023: Net cash used in investing activities included $238.1 million for capital investments. The capital investments included:
Current wording
Six months ended June 30, 2024: Net cash used in investing activities included $545.6 million for capital investments. The capital investments included:
Previous wording
Investment activities in the first three months of 2024 included $270.0 million of net proceeds of short-term investments.
Current wording
Investment activities in the first six months of 2024 included $270.1 million of net proceed of short-term investments.
Previous wording
Three months ended March 31, 2024: Net cash used in investing activities included $213.8 million for capital investments. Capital investments included:
Current wording
Six months ended June 30, 2023: Net cash used in investing activities included $490.6 million for capital investments. The capital investments included:
Previous wording
Investment activities in the first three months of 2023 included $67.7 million of net proceeds from short-term investments.
Current wording
Investment activities in the first six months of 2023 included $208.0 million of net proceed of short-term investments.
Previous wording
On April 18, 2024, the Board of Directors authorized a quarterly stock dividend of 0.0104 shares of common stock per share of common stock, payable on May 23, 2024 to shareholders of record at the close of business on May 8, 2024.
Current wording
On July 18, 2024, the Board of Directors authorized a quarterly cash dividend of $0.60 per share of common stock and a stock dividend of 0.0056 shares of common stock per share of common stock, payable on August 26, 2024 for shareholders of record at the close of business on August 9, 2024.
Previous wording
In lieu of fractional shares, cash will be distributed to each shareholder who would otherwise have been entitled to receive a fractional share, based on a share price of $115.13, which is the average of the high and low share price on April 18, 2024
Current wording
In lieu of fractional shares, cash will be distributed to each shareholder who would otherwise have been entitled to receive a fractional share, based on a share price of $106.54, which is the average of the high and low share price on July 18, 2024.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
forward or not in the development of a new mining project. As the price of our by-product commodities can have significant fluctuations from period to period, the value of its contribution to our costs can be volatile.
Current report — wording carried from elsewhere
effects are generated by potential hedging programs, metal price sensitivity factors would indicate the following change in estimated net income attributable to SCC resulting from metal price changes:
Current report — wording carried from elsewhere
administrative facilities down the line. This project has a total budget of $165.0 million, of which we have invested $152.1 million as of June 30, 2024.
Current report — wording carried from elsewhere
operating in 2030. We continue to engage in social and environmental improvements for the local communities and work on the project´s environmental impact assessment.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
We define operating cash cost per pound of copper produced before by-product revenuesas cost of sales (exclusive of depreciation, amortization and depletion), plus selling, general and administrative charges, treatment and refining
Previous report — wording carried elsewhere
to the Secretary of Environment and Natural Resources “SEMARNAT” to request the respective environmental impact permits. The Company is currently preparing studies for the port, power lines, townsites and auxiliary facilities.