SOUTHERN COPPER CORP
For the period ended Sep 30, 2024. Filed Oct 31, 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.
Sep 30, 2024 · Filed Oct 31, 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 2024-06-30; filed 2024-08-02.
0001558370-24-010710
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-10-31.
0001558370-24-014045
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 142 previous paragraphs and 138 current paragraphs.
60 unchanged; 50 reworded; 26 added; 28 removed; 4 previous and 2 current paragraphs rearranged.
Tables are not compared: 87 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 (26)
Current report
supply is expected to remain stable, growing demand from emerging technologies could lead to a tighter market. This increased demand is likely to sustain higher prices over the long term.
Current report
Net sales for the nine-month period of 2024 increased 13.8% compared to the same period in 2023. This growth was driven by higher sales volumes of copper (+5.5%), molybdenum (+11.6%), silver (+13.7%), and zinc (+39.3%). Better results were also supported by higher prices for copper (+6.2%, LME) and silver (+16.0%), which were nonetheless offset by a drop in prices for molybdenum (-17.4%).
Current report
Nine months: Mined copper production in the nine-month period of 2024 increased by 8.6%. This growth was mainly attributable to higher production at our Peruvian operations, where Toquepala was up 19.8% and Cuajone, 13.7%, both on the back of an improvement in ore grades. Production at our Mexican operations also rose over the period, registering growth of 2.8%.
Current report
Molybdenum production, in the nine-month period of 2024 increased 11.9% compared to the same period in 2023. This growth was primarily driven by growth in output at our Toquepala mine (+65.8%), which reflected better ore grades and recoveries. Our Cuajone (+17.0%) and Buenavista (+10.6%) mines also performed well during this timeframe. Growth in production was, nonetheless, somewhat attenuated by a decline in production at the La Caridad mine, which was down 15.4%.
Current report
Silver mine production increased by 12.5% in the nine-month period of 2024 compared to the same period in 2023. This was largely attributable to higher output across our operations, including Toquepala (+27.2%), Buenavista (+20.6%), Cuajone (+13.5%), La Caridad (+9.0%), and IMMSA (+1.6%) operations.
Current report
For the nine-month period of 2024, the operating cash cost per pound before by-product revenues fell from $2.17 to $2.07, representing a 4.7% improvement. Total operating cash costs, however, increased 3.5% to $3,230.6 million, while by-product revenues per pound remained relatively steady, falling marginally from $1.22 to $1.21. As a result, the operating cash cost per pound net of by-product revenues decreased 9.7%, going from $0.95 to $0.86. Copper production increased by 8.6% to 1,559.2 million pounds during this period, which reflects ongoing improvements in operating efficiency and cost controls.
Current report
In the coming months, we expect 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. In 2025, we expect construction to begin.
Current report
Project update: As of September 30, 2024, the total progress of the exploration project was 30%. By this date, we have drilled 120,923 meters and obtained 39,234 drill core samples for chemical analysis. Diamond drilling will continue and will provide information for the interpretation of geological sections related to mineralization, geological modeling and mineral resource evaluation. Geo-metallurgical studies are currently underway; hydrological and hydrogeological studies for the project will begin shortly.
Current report
**Responsible Production.**Our three operations in Peru, Cuajone, Toquepala and Ilo, were awarded with The Copper Mark and The Molybdenum Mark certifications for responsible production following an independent third-party assessment of environmental, social and governance performance (ESG). We are proud to report that all our open pit copper and molybdenum production has been certified under these standards.
Current report
**Education infrastructure for Arequipa.**We delivered the Center for Research with specialized engineering laboratories to the Universidad Nacional de San Agustín de Arequipa (UNSA), Peru. This facility, which was built under the Works for Taxes mechanism at a cost of $18 million, is equipped with 24 laboratories and will benefit 6,500 students and 174 researchers.
Current report
**Recognition for the architectural and social value of the Cultural Center in Charcas.**The Cultural Center, located in Charcas, San Luis Potosi, Mexico, obtained first place in the Noldi Schreck awards (350 entries) in the categories “private institutional architecture” and “repurposing of buildings.” This space, which began operations in the summer of 2023, has hosted over 4,700 participants and 120 volunteers across 200 activities related to education, culture, health, and sports. The Cultural Center, which is open to the public, is now considered a cultural attraction and receives visits from tourists, locals and state authorities.
Current report
**Dr. Vagón has provided more than 80 thousand medical services over the last 10 years.**In September 2024, Dr. Vagón, which is Fundación Grupo México’s health program, visited Cananea to provide more than 6,000 free medical
Current report
services to 2,050 people. Patients were evaluated by specialists and needy candidates received medicine, eyeglasses and hearing aids. During these interventions,102 elderly residents received cataract surgery to help them recover their sight.
Current report
In the third quarter of 2024 totaled $2,930.9 million, which represented a substantial increase of 17.0% compared to net sales in the same period of 2023. This growth was primarily attributable to growth in sales volumes of copper (+8.2%), molybdenum (+5.6%), silver (+17.4%), and zinc (+50.1%). Higher metal prices for copper (+10.0%, LME), silver (+24.7%), and zinc (+14.5%) further boosted sales. This positive performance was somewhat offset by a decline in molybdenum prices (-8.1%).
Current report
For the nine-month period of 2024, net sales increased 13.8% compared to the same period in 2023. This growth was driven by higher sales volumes of copper (+5.5%), molybdenum (+11.6%), silver (+13.7%), and zinc (+39.3%). Better performance was also bolstered by higher metal prices for copper (+6.2%, LME) and silver (+16.0%), which were offset by a drop in molybdenum (-17.4%) prices.
Current report
Third quarter: Operating costs and expenses were $1,480.6 million in the third quarter of 2024 compared to $1,436.4 million in the same period of 2023. The increase of $44.2 million was primarily due to:
Current report
Nine months: Operating costs and expenses were $4,401.7 million for the nine-month period of 2024 compared to $4,276.6 million in the same period of 2023. The increase of $125.1 million was primarily due to:
Current report
Net sales in the third quarter of 2024 increased by $253.9 million compared to the same period in 2023. This significant growth was driven by higher sales volumes of copper (+16.8%), molybdenum (+53.7%), and silver (+39.6%). Additionally, higher prices for copper (+10.0%, LME) and silver (+24.7%) contributed positively to this performance, but the result was partially offset by a decline in molybdenum prices (-8.1%).
Current report
Operating costs and expenses were $640.2 million in the third quarter of 2024 compared to $597.0 million in the same period of 2023. The increase of $43.2 million was primarily due to:
Current report
Net sales in the nine-month period of 2024 increased by $616.7 million compared to the same period in 2023. This growth primarily reflects positive developments in sales volumes of copper (+15.2%), molybdenum (+47.5%), and silver (+32.7%), along with higher metal prices for copper (+6.2%, LME) and silver (+16.0%). However, this was slightly mitigated by a decrease in molybdenum prices (-17.4%).
Current report
Operating costs and expenses in the nine-month period of 2024 increased by $94.0 million to $1,837.7 million compared to $1,743.7 million in the same period of 2023. This was primarily due to:
Current report
Operating costs and expenses were $736.5 million in the third quarter of 2024 compared to $709.3 million in the same period of 2023. The increase of $27.2 million was primarily due to:
Current report
Net sales in the nine-month period of 2024 increased by $406.9 million compared to the same period in 2023. This growth primarily reflects the rise in sales volumes of copper (+0.5%) and silver (+14.6%), along with higher metal prices for copper (+6.2%, LME) and silver (+16.0%). The start-up of the Buenavista zinc concentrator also contributed significantly, with zinc sales volumes reaching 62.3 million pounds during the period. However, this growth was somewhat offset by a decrease in sales volumes of molybdenum (-7.8%) as well as declines in molybdenum (-17.4%) prices.
Current report
Operating costs and expenses in the nine-month period of 2024 increased by $111.3 million to $2,237.6 million compared to $2,126.3 million in the same period of 2023. This was primarily due to:
Current report
Net sales in the third quarter of 2024 increased by $31.3 million compared to the same period in 2023. This growth was driven by higher sales volumes of zinc (+17.1%) and increased metal prices for zinc (+14.5%), copper (+10.0%, LME), and silver (+24.7%). However, this was slightly offset by a decline in sales volumes of copper (-6.7%) and silver (-7.7%).
Current report
Net sales in the nine-month period of 2024 increased by $42.2 million compared to the same period in 2023. This growth was primarily driven by higher sales volumes of zinc (+0.7%) and copper (+32.0%), along with increased metal prices for copper (+6.2%, LME) and silver (+16.0%). However, this was partially offset by a decline in the sales volume of silver (-6.2%) and lower metal prices for molybdenum (-17.4%).
Removed paragraphs (28)
Previous 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%),
Previous 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%).
Previous 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.
Previous 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
Previous 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%.
Previous 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%).
Previous 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.
Previous report
Projects in Mexico:
Previous report
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 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.
Previous 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.
Previous 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.
Previous 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
Previous report
people have participated in this program and 430 have successfully graduated. Currently, there are 540 workers actively participating in the IMPULSA program.
Previous 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.
Previous 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.
Previous 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%).
Previous 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:
Previous 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:
Previous 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.
Previous 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:
Previous 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%).
Previous 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:
Previous 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:
Previous 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%).
Previous 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:
Previous 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%).
Previous 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%).
Reworded paragraphs (50)
Previous 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.
Current wording
We also expect to produce 28,200 tonnes of molybdenum, which represents an increase of 5.0% over our 2023 production level. In 2024, we expect to produce 20.8 million ounces of silver, an increase of 12.8% compared to 2023 production results. Additionally, we expect to produce 120,300 tonnes of zinc from our mines, which represents an increase of 84.0% compared to our 2023 production level. This growth will be driven by the Buenavista Zinc concentrator. We expect this facility to produce 54,800 tonnes of zinc in 2024. For 2025 and on, we expect to produce over 154,000 tonnes per year.
Previous 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):
Current wording
Earnings**:** The table below highlights key financial and operational data of our Company for the three and nine-month period ended September 30, 2024 and 2023 (in millions, except copper price, percentages and per share amounts):
Previous wording
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 wording
Net sales in the third quarter of 2024 totaled $2,930.9 million, which represented a substantial increase of 17.0% compared to net sales in the same period of 2023. This growth was primarily attributable to growth in the sales volumes of copper (+8.2%), molybdenum (+5.6%), silver (+17.4%), and zinc (+50.1%). Higher metal prices for copper (+10.0%, LME), silver (+24.7%), and zinc (+14.5%) further boosted sales. This positive performance was somewhat offset by a decline in molybdenum prices (-8.1%).
Previous wording
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 wording
Net income attributable to SCC for the third quarter of 2024 reached $896.7 million, marking a 44.7% increase compared to the same period in 2023. This strong performance was primarily supported by a 17.0% rise in sales driven by improvements in pricing and higher sales volumes but slightly offset by a 3.1% increase in the cost of sales and a 33.2% rise in income taxes.
Previous wording
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 wording
Net income attributable to SCC for the nine-month period of 2024 increased by 30.4% compared to the same period in 2023. This performance was mainly driven by a 13.8% increase in sales, reflecting higher sales volumes and metal prices for most of our by-products. However, this growth was tempered by a slight rise in operating costs of 2.9% and a 30.6% increase in income taxes.
Previous wording
Production**:** The table below highlights our mine production data for the three and six-month period ended June 30, 2024 and 2023:
Current wording
Production**:** The table below highlights our mine production data for the three and nine-month period ended September 30, 2024 and 2023:
Previous wording
The table below highlights our mine production data for the three and six-month period ended June 30, 2024 and 2023:
Current wording
The table below highlights our mine production data for the three and nine-month period ended September 30, 2024 and 2023:
Previous wording
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 wording
Third quarter: Copper mine production in the third quarter of 2024 increased by 11.6%, reaching 556.1 million pounds. This growth was primarily driven by higher production levels at Cuajone (+20.8%; due to higher ore grades and milling), Toquepala (+16.3%; due to higher ore grades), Buenavista (+8.3%; due to higher ore grades and recoveries), and La Caridad (+5.1%; due to higher ore grades) operations. Growth was slightly offset by reduced production at the IMMSA (-8.4%; due to lower ore grades) unit.
Previous 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.
Current wording
Molybdenum production increased by 6.0% in the third quarter of 2024 compared to the same period in 2023. This growth was mainly due to higher production at our Toquepala (+51.2%), Cuajone (+47.7%), and Buenavista (+15.0%) mines, which was primarily driven by an increase in ore grades. This performance was somewhat offset by a reduction in production at our La Caridad (-29.9%) mine, which was attributable to a decrease in ore grades.
Previous 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.
Current wording
Silver mine production increased by 21.5% in the third quarter of 2024 compared to the same period in 2023. This growth was attributable to higher production at our Buenavista (+45.6%), Cuajone (+32.2%), Toquepala (+31.4%), and IMMSA (+5.6%) operations. This performance was slightly offset by a decrease in production at our La Caridad (-1.5%) mine.
Previous 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.
Current wording
Zinc production increased by 90.9% in the third quarter of 2024 compared to the same period in 2023. This significant growth was primarily attributed to the production start-up at the Buenavista zinc concentrator, which produced 14,453 tonnes during the period.
Previous wording
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 wording
Zinc production increased 78.8% in the nine-month period of 2024. This growth was primarily driven by production start-up at the Buenavista zinc concentrator, which produced 37,801 tonnes during the period.
Previous wording
In our calculation of operating cash cost per pound of copper produced, net of by-product revenues, we credit against our costs the revenues from the sale of all our by-products, including, molybdenum, zinc, silver, gold, etc. and the net revenue (loss) on sale of metals purchased from third parties. We disclose this measure including the by-product revenues in this way because we consider our principal business to be the production and sale of copper. As part of our copper production process, much of our by-products are recovered. These by-products, as well as the processing of copper purchased from third parties, are a supplemental part of our production process and their sales value contribute to covering part of our incurred fixed costs. We believe that our Company is viewed by the investment community as a copper company, and is valued, in large part, by the investment community’s view of the copper market and our ability to produce copper at a reasonable cost.
Current wording
In our calculation of operating cash cost per pound of copper produced, net of by-product revenues, we credit against our costs the revenues from the sale of all our by-products, including, molybdenum, zinc, silver, gold, etc. and the net revenue (loss) on sale of metals purchased from third parties. We disclose this measure including the by-product revenues in this way because we consider our principal business to be the production and sale of copper. As part of our copper production process, much of our by-products are recovered. These by-products, as well as the processing of
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
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 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.
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 and six-month period ended June 30, 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 nine-month period ended September 30, 2024 and 2023:
Previous wording
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 wording
In the third quarter of 2024, the operating cash cost per pound before by-product revenues dropped from $2.24 to $1.95, reflecting a 13.0% improvement in production efficiency. By-product revenues per pound also saw a slight decrease, going from $1.26 to $1.19. This contributed to a notable reduction in the operating cash cost per pound net of by-product revenues, which dropped from $0.98 to $0.76, a 22.6% decline. This decrease reflects positive cost management measures and higher production volumes, which offset the effect of lower by-product revenues.
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
Current wording
We are subject to market risks arising from the volatility of copper and other metal prices. For the remaining three 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:
Previous 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.
Current wording
Capital Investment Programs: We made capital investments of $792.0 million in the nine-month period of 2024, compared to $753.2 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
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 administrative facilities down the line. This project has a total budget of $165.0 million, of which we have invested $152.0 million as of September 30, 2024.
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 Company is currently reviewing its budget of 1.4 billion, we expect to update this budget by year end.
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 with a capacity of 120,000 tonnes of SX- EW copper cathodes per year.
Previous 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.
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 several successful social programs in education, healthcare and productive development to improve the quality of life in the region.
Previous wording
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 wording
Our current social programs in Islay help reduce the costs of agricultural production by improving productivity with cutting-edge technology. Additionally, we are working to provide internet access to 4,600 school students. On top of this, we are committed to developing health facilities, high performance schools, research centers and roads in the Arequipa region via the “work for taxes” mechanism.
Previous wording
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 wording
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. The Company is currently reviewing its historical capital budget for Tia Maria of $1.4 billion. We will update this budget by year-end.
Previous wording
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 wording
Project update: As of September 30, 2024, the Company had generated more than 422 jobs, 355 of which were filled with local applicants. To the fullest extent possible, we intend to fill the 9,000 jobs estimated to be required during Tia Maria’s construction with workers from the Islay province. When we start operations in 2027, the project will generate 600 direct jobs and 4,800 indirect jobs.
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
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
Previous wording
Project update: The Company continues to engage in coordinated efforts with the Peruvian authorities to eradicate illegal mining activity. Once this process is completed, we will resume the environmental impact assessment and initiate hydrogeological as well as geotechnical studies. We also will conduct a diamond drilling campaign for 40,000 meters to gather additional information on the characteristics of the Los Chancas deposit.
Current wording
Project update: The Company continues to engage in coordinated efforts with the Peruvian authorities to eradicate illegal mining activities. Once this process has concluded, we will resume the environmental impact assessment and begin hydrogeological and geotechnical studies. We will also begin a 40,000 meters in-fill drilling campaign to gather additional information on the geological characteristics of the Los Chancas deposit
Previous wording
Michiquillay Project - Cajamarca: In June 2018, Southern Copper signed a contract for the acquisition of the Michiquillay project in Cajamarca, Peru. Michiquillay is a world class mining project with inferred mineral resources of 2,288 million tonnes with an estimated copper grade of 0.43%. When developed, we expect Michiquillay to produce 225,000 tonnes of copper per year (along with by-products of molybdenum, gold and silver) at a competitive cash-cost for an initial mine life of more than 25 years. We estimate an investment of approximately $2.5 billion will be required and expect production start-up by 2032. Michiquillay will become one of Peru´s largest copper mines and will create significant business opportunities in the Cajamarca region; generate new jobs for the local communities; and contribute with taxes and royalties to the local, regional and national governments.
Current wording
Michiquillay Project - Cajamarca: In June 2018, Southern Copper signed a contract for the acquisition of the Michiquillay project in Cajamarca, Peru. Michiquillay is a world class mining project with inferred mineral resources of 2,288 million tonnes and an estimated copper grade of 0.43%. When developed, we expect Michiquillay to produce 225,000 tonnes of copper per year (along with by-products of molybdenum, gold and silver) at a competitive cash-cost for an initial mine life of more than 25 years. We estimate an investment of approximately $2.5 billion will be required and expect production start-up by 2032. Michiquillay will become one of Peru´s largest copper mines and will create significant business opportunities in the Cajamarca region; generate new jobs for the local communities; and contribute with taxes and royalties to the local, regional and national governments.
Previous wording
The following highlights key financial results for the three and six-month period ended June 30, 2024 and 2023:
Current wording
The following highlights key financial results for the three and nine-month period ended September 30, 2024 and 2023:
Previous 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:
Current wording
The table below outlines the average published market metal prices for our metals for the three and nine-month period ended September 30, 2024 and 2023:
Previous 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:
Current wording
The table below provides our metal sales as a percentage of our total net sales for the three and nine-month period ended September 30, 2024 and 2023:
Previous 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.
Current wording
The table below provides our copper sales by type of product for the three and nine-month period ended September 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 and six-month period ended June 30, 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 nine-month period ended September 30, 2024 and 2023:
Previous 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.
Current wording
Non-operating income (expense) represented a net expense of $23.6 million and $134.4 million in the three and nine months ended on September 30, 2024 compared to a net expense of $51.8 million and $155.6 million in the three and nine months ended September 30, 2023.
Previous wording
Second quarter: The $23.9 million increase in the expense level was due to:
Current wording
Third quarter: The $28.2 million decrease in the expense level was due to:
Previous wording
Six months: The $7.1 million increase in the expense level was principally due to:
Current wording
Nine months: The $21.2 million decrease in the expense level was principally due to:
Previous 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:
Current wording
The table below presents information regarding the volume of our copper sales by segment for the three and nine-month period ended September 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 and six-month period ended June 30, 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 nine-month period ended September 30, 2024 and 2023:
Previous wording
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 wording
Net sales in the third quarter of 2024 increased by $140.5 million compared to the same period in 2023. This growth was driven by higher sales volumes of copper (+2.7%) and silver (+10.7%). Additionally, the start-up of the Buenavista zinc concentrator contributed significantly, with zinc sales volumes reaching 18.1 million pounds during the period. The rise in metal prices for copper (+10.0%, LME), zinc (+14.5%), and silver (+24.7%) further enhanced this strong performance. However, this was slightly tempered by a decrease in molybdenum prices (-8.1%).
Previous wording
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 wording
Operating costs and expenses were $148.3 million in the third quarter of 2024 compared to $154.8 million in the same period of 2023. The decrease of $6.5 million was primarily due to:
Previous wording
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:
Current wording
Operating costs and expenses in the nine-month period of 2024 decreased by $41.4 million to $435.6 million compared to $477.0 million in the same period of 2023. This was primarily due to:
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Current report — wording carried from elsewhere
copper purchased from third parties, are a supplemental part of our production process and their sales value contribute to covering part of our incurred fixed costs. We believe that our Company is viewed by the investment community as a copper company, and is valued, in large part, by the investment community’s view of the copper market and our ability to produce copper at a reasonable cost.
Current report — wording carried from elsewhere
mine with a combined operation of concentrator and SX-EW processes that are expected 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 2031. We continue to engage in social and environmental improvements for the local communities and are working on the project´s environmental impact assessment.
Rearranged previous paragraphs (4)
Previous report — wording carried 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.
Previous report — wording carried 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:
Previous report — wording carried 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.
Previous report — wording carried 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.