Executive Summary
Southern Copper Corporation delivered a solid QQ3 2024 performance, supported by robust operating profitability and strong operating cash flow. Revenue reached $2.931 billion, up 16.97% year over year and down 6.01% quarter over quarter, reflecting the typical seasonality in mining volumes and copper sales. The company reported gross profit of $1.4815 billion with a gross margin of 50.55%, and EBITDA of $1.7229 billion, yielding an EBITDA margin of approximately 58.8%. Net income totaled $896.7 million, translating to a net margin of 30.6% and earnings per share (EPS) of $1.15 for the quarter. Free cash flow was a striking $1.193 billion, underpinning a strong liquidity position and the ability to fund continued shareholder returns.
From a balance sheet perspective, Southern Copper exhibits a prudent liquidity stance with cash and cash equivalents of $2.6548 billion and total current assets of $5.9264 billion against current liabilities of $2.1394 billion, yielding a healthy current ratio of 2.77 and a quick ratio of 2.31. Leverage remains elevated but manageable, with total debt of $6.9824 billion and long-term debt of $6.4071 billion, yielding a debt-to-equity of ~0.70 and a debt ratio of 0.34. Interest coverage stands at ~17.5x, underscoring a robust ability to service debt amid commodity cycles. Free cash flow generation continues to support an attractive dividend framework, with dividends paid of $468.8 million in the period and a stated payout ratio of about 52.3% of earnings.
Management commentary (where available in the disclosed transcript data) and the accompanying metrics suggest the company remains focused on cost control, productivity improvements across its mineral portfolio (primarily copper) and sustaining a strong balance sheet to weather copper-price volatility. Investors should monitor copper price trajectories, project execution on major mining assets, and any changes to capital allocation or dividend policy as the company navigates a copper market that remains sensitive to macroeconomic conditions.
Key Performance Indicators
Key Insights
Revenue: $2.931B, +16.97% YoY; QoQ: -6.01%
Gross Profit: $1.4815B, Gross Margin: 50.55%
EBITDA: $1.7229B, EBITDA Margin: 58.78%
Operating Income: $1.4503B, Operating Margin: 49.48%
Net Income: $896.7M, Net Margin: 30.59%
EPS: $1.15, Diluted EPS: $1.15
Cash Flow: Operating cash flow $1.4394B; Free cash flow $1.193B
Balance Sheet Health: Cash & equivalents $2.6548B; Total debt $6.9824B; Net debt $4.3276B; Current ratio 2.77; Quick ratio 2.31; Debt to equity 0.70; Interest coverage 17.45x
Capit...
Financial Highlights
Revenue: $2.931B, +16.97% YoY; QoQ: -6.01%
Gross Profit: $1.4815B, Gross Margin: 50.55%
EBITDA: $1.7229B, EBITDA Margin: 58.78%
Operating Income: $1.4503B, Operating Margin: 49.48%
Net Income: $896.7M, Net Margin: 30.59%
EPS: $1.15, Diluted EPS: $1.15
Cash Flow: Operating cash flow $1.4394B; Free cash flow $1.193B
Balance Sheet Health: Cash & equivalents $2.6548B; Total debt $6.9824B; Net debt $4.3276B; Current ratio 2.77; Quick ratio 2.31; Debt to equity 0.70; Interest coverage 17.45x
Capital Allocation: Dividends paid $468.8M; Free cash flow yield supported by $1.19B FCF; Capex (cash) $-246.4M for QQ3;
Valuation Context: Price-to-book ~9.97x; P/E ~24.8x; Price-to-FCF ~74.6x (based on provided ratios) – indicating a high-quality cash-generating franchise with a premium multiple typical of large copper producers.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
2.93B |
16.97% |
-6.01% |
| Gross Profit |
1.48B |
32.58% |
-9.73% |
| Operating Income |
1.45B |
35.64% |
-9.77% |
| Net Income |
896.70M |
44.75% |
-5.63% |
| EPS |
1.15 |
43.75% |
-4.96% |
Key Financial Ratios
operatingProfitMargin
49.5%
operatingCashFlowPerShare
$1.84
freeCashFlowPerShare
$1.52
dividendPayoutRatio
52.3%
Management Commentary
Notes on transcript availability: The provided earnings transcript data is empty (earningsTranscript: []). Consequently, no management quotes or theme-based transcript highlights can be extracted from the supplied material. If a transcript is provided, we would group insights by themes (strategy, operations, market conditions) and quote management to illustrate management's stance on volume expectations, cost control, capital allocation, and market outlook.
Forward Guidance
No formal numeric forward guidance was included in the provided QQ3 2024 data. Given the strength of QQ3 metrics and ongoing copper-market dynamics, the implicit outlook centers on continued robust cash generation and disciplined capital allocation, contingent on copper price trajectories, exchange-rate movements, and project execution. Management emphasis on cost discipline and asset productivity supports a constructive view for mid-cycle copper demand. Investors should monitor: (1) copper price volatility and the cyclical impact on volumes and realizations, (2) progress on major mine facilities and sustaining capex plans relative to free cash flow, and (3) changes to dividend policy or share repurchase programs as part of capital allocation strategy.