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.