Company Performance - Southern Copper (SCCO) closed at $98.68, reflecting a +0.57% change from the previous trading day's closing, underperforming compared to the S&P 500's daily gain of 0.88% [1] - Over the past month, shares of Southern Copper gained 4.86%, outperforming the Basic Materials sector's gain of 1.03% and the S&P 500's gain of 1.17% [2] Earnings Expectations - Analysts expect Southern Copper to post earnings of $1.06 per share in the upcoming release, indicating a year-over-year growth of 85.96% [3] - The consensus estimate for revenue is $2.84 billion, representing a 23.57% increase compared to the same quarter last year [3] Analyst Estimates and Ratings - Recent modifications to analyst estimates for Southern Copper reflect evolving short-term business trends, with positive revisions indicating analyst optimism about the company's profitability [4] - Southern Copper currently holds a Zacks Rank of 3 (Hold), with the consensus EPS projection having moved 1.19% lower in the past 30 days [6] Valuation Metrics - Southern Copper has a Forward P/E ratio of 21.57, which is in line with the average Forward P/E of its industry [7] - The company has a PEG ratio of 1.95, matching the average PEG ratio of the Mining - Non Ferrous industry, which is part of the Basic Materials sector [8] Industry Context - The Mining - Non Ferrous industry has a Zacks Industry Rank of 151, placing it in the bottom 40% of all 250+ industries [8] - The strength of individual industry groups is measured by the Zacks Industry Rank, with top-rated industries outperforming the bottom half by a factor of 2 to 1 [9]

Company Performance - Southern Copper (SCCO) closed at $94.60, with a +0.18% change from the previous day, outperforming the S&P 500 which fell by 0.04% [1] - The upcoming EPS for Southern Copper is projected at $1.06, indicating an 85.96% increase year-over-year, while revenue is expected to be $2.85 billion, reflecting a 24.24% increase compared to the same quarter last year [2] - For the full year, earnings are projected at $4.45 per share and revenue at $11.79 billion, representing increases of +43.09% and +19.11% respectively from the prior year [7] Analyst Estimates and Rankings - Recent changes to analyst estimates for Southern Copper indicate a shifting business landscape, with positive revisions suggesting analyst optimism about the company's profitability [3] - The Zacks Rank for Southern Copper is currently 3 (Hold), with a recent 1.33% decline in the Zacks Consensus EPS estimate [4] - The Forward P/E ratio for Southern Copper is 21.23, which is a premium compared to the industry average of 20.62, and the PEG ratio stands at 1.48, higher than the industry average of 0.94 [9] Industry Context - Southern Copper operates within the Mining - Non Ferrous industry, which is part of the Basic Materials sector, currently ranked 170 out of over 250 industries, placing it in the bottom 33% [5] - The stock has experienced a 5.3% decline over the past month, which is better than the Basic Materials sector's loss of 8.95% but worse than the S&P 500's gain of 1.05% [6]

Company Performance - Southern Copper (SCCO) ended the latest trading session at $93.01, reflecting a +1.12% adjustment from the previous day's close, outperforming the S&P 500's gain of 1.09% [1] - Over the last month, Southern Copper's shares have decreased by 8.64%, which is better than the Basic Materials sector's loss of 8.81% but worse than the S&P 500's loss of 0.71% [1] Upcoming Earnings - The upcoming earnings release is highly anticipated, with projected earnings per share (EPS) of $1.06, indicating an 85.96% increase from the same quarter last year [2] - The Zacks Consensus Estimate for revenue is $2.85 billion, representing a 24.24% increase from the previous year [2] Full Year Estimates - For the full year, analysts expect earnings of $4.45 per share and revenue of $11.79 billion, marking increases of +43.09% and +19.11% respectively from last year [3] Analyst Estimates - Recent changes to analyst estimates are crucial for understanding near-term business trends, with positive revisions indicating a favorable business outlook [4] - The Zacks Rank system, which reflects these estimate changes, provides actionable insights for investors [5] Valuation Metrics - Southern Copper has a Forward P/E ratio of 20.68, which is higher than the industry average of 19.3, suggesting it is trading at a premium [7] - The company has a PEG ratio of 1.44, compared to the Mining - Non Ferrous industry's average PEG ratio of 0.92 [8] Industry Ranking - The Mining - Non Ferrous industry is part of the Basic Materials sector, which has a Zacks Industry Rank of 135, placing it in the bottom 47% of over 250 industries [8][9]

[Form 10-Q Filing Information](index=1&type=section&id=Form%2010-Q%20Filing%20Information) Southern Copper Corporation filed its Q3 2024 Form 10-Q, detailing its stock information and outstanding shares - Southern Copper Corporation (SCC) filed its Quarterly Report on Form 10-Q for the period ended September 30, 2024[1](index=1&type=chunk)[2](index=2&type=chunk) - As of October 31, 2024, there were **785,540,179 shares** of Southern Copper Corporation common stock outstanding[2](index=2&type=chunk) Registered Stock Information | Title of each class: | Trading Symbol | Registered: | | :--- | :--- | :--- | | Common stock, par value $0.01 per share | SCCO | New York Stock Exchange, Lima Stock Exchange | [Part I. Financial Information](index=3&type=section&id=Part%20I.%20Financial%20Information) This part presents the unaudited condensed consolidated financial statements and management's discussion and analysis [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) The company's unaudited financial statements for the three and nine months ended September 30, 2024 are presented [Condensed Consolidated Statements of Earnings](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Earnings) The company's net sales and net income increased significantly in the three and nine months ended September 30, 2024 Condensed Consolidated Statements of Earnings (Unaudited) - Key Figures | Metric (in $ millions, except per share) | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--- | :--- | :--- | :--- | :--- | | Net sales | 2,930.9 | 2,505.6 | 8,649.0 | 7,600.2 | | Total operating costs and expenses | 1,480.6 | 1,436.4 | 4,401.7 | 4,276.6 | | Operating income | 1,450.3 | 1,069.2 | 4,247.3 | 3,323.6 | | Income before income taxes | 1,426.7 | 1,017.4 | 4,112.9 | 3,168.0 | | Income taxes | 526.4 | 395.3 | 1,528.6 | 1,170.2 | | Net income attributable to SCC | 896.7 | 619.5 | 2,582.9 | 1,980.2 | | Net earnings-basic and diluted (per share) | 1.15 | 0.80 | 3.32 | 2.56 | [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) The company's comprehensive income reflects the growth in net income for the reported periods Condensed Consolidated Statements of Comprehensive Income (Unaudited) - Key Figures | Metric (in millions) | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--- | :--- | :--- | :--- | :--- | | Net income and comprehensive income | 899.8 | 622.0 | 2,592.4 | 1,987.5 | | Total comprehensive income | 899.8 | 622.0 | 2,592.4 | 1,987.5 | | Comprehensive income attributable to SCC | 896.7 | 619.5 | 2,582.9 | 1,980.2 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets and equity increased, driven by a significant rise in cash and cash equivalents - **Cash and cash equivalents** significantly increased from $1,151.5 million at December 31, 2023, to **$2,654.8 million** at September 30, 2024[12](index=12&type=chunk) - Current portion of long-term debt increased from $0 at December 31, 2023, to **$499.6 million** at September 30, 2024[12](index=12&type=chunk) Condensed Consolidated Balance Sheets (Unaudited) - Key Figures | Metric (in millions) | September 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total current assets | 5,926.4 | 4,429.5 | | Total assets | 18,415.5 | 16,725.3 | | Total current liabilities | 2,139.4 | 1,388.5 | | Total non-current liabilities | 7,286.7 | 7,855.6 | | Total equity | 8,989.4 | 7,481.2 | | Total liabilities and equity | 18,415.5 | 16,725.3 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash and cash equivalents increased due to strong operating cash flow and reduced financing activities Condensed Consolidated Statements of Cash Flows (Unaudited) - Key Figures | Metric (in millions) | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--- | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | 1,439.4 | 1,049.8 | 3,061.2 | 3,032.1 | | Net cash (used in) provided by investing activities | (236.0) | (509.0) | (511.5) | (791.4) | | Net cash (used in) financing activities | (471.0) | (775.1) | (1,091.2) | (2,325.7) | | (Decrease) / increase in cash and cash equivalents | 779.5 | (231.9) | 1,503.3 | (102.6) | | Cash and cash equivalents, at end of period | 2,654.8 | 1,967.1 | 2,654.8 | 1,967.1 | [Condensed Consolidated Statements of Changes in Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Equity) Total equity grew, supported by strong net earnings and changes in paid-in capital and treasury stock - **Additional paid-in capital increased** significantly from $3,532.8 million to **$4,608.3 million**, primarily due to a dividend paid in Common Stock[15](index=15&type=chunk) - **Treasury stock decreased** from $(3,149.0) million to **$(2,831.0) million**, mainly due to dividends paid in Common Stock[12](index=12&type=chunk)[15](index=15&type=chunk) Condensed Consolidated Statements of Changes in Equity (Unaudited) - Key Figures | Metric (in millions) | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--- | :--- | :--- | | Total Equity, beginning of period | 7,481.2 | 8,146.9 | | Net earnings attributable to SCC | 2,582.9 | 1,980.2 | | Dividends declared and paid, common stock | (1,087.3) | (2,319.3) | | Total Equity, end of period | 8,989.4 | 7,808.2 | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes provide detailed explanations of the company's business, accounting policies, and financial items [NOTE 1— DESCRIPTION OF THE BUSINESS](index=9&type=section&id=NOTE%201%E2%80%94%20DESCRIPTION%20OF%20THE%20BUSINESS) SCC is an integrated mineral producer majority-owned by Grupo Mexico, with operations in Peru and Mexico - Southern Copper Corporation (SCC) is a majority-owned, indirect subsidiary of Grupo Mexico S.A.B. de C.V., with Grupo Mexico owning **88.9% of SCC's capital stock**[17](index=17&type=chunk) - SCC is an integrated producer of copper and other minerals, operating mining, smelting, and refining facilities in Peru and Mexico[17](index=17&type=chunk) [NOTE 2 — SHORT-TERM INVESTMENTS](index=9&type=section&id=NOTE%202%20%E2%80%94%20SHORT-TERM%20INVESTMENTS) The company's short-term investments primarily consist of publicly traded bonds held as trading securities - Trading securities, consisting of publicly traded bonds, are intended for short-term sale[19](index=19&type=chunk)[21](index=21&type=chunk) - Interest earned on trading securities for the nine months ended September 30, 2024, was **$18.6 million**, up from $7.6 million in 2023[22](index=22&type=chunk) Short-term Investments (in millions) | Type | At September 30, 2024 | At December 31, 2023 | | :--- | :--- | :--- | | Trading securities | $318.6 | $599.1 | | Available-for-sale | $0.2 | $0.2 | | Total | $318.8 | $599.3 | [NOTE 3 — INVENTORIES](index=11&type=section&id=NOTE%203%20%E2%80%94%20INVENTORIES) Inventories are primarily composed of supplies and ore stockpiles on leach pads - Total leaching costs capitalized as non-current inventory of ore stockpiles on leach pads amounted to **$189.8 million** for the nine months ended September 30, 2024[23](index=23&type=chunk) Inventories (in millions) | Category | At September 30, 2024 | At December 31, 2023 | | :--- | :--- | :--- | | Finished goods | $60.3 | $68.8 | | Work-in-process | $292.9 | $313.0 | | Ore stockpiles on leach pads (current) | $224.6 | $230.9 | | Supplies | $412.6 | $404.2 | | Total current inventory | $990.5 | $1,016.9 | | Ore stockpiles on leach pads (long-term) | $1,143.7 | $1,121.7 | [NOTE 4 — INCOME TAXES](index=11&type=section&id=NOTE%204%20%E2%80%94%20INCOME%20TAXES) The effective income tax rate increased slightly due to currency fluctuations, with significant tax payments made - The increase in the **effective income tax rate in 2024** was primarily due to exchange rate movements of the Mexican peso versus the U.S. dollar[24](index=24&type=chunk) - The Company made payments for uncertain tax positions of **$72.5 million in Peru** and **$19.5 million in Mexico** during the nine months of 2024[26](index=26&type=chunk) - The Company is monitoring the potential impact of the OECD's Pillar Two global minimum tax[27](index=27&type=chunk) Income Tax Provision (in millions) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Statutory income tax provision | $1,298.7 | $985.8 | | Peruvian royalty | 45.5 | 30.2 | | Mexican royalty | 116.3 | 102.5 | | Peruvian special mining tax | 68.1 | 51.7 | | Total income tax provision | $1,528.6 | $1,170.2 | | Effective income tax rate | 37.2% | 36.9% | [NOTE 5 — RELATED PARTY TRANSACTIONS](index=13&type=section&id=NOTE%205%20%E2%80%94%20RELATED%20PARTY%20TRANSACTIONS) SCC engages in various transactions with its parent company Grupo Mexico and its affiliates - SCC engages in various transactions with Grupo Mexico and its affiliates, including lease, transportation, construction, and energy supply services[28](index=28&type=chunk)[34](index=34&type=chunk) - The Company has a **44.2% equity participation** in Compania Minera Coimolache S.A. and a **30.0% participation** in Apu Coropuna S.R.L[46](index=46&type=chunk)[48](index=48&type=chunk) Related Party Receivable and Payable Balances (in millions) | Category | At September 30, 2024 | At December 31, 2023 | | :--- | :--- | :--- | | Related parties receivable current | $12.3 | $27.3 | | Related parties payable | $54.8 | $93.6 | Related Party Purchase and Sale Activity (in millions) - Nine Months Ended Sep 30 | Activity | 2024 | 2023 | | :--- | :--- | :--- | | Total purchases | $267.2 | $322.5 | | Total sales | $51.1 | $80.8 | [NOTE 6 — LEASES](index=19&type=section&id=NOTE%206%20%E2%80%94%20LEASES) The company holds operating leases for power facilities, vehicles, and properties with an eight-year average term - The Company has operating leases for power generating facilities, vehicles, and properties, with a weighted average remaining lease term of approximately **eight years**[50](index=50&type=chunk)[51](index=51&type=chunk) Operating Lease Expense (in millions) - Nine Months Ended Sep 30 | Category | 2024 | 2023 | | :--- | :--- | :--- | | Cost of sales (exclusive of depreciation, amortization and depletion) | $77.4 | $86.9 | | Selling, general and administrative | $0.1 | $0.1 | | Exploration | $0.1 | $0.2 | | Total lease expense | $77.5 | $87.2 | Maturities of Lease Liabilities (in millions) | Year | Lease liabilities | | :--- | :--- | | 2024 | $27.7 | | 2025 | $106.9 | | 2026 | $106.6 | | 2027 | $106.3 | | 2028 | $106.0 | | After 2028 | $421.8 | | Total lease payments | $875.3 | | Less: interest on lease liabilities | $(150.3) | | Present value of lease payments | $725.0 | [NOTE 7 — ASSET RETIREMENT OBLIGATION](index=19&type=section&id=NOTE%207%20%E2%80%94%20ASSET%20RETIREMENT%20OBLIGATION) The company maintains and adjusts asset retirement obligations for its mining properties in Peru and Mexico - The Company maintains asset retirement obligations for its mining properties in Peru and Mexico[51](index=51&type=chunk)[57](index=57&type=chunk) - In 2024, the Company adjusted its asset retirement obligation estimates, resulting in a **$3.2 million decrease** for its Ilo facility and a **$9.1 million decrease** for its Mexican operations[56](index=56&type=chunk)[58](index=58&type=chunk) - The Company is evaluating the financial impact of Peru's Law 31347, which requires additional guarantees for progressive closure and environmental remediation[54](index=54&type=chunk) Asset Retirement Obligation Activity (in millions) - Nine Months Ended Sep 30 | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Balance as of January 1 | $612.5 | $585.3 | | Changes in estimates | $(12.3) | $— | | Closure payments | $— | $(0.3) | | Accretion expense | $21.3 | $19.3 | | Balance as of September 30 | $621.6 | $604.3 | [NOTE 8 — BENEFIT PLANS](index=21&type=section&id=NOTE%208%20%E2%80%94%20BENEFIT%20PLANS) The company provides various defined benefit and defined contribution plans for its employees - The Company has non-contributory defined benefit pension plans for former salaried employees in the U.S. and certain expatriates in Peru[59](index=59&type=chunk)[60](index=60&type=chunk) - For post-retirement health care plans in Mexico, the net periodic benefit cost for the nine months ended September 30, 2024, was **$1.5 million**[62](index=62&type=chunk) Net Periodic Benefit Costs (in millions) - Nine Months Ended Sep 30 | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Service cost | $1.9 | $1.6 | | Interest cost | $2.8 | $2.6 | | Expected return on plan assets | $(4.7) | $(4.2) | | Amortization of prior service cost/(credit) | $0.2 | $0.1 | | Amortization of net loss/(gain) | $0.3 | $0.3 | | Net periodic benefit cost | $0.5 | $0.4 | [NOTE 9 — COMMITMENTS AND CONTINGENCIES](index=23&type=section&id=NOTE%209%20%E2%80%94%20COMMITMENTS%20AND%20CONTINGENCIES) This note details the company's environmental, legal, labor, and other commitments and contingencies [Environmental matters](index=23&type=section&id=Environmental%20matters) The company maintains environmental programs and believes it is in material compliance with regulations - The Company has comprehensive environmental conservation programs in Peru and Mexico[63](index=63&type=chunk) - The Company believes it is in **material compliance** with applicable Peruvian and Mexican environmental laws and regulations[64](index=64&type=chunk)[76](index=76&type=chunk) - New Mexican mining laws, approved in May 2023, reduce concession terms and impose new restrictions, but the Company does not expect material negative impacts[77](index=77&type=chunk)[78](index=78&type=chunk) Environmental Capital Investments (in millions) - Nine Months Ended Sep 30 | Operations | 2024 | 2023 | | :--- | :--- | :--- | | Peruvian operations | $3.5 | $5.5 | | Mexican operations | $133.2 | $72.1 | | Total | $136.8 | $77.6 | [Litigation matters](index=27&type=section&id=Litigation%20matters) The company faces lawsuits in Peru and Mexico but does not expect a material adverse effect - Five lawsuits are pending against the Peruvian Branch related to the **Tia Maria project**, challenging its environmental impact assessment and construction license[80](index=80&type=chunk)[81](index=81&type=chunk)[82](index=82&type=chunk)[83](index=83&type=chunk)[84](index=84&type=chunk)[85](index=85&type=chunk)[86](index=86&type=chunk) - In Mexico, legal procedures are pending regarding the 2014 Guaymas sulfuric acid spill and the Buenavista mine copper sulfate spill[74](index=74&type=chunk)[90](index=90&type=chunk)[91](index=91&type=chunk)[92](index=92&type=chunk)[93](index=93&type=chunk)[94](index=94&type=chunk)[96](index=96&type=chunk) [Labor matters](index=33&type=section&id=Labor%20matters) The company is managing union relations in Peru and long-standing labor disputes in Mexico - In Peru, **57.4%** of the Company's 5,128 employees are unionized, with six separate unions[97](index=97&type=chunk)[102](index=102&type=chunk)[103](index=103&type=chunk) - In Mexico, labor disputes at the San Martin and Taxco mines, ongoing since 2007, remain pending resolution[107](index=107&type=chunk)[109](index=109&type=chunk)[111](index=111&type=chunk)[112](index=112&type=chunk) [Other commitments](index=37&type=section&id=Other%20commitments) The company has significant investment and social responsibility commitments for its projects in Peru - The Michiquillay copper project in Peru has estimated inferred mineral resources of **2,288 million tonnes** with 0.43% copper[113](index=113&type=chunk)[114](index=114&type=chunk)[115](index=115&type=chunk][116](index=116&type=chunk) - The Company has significant Corporate Social Responsibility commitments in Peru, often utilizing the 'Works for Taxes' program[118](index=118&type=chunk)[119](index=119&type=chunk)[120](index=120&type=chunk)[121](index=121&type=chunk)[122](index=122&type=chunk)[125](index=125&type=chunk)[126](index=126&type=chunk)[127](index=127&type=chunk)[128](index=128&type=chunk) - As of September 30, 2024, the Company had committed approximately **$257.6 million** to capital investment project developments[133](index=133&type=chunk) [NOTE 10 — STOCKHOLDERS'EQUITY](index=43&type=section&id=NOTE%2010%20%E2%80%94%20STOCKHOLDERS'EQUITY) This note details changes in stockholders' equity, including dividends and stock-based compensation - The Company paid common stock dividends on May 23, 2024 (**$199.5 million**) and August 26, 2024 (**$108.6 million**), reducing treasury shares[134](index=134&type=chunk) - Stock-based compensation expense for the Directors' Stock Award Plan totaled **$1.3 million** for the nine months of 2024[136](index=136&type=chunk) - The Employee Stock Purchase Plan (2018 Plan) allows employees to purchase Grupo Mexico shares through payroll deductions[139](index=139&type=chunk)[142](index=142&type=chunk) Treasury Stock Activity (in millions) - Nine Months Ended Sep 30 | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Balance as of January 1, SCC common shares | $2,766.7 | $2,766.9 | | Dividend paid in Common Stock | $(308.1) | $— | | Balance as of September 30, SCC common shares | $2,458.3 | $2,766.7 | | Balance as of January 1, Parent Company common shares | $382.3 | $340.7 | | Balance as of September 30, Parent Company common shares | $372.7 | $364.4 | | Treasury stock balance as of September 30 | $2,831.0 | $3,131.1 | [NOTE 11 — FAIR VALUE MEASUREMENT](index=46&type=section&id=NOTE%2011%20%E2%80%94%20FAIR%20VALUE%20MEASUREMENT) The company classifies its financial instruments into a three-level fair value hierarchy - The Company classifies financial instruments into a fair value hierarchy (Level 1, 2, or 3) based on the observability of inputs[145](index=145&type=chunk)[146](index=146&type=chunk) - Short-term trading securities and provisionally priced copper and molybdenum sales are classified as **Level 1**, valued using quoted market prices[151](index=151&type=chunk)[152](index=152&type=chunk) Fair Values of Assets and Liabilities (in millions) - September 30, 2024 | Description (Level) | Carrying Value | Fair Value | | :--- | :--- | :--- | | Current portion of long-term debt (Level 1) | $499.6 | $497.6 | | Long-term debt (Level 1) | $5,706.6 | $6,021.0 | | Long-term debt (Level 2) | $51.2 | $55.6 | | Total long-term debt | $5,757.8 | $6,076.6 | [NOTE 12 — REVENUE](index=50&type=section&id=NOTE%2012%20%E2%80%94%20REVENUE) Copper sales constitute the majority of the company's revenue, with significant contributions from by-products - In the three months ended September 30, 2024, **copper accounted for 77.1%** of total net sales, molybdenum 10.1%, silver 5.2%, and zinc 3.9%[177](index=177&type=chunk)[246](index=246&type=chunk) - As of September 30, 2024, the Company has long-term contracts to deliver **177,500 tonnes of copper concentrates** and **48,000 tonnes of copper cathodes** in 2024[162](index=162&type=chunk) Net Sales (in millions) | Period | 2024 | 2023 | | :--- | :--- | :--- | | Three months ended Sep 30 | $2,930.9 | $2,505.6 | | Nine months ended Sep 30 | $8,649.0 | $7,600.2 | Copper Sales Volume (million pounds) | Product Type | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--- | :--- | :--- | :--- | :--- | | Refined (including SX-EW) | 279.8 | 289.0 | 797.4 | 824.9 | | Rod | 78.7 | 84.7 | 259.4 | 258.8 | | Concentrates and other | 177.4 | 121.7 | 507.0 | 398.8 | | Total | 535.9 | 495.4 | 1,563.8 | 1,482.5 | [NOTE 13 — SEGMENT AND RELATED INFORMATION](index=55&type=section&id=NOTE%2013%20%E2%80%94%20SEGMENT%20AND%20RELATED%20INFORMATION) The company operates through three reportable segments: Peruvian operations and two distinct Mexican operations - Southern Copper has three reportable segments: Peruvian operations, Mexican open-pit operations, and Mexican underground mining operations (IMMSA unit)[164](index=164&type=chunk)[165](index=165&type=chunk)[215](index=215&type=chunk) Segment Operating Income (in millions) - Three Months Ended Sep 30, 2024 | Segment | Operating Income | | :--- | :--- | | Mexican Open-pit | $866.2 | | Mexican IMMSA Unit | $36.6 | | Peruvian Operations | $549.7 | | Corporate, other and eliminations | $(2.2) | | Consolidated | $1,450.3 | Segment Total Assets (in millions) - September 30, 2024 | Segment | Total Assets | | :--- | :--- | | Mexican Open-pit | $8,975.0 | | Mexican IMMSA Unit | $1,196.6 | | Peruvian Operations | $5,473.9 | | Corporate, other and eliminations | $2,770.0 | | Consolidated | $18,415.5 | [NOTE 14 — SUBSEQUENT EVENTS](index=58&type=section&id=NOTE%2014%20%E2%80%94%20SUBSEQUENT%20EVENTS) The Board of Directors authorized a quarterly cash and stock dividend payable in November 2024 - On October 17, 2024, the Board of Directors authorized a quarterly cash dividend of **$0.70 per share** and a stock dividend of **0.0062 shares per common share**[172](index=172&type=chunk) - Cash will be distributed in lieu of fractional shares based on a share price of **$112.43**[173](index=173&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=59&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial condition, operational results, and key performance factors [EXECUTIVE OVERVIEW](index=59&type=section&id=EXECUTIVE%20OVERVIEW) Management focuses on value creation through production growth, cost control, and prudent capital investment - Southern Copper's primary business is copper production, with significant by-product recovery[176](index=176&type=chunk) - In Q3 2024, **copper sales accounted for 77.1% of revenue**, molybdenum 10.1%, silver 5.2%, and zinc 3.9%[177](index=177&type=chunk) - The LME copper price increased **10.0% YoY** in Q3 2024 to $4.17/lb, with long-term demand bolstered by decarbonization and AI[178](index=178&type=chunk) - For 2024, the Company expects to produce **975,000 tonnes of copper (+7.0% YoY)** and **120,300 tonnes of zinc (+84.0% YoY)**[183](index=183&type=chunk)[184](index=184&type=chunk) - Capital investments for the nine months of 2024 totaled **$792.0 million**, a 5.2% increase YoY[185](index=185&type=chunk) [KEY MATTERS](index=61&type=section&id=KEY%20MATTERS) This section details key performance indicators including earnings, production, and operating costs [Earnings](index=61&type=section&id=Earnings) Net sales and net income increased significantly in Q3 2024, driven by higher sales volumes and metal prices - Net sales in Q3 2024 increased by **17.0% YoY to $2,930.9 million**, driven by higher sales volumes and metal prices[188](index=188&type=chunk) - Net income attributable to SCC for Q3 2024 rose **44.7% YoY to $896.7 million**, primarily due to increased sales[190](index=190&type=chunk) Key Financial and Operational Data (in millions, except per share) | Metric | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--- | :--- | :--- | :--- | :--- | | Copper price LME ($/lb) | 4.17 | 3.79 | 4.14 | 3.90 | | Pounds of copper sold (millions) | 535.9 | 495.4 | 1,563.8 | 1,482.5 | | Net sales ($ millions) | 2,930.9 | 2,505.6 | 8,649.0 | 7,600.2 | | Operating income ($ millions) | 1,450.3 | 1,069.2 | 4,247.3 | 3,323.6 | | Net income attributable to SCC ($ millions) | 896.7 | 619.5 | 2,582.9 | 1,980.2 | | Earnings per share ($) | 1.15 | 0.80 | 3.32 | 2.56 | | Dividends per share ($) | 0.60 | 1.00 | 1.40 | 3.00 | [Production](index=63&type=section&id=Production) Production of all key metals increased in Q3 2024, with a notable surge in zinc output - Q3 2024 copper mine production increased **11.6% YoY**, driven by higher ore grades and milling at all major mines[194](index=194&type=chunk) - Zinc production surged **90.9% in Q3 2024** due to the start-up of the Buenavista zinc concentrator[198](index=198&type=chunk) - For the nine months of 2024, mined copper production increased **8.6%**, molybdenum **11.9%**, silver **12.5%**, and zinc **78.8%**[199](index=199&type=chunk)[200](index=200&type=chunk)[201](index=201&type=chunk) Mine Production (Three Months Ended Sep 30) | Metal (in millions) | 2024 | 2023 | Variance | % Change | | :--- | :--- | :--- | :--- | :--- | | Copper (lbs) | 556.1 | 498.5 | 57.6 | 11.5% | | Molybdenum (lbs) | 16.0 | 15.1 | 0.9 | 6.0% | | Silver (ounces) | 5.3 | 4.4 | 0.9 | 21.5% | | Zinc (lbs) | 68.5 | 35.9 | 32.6 | 90.9% | [Operating Cash Costs](index=65&type=section&id=Operating%20Cash%20Costs) Operating cash cost per pound of copper decreased significantly due to improved production efficiency - Operating cash cost per pound of copper produced is a non-GAAP measure used to assess performance[202](index=202&type=chunk)[204](index=204&type=chunk) - In Q3 2024, operating cash cost per pound net of by-product revenues **decreased by 22.6% YoY to $0.76**[211](index=211&type=chunk) Operating Cash Cost per Pound of Copper Produced | Metric | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--- | :--- | :--- | :--- | :--- | | Operating cash cost per pound before by-product revenues ($) | 1.95 | 2.24 | 2.07 | 2.17 | | By-products per pound revenues ($) | (1.19) | (1.26) | (1.21) | (1.22) | | Operating cash cost per pound net of by-product revenues ($) | 0.76 | 0.98 | 0.86 | 0.95 | [Metal Prices](index=69&type=section&id=Metal%20Prices) The company's profitability is highly sensitive to fluctuations in international metal prices - The Company's profitability is significantly affected by international market prices for copper, molybdenum, zinc, and silver[214](index=214&type=chunk) Metal Price Sensitivity (Change in Net Earnings in millions for remaining 3 months of 2024) | Change in metal prices | Copper ($0.10/lb) | Molybdenum ($1.00/lb) | Zinc ($0.10/lb) | Silver ($1.00/ounce) | | :--- | :--- | :--- | :--- | :--- | | Change in net earnings | $31.6 | $8.2 | $6.0 | $3.1 | [Business Segments](index=69&type=section&id=Business%20Segments) The company's operations are divided into three reportable segments across Peru and Mexico - The Company operates through three reportable segments: Peruvian operations, Mexican open-pit operations, and Mexican underground operations (IMMSA unit)[215](index=215&type=chunk) [Inflation and Exchange Rate Effect of the Peruvian Sol and the Mexican Peso](index=69&type=section&id=Inflation%20and%20Exchange%20Rate%20Effect%20of%20the%20Peruvian%20Sol%20and%20the%20Mexican%20Peso) Operating results are exposed to currency volatility as significant costs are in local currencies - The Company's functional currency is the U.S. dollar, while significant operating costs are in Peruvian sol and Mexican pesos[217](index=217&type=chunk) [Capital Investment Programs](index=69&type=section&id=Capital%20Investment%20Programs) The company is advancing several major capital projects in Peru and evaluating potential projects in Mexico [Projects in Peru](index=69&type=section&id=Projects%20in%20Peru) Key projects in Peru include the Quebrada Honda dam expansion and the Tia Maria greenfield project - The Quebrada Honda dam expansion project in Tacna has a total budget of **$165.0 million**, with $152.0 million invested[220](index=220&type=chunk) - The **Tia Maria greenfield project** is expected to produce 120,000 tonnes of copper annually, with construction planned for 2025[222](index=222&type=chunk)[225](index=225&type=chunk)[226](index=226&type=chunk)[227](index=227&type=chunk) [Potential projects](index=71&type=section&id=Potential%20projects) The company's growth portfolio includes several world-class copper deposits in Mexico and Peru - **El Arco (Baja California)** is a world-class copper deposit expected to produce 190,000 tonnes of copper and 105,000 ounces of gold annually[229](index=229&type=chunk) - **El Pilar (Sonora, Mexico)** is a low-capital intensity copper project expected to produce 36,000 tonnes of copper cathodes annually[231](index=231&type=chunk) - **Los Chancas (Apurimac, Peru)** envisions an open-pit mine producing 130,000 tonnes of copper and 7,500 tonnes of molybdenum annually[232](index=232&type=chunk) - The **Michiquillay Project (Cajamarca, Peru)** is expected to produce 225,000 tonnes of copper per year with an estimated investment of $2.5 billion[233](index=233&type=chunk)[234](index=234&type=chunk) [ENVIRONMENTAL, SOCIAL AND GOVERNANCE ("ESG") PRACTICES](index=73&type=section&id=ENVIRONMENTAL%2C%20SOCIAL%20AND%20GOVERNANCE%20(%22ESG%22)%20PRACTICES) The company highlights its commitment to responsible production and community engagement through various initiatives - All three Peruvian operations received **The Copper Mark** and **The Molybdenum Mark** certifications for responsible production[235](index=235&type=chunk) - The Company delivered a **$18 million Center for Research** to Universidad Nacional de San Agustín de Arequipa[236](index=236&type=chunk) - The Cultural Center in Charcas, Mexico, received Noldi Schreck awards for architectural and social value[237](index=237&type=chunk) - Fundación Grupo México's 'Dr. Vagón' health program provided over **6,000 free medical services** to 2,050 people in Cananea[238](index=238&type=chunk) [ACCOUNTING ESTIMATES](index=75&type=section&id=ACCOUNTING%20ESTIMATES) Financial statements rely on management's estimates and assumptions, which may differ from actual results - Management's financial statements rely on estimates and assumptions, including ore reserves, revenue recognition, and asset impairment[239](index=239&type=chunk) [NEW ACCOUNTING DISCLOSURE RULES](index=75&type=section&id=NEW%20ACCOUNTING%20DISCLOSURE%20RULES) The company is preparing for the SEC's new climate disclosure rule, effective in 2025 - The SEC's new climate disclosure rule will require disclosures on greenhouse gas emissions (Scope 1 and 2) when material[240](index=240&type=chunk) [RESULTS OF OPERATIONS](index=76&type=section&id=RESULTS%20OF%20OPERATIONS) This section provides a detailed analysis of the company's operational results for the reported periods [NET SALES](index=76&type=section&id=NET%20SALES) Net sales grew significantly in Q3 2024, driven by higher sales volumes and favorable metal prices - Net sales in Q3 2024 increased **17.0% YoY to $2,930.9 million**, driven by higher sales volumes and metal prices[243](index=243&type=chunk) Statement of Earnings Data (in millions) | Metric | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--- | :--- | :--- | :--- | :--- | | Net sales | $2,930.9 | $2,505.6 | $8,649.0 | $7,600.2 | | Operating costs and expenses | $(1,480.6) | $(1,436.4) | $(4,401.7) | $(4,276.6) | | Operating income | $1,450.3 | $1,069.2 | $4,247.3 | $3,323.6 | | Net income attributable to SCC | $896.7 | $619.5 | $2,582.9 | $1,980.2 | Average Published Market Metal Prices | Metal (price per pound/ounce) | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--- | :--- | :--- | :--- | :--- | | Copper (LME) | $4.17 | $3.79 | $4.14 | $3.90 | | Molybdenum | $21.68 | $23.59 | $21.07 | $25.50 | | Zinc (LME) | $1.26 | $1.10 | $1.22 | $1.22 | | Silver (COMEX) | $29.43 | $23.60 | $27.21 | $23.46 | [OPERATING COSTS AND EXPENSES](index=79&type=section&id=OPERATING%20COSTS%20AND%20EXPENSES) Operating costs increased moderately due to higher material costs and currency effects - Operating costs and expenses increased by **$44.2 million (3.1%)** in Q3 2024 YoY, primarily due to higher repairing materials and foreign currency effects[250](index=250&type=chunk)[251](index=251&type=chunk) - For the nine months of 2024, operating costs and expenses increased by **$125.1 million (2.9%)** YoY[253](index=253&type=chunk) [NON-OPERATING INCOME (EXPENSES)](index=80&type=section&id=NON-OPERATING%20INCOME%20(EXPENSES)) Net non-operating expense decreased due to higher other income and interest income - Non-operating income (expense) decreased by **$28.2 million** in Q3 2024 YoY, resulting in a net expense of $23.6 million[254](index=254&type=chunk)[255](index=255&type=chunk) - For the nine months of 2024, non-operating income (expense) decreased by **$21.2 million** YoY, resulting in a net expense of $134.4 million[254](index=254&type=chunk)[256](index=256&type=chunk) [SEGMENT RESULT ANALYSIS](index=81&type=section&id=SEGMENT%20RESULT%20ANALYSIS) This section analyzes the financial performance of the company's three operating segments [Peruvian Open-pit Operations](index=83&type=section&id=Peruvian%20Open-pit%20Operations) Net sales and operating income for Peruvian operations increased significantly in Q3 2024 - Net sales for Peruvian operations increased by **$253.9 million (27.1%)** in Q3 2024 YoY, driven by higher sales volumes and prices[259](index=259&type=chunk) - Operating costs and expenses for Peruvian operations increased by **$43.2 million (7.2%)** in Q3 2024 YoY[260](index=260&type=chunk) Peruvian Open-pit Operations - Key Financials (in millions) | Metric | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--- | :--- | :--- | :--- | :--- | | Net sales | $1,189.9 | $936.0 | $3,465.3 | $2,848.6 | | Operating costs and expenses | $(640.2) | $(597.0) | $(1,837.7) | $(1,743.7) | | Operating income | $549.7 | $339.0 | $1,627.6 | $1,104.9 | [Mexican Open-pit Operations](index=84&type=section&id=Mexican%20Open-pit%20Operations) Net sales for Mexican open-pit operations grew, boosted by the new Buenavista zinc concentrator - Net sales for Mexican open-pit operations increased by **$140.5 million (9.6%)** in Q3 2024 YoY, driven by higher volumes and prices[262](index=262&type=chunk) - Operating costs and expenses for Mexican open-pit operations increased by **$27.2 million (3.8%)** in Q3 2024 YoY[264](index=264&type=chunk) Mexican Open-pit Operations - Key Financials (in millions) | Metric | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--- | :--- | :--- | :--- | :--- | | Net sales | $1,602.7 | $1,462.2 | $4,807.2 | $4,400.3 | | Operating costs and expenses | $(736.5) | $(709.3) | $(2,237.6) | $(2,126.3) | | Operating income | $866.2 | $752.9 | $2,569.6 | $2,274.0 | [Mexican Underground Operations (IMMSA)](index=86&type=section&id=Mexican%20Underground%20Operations%20(IMMSA)) IMMSA's net sales increased and operating income turned positive due to higher zinc sales and lower costs - Net sales for IMMSA increased by **$31.3 million (20.4%)** in Q3 2024 YoY, driven by higher zinc sales volume and prices[266](index=266&type=chunk) - Operating costs and expenses for IMMSA decreased by **$6.5 million (4.2%)** in Q3 2024 YoY[267](index=267&type=chunk) Mexican Underground Operations (IMMSA) - Key Financials (in millions) | Metric | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--- | :--- | :--- | :--- | :--- | | Net sales | $184.9 | $153.6 | $516.5 | $474.3 | | Operating costs and expenses | $(148.3) | $(154.8) | $(435.6) | $(477.0) | | Operating income | $36.6 | $(1.2) | $80.9 | $(2.7) | [Intersegment Eliminations and Adjustments](index=87&type=section&id=Intersegment%20Eliminations%20and%20Adjustments) Adjustments are made to reconcile segment results with the consolidated financial statements - Intersegment eliminations and adjustments are applied to reconcile segment results to the condensed consolidated statement of earnings[269](index=269&type=chunk) [LIQUIDITY AND CAPITAL RESOURCES](index=88&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) This section details the company's cash flow activities, capital investments, and contractual obligations [Cash flow](index=88&type=section&id=Cash%20flow) Operating cash flow remained strong, supported by a significant increase in net income - Net cash provided by operating activities increased by **$29.1 million (1.0%)** to $3,061.2 million for the nine months of 2024 YoY[271](index=271&type=chunk)[272](index=272&type=chunk) - Cash flow from operating assets and liabilities decreased by **$182.8 million** in 2024, primarily due to changes in accounts payable and receivable[272](index=272&type=chunk) Cash Flow (in millions) - Nine Months Ended Sep 30 | Metric | 2024 | 2023 | Variance | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $3,061.2 | $3,032.1 | $29.1 | | Net cash used in investing activities | $(511.5) | $(791.4) | $279.9 | | Net cash used in financing activities | $(1,091.2) | $(2,325.7) | $1,234.5 | | Net income | $2,592.4 | $1,987.5 | $604.9 | [Net cash used in investing activities](index=88&type=section&id=Net%20cash%20used%20in%20investing%20activities) Investing activities were primarily focused on capital investments in Mexican and Peruvian operations - Net cash used in investing activities for the nine months of 2024 was **$511.5 million**, including $792.0 million for capital investments[271](index=271&type=chunk)[274](index=274&type=chunk) - Mexican operations received **$570.4 million** in capital investments, while Peruvian operations received **$221.6 million**[274](index=274&type=chunk)[275](index=275&type=chunk) - Investment activities in 2024 included **$280.5 million** of net purchase of short-term investments[276](index=276&type=chunk)[278](index=278&type=chunk) [Dividends](index=90&type=section&id=Dividends) The Board of Directors authorized a quarterly cash and stock dividend for November 2024 - The Board of Directors authorized a quarterly cash dividend of **$0.70 per share** and a stock dividend of **0.0062 shares per common share**[279](index=279&type=chunk) [Capital Investment and Exploration Programs](index=92&type=section&id=Capital%20Investment%20and%20Exploration%20Programs) Capital investments are funded by internal and external sources to enhance production and reduce costs - Capital investments are intended to increase production, decrease costs, or address social and environmental commitments[218](index=218&type=chunk)[219](index=219&type=chunk)[282](index=282&type=chunk) [Contractual Obligations](index=92&type=section&id=Contractual%20Obligations) No material changes to contractual obligations were reported in the first quarter of 2024 - There have been no material changes in contractual obligations in the first quarter of 2024[283](index=283&type=chunk) [NON-GAAP INFORMATION RECONCILIATION](index=92&type=section&id=NON-GAAP%20INFORMATION%20RECONCILIATION) This section reconciles the non-GAAP measure of operating cash cost to GAAP financial measures - Operating cash cost is a non-GAAP measure that excludes certain non-cash and discretionary items to show controllable cash costs[202](index=202&type=chunk)[204](index=204&type=chunk) Operating Cash Cost Reconciliation (in millions of dollars and dollars per pound of copper) | Metric | Three Months Ended Sep 30, 2024 ($ millions) | Three Months Ended Sep 30, 2024 ($ per pound) | Nine Months Ended Sep 30, 2024 ($ millions) | Nine Months Ended Sep 30, 2024 ($ per pound) | | :--- | :--- | :--- | :--- | :--- | | Cost of sales (exclusive of depreciation, amortization and depletion) | $1,223.1 | $2.29 | $3,629.6 | $2.33 | | Operating Cash Cost before by-product revenues | $1,046.2 | $1.96 | $3,230.6 | $2.07 | | Total by-product revenues | $(639.3) | $(1.19) | $(1,887.9) | $(1.21) | | Operating Cash Cost net of by-product revenues | $406.9 | $0.76 | $1,342.7 | $0.86 | By-product Revenues (in millions of dollars and dollars per pound of copper) - Nine Months Ended Sep 30, 2024 | By-product | $ millions | $ per pound | | :--- | :--- | :--- | | Molybdenum | $(949.5) | $(0.61) | | Silver | $(374.5) | $(0.24) | | Zinc | $(231.8) | $(0.15) | | Sulfuric Acid | $(200.7) | $(0.13) | | Gold and others | $(96.2) | $(0.06) | | Total | $(1,852.7) | $(1.19) | [Item 3. Quantitative and Qualitative Disclosure about Market Risk](index=95&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosure%20about%20Market%20Risk) The company is exposed to market risks from commodity prices, foreign currency rates, and open sales [Commodity price risk](index=95&type=section&id=Commodity%20price%20risk) The company's profitability is directly affected by the volatility of metal prices - The Company is subject to market risks from the volatility of copper and other metal prices[214](index=214&type=chunk)[290](index=290&type=chunk) [Foreign currency exchange rate risk](index=95&type=section&id=Foreign%20currency%20exchange%20rate%20risk) Fluctuations in the Peruvian sol and Mexican peso can impact financial results - The Company's functional currency is the U.S. dollar, but significant operating costs are denominated in Peruvian sol and Mexican pesos[217](index=217&type=chunk)[291](index=291&type=chunk) Currency Appreciation/(Devaluation) - Nine Months Ended Sep 30 | Currency | 2024 | 2023 | | :--- | :--- | :--- | | Peruvian Sol | (0.0)% | 0.6% | | Mexican Peso | (16.2)% | 9.0% | Effect of 10% USD Appreciation/Devaluation on Net Earnings (in millions) | Scenario | Effect in net earnings | | :--- | :--- | | Appreciation of 10% in U.S. dollar vs. Peruvian sol | $33.6 | | Devaluation of 10% in U.S. dollar vs. Peruvian sol | $(41.0) | | Appreciation of 10% in U.S. dollar vs. Mexican peso | $(13.7) | | Devaluation of 10% in U.S. dollar vs. Mexican peso | $11.2 | [Open sales risk](index=95&type=section&id=Open%20sales%20risk) Provisional sales expose the company to price fluctuations before final settlement - Provisional copper and molybdenum sales contain embedded derivatives, marked to market through earnings[294](index=294&type=chunk) [Short-term Investments](index=97&type=section&id=Short-term%20Investments) Short-term investments are subject to fair value measurement and market fluctuations - The Company's short-term investments, including trading securities and available-for-sale debt securities, are subject to market fluctuations[19](index=19&type=chunk)[295](index=295&type=chunk) [Derivative Instruments](index=97&type=section&id=Derivative%20Instruments) The company uses derivatives to manage commodity price exposure but held none as of September 30, 2024 - The Company uses derivative instruments, such as cash flow hedges for natural gas, to manage exposure to commodity price changes[296](index=296&type=chunk)[297](index=297&type=chunk)[298](index=298&type=chunk) [Item 4. Controls and procedures](index=98&type=section&id=Item%204.%20Controls%20and%20procedures) Management confirms the effectiveness of disclosure controls and reports no material changes in internal control [EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES](index=98&type=section&id=EVALUATION%20OF%20DISCLOSURE%20CONTROLS%20AND%20PROCEDURES) The company's disclosure controls and procedures were deemed effective as of September 30, 2024 - As of September 30, 2024, the Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures were effective[300](index=300&type=chunk) [CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING](index=98&type=section&id=CHANGES%20IN%20INTERNAL%20CONTROL%20OVER%20FINANCIAL%20REPORTING) No material changes to internal control over financial reporting occurred during the third quarter - There were no material changes in the Company's internal control over financial reporting during the three months ended September 30, 2024[301](index=301&type=chunk) [Report of Independent Registered Public Accounting Firm](index=99&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) The independent auditors found no material modifications needed for the interim financial information - The independent auditors are not aware of any material modifications needed for the interim financial information to conform with GAAP[303](index=303&type=chunk) - The auditors expressed an unqualified opinion on the Company's consolidated financial statements as of December 31, 2023[304](index=304&type=chunk) [Part II. Other Information](index=100&type=section&id=Part%20II.%20Other%20Information) This part provides information on legal proceedings, risk factors, exhibits, and other required disclosures [Item 1. Legal Proceedings](index=100&type=section&id=Item%201.%20Legal%20Proceedings) Details on legal proceedings are incorporated by reference from Note 9 in Part I of this report - Legal proceedings, including lawsuits related to the Tia Maria project and environmental spills, are detailed in Note 9[80](index=80&type=chunk)[90](index=90&type=chunk)[308](index=308&type=chunk) [Item 1A. Risk Factors](index=100&type=section&id=Item%201A.%20Risk%20Factors) This section updates risk factors, focusing on potential impacts from recent Mexican mining law changes - New Mexican mining legislation, approved in April 2023, introduces changes to mining concession periods, water use, and closure guarantees[309](index=309&type=chunk) - While the Company believes these changes will not materially impact its operations, future developments could affect its business[311](index=311&type=chunk) [Item 2. Unregistered Sale of Equity Securities and Use of Proceeds](index=100&type=section&id=Item%202.%20Unregistered%20Sale%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were no unregistered sales of equity securities or use of proceeds to report for the period [Item 4. Mine Safety Disclosures](index=100&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Mine safety disclosures are not applicable for this report [Item 6. List of Exhibits](index=101&type=section&id=Item%206.%20List%20of%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate documents and technical reports - Exhibits include the Amended and Restated Certificate of Incorporation, By-Laws, various Indentures, and Technical Report Summaries[312](index=312&type=chunk)[313](index=313&type=chunk)[314](index=314&type=chunk) - The report includes XBRL Instance Document, Taxonomy Extension Schema Document, and other interactive data files[315](index=315&type=chunk) [SIGNATURES](index=107&type=section&id=SIGNATURES) The report is duly signed and certified by the company's executive officers - The report is signed by Oscar Gonzalez Rocha, President and Chief Executive Officer, and Raul Jacob, Vice President, Finance, Treasurer and Chief Financial Officer[316](index=316&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of report (Date of earliest event reported): October 22, 2024 (October 17, 2024) SOUTHERN COPPER CORPORATION (Exact name of registrant as specified in its charter) Delaware 1-14066 13-3849074 (State or Other Jurisdiction of Incorporation) (Commission File Number) (IRS Employer Identification Number) 7310 N. 16 th Street, Suite 135, Phoeni ...

Southern Copper (SCCO) came out with quarterly earnings of $1.15 per share, beating the Zacks Consensus Estimate of $1.12 per share. This compares to earnings of $0.79 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 2.68%. A quarter ago, it was expected that this miner would post earnings of $1.13 per share when it actually produced earnings of $1.22, delivering a surprise of 7.96%.Over the last four quarters, the company has ...

Group 1: Company Performance - Southern Copper (SCCO) closed at $113.14, marking a +1.46% move from the prior day, outperforming the S&P 500 which gained 0.47% [1] - The stock gained 12.43% over the previous month, surpassing the Basic Materials sector's gain of 6.97% and the S&P 500's gain of 3.48% [1] Group 2: Earnings Projections - The upcoming EPS for Southern Copper is projected at $1.12, indicating a 41.77% increase compared to the same quarter of the previous year [2] - Revenue is estimated at $2.91 billion, up 16.31% from the prior-year quarter [2] - For the annual period, earnings are anticipated at $4.45 per share and revenue at $11.65 billion, reflecting shifts of +43.09% and +17.68% respectively from last year [3] Group 3: Analyst Estimates and Rankings - Recent modifications to analyst estimates for Southern Copper reflect evolving short-term business trends, with positive revisions indicating optimism about the company's outlook [4] - The Zacks Rank system, which incorporates estimate changes, currently ranks Southern Copper at 3 (Hold) [6] Group 4: Valuation Metrics - Southern Copper has a Forward P/E ratio of 25.07, which is a premium compared to the industry average of 20.03 [7] - The company's PEG ratio is currently 1.2, compared to the Mining - Non Ferrous industry's average PEG ratio of 0.83 [7] Group 5: Industry Context - The Mining - Non Ferrous industry, part of the Basic Materials sector, holds a Zacks Industry Rank of 64, placing it in the top 26% of all industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Southern Copper (SCCO) . This company, which is in the Zacks Mining - Non Ferrous industry, shows potential for another earnings beat. This miner has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 15.02%. For the most rec ...

Company Performance - Southern Copper (SCCO) ended the recent trading session at $118.87, showing a -1.3% change from the previous day's closing price, which lagged behind the S&P 500's 0.13% loss [1] - The stock has increased by 18.73% over the past month, outperforming the Basic Materials sector's gain of 5.81% and the S&P 500's gain of 2.43% [1] Earnings Expectations - The upcoming earnings release is anticipated to report an EPS of $1.04, representing a 31.65% increase compared to the same quarter last year [2] - Revenue is projected to be $2.77 billion, reflecting a 10.58% rise from the equivalent quarter last year [2] Annual Projections - For the annual period, earnings are expected to be $4.29 per share, with revenue projected at $11.55 billion, indicating increases of +37.94% and +16.71% respectively from the previous year [3] Analyst Forecasts - Recent revisions to analyst forecasts for Southern Copper are important as they indicate changing business trends, with upward revisions suggesting analysts' positivity towards the company's operations [4] Valuation Metrics - Southern Copper has a Forward P/E ratio of 28.06, which is higher than the industry average of 17.91, indicating that the company is trading at a premium [7] - The company has a PEG ratio of 1.24, compared to the Mining - Non Ferrous industry's average PEG ratio of 0.88 [8] Industry Ranking - The Mining - Non Ferrous industry is part of the Basic Materials sector, which has a Zacks Industry Rank of 100, placing it in the top 40% of over 250 industries [8] - The Zacks Industry Rank assesses the strength of industry groups based on the average Zacks Rank of individual stocks, with top-rated industries outperforming the bottom half by a factor of 2 to 1 [9]

Company Performance - Southern Copper (SCCO) closed at $103.60, reflecting a -1.23% change from the previous session, underperforming the S&P 500 which lost 0.19% [1] - Over the last month, Southern Copper's shares increased by 3.14%, outperforming the Basic Materials sector's gain of 2.2% and the S&P 500's gain of 2.06% [1] Upcoming Earnings - Southern Copper is projected to report earnings of $1.04 per share, indicating a year-over-year growth of 31.65% [2] - The consensus estimate for revenue is $2.81 billion, which represents a 12.13% increase from the prior-year quarter [2] Annual Estimates - For the annual period, earnings are anticipated to be $4.29 per share, with revenue expected to reach $11.59 billion, reflecting increases of +37.94% and +17.09% respectively from the last year [3] Analyst Forecasts - Recent revisions to analyst forecasts for Southern Copper are important as they reflect short-term business trends [4] - Upbeat changes in estimates indicate a favorable outlook on the company's business health and profitability [4] Zacks Rank and Performance - The Zacks Rank system, which assesses estimate changes, currently ranks Southern Copper at 4 (Sell), with a consensus EPS projection that has moved 0.23% lower in the past 30 days [6] - The Zacks Rank has a track record of superior performance, with 1 stocks averaging an annual return of +25% since 1988 [6] Valuation Metrics - Southern Copper has a Forward P/E ratio of 24.44, which is a premium compared to the industry average of 13.55 [7] - The company also has a PEG ratio of 1.08, while the Mining - Non Ferrous industry has an average PEG ratio of 0.79 [7] Industry Context - The Mining - Non Ferrous industry is part of the Basic Materials sector and holds a Zacks Industry Rank of 141, placing it in the bottom 45% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]