SCC(SCCO) - 2024 Q4 - Annual Results

Financial Performance - 4Q24 net sales reached $2,784.3 million, a 21.3% increase from 4Q23, driven by higher sales volumes for copper (+5.4%), zinc (+59.4%), and silver (+21.6%) [1] - 2024 net sales hit a record high of$ 11,433.4 million, up 15.5% from 2023, primarily due to increased sales volumes for copper (+5.5%), molybdenum (+7.9%), zinc (+44.6%), and silver (+15.7%) [1] - 4Q24 net income was $793.9 million, a 78.4% increase compared to$ 445.0 million in 4Q23, with a net income margin of 28.5% [1] - 2024 net income totaled $3,376.8 million, a 39.2% increase from 2023, with a net income margin of 29.5% [1] - 4Q24 adjusted EBITDA was$ 1,506.7 million, a 42.7% increase from $1,055.5 million in 4Q23, with an adjusted EBITDA margin of 54.1% [1] - 2024 adjusted EBITDA reached$ 6,406.1 million, up 27.4% from 2023, with an adjusted EBITDA margin of 56.0% [1] - Operating income for Q4 2024 was $1,307.3 million, a 50.5% increase from$ 868.7 million in Q4 2023 [41] - Net income attributable to Southern Copper Corporation for 2024 was $3,376.8 million, a 39.2% increase from$ 2,425.2 million in 2023 [41] Production and Operations - 2024 copper production increased by 6.9% YoY to 973,851 tons, with significant growth in Peruvian (+10.7%) and Mexican (+4.3%) operations [2] - Mined zinc production surged 154.9% in 4Q24, attributed to the full ramp-up of the Buenavista Zinc concentrator [2] - Total copper production in 2024 was 977,200 tons, up 6.6% from 916,419 tons in 2023, with mined copper increasing by 6.9% to 973,851 tons [39] - The company reported a total of 2,057.7 million pounds of copper produced in Year 2024, an increase from 1,935.4 million pounds in Year 2023 [59] Costs and Expenses - Operating cash cost per pound of copper decreased to $0.96 in 4Q24, down 22.5% from$ 1.25 in 4Q23, and $0.89 for the full year 2024, a 13.9% reduction from 2023 [5] - Operating cash cost before by-product revenues for Q4 2024 was$ 1,158.9 million, up from $1,114.7 million in Q4 2023, indicating a 4.0% increase [59] - Year 2024 operating cash cost before by-product revenues totaled$ 4,389.5 million, up from $4,235.0 million in Year 2023, reflecting a 3.6% increase [59] - Selling, general and administrative expenses for Q4 2024 were$ 34.5 million, slightly higher than $33.1 million in Q4 2023, reflecting a 4.2% increase [59] Investments and Projects - The company plans to invest over$ 600 million in 2025 for modernization and improvements in water usage and tailings management in its Mexican operations [13] - The Michiquillay project in Peru is expected to require an investment of approximately $2.5 billion and is projected to produce 225,000 tons of copper annually starting in 2032 [25] Sustainability and Community Impact - The company achieved a 28% reduction in employee accidents involving lost-time injuries in 2024 compared to previous years [28] - The Tía María project has led to a 14% increase in crop productivity, benefiting approximately 95% of local families [29] - Southern Copper's sustainability rating improved by 9 points year-over-year, placing it among the top 10 mining companies for sustainability in 2024 [27] Financial Position - As of December 31, 2024, total assets increased to$ 18,713.5 million, up from $16,725.3 million in 2023, representing a growth of 11.9% [42] - Cash and cash equivalents rose significantly to$ 3,258.1 million in 2024 from $1,151.5 million in 2023, an increase of 183.5% [42] - Total stockholders' equity increased to$ 9,238.1 million in 2024, up from $7,481.2 million in 2023, a growth of 23.5% [42] - The company generated$ 4,421.7 million in net cash from operating activities for the year 2024, compared to $3,573.1 million in 2023, an increase of 23.7% [44] Dividends - Dividends paid in 2024 amounted to$ 1,637.3 million, a decrease from $3,092.4 million in 2023, indicating a reduction of 47.0% [44]