SCC(SCCO) - 2024 Q4 - Annual Report

Financial Performance - In 2024, net sales reached a record high of $11,433.4 million, reflecting a 15.5$5,554.7 million, an increase of 32.5% compared to 2023, while net income attributable to the company was $3,376.8 million, up 39.2$3,388.6 million, representing 76.6% of the net operating cash flow [690]. - Operating costs and expenses rose to $5,878.7 million in 2024, an increase of$175.2 million from $5,703.5 million in 2023, primarily due to higher labor costs and repair materials [666]. Employee Development and Safety - In 2024, the company invested over$4.8 million in employee development, delivering more than 646,000 hours of formal instruction [41]. - The company’s retention rate is around 90%, with more than 48% of positions filled by internal employees [53]. - Southern Copper Corporation achieved a 28% reduction in employee accidents involving lost-time injuries in 2024 compared to 2023 [610]. - The company has implemented a Behavioral Safety Program to promote safe practices among employees, aiming to reduce accident rates [619]. Community and Environmental Initiatives - The company has made significant expenditures for community programs as part of its corporate social responsibility policy, promoting sustainable development in local areas [56]. - Renewable energy consumption increased from 23% to 36% in 2023, surpassing the 2027 target of 25% [635]. - The Fenicias wind park is expected to reduce CO2 emissions by approximately 250,000 tonnes per year, equivalent to 7% of the company's carbon footprint [634]. - The company is committed to improving biodiversity, receiving certification for efforts to prevent the extinction of the Mexican grey wolf [625]. Capital Investments and Projects - Capital investments in 2024 totaled $1,027.3 million, with$756.0 million allocated to Mexican operations and $271.3 million to Peruvian operations [690]. - The Tia Maria project in Arequipa, Peru, has a budget set at$1,802 million and is expected to generate $17.5 billion in exports and contribute$3.4 billion in taxes and royalties over the first 20 years of operation [598]. - The company plans to invest more than $600 million in 2025 for modernization and improvements in water usage and tailings management [592]. - The company has engaged in project development and environmental activities for the El Pilar project, which is expected to have a mine life of 13 years [595]. Market and Pricing Trends - The average per pound COMEX copper price over the last 5 years was$3.83, while the average LME copper price was $3.81 [37]. - The average copper price (LME) in 2024 was$4.15 per pound, a 7.8% increase from 2023, while the average molybdenum price decreased by 10.6% to $21.21 per pound [661]. - The average price per pound of zinc over the last 5 years was$1.29 [39]. Labor Relations - As of December 31, 2024, the company had 16,133 employees, with approximately 66% covered by collective labor agreements [40]. - In 2024, the company signed long-term extensions of collective bargaining agreements with five unions, lasting six years, and made a signing payment totaling approximately $62 million to over 2,000 workers [67]. - As of December 31, 2024, 56.9$6,258.3 million, slightly up from $6,254.6 million in 2023, with a fixed interest rate of 5.82$3.5 billion during a recent marketing effort, indicating strong demand for its debt offerings [700].