SCC(SCCO)2025-04-25 15:56Financial Performance - 1Q25 net sales reached $3,121.9 million, a 20.1% increase compared to 1Q24, driven by higher sales volumes of copper (+3.6%), molybdenum (+9.9%), zinc (+42.4%), and silver (+14.1%) as well as rising metal prices[1] - Net income for 1Q25 was $945.9 million, reflecting a 28.5% improvement from $736.0 million in 1Q24, with a net income margin of 30.3%[3] - Adjusted EBITDA for 1Q25 was $1,745.6 million, up 23.1% from $1,417.7 million in 1Q24, resulting in an adjusted EBITDA margin of 55.9%[3] - Operating income for Q1 2025 was $1,535.5 million, a 29.1% increase from $1,189.7 million in Q1 2024[38] - Net income attributable to Southern Copper Corporation increased by 28.5% to $945.9 million in Q1 2025 from $736.0 million in Q1 2024[38] - Adjusted EBITDA for Q1 2025 was $1,745.6 million, compared to $1,417.7 million in Q1 2024, indicating a year-over-year growth of 23.1%[51] - Income taxes for Q1 2025 amounted to $532.8 million, compared to $423.4 million in Q1 2024, marking a 25.9% increase[51] - Interest expense for Q1 2025 was $91.9 million, up from $80.5 million in Q1 2024, indicating a 17.5% rise[51] - Depreciation, amortization, and depletion costs were $223.8 million in Q1 2025, compared to $209.0 million in Q1 2024, reflecting a 7.1% increase[51] Production and Sales - Total copper production for Q1 2025 was 242,004 tons, a slight increase of 0.6% from 240,679 tons in Q1 2024[37] - Molybdenum sales rose by 9.9% to 7,731 tons in Q1 2025, up from 7,036 tons in Q1 2024[37] - Zinc sales increased significantly by 42.4% to 36,530 tons in Q1 2025 compared to 25,653 tons in Q1 2024[37] - Total pounds of copper produced in Q1 2025 reached 511.6 million, slightly up from 510.8 million in Q1 2024[54] Costs and Expenses - Operating cash cost per pound of copper decreased to $0.77, down 28.5% from $1.07 in 1Q24, due to lower operating costs and increased by-product revenue credits[9] - Operating cash cost per pound of copper produced before by-product revenues was $205.3 in Q1 2025, a decrease from $211.2 in Q1 2024, reflecting a 2.8% improvement[54] - Operating cash cost net of by-products revenue for Q1 2025 was $76.6 per pound, down from $107.0 in Q1 2024, showing a significant reduction of 28.4%[54] - The company reported a decrease in by-products revenue to $658.5 million in Q1 2025 from $532.2 million in Q1 2024, which is a 23.7% increase[54] Capital Investments and Projects - Capital investments in 1Q25 totaled $317.8 million, a 48.6% increase compared to $213.8 million in 1Q24, representing 34% of net income[9] - The Tia Maria project in Peru is expected to generate $18.2 billion in exports and contribute $3.8 billion in taxes and royalties over its first 20 years, with a budget set at $1,802 million[18] - The Los Chancas project in Peru has estimated copper resources of 98 million tons with operations expected to begin in 2031, requiring an estimated capital investment of $2.6 billion[22] - The Michiquillay project is projected to produce 225,000 tons of copper annually with an investment of approximately $2.5 billion, expected to start operations by 2032[24] - The company plans to invest over $600 million in 2025 for modernization and improvements in water usage and tailings management at its Mexican operations[14] Employment and Community Impact - The company generated more than 628 jobs for the Tia Maria project, with a goal to fill 3,500 jobs during the construction phase with local applicants[19] Cash and Assets - Cash and cash equivalents as of March 31, 2025, were $4,116.3 million, up from $1,252.2 million a year earlier[39] - Total assets increased to $19,791.2 million as of March 31, 2025, compared to $16,789.3 million a year prior[39] - Dividends paid increased by 75.0% to $1.40 per share in Q1 2025 from $0.80 per share in Q1 2024[38]