SCC(US:SCCO)2025-07-29 21:15Financial Performance - 2Q25 net sales were $3,051.0 million, a decrease of 2.2% compared to 2Q24, primarily due to a 3.0% decline in copper sales volumes and variances in metal prices[2]. - Year-to-date (YTD) net income increased by 13.8% to $1,919.4 million, with a net income margin of 31.1%, up from 29.5% in 2024[2][8]. - Adjusted EBITDA for 2Q25 was $1,790.9 million, a slight decrease of 0.3% from 2Q24, but YTD adjusted EBITDA increased by 10.0% to $3,536.5 million[2][8]. - Operating income for Q2 2025 was $1,587.0 million, down 1.3% from $1,607.3 million in Q2 2024, but up 11.6% for the first half of 2025 to $3,122.5 million compared to $2,797.0 million in the prior year[43]. - Net income attributable to SCC for Q2 2025 was $973.4 million, a 2.4% increase from $950.2 million in Q2 2024, and for the first half of 2025, it rose by 13.8% to $1,919.4 million from $1,686.2 million[43]. - Cash and cash equivalents as of June 30, 2025, were $3,334.9 million, an increase from $3,258.1 million at the end of 2024 and significantly higher than $1,875.3 million a year earlier[44]. - Total assets increased to $19,554.7 million as of June 30, 2025, compared to $18,713.5 million at the end of 2024, reflecting a growth of 4.5%[44]. - Total stockholders' equity reached $9,984.8 million as of June 30, 2025, up from $9,171.6 million at the end of 2024, indicating an increase of 8.9%[44]. - Net cash provided by operating activities for Q2 2025 was $976.8 million, slightly higher than $962.1 million in Q2 2024, while for the first half of 2025, it totaled $1,698.2 million compared to $1,621.8 million in the prior year[45]. - The company reported a significant increase in interest income, which rose by 100.4% to $53.1 million in Q2 2025 from $26.5 million in Q2 2024[43]. Production and Sales - Total copper production for Q2 2025 was 241,291 tonnes, a decrease of 1.0% compared to Q2 2024, while total sales were 224,063 tonnes, down 3.0% year-over-year[42]. - Molybdenum mined increased by 3.5% to 7,919 tonnes in Q2 2025, while sales rose by 2.7% to 7,846 tonnes[42]. - Zinc mined increased significantly by 56.0% to 45,899 tonnes in Q2 2025, with sales up 14.0% to 44,483 tonnes[42]. - Silver mined increased by 15.4% to 5,984,000 ounces in Q2 2025, with sales rising by 13.9% to 6,044,000 ounces[42]. - Total pounds of copper produced in Q2 2025 is 510.4 million, slightly down from 513.2 million in Q2 2024, with year-to-date production at 1,022.1 million pounds compared to 1,024.0 million pounds in 2024[59]. Costs and Investments - Operating cash cost per pound of copper decreased by 23.6% to $0.70 in 6M25, driven by lower unit production costs and higher by-product credits[4][6]. - Operating cash cost per pound of copper produced before by-product revenues is $211.2 in Q2 2025, down from $215.4 in Q2 2024, while the cost net of by-product revenues is $63.1[59]. - The company reported a decrease in operating cash cost before by-product revenues to $1,078.2 million in Q2 2025 from $1,105.4 million in Q2 2024[59]. - By-products revenue for Q2 2025 is $755.9 million, compared to $716.4 million in Q2 2024, contributing to a reduction in overall operating cash costs[59]. - Capital investments in 2Q25 totaled $235.7 million, reflecting a 29.0% decrease year-over-year, while YTD capital investments were $553.5 million, a 1.4% increase[7][8]. - Capital investments in Q2 2025 were $235.7 million, down from $331.8 million in Q2 2024, and for the first half of 2025, total capital investments were $553.5 million compared to $545.6 million in the same period last year[45]. Projects and Future Plans - The company plans to invest over $15 billion in projects throughout the decade, with more than $10.3 billion allocated for Peruvian projects[11][12]. - The Tia Maria project in Peru is expected to generate $18.2 billion in exports and contribute $3.8 billion in taxes over the first 20 years, with a budget set at $1,802 million[14][15]. - The Los Chancas project is estimated to require a capital investment of $2.6 billion, with operations expected to begin in 2030-2031, producing 130,000 tonnes of copper annually[17][18]. - The Michiquillay project is projected to require an investment of approximately $2.5 billion, with an expected production start-up by 2032, producing 225,000 tonnes of copper per year[21][22]. - Minera Mexico plans to invest over $600 million in 2025 to modernize assets and improve water usage and tailings management[25]. Environmental, Social, and Governance (ESG) - SCC achieved a 24% reduction in the lost time injury frequency rate since 2023 and sourced 39% of its electricity consumption from renewable energy in 2024[30]. - SCC was included in the FTSE4Good indices, scoring 60% above the average for the nonferrous metals subsector, highlighting its strong ESG practices[31]. - The Tía María project has created 1,376 new jobs, with 802 filled by local applicants, representing 11% of the economically active population in the nearby Tambo valley[34]. Dividends - Dividends paid in Q2 2025 increased by 16.7% to $1.40 per share from $1.20 per share in Q2 2024, and for the first half of 2025, dividends rose by 40.0% to $2.80 from $2.00[43].