SCC(SCCO) - 2025 Q3 - Quarterly Results

Financial Performance - 3Q25 net sales reached $3,377.3 million, a 15.2% increase from 3Q24, driven by higher sales volumes of silver (+21.9%), molybdenum (+7.9%), and zinc (+7.3) despite a decline in copper sales (-3.6%) [1] - 3Q25 adjusted EBITDA was $1,975.4 million, up 17.3% from $1,684.6 million in 3Q24, with an adjusted EBITDA margin of 58.5% compared to 57.5% in 3Q24 [2] - Net income for 3Q25 was $1,107.6 million, a 23.5% increase from $896.7 million in 3Q24, resulting in a net income margin of 32.8% [3] - Operating income for Q3 2025 was $1,768.8 million, reflecting a 22.0% increase from $1,450.3 million in Q3 2024 [39] - Net income attributable to Southern Copper Corporation for Q3 2025 was $1,107.6 million, a 23.5% increase from $896.7 million in Q3 2024 [39] - Net income for the third quarter of 2025 was $1,110.9 million, compared to $899.8 million in the same period of 2024, reflecting a growth of 23.4% [41] Production and Sales - Total copper production in Q3 2025 was 237,333 tonnes, a decrease of 6.4% compared to 253,441 tonnes in Q3 2024 [38] - Copper production fell 2.8% year-to-date to 714,098 tonnes, primarily due to lower ore grades in Mexican and Peruvian operations [4] - Molybdenum sales increased by 7.9% to 7,908 tonnes in Q3 2025, compared to 7,327 tonnes in Q3 2024 [38] - Zinc mined increased significantly by 46.3% to 45,482 tonnes in Q3 2025, compared to 31,078 tonnes in Q3 2024 [38] - Year-to-date net sales increased by 10.4% compared to 2024, with molybdenum (+6.7%), silver (+16.6%), and zinc (+18.7%) sales volumes contributing positively [3] Costs and Expenses - Operating cash cost per pound of copper decreased to $0.42 in 3Q25, down 44.7% from $0.76 in 3Q24, primarily due to increased by-product revenue [2] - GAAP cost of sales (exclusive of depreciation, amortization, and depletion) for Q3 2025 was $1,356.8 million, compared to $1,223.1 million in Q3 2024, reflecting a 10.9% increase [55] - Operating cash cost before by-product revenues for Q3 2025 was $1,102.8 million, up from $1,046.1 million in Q3 2024, indicating a 5.4% rise [55] - Operating cash cost, net of by-products revenue, for Q3 2025 was $208.1 million, a decrease of 48.8% from $406.9 million in Q3 2024 [55] - Workers participation costs increased to $116.2 million in Q3 2025 from $79.0 million in Q3 2024, marking a 47.0% rise [55] - Selling, general and administrative expenses for Q3 2025 were $33.7 million, compared to $31.2 million in Q3 2024, reflecting an increase of 8.0% [55] Capital Investments - Capital investments in 3Q25 totaled $349.2 million, a 41.7% increase year-over-year, representing 31.5% of net income for the quarter [8] - The company plans to invest over $15 billion in capital projects over the decade, with more than $10.3 billion allocated to projects in Peru [12][13] - The Tia Maria project in Peru is expected to generate $18.2 billion in exports and $3.8 billion in taxes over its first 20 years, with a budget set at $1,802 million [15] Sustainability and Environmental Impact - The company has reduced greenhouse gas emissions by 180,000 carbon tons in 2025, equivalent to the electricity supply for 40,000 households in Mexico [27] - Southern Copper's sustainability rating increased by 4 points in the 2025 Corporate Sustainability Assessment, positioning the company among the leaders in the mining sector [26] Financial Position - As of September 30, 2025, total assets increased to $20,331.8 million, up from $18,713.4 million as of December 31, 2024, representing an increase of 8.6% [40] - Cash and cash equivalents rose to $3,949.6 million as of September 30, 2025, compared to $3,258.1 million at the end of 2024, indicating a growth of 21.2% [40] - Total current liabilities decreased to $1,698.0 million as of September 30, 2025, down from $2,248.1 million as of December 31, 2024, a reduction of 24.5% [40] - The company reported a total stockholders' equity of $10,449.9 million as of September 30, 2025, compared to $9,171.5 million at the end of 2024, an increase of 13.9% [40] - The number of shares outstanding increased to 812.2 million as of September 30, 2025, from 790.4 million as of December 31, 2024, reflecting a growth of 2.3% [40]