SCC(US:SCCO)2025-10-31 19:53Financial Performance - In Q3 2025, net sales reached $3,377.3 million, a 15.2% increase compared to Q3 2024, driven by higher sales volumes of molybdenum (+7.9%), silver (+21.9%), and zinc (+7.3%) along with increased copper prices (+6.5% LME; +14.2% COMEX) [197] - Net income attributable to the company for Q3 2025 was $1,107.6 million, marking a 23.5% increase from Q3 2024, primarily supported by increased net sales [198] - Operating income for Q3 2025 was $1,768.8 million, a 22.0% increase from Q3 2024, reflecting improved financial performance [195] - Earnings per share for Q3 2025 increased to $1.35, a 19.9% rise compared to $1.12 in Q3 2024 [195] - For the nine months of 2025, net sales increased by 10.4% compared to the same period in 2024, supported by higher sales volumes of molybdenum (+6.7%), silver (+16.6%), and zinc (+18.7%) [200] - The company reported a net income attributable to SCC of $1,107.6 million for Q3 2025, a 23.5% increase from Q3 2024, and $3,027.0 million for the nine months, a 17.2% increase [254] Production and Sales Volumes - Copper production in Q3 2025 was 517.8 million pounds, a 6.9% decrease from Q3 2024, mainly due to lower production at Buenavista (-10.7%) and Toquepala (-8.4%) [202] - Molybdenum production increased by 8.3% in Q3 2025 compared to Q3 2024, driven by La Caridad (+24.2%) and Toquepala (+10.0%) mines [203] - Silver mine production rose by 16.4% in Q3 2025, mainly due to La Caridad (+44.7%) and Buenavista (+37.5%) operations [204] - Zinc production surged by 46.3% in Q3 2025, primarily due to full-capacity operations at the Buenavista Zinc concentrator, producing 30,086 tonnes (+108.2%) in Q3 2025 [205] - Total copper sales for Q3 2025 were 516.5 million pounds, a decrease of 19.4 million pounds or 3.6% from Q3 2024 [265] - Copper sales volume for Q3 2025 was 516.5 million pounds, a 3.6% decrease from Q3 2024, with refined copper sales down by 25.3% [259] Costs and Expenses - Operating costs and expenses for Q3 2025 totaled $1,608.5 million, an increase of $127.9 million (8.6%) from Q3 2024, primarily due to higher costs in labor, energy, and materials [260] - Operating costs for the first nine months of 2025 were $4,658.9 million, an increase of $257.2 million (5.8%) from the same period in 2024, driven by higher costs in labor and materials [261] - Operating cash cost per pound of copper produced before by-product revenues increased from $1.96 to $2.23 in Q3 2025, a rise of 13.9% [218] - Operating cash cost for Q3 2025 was $1,102.8 million, or $2.23 per pound, compared to $1,046.2 million, or $1.96 per pound in Q3 2024, reflecting an increase of 5.4% [290] Capital Investments and Projects - Capital investments in Q3 2025 totaled $349.2 million, representing 31.4% of net income and a 41.7% increase compared to Q3 2024 [193] - The company expects to invest over $10.3 billion in Peruvian projects over the next decade, supported by local communities and government [226] - The Tia Maria project in Arequipa, Peru, is projected to generate $18.2 billion in exports and contribute $3.8 billion in taxes and royalties over the first 20 years, with a budget of $1,802 million [229] - Capital investments reached $902.7 million in the first nine months of 2025, up from $792.0 million in the same period of 2024, reflecting a 14% increase [224] - Significant investments in Mexican operations included $309.0 million for replacement and maintenance expenditures [289] Sustainability and Social Responsibility - The company has reduced greenhouse gas emissions by 180,000 carbon tons in 2025, equivalent to the electricity supply needed for 40,000 households in Mexico [245] - The company’s sustainability ratings improved, with S&P Global increasing its rating by four points, positioning it among the leaders in the mining sector [244] - The Health Train initiative provided over 20,000 free medical consultations in Sonora during its 2025 tour, marking a record for the program [250] - The company is actively engaging in social and environmental management programs in communities affected by the Los Chancas project [238] Tax and Financial Management - The effective income tax rate for the nine months ended September 30, 2025, was 36.4%, a slight decrease from 37.2% in the same period of 2024 [263] - Interest income increased by $57.6 million due to higher cash balances, partially offsetting a $30.4 million increase in interest expense [264] - The provision for income taxes for the first nine months of 2025 was $1,728.4 million, with an effective tax rate of 36.4%, down from 37.2% in 2024 [263] Dividends and Shareholder Returns - The company declared a quarterly cash dividend of $0.90 per share, payable on November 28, 2025 [285] - The Board of Directors authorized a quarterly cash dividend of $0.90 per share and a stock dividend of 0.0085 shares per share, payable on November 28, 2025 [285]