SCC(US:SCCO) HUAXI Securities·2025-04-28 14:53Investment Rating - The industry rating is "Recommended" [7] Core Insights - In Q1 2025, the mined copper production remained flat year-on-year at 240,226 tons, with a slight quarter-on-quarter increase of 0.6% [1][18]. - The unit operating cash cost for copper decreased by 28.0% year-on-year to $0.77 per pound, primarily due to a reduction in operating costs and an increase in by-product revenue [2]. - The net sales for Q1 2025 reached $3.1219 billion, reflecting a year-on-year growth of 20.1%, driven by increased sales volumes across copper, molybdenum, zinc, and silver [9][19]. - The net profit for Q1 2025 was $945.9 million, up 28.5% year-on-year, with a net profit margin of 30.3% [9][19]. Production and Sales Summary - Copper production in Q1 2025 was 240,226 tons, with sales of 243,601 tons, marking a 3.6% increase year-on-year [1][18]. - Molybdenum production increased by 8.5% year-on-year to 7,684 tons, with sales of 7,731 tons, reflecting a 9.9% increase [3][4]. - Zinc production surged by 49.3% year-on-year to 39,375 tons, with sales of 36,530 tons, a 42.4% increase [5][19]. - Silver production rose by 13.8% year-on-year to 5.442 million ounces, with sales of 5.653 million ounces, a 14.1% increase [6][8]. Financial Performance - The adjusted EBITDA for Q1 2025 was $1.7456 billion, up 23.1% year-on-year, with an adjusted EBITDA margin of 55.9% [9][19]. - Capital investment expenditures for Q1 2025 were $317.8 million, representing a 48.6% increase year-on-year [10][19]. Project Updates - The company plans to invest over $600 million in its Mexican projects in 2025, focusing on asset modernization and safety improvements [11]. - The Tia Maria project in Peru is expected to produce 120,000 tons of SX-EW cathode copper annually upon completion [12]. - The Los Chancas project in Peru aims for an annual production of 130,000 tons of copper and 7,500 tons of molybdenum, with an estimated capital investment of $2.6 billion [14].