Southern Copper Corporation SCCO reported fourth-quarter 2024 earnings of $1.01 per share, which marginally missed the Zacks Consensus Estimate of $1.02. The bottom line, however, marked a 74% surge from the year-ago quarter. Results were driven by higher sales volumes for copper, zinc and silver, and improved prices. SCCO’s fourth-quarter performance was partially hurt by a decline in the molybdenum sales volume.

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Southern Copper’s Sales Volumes & Margins Rise Y/Y in Q4

Southern Copper Corporation Price, Consensus and EPS Surprise

Southern Copper Corporation price-consensus-eps-surprise-chart | Southern Copper Corporation Quote

The company posted sales of $2.784 billion, beating the Zacks Consensus Estimate of $2.780 billion. The top line increased 21.3% year over year.

SCCO reported a 59.4% year-over-year jump in zinc sales volumes. Molybdenum volumes edged down 2.1%, while silver volumes improved 21.6%. Copper sales volumes moved up 5.4%. 

The cost of sales rose 3.6% year over year to $1.21 billion. Operating profit in the fourth quarter was $1.31 billion, reflecting 50.5% year-over-year growth. The operating margin in the reported quarter was 47% compared with 37.8% in the year-ago quarter.

Adjusted EBITDA improved 42.7% year over year to $1.51 billion in fourth-quarter 2024. The adjusted EBITDA margin was 54.1% compared with the year-ago quarter’s 46%.

SCCO’s Production Details

Copper: Southern Copper mined 238,888 tons of copper in the reported quarter, up 2.1% year over year. Copper sales improved 5.4% year over year to 229,206 tons.

Copper production for the year was 973,851 tons, up 6.9% year over year. This was driven by higher production at Peruvian operations and Mexican operations. Sales rose 5.5% year over year to 938,528 tons.

Molybdenum: The company mined 6,994 tons of molybdenum in the reported quarter, reflecting a year-over-year fall of 2.6%. Sales were 7,008 tons in the quarter under review, down 2.1% from the fourth quarter of 2023.

SCCO produced 28,997 tons of molybdenum in 2024, which was 8.1% higher than that reported in 2023, driven by higher production at each of the mines, barring La Caridad. Molybdenum sales were 29,011 tons, up 7.9% year over year.

Zinc: The company’s zinc production skyrocketed 154.9% year over year to 43,148 tons in the quarter under review. Zinc sales increased 59.4% year over year to 42,120 tons in the fourth quarter of 2024.

Zinc production surged 98.5% year over year to 130,011 tons in 2024. Sales improved 44.6% to 144,139 tons.

Silver: Southern Copper’s silver production improved 18.3% year over year to 5.68 million ounces, while sales rose 21.6% year over year to 5.392 million ounces.

In 2024, silver production improved 14% to 20.983 million ounces from the 2023 levels. Sales improved 15.7% year over year to 20.842 million ounces.

Southern Copper’s Cash Flow & Balance Sheet

SCCO generated net cash from operating activities of $4.42 billion in 2024, up from $3.57 billion in 2023, attributable to higher net income. Cash and cash equivalents were $3.26 billion at the end of 2024 compared with $1.15 billion as of the end of 2023. Long-term debt was $5.76 billion as of Dec 31, 2024, down from the debt of $6.25 billion as of Dec 31, 2023.

SCCO’s Performance in 2024

Southern Copper reported earnings per share of $4.33 in 2024. The bottom line improved 37.9% but missed the Zacks Consensus Estimate of earnings of $4.38 per share. Net sales were a record $11.43 billion, which improved 15.5% year over year on higher sales volumes. However, the top line missed the consensus estimate of $11.57 billion.

Southern Copper’s Guidance for 2025

SCCO expects to produce 967,000 tons of copper in 2025, in line with 2024’s performance. Zinc output is expected to be 171,70 tons, which factors in a 32% year-over-year rise. Silver production is likely to be 23 million ounces of silver, 10% higher than that reported in 2024. Molybdenum production is anticipated to dip 10% to 26,200 tons.

SCCO Stock’s Price Performance

Shares of Southern Copper have gained 19.9% in the past year compared with the industry’s 12.4% growth.

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Performance of Mining Non-Ferrous Stocks

Freeport-McMoRan Inc. FCX recorded net income of $274 million or 19 cents per share for fourth-quarter 2024, down 29.3% from $388 million or 27 cents per share in the year-ago quarter.

Sales declined 3.1% year over year to $5.72 billion. The figure missed the Zacks Consensus Estimate of $5.92 billion. The company witnessed lower copper sales in the reported quarter.

Centrus Energy Corp. LEU reported fourth-quarter 2024 earnings of $3.20 per share, beating the Zacks Consensus Estimate of $1.06. This compares with earnings of $3.58 a year ago. 

Centrus Energy posted sales of $151.6 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate of $105 million. It posted revenues of $104 million in the year-ago quarter.

Southern Copper’s Zacks Rank & Key Pick

Southern Copper currently carries a Zacks Rank #3 (Hold).

A better-ranked stock from the basic materials space is Carpenter Technology Corporation CRS, currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Carpenter Technology’s 2025 earnings is pegged at $6.83 per share. The consensus estimate for 2025 earnings has moved 1% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 15.7%. CRS shares have skyrocketed 188% in a year.

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