Southern Copper: A Good Copper Bet With A High Dividend (NYSE:SCCO)

Introduction

The Phoenix-based Southern Copper Corporation (NYSE:SCCO) is a majority-owned, indirect subsidiary of Grupo México, S.A.B. de C.V. (OTCPK: GMBXF).

As of June 31, 2023, Grupo Mexico, through its wholly-owned subsidiary Americas Mining Corp (“AMC”), owns 88.91% of

Southern Copper Q2’22 Q3’22 Q4’22 Q1’23 Q2’23
Total Revenues in $ Million 2,306.9 2,156.9 2,820.3 2,793.9 2300.7
Net income in $ Million 432.3 519.0 902.4 813.2 547.5
EBITDA $ Million 1,025.7 1,025.7 1,649.8 1,589.2 1138.7
EPS diluted in $/share 0.56 0.67 1.17 1.05 0.71
Cash from Operations in $ Million 309.9 590.1 1,081.9 1,185.2 797.1
Capital Expenditure in $ Million 224.6 227.9 290.9 238.1 252.5
Free Cash Flow in $ Million 85.3 362.2 791.0 947.1 544.6
Total cash $ Million 2,355.7 2,184.8 2,278.1 2,440.4 2,199.3
Total Long-term Debt in $ Million 6.549.4 6,550.3 6,251.2 6,252.0 6,252.9
Dividend $/sh 0.75 0.50 1.00 1.00 1.00
Shares outstanding (diluted) in Million 773.1 773.1 773.1 773.1 773.1

Price Q2’22 Q3’22 Q4’22 Q1’23 Q2’23
Copper price realized – Cu (Comex) $/Lbs 4.32 3.51 3.63 4.05 3.85
Silver price Realized – Ag $/oz 22.65 19.10 21.25 22.53 24.26
Molybdenum price realized – Mo $/Lbs 18.30 16.00 21.17 32.04 20.87
Zinc price $/Lbs 1.78 1.48 1.36 1.42 1.15
Gold $/oz 1,872 1,728 1,729 1,889 1,978

Production Au Oz Q2’22 Q3’22 Q4’22 Q1’23 Q2’23
Production Copper M Lbs 459.5 508.2 531.9 492.2 501.6
Production incl. 3rd party concentrate 520.5 508.7 532.3 492.9 502.8
Production Molybdenum M Lbs 13.9 13.4 14.9 14.2 14.0
Production of Silver K oz 4.45 4.88 4.96 4.41 4.80
Production of Zinc M Lbs 33.4 32.8 33.7 33.2 33.4

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