Southern Copper Q4 net income falls 50.7% YoY to $445M; declares $0.80 dividend

● 2023 Net sales were $9,895.8 million, this is $152 million or 1.5% lower than 2022 net sales. This result was driven by higher sales volumes for copper (+2.2%) and molybdenum (+2.3%) and better prices for molybdenum (+27.5%) and silver (+7.6%). This situation was partially offset by a decrease in metal prices for copper (LME -3.8%) and zinc (-24.1%) and by a reduction in the sales volume of silver (-4.3%) and zinc (-1.4%). Net sales in 2023 were negatively impacted by a year accounting adjustment of $406.0 million for lower metal prices on sales. In addition to this, we estimate that 2023 sales were affected by a larger copper anode inventory in process at year-end. If we exclude these two effects, 2023 sales would have been 3.2% higher than the 2022 mark. ● Net income was $2,425.2 million, 8.1% lower than in 2022.

● Net sales were $2,295.6 million, which represents a drop of 18.6% versus 4Q22’s figures. Sales volumes increased for molybdenum (5.9%) but decreased for copper (-6.5%), silver (-14.8%) and zinc (-8.6%). Prices were up this quarter for copper (LME - +2.2%) and silver (+9.4%), but down for molybdenum (-13%) and zinc (-16.9%). 4Q23 vs 4Q22 net sales were negatively impacted by a quarterly accounting adjustment of $168.4 million for lower metal prices on sales. In addition to this, 4Q23 sales were down due to a larger copper anode inventory in process at year-end. ● Net income was $445.0 million, which represented a 50.7% decrease versus 4Q22’s figures.