Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 30, 2024 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 1-14066 | |
Entity Registrant Name | SOUTHERN COPPER CORP/ | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 13-3849074 | |
Entity Address, Address Line One | 7310 North 16th St, Suite 135 | |
Entity Address, City or Town | Phoenix | |
Entity Address, State or Province | AZ | |
Entity Address, Postal Zip Code | 85020 | |
City Area Code | 602 | |
Local Phone Number | 264-1375 | |
Title of 12(b) Security | Common stock | |
Trading Symbol | SCCO | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 781,159,261 | |
Entity Central Index Key | 0001001838 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS | ||||
Net sales (including sales to related parties, see note 5) | $ 3,118.3 | $ 2,300.7 | $ 5,718.1 | $ 5,094.6 |
Operating cost and expenses: | ||||
Cost of sales (exclusive of depreciation, amortization and depletion shown separately below) | 1,248.9 | 1,147.7 | 2,406.5 | 2,341.9 |
Selling, general and administrative | 33.9 | 31 | 64.8 | 61.4 |
Depreciation, amortization and depletion | 209.6 | 209.2 | 418.6 | 412.9 |
Exploration | 18.6 | 12.1 | 31.2 | 24 |
Total operating costs and expenses | 1,511 | 1,400 | 2,921.1 | 2,840.2 |
Operating income | 1,607.3 | 900.7 | 2,797 | 2,254.4 |
Interest expense | (94.1) | (94) | (188.3) | (188.2) |
Capitalized interest | 10.8 | 12.4 | 24.5 | 23.9 |
Other income (expense) | (19.9) | 5.6 | (0.9) | 16.1 |
Interest income | 26.5 | 23.2 | 53.8 | 44.5 |
Income before income taxes | 1,530.6 | 847.9 | 2,686.2 | 2,150.7 |
Income taxes (including royalty taxes, see Note 4) | 578.8 | 294.5 | 1,002.1 | 774.9 |
Net income before equity earnings of affiliate | 951.8 | 553.4 | 1,684 | 1,375.8 |
Equity (loss) earnings of affiliate, net of income tax | 2 | (3.8) | 8.6 | (10.2) |
Net income | 953.8 | 549.6 | 1,692.6 | 1,365.6 |
Less: Net income attributable to the non-controlling interest | 3.6 | 2.1 | 6.4 | 4.9 |
Net income attributable to SCC | $ 950.2 | $ 547.5 | $ 1,686.2 | $ 1,360.7 |
Per common share amounts attributable to SCC: | ||||
Net earnings-basic | $ 1.22 | $ 0.71 | $ 2.17 | $ 1.76 |
Net earnings-diluted | $ 1.22 | $ 0.71 | $ 2.17 | $ 1.76 |
Weighted average shares outstanding-basic | 777.9 | 773.1 | 775.5 | 773.1 |
Weighted average shares outstanding-diluted | 777.9 | 773.1 | 775.5 | 773.1 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net income and comprehensive income | $ 953.8 | $ 549.6 | $ 1,692.6 | $ 1,365.6 |
Other comprehensive income (loss) net of tax: | ||||
Total comprehensive income | 953.8 | 549.6 | 1,692.6 | 1,365.6 |
Comprehensive income attributable to the non-controlling interest | 3.6 | 2.1 | 6.4 | 4.9 |
Comprehensive income attributable to SCC | $ 950.2 | $ 547.5 | $ 1,686.2 | $ 1,360.7 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 1,875.3 | $ 1,151.5 |
Short-term investments | 329.1 | 599.3 |
Accounts receivable trade | 1,622.3 | 1,141.1 |
Accounts receivable other (including related parties 2024- $16.9 and 2023 - $27.3) | 81.7 | 87.2 |
Inventories | 1,017.2 | 1,016.9 |
Prepaid taxes | 381.4 | 395.4 |
Other current assets | 26.7 | 38.1 |
Total current assets | 5,333.7 | 4,429.5 |
Property and mine development, net | 9,871.5 | 9,782.9 |
Ore stockpiles on leach pads | 1,146.4 | 1,121.7 |
Intangible assets, net | 127.3 | 130.2 |
Right-of-use assets | 745.4 | 775.4 |
Deferred income tax | 269 | 256.1 |
Equity method investment | 114.5 | 108.2 |
Other non-current assets | 169.9 | 121.3 |
Total assets | 17,777.7 | 16,725.3 |
Current liabilities: | ||
Current portion of long-term debt | 499.5 | |
Accounts payable (including related parties 2024- $61.8 and 2023- $93.6) | 647.2 | 652.6 |
Accrued income taxes | 364.8 | 278.3 |
Accrued workers' participation | 159.2 | 245.7 |
Accrued interest | 97.1 | 97.1 |
Lease liabilities current | 76.9 | 78 |
Other accrued liabilities | 53.5 | 36.8 |
Total current liabilities | 1,898.2 | 1,388.5 |
Long-term debt | 5,757 | 6,254.6 |
Lease liabilities | 668.5 | 697.4 |
Deferred income taxes | 158.8 | 132.2 |
Non-current taxes payable | 80.7 | 92.7 |
Other liabilities and reserves | 35.1 | 66.2 |
Asset retirement obligation | 619.2 | 612.5 |
Total non-current liabilities | 7,319.3 | 7,855.6 |
Commitments and contingencies (Note 10) | ||
STOCKHOLDERS' EQUITY (NOTE 11) | ||
Common stock par value $0.01; shares authorized, 2024 and 2023-2,000; shares issued, 2024 and 2023-884.6 | 8.8 | 8.8 |
Additional paid-in capital | 4,256.9 | 3,532.8 |
Retained earnings | 7,180.9 | 7,033.5 |
Accumulated other comprehensive income | (8) | (8) |
Treasury stock, at cost, common shares | (2,946.2) | (3,149) |
Total Southern Copper Corporation stockholders' equity | 8,492.5 | 7,418.1 |
Non-controlling interest | 67.7 | 63.1 |
Total equity | 8,560.2 | 7,481.2 |
Total liabilities and equity | $ 17,777.7 | $ 16,725.3 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Millions, $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Accounts receivable other, related parties | $ 16.9 | $ 27.3 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 2,000 | 2,000 |
Common stock, shares issued | 884.6 | 884.6 |
Affiliates | ||
Accounts receivable other, related parties | $ 16.9 | $ 27.3 |
Accounts payable, related parties | $ 61.8 | $ 93.6 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
OPERATING ACTIVITIES | ||||
Net income | $ 953.8 | $ 549.6 | $ 1,692.6 | $ 1,365.6 |
Adjustments to reconcile net earnings to net cash provided from operating activities: | ||||
Depreciation, amortization and depletion | 209.6 | 209.2 | 418.6 | 412.9 |
Equity earnings of affiliate, net of dividends received | (0.6) | 4.2 | (6.4) | 10.6 |
Loss (gain) on foreign currency transaction effect | (8.1) | 4.6 | (4.3) | 11.1 |
Provision for deferred income taxes | 4 | 24.7 | 23.2 | 6.3 |
Other, net | 5.5 | 7 | 11.1 | 14.5 |
Change in operating assets and liabilities: | ||||
Decrease (increase) in accounts receivable | (328.3) | 194.7 | (481.2) | 326.2 |
(Increase) decrease in inventories | (16.7) | (14) | (24.9) | 15.6 |
(Decrease) in accounts payable and accrued liabilities | (145.6) | (185.5) | 6.2 | (172.8) |
Decrease (increase) in other operating assets and liabilities | 288.5 | 2.6 | (13.1) | (7.7) |
Net cash provided by operating activities | 962.1 | 797.1 | 1,621.8 | 1,982.3 |
INVESTING ACTIVITIES | ||||
Capital expenditures | (331.8) | (252.5) | (545.6) | (490.6) |
Proceeds from sale of short-term investments, net | 0.1 | 140.3 | 270.1 | 208 |
Other | 0.1 | 0.1 | ||
Net cash used in investing activities | (331.7) | (112.1) | (275.5) | (282.5) |
FINANCING ACTIVITIES | ||||
Cash dividends paid to common stockholders | (773.1) | (618.5) | (1,546.2) | |
Other, net | (2.7) | (1.6) | (4.3) | |
Net cash used in financing activities | (775.8) | (620.1) | (1,550.5) | |
Effect of exchange rate changes on cash and cash equivalents | (7.3) | (10) | (2.4) | (20) |
(Decrease) increase in cash and cash equivalents | 623.1 | (100.8) | 723.8 | 129.3 |
Cash and cash equivalents, at beginning of period | 1,252.2 | 2,299.8 | 1,151.5 | 2,069.7 |
Cash and cash equivalents, at end of period | $ 1,875.3 | $ 2,199 | $ 1,875.3 | $ 2,199 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Millions | CAPITAL STOCK | ADDITIONAL PAID-IN CAPITAL | TREASURY STOCK Parent Company (Grupo Mexico) common shares | TREASURY STOCK Parent Company (Grupo Mexico) | TREASURY STOCK | RETAINED EARNINGS | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | STOCKHOLDERS' EQUITY | NON-CONTROLLING INTEREST | Total |
Balance at beginning of period at Dec. 31, 2022 | $ 3,489.7 | $ (2,766.9) | $ (340.7) | $ 7,702.3 | $ (9) | $ 8,084.2 | $ 62.7 | $ 8,146.9 | ||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net earnings | 1,360.7 | 4.9 | 1,360.7 | |||||||
Dividends declared and paid, common stock, per share, 2024- '$2.00, 2023- '$2.25 | (1,546.2) | (4.6) | ||||||||
Used for corporate purposes | 0.1 | |||||||||
Other activity, including dividend, interest and foreign currency transaction effect | (24.3) | |||||||||
Other activity of the period | (25.1) | |||||||||
Balance at end of period at Jun. 30, 2023 | $ 8.8 | 3,514.8 | (2,766.8) | (365) | $ (3,131.8) | 7,516.8 | (9) | 7,899.6 | 63 | 7,962.6 |
Balance at beginning of period at Mar. 31, 2023 | 3,497.7 | (2,766.8) | (348.3) | 7,742.4 | (9) | 8,124.8 | 63.6 | 8,188.4 | ||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net earnings | 547.5 | 2.1 | 547.5 | |||||||
Dividends declared and paid, common stock, per share, 2024- '$2.00, 2023- '$2.25 | (773.1) | (2.7) | ||||||||
Other activity, including dividend, interest and foreign currency transaction effect | (16.7) | |||||||||
Other activity of the period | (17.1) | |||||||||
Balance at end of period at Jun. 30, 2023 | 8.8 | 3,514.8 | (2,766.8) | (365) | (3,131.8) | 7,516.8 | (9) | 7,899.6 | 63 | 7,962.6 |
Balance at beginning of period at Dec. 31, 2023 | 3,532.8 | (2,766.7) | (382.3) | 7,033.5 | (8) | 7,418.1 | 63.1 | 7,481.2 | ||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net earnings | 1,686.2 | 6.4 | 1,686.2 | |||||||
Dividends declared and paid, common stock, per share, 2024- '$2.00, 2023- '$2.25 | (618.5) | (1.8) | ||||||||
Dividend paid in Common Stock | 726.1 | 199.5 | (925.6) | |||||||
Used for corporate purposes | 0.2 | |||||||||
Other activity, including dividend, interest and foreign currency transaction effect | 3.1 | |||||||||
Other activity of the period | 2 | 5.3 | ||||||||
Balance at end of period at Jun. 30, 2024 | 8.8 | 4,256.9 | (2,567) | (379.3) | (2,946.2) | 7,180.9 | (8) | 8,492.5 | 67.7 | 8,560.2 |
Balance at beginning of period at Mar. 31, 2024 | 3,541.4 | (2,766.6) | (390.6) | 7,156.7 | (8) | 7,541.7 | 64.2 | 7,605.9 | ||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net earnings | 950.2 | 3.6 | 950.2 | |||||||
Dividends declared and paid, common stock, per share, 2024- '$2.00, 2023- '$2.25 | (0.1) | |||||||||
Dividend paid in Common Stock | 726.1 | 199.5 | (925.6) | |||||||
Used for corporate purposes | 0.2 | |||||||||
Other activity, including dividend, interest and foreign currency transaction effect | 11.3 | |||||||||
Other activity of the period | 10.6 | (0.4) | ||||||||
Balance at end of period at Jun. 30, 2024 | $ 8.8 | $ 4,256.9 | $ (2,567) | $ (379.3) | $ (2,946.2) | $ 7,180.9 | $ (8) | $ 8,492.5 | $ 67.7 | $ 8,560.2 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | ||
Dividends paid as cash dividend (in dollars per share) | $ 2 | $ 2.25 |
DESCRIPTION OF THE BUSINESS_
DESCRIPTION OF THE BUSINESS: | 6 Months Ended |
Jun. 30, 2024 | |
DESCRIPTION OF THE BUSINESS: | |
DESCRIPTION OF THE BUSINESS: | NOTE 1— DESCRIPTION OF THE BUSINESS: The Company is a majority-owned, indirect subsidiary of Grupo Mexico S.A.B. de C.V. (“Grupo Mexico”). As of June 30, 2024, Grupo Mexico, through its wholly-owned subsidiary Americas Mining Corporation (“AMC”) owned 88.9% of the Company’s capital stock. The condensed consolidated financial statements presented herein consist of the accounts of Southern Copper Corporation (“Southern Copper”, "SCC" or the “Company”), a Delaware corporation, and its subsidiaries. The Company is an integrated producer of copper and other minerals, and operates mining, smelting and refining facilities in Peru and Mexico. The Company conducts its primary operations in Peru through a registered branch (the "Peruvian Branch" or “Branch” or “SPCC Peru Branch”). The Peruvian Branch is not a corporation separate from the Company. The Company's Mexican operations are conducted through subsidiaries. The Company also conducts exploration activities in Argentina, Chile, Ecuador, Mexico and Peru. In the opinion of the Company, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting only of normal recurring adjustments) necessary to fairly state the Company’s financial position as of June 30, 2024 and the results of operations, comprehensive income, cash flows and changes in equity for the three and six months ended June 30, 2024 and 2023. The results of operations for the three and six months ended June 30, 2024 are not necessarily indicative of the results to be expected for the full year. The December 31, 2023 balance sheet data was derived from audited financial statements, but does not include all disclosures required by generally accepted accounting principles in the United States of America (“GAAP”). The accompanying condensed consolidated financial statements should be read in conjunction with the consolidated financial statements at December 31, 2023 and notes included in the Company’s 2023 annual report on Form 10-K. |
SHORT-TERM INVESTMENTS_
SHORT-TERM INVESTMENTS: | 6 Months Ended |
Jun. 30, 2024 | |
SHORT-TERM INVESTMENTS: | |
SHORT-TERM INVESTMENTS: | NOTE 2 — SHORT-TERM INVESTMENTS: Short-term investments were as follows (in millions): At June 30, At December 31, 2024 2023 Trading securities $ 328.9 $ 599.1 Weighted average interest rate 5.5 % 5.7 % Available-for-sale $ 0.2 $ 0.2 Weighted average interest rate 0.8 % 0.8 % Total $ 329.1 $ 599.3 Trading securities consisted of bonds issued by public companies and were publicly traded. Each financial instrument was independent of the others. The Company had the intention to sell these bonds in the short-term. Available-for-sale investments consist of securities issued by public companies. Each security is independent of the others and as of June 30, 2024, and December 31, 2023, included asset and mortgage-backed obligations. As of June 30, 2024 and December 31, 2023, gross unrealized gains and losses on available-for-sale securities were not material. The Company earned interest related to these investments, which was recorded as interest income in the condensed consolidated statement of earnings. Also, the Company redeemed some of these securities and recognized gains (losses) due to changes in fair value, which were recorded as other income (expense) in the condensed consolidated statement of earnings. The following table summarizes the activity of these investments by category (in millions): Three months ended Six months ended June 30, June 30, 2024 2023 2024 2023 Trading: Interest earned $ 7.6 $ 3.5 $ 13.7 $ 6.9 Unrealized gain (loss) at the end of the period $ (*) $ (*) $ (*) $ (*) Available-for-sale: Interest earned $ (*) $ (*) $ (*) $ (*) Investment redeemed $ — $ — $ — $ — (*) Less than $0.1 million . |
INVENTORIES_
INVENTORIES: | 6 Months Ended |
Jun. 30, 2024 | |
INVENTORIES: | |
INVENTORIES: | NOTE 3 — INVENTORIES: Inventories were as follows: At June 30, At December 31, (in millions) 2024 2023 Inventory, current: Metals at average cost: Finished goods $ 58.9 $ 68.8 Work-in-process 308.4 313.0 Ore stockpiles on leach pads 227.6 230.9 Supplies at average cost 422.3 404.2 Total current inventory $ 1,017.2 $ 1,016.9 Inventory, long-term: Ore stockpiles on leach pads $ 1,146.4 $ 1,121.7 During the six-month period ended June 30, 2024 and 2023, total leaching costs capitalized as non-current inventory of ore stockpiles on leach pads amounted to $128.8 million and $147.0 million, respectively. Leaching inventories recognized in cost of sales amounted to $107.5 million and $141.4 million for the six months ended June 30, 2024 and 2023 respectively. |
INCOME TAXES_
INCOME TAXES: | 6 Months Ended |
Jun. 30, 2024 | |
INCOME TAXES: | |
INCOME TAXES: | NOTE 4 — INCOME TAXES: The income tax provision and the effective income tax rate for the six-month period ended June 30, 2024 and 2023 consisted of (in millions): 2024 2023 Statutory income tax provision $ 852.3 $ 649.2 Peruvian royalty 29.1 18.7 Mexican royalty 75.7 72.3 Peruvian special mining tax 45.0 34.7 Total income tax provision $ 1,002.1 $ 774.9 Effective income tax rate 37.3 % 36.0 % These provisions include income taxes for Peru, Mexico and the United States. The Mexican royalty, the Peruvian royalty and the Peruvian special mining tax are included in the income tax provision. The increase in the effective income tax rate in 2024 compared to the same period in 2023 was primarily attributable to a movement in exchange rates of the Mexican peso versus the U.S. dollar. Peruvian royalty and special mining tax Mexican mining royalty Accounting for uncertainty in income taxes: Tax law updates: |
RELATED PARTY TRANSACTIONS_
RELATED PARTY TRANSACTIONS: | 6 Months Ended |
Jun. 30, 2024 | |
RELATED PARTY TRANSACTIONS: | |
RELATED PARTY TRANSACTIONS: | NOTE 5 — RELATED PARTY TRANSACTIONS: The Company has entered into certain transactions in the ordinary course of business with parties that are controlling shareholders or their affiliates. These transactions include the lease of office space, air and railroad transportation, construction services, energy supply, and other products and services related to mining and refining. The Company lends and borrows funds among affiliates for acquisitions and other corporate purposes. These financial transactions bear interest and are subject to review and approval by senior management, as are all related party transactions. Article Nine of the Amended and Restated Certificate of Incorporation of the Company prohibits the Company from engaging in a Material Affiliate Transaction that was not the subject of prior review by a committee of the Board of Directors with at least three members, each of whom is independent, and defines a Material Affiliate Transaction as a transaction or series of related transactions between Grupo Mexico or one of its affiliates (other than the Company or its subsidiaries), on the one hand, and the Company or one of its subsidiaries, on the other hand, that involves consideration of more than $10.0 million in the aggregate. It is the Company’s policy that (i) a Material Affiliate Transaction not be entered into or continued without the review and approval by the Audit Committee or its subcommittee of related party transactions comprised of independent directors,(ii) any potential related party transaction process with aggregate consideration between $8.0 million and $10.0 million be authorized by the General Counsel and Chief Financial Officer of the Company and (iii) that all related party transactions, including any Material Affiliate Transaction, be reported to the Audit Committee of the Board of Directors or to its subcommittee of related party transactions. Receivable and payable balances with related parties are shown below (in millions): At June 30, At December 31, 2024 2023 Related parties receivable current: Grupo Mexico and affiliates: Asarco LLC $ 7.7 $ 9.4 AMMINCO Apoyo Administrativo, S.A. de C.V. (“AMMINCO”) (*) (*) Ferrocarril Mexicano, S.A. de C.V. (*) (*) Mexico Generadora de Energia S. de R.L. ("MGE") 8.1 17.1 Mexico Compania Constructora S.A de C.V. (*) (*) Related to the controlling group: Empresarios Industriales de Mexico, S.A. de C.V. 0.6 0.6 Mexico Transportes Aereos, S.A. de C.V. ("Mextransport") 0.4 0.1 Operadora de Cinemas, S.A. de C.V. 0.1 0.1 $ 16.9 $ 27.3 Related parties payable: Grupo Mexico and affiliates: AMMINCO $ 6.2 $ 5.0 Asarco LLC 14.9 13.8 Eolica El Retiro, S.A.P.I. de C.V. 2.6 0.2 Ferrocarril Mexicano, S.A. de C.V. 6.1 7.9 Grupo Mexico Servicios 3.5 2.7 MGE 19.9 50.3 Mexico Compania Constructora S.A de C.V. 7.1 9.5 Grupo Mexico Servicios de Ingenieria, S.A. de C.V. 0.7 3.5 Related to the controlling group: Boutique Bowling de Mexico, S.A. de C.V. 0.4 0.3 Mexico Transportes Aereos, S.A. de C.V. (“Mextransport”) 0.1 0.3 Operadora de Cinemas, S.A. de C.V. 0.3 0.1 $ 61.8 $ 93.6 (*) Less than $0.1 million. Purchase and sale activity: Grupo Mexico and affiliates: The following table summarizes the purchase and sale activities with Grupo Mexico and its affiliates in the six-month period ended June 30, 2024 and 2023 (in millions): 2024 2023 Purchase activity Asarco LLC $ 2.7 $ 29.5 Eolica El Retiro, S.A.P.I. de C.V. 4.0 1.5 Ferrocarril Mexicano, S.A. de C.V. 24.0 28.9 Grupo Mexico Servicios 10.1 10.1 AMMINCO 5.0 5.0 MGE 92.3 116.4 Mexico Compania Constructora S.A. de C.V. 44.0 24.1 Grupo Mexico Servicios de Ingenieria S. A. de C.V. 9.5 7.9 Total purchases $ 191.6 $ 223.4 Sales activity Asarco LLC $ 14.3 $ 17.3 AMMINCO (*) (*) Ferrocarril Mexicano, S.A. de C.V. (*) — MGE 23.3 28.3 Total sales $ 37.6 $ 45.6 (*) Less than $0.1 million. Grupo Mexico, the parent and the majority indirect stockholder of the Company, and its affiliates provide various services to the Company. These services are primarily related to accounting, legal, tax, financial, treasury, human resources, price risk assessment and hedging, purchasing, procurement and logistics, sales and administrative and other support services. The Company pays AMMINCO and Grupo Mexico Servicios, subsidiaries of Grupo Mexico, for these services and expects to continue requiring these services in the future. In the first six months of 2024, the Company donated $1.5 million to Fundacion Grupo Mexico, A.C., an organization dedicated to promoting the social and economic development of the communities close to the Company’s Mexican operations. In the same period of 2023, the Company donated $2.0 million to this organization. The Company’s Mexican operations paid fees for freight services provided by Ferrocarril Mexicano, S.A. de C.V., which is a subsidiary of Grupo Mexico. The Company´s Peruvian and Mexican operations paid fees for engineering services provided by Grupo Mexico Servicios de Ingenieria, S.A. de C.V., and the Company’s Mexican operations paid fees for construction services provided by Mexico Compania Constructora S.A. de C.V. Both companies are subsidiaries of Mexico Proyectos y Desarrollos, S.A. de C.V., which is a subsidiary of Grupo Mexico. The Company’s Mexican operations purchased copper cathodes, concentrate and starter sheets from Asarco LLC and also paid fees as reimbursement of freight fees. Additionally, the Company´s Mexican operations purchased power from MGE. Both companies are subsidiaries of Grupo Mexico. In 2012, the Company signed a power purchase agreement with MGE, whereby MGE will supply some of the Company’s Mexican operations with power through 2032. MGE has two natural gas-fired combined cycle power generating units, with a net total capacity of 516.2 megawatts and has been supplying power to the Company since December 2013. Currently, MGE is supplying approximately 7.0% of its power output to third-party energy users, compared to 4.0% as of June 30, 2023. In 2014, Mexico Generadora de Energia Eolica, S. de R.L. de C.V, an indirect subsidiary of Grupo Mexico, located in Oaxaca, Mexico, acquired Eolica el Retiro. Eolica el Retiro is a windfarm with 37 wind turbines. This company started operations in January 2014 and began to sell power to Industrial Minera Mexico, S.A. de C.V. and subsidiaries (IMMSA) and other subsidiaries of Grupo Mexico in the third quarter of 2014. Currently, Eolica el Retiro supplies approximately 37.0% of its power output to IMMSA and Mexcobre, compared to 18.5% as of June 30, 2023. The Company sold copper starter sheets, lime and sulfuric acid to Asarco LLC. The Company´s Mexican operations received fees for transportation and administrative services that were provided to Asarco and also received fees for natural gas and services provided to MGE, a subsidiary of Grupo Mexico. Additionally, the Company´s Mexican operations received fees for rental services provided to AMMINCO. Companies with relationships to the controlling group: The following table summarizes the purchase and sales activities with other Larrea family companies in the six-month period ended June 30, 2024 and 2023 (in millions): 2024 2023 Purchase activity Boutique Bowling de Mexico S.A. de C.V. $ 0.3 $ 0.3 Mextransport 1.2 1.3 Operadora de Cinemas S.A. de C.V. 0.2 0.2 Total purchases $ 1.7 $ 1.8 Sales activity Boutique Bowling de Mexico S.A. de C.V. $ 0.1 $ 0.1 Empresarios Industriales de Mexico, S.A. de C.V. 0.1 — Mextransport 1.2 1.1 Operadora de Cinemas S.A. de C.V. 0.1 0.1 Total sales $ 1.5 $ 1.3 (*) amount is lower than $0.1 million The Larrea family controls a majority of the capital stock of Grupo Mexico and has extensive interests in other businesses, including transportation, real estate and entertainment. The Company engages in certain transactions in the ordinary course of business with other entities controlled by the Larrea family relating to the lease of office space, air transportation and entertainment. The Company’s Mexican operations paid fees for entertainment services provided by Boutique Bowling de Mexico, S.A. de C.V. and Operadora de Cinemas, S.A. de C.V. Both companies are controlled by the Larrea family. Mextransport provides aviation services to the Company´s Mexican operations. This is a company controlled by the Larrea family. In addition, the Company received fees for building rental and maintenance provided to Boutique Bowling de Mexico, S.A. de C.V. and Operadora de Cinemas, S.A. de C.V. The Company´s Mexican operations received fees from Mextransport for reimbursement of maintenance expenses and for rental services. Equity Investment in Affiliate: In addition, the Company has a 30.0% participation in Apu Coropuna S.R.L. (“Apu Coropuna”), which it accounts for on the equity method. Apu Coropuna is a company that performs exploration activities in the Pucay prospect, located in Arequipa, Peru. The exploration results were not favorable; consequently, the Company is evaluating liquidating its participation in this company. It is anticipated that in the future the Company will enter into similar transactions with these same parties. |
LEASES_
LEASES: | 6 Months Ended |
Jun. 30, 2024 | |
LEASES: | |
LEASES: | NOTE 6 — LEASES: The Company has operating leases for power generating facilities, vehicles and properties. The Company recognizes leasing expenses for these leases on a straight-line basis over the lease term. Some of the Company’s leases include both lease and non-lease components which are accounted for separately. The Company’s leases have remaining lease terms of one year to nine years, and do not include options to extend the leases. The Company’s lease agreements do not contain options to purchase the leased assets or to terminate the leases before the expiration date. In addition, the Company’s lease contracts have no material residual value guarantees or material restrictive covenants. As none of the Company’s leases stipulates an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The weighted average remaining lease term for the Company’s leases is approximately eight years, and the weighted average discount rate for these leases is 4.00%. The operating lease expense recognized in the six-month period ended June 30, 2024 and 2023 was classified as follows (in millions): Classification 2024 2023 Cost of sales (exclusive of depreciation, amortization and depletion) $ 48.7 $ 58.2 Selling, general and administrative (*) 0.1 Exploration 0.1 (*) Total lease expense $ 48.8 $ 58.3 (*) amount is lower than $0.1 million Maturities of lease liabilities are as follows: Lease liabilities Year (in millions) 2024 $ 56.5 2025 106.9 2026 106.7 2027 106.3 2028 106.0 After 2028 422.1 Total lease payments $ 904.5 Less: interest on lease liabilities (159.2) Present value of lease payments $ 745.4 |
ASSET RETIREMENT OBLIGATION_
ASSET RETIREMENT OBLIGATION: | 6 Months Ended |
Jun. 30, 2024 | |
ASSET RETIREMENT OBLIGATION: | |
ASSET RETIREMENT OBLIGATION: | NOTE 7 — ASSET RETIREMENT OBLIGATION: Peruvian operations: The Company maintains an asset retirement obligation for its mining properties in Peru, as required by the Peruvian Mine Closure Law. In accordance with the requirements of this law, the Company’s closure plans were approved by the Peruvian Ministry of Energy and Mines (“MINEM”). As part of the closure plans, the Company is required to provide annual guarantees over the estimated life of the mines, based on a present value approach, and to furnish the funds for the asset retirement obligation. This law requires a review of closing plans every five years . On June 24, 2019, MINEM approved a change to the guarantees required for the mining closure plans. The new regulation specifies that annual guarantees can be secured with real estate up to a maximum of 50% and the remaining amount with credit instruments. Currently, the Company has pledged the value of its Lima office complex for the 50% of the guarantee and with a stand-by letter of credit for the other 50% as a security for this obligation. Through January 2024, the Company has provided total guarantees of $87.7 million. On July 20, 2021, the Peruvian Government published Law 31347, which requires companies in the production stage to set aside additional guarantees for progressive closure of its operations. The resources that back these guarantees will be returned to the Company when activities cease and the regulatory agency verifies that all closure measures have been satisfactorily completed. Under this Law, companies must include activities for environmental remediation within the closure schedule and assume costs associated with environmental impacts that are identified during audits. As of June 30, 2024, the regulation attached to this Law had yet to be published. The Company is currently evaluating the possible financial impact of the Law but cannot fully estimate the magnitude until the Law’s regulation is published. The closure cost recognized for this liability includes the cost, as outlined in its closure plans, of dismantling the Toquepala and Cuajone concentrators, the Ilo smelter and refinery, and the shops and auxiliary facilities at the three units. In March 2016, MINEM approved the Mining Closure Plan for the Toquepala expansion project and the revised closure plans for the Cuajone mine and the Ilo facilities were approved in January and October 2019, respectively. The closure plan for the Tia Maria project was approved in February 2017. The Company, however, has not recorded a retirement obligation for the project because the work on the project is on hold. The Company believes that under these circumstances, the recording of a retirement obligation is not appropriate. In the first six months of 2024, the Company adjusted its estimate for the asset retirement obligation due to an update of the closure plan for its Ilo facility. The effect was a decrease in the asset retirement obligation to the order of $3.2 million. Mexican operations: The Company has recognized an estimated asset retirement obligation for its mining properties in Mexico as part of its environmental commitment. Even though there is currently no enacted law, statute, ordinance, written or oral contract requiring the Company to carry out mine closure and environmental remediation activities, the Company believes that a constructive obligation presently exists based on the remediation requirements caused by the closure of any facility. The overall cost recognized for mining closure in Mexico includes the estimated costs of dismantling concentrators, smelter and refinery plants, shops and other facilities. In the first six months of 2024, the Company adjusted its estimate for the asset retirement obligation for its Mexican operations following a detailed review of the closing activities required. The effect was a decrease in the asset retirement obligation to the order of $4.5 million. The following table summarizes the asset retirement obligation activity for the six-month period ended June 30, 2024 and 2023 (in millions): 2024 2023 Balance as of January 1 $ 612.6 $ 585.3 Changes in estimates (7.7) — Closure payments — (0.3) Accretion expense 14.3 12.9 Balance as of June 30, $ 619.2 $ 597.9 |
BENEFIT PLANS_
BENEFIT PLANS: | 6 Months Ended |
Jun. 30, 2024 | |
BENEFIT PLANS: | |
BENEFIT PLANS: | NOTE 8 — BENEFIT PLANS: Post retirement defined benefit plans: The Company has two non-contributory defined benefit pension plans covering former salaried employees in the United States and certain former expatriate employees in Peru. Effective October 31, 2000, the Board of Directors amended the qualified pension plan to suspend the accrual of benefits. In addition, the Company’s Mexican subsidiaries have a defined contribution pension plan for salaried employees and a non-contributory defined benefit pension plan for union employees. The components of net periodic benefit costs for the six-month period ended June 30, 2024 and 2023 are as follows (in millions): (in millions) 2024 2023 Service cost $ 1.3 $ 1.0 Interest cost 2.0 1.7 Expected return on plan assets (3.2) (2.7) Amortization of prior service cost / (credit) 0.2 0.2 Amortization of net loss/(gain) — — Net periodic benefit cost $ 0.3 $ 0.2 Post-retirement health care plans: In Mexico, through 2007, the Buenavista unit provided health care services free of charge to employees and retired unionized employees and their families through its hospital at the Buenavista unit. In 2011, the Company signed an agreement with the Secretary of Health of the State of Sonora, which assumed the obligation to provide healthcare services to retired workers and their families. New employees at Buenavista del Cobre will receive health services from the Mexican Institute of Social Security, as is the case for all workers at our Mexican operations. The components of net periodic benefit cost for the six-month period ended June 30, 2024 and 2023 are as follows (in millions): (in millions) 2024 2023 Interest cost $ 1.1 $ 1.0 Amortization of net loss (gain) — — Amortization of prior service cost/ (credit) — — Net periodic benefit cost $ 1.1 $ 1.0 |
COMMITMENTS AND CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES: | 6 Months Ended |
Jun. 30, 2024 | |
COMMITMENTS AND CONTINGENCIES: | |
COMMITMENTS AND CONTINGENCIES: | NOTE 9 — COMMITMENTS AND CONTINGENCIES: Environmental matters: The Company has established comprehensive environmental conservation programs at its mining facilities in Peru and Mexico. The Company’s environmental programs include water recovery systems to conserve water and minimize the impact on nearby streams, reforestation programs to stabilize the surface of the tailings dams and the implementation of scrubbing technology in the mines to reduce dust emissions, among others. Environmental capital investments in the six-month period ended June 30, 2024 and 2023 were as follows (in millions): 2024 2023 Peruvian operations $ 2.0 $ 3.5 Mexican operations 92.8 43.9 $ 94.8 $ 47.4 Peruvian operations: Air Quality Standards (“AQS”): In November 2023, MINAM enacted a new AQS 10 AQS Soil Environmental Quality Standards (“SQS”) Climate change: Mexican operations: The principal legislation applicable to the Company’s Mexican operations is the Federal General Law of Ecological Balance and Environmental Protection (the “General Law”), which is enforced by the Federal Bureau of Environmental Protection (“PROFEPA”). PROFEPA monitors compliance with environmental legislation and enforces Mexican environmental laws, regulations and official standards. It may also initiate administrative proceedings against companies that violate environmental laws, which in the most extreme cases may result in the temporary or permanent shutdown of non-complying facilities, the revocation of operating licenses and/or other sanctions or fines. In 2011, the General Law was amended to provide an individual or entity the ability to contest administrative acts, including environmental authorizations, permits or concessions granted, without the need to demonstrate the actual existence of harm to the environment as long as it can be argued that the harm may be caused. Additionally, amendments to the Civil Federal Procedures Code (“CFPC”) were enacted in 2011 and established three categories of collective actions under which a group of 30 or more individuals can be considered sufficient to prove a “legitimate interest” to file civil actions for injuries arising out of alleged violations of environmental, consumer protection, financial services and Antitrust laws. The group can seek restitution or economic compensation for the alleged injuries or suspension of the activities which allegedly caused the injuries in question. The amendments to the CFPC may result in more litigation, with plaintiffs seeking remedies, including suspension of the activities alleged to cause harm. In 2013, the Environmental Liability Federal Law was enacted. The law establishes general guidelines for actions considered likely to cause environmental harm. If a possible determination regarding harm occurs, environmental clean-up and remedial actions sufficient to restore the environment to a pre-existing condition must be taken. If restoration is not possible, compensation measures should be provided. Criminal penalties and monetary fines can be imposed under this law. Guaymas sulfuric acid spill: On July 10, 2019, PROFEPA made a first inspection of the area, concluding that the Company executed all the appropriate procedures to contain the discharge, and no reference was made to the existence of negative impacts on the environment resulting from the incident. On July 19, 2019, PROFEPA revisited the facilities to carry out a second inspection and declared a partial temporary shutdown that only affected the storage process and transportation of sulfuric acid at the terminal, arguing the absence of an authorization of environmental impact. It is important to note that these facilities have been in operation since 1979, prior to the 1988 Mexican General Law of Ecological Balance and the Protection of the Environment. Companies that were operating before the enactment of the aforementioned law are exempt from the permit requirement. The Company has solved this issue and expect to restart operations soon. Climate change: The Company believes that all of its facilities in Peru and Mexico are in material compliance with environmental, mining and other applicable laws and regulations. The Company also believes that continued compliance with environmental laws of Mexico and Peru will have no material adverse effects on the Company’s business, properties, or operating results. On May 09, 2023, Mexican Congress approved several changes effective immediately to the Mining Law, National Waters Law, the General Law of Ecological Balance and Environmental Protection, and the General Law for the Prevention and Integral Management of Waste. The main changes are reducing mining concession terms from 50 to 30 years; new restrictions and conditions on water use; requirements to provide guarantees for closure and remediation of operations; and a requirement to contribute 5% of net earnings to indigenous communities for new projects and significant changes to exploration rules. These amendments to the law have been challenged and are being reviewed by the Supreme Court. The company is not expecting any negative impacts on its operations. Litigation matters Peruvian operations: The Tia Maria Mining Project There are five lawsuits filed against the Peruvian Branch of the Company related to the Tia Maria project. The lawsuits seek (i) to declare null and void the resolution that approved the Environmental Impact Assessment of the project; (ii) the cancellation of the project and the withdrawal of mining activities in the area; (iii) to annul the mining concession application for the Tia Maria project; and (iv) to annul the resolution that approved the construction license. The lawsuits were filed by Messrs. Ernesto Mendoza Padilla (filed May 26, 2015), Juan Alberto Guillen Lopez (filed June 18, 2015), Junta de Usuarios del Valle del Tambo (filed April 30, 2015), Gobierno Regional de Arequipa (filed December 16, 2019) and Municipalidad Distrital de Dean Valdivia (filed in January 2020 but notified in August 2022). It should be noted that the Supreme Court of Justice of Peru has already issued a final ruling on the Carpio Lazo case challenging the approval of the Environmental Impact Assessment (EIA) of the Tía Maria project (notified on February 22, 2022), which ratified the legality of said Environmental Impact Assessment. The Judiciary recognized SPCC's strict compliance with all applicable environmental regulations during the approval stages of the Tía María EIA. This decision should have a favorable impact on the cases described below: The Mendoza Padilla case was initially rejected by the lower court on July 8, 2015. This ruling was confirmed by the Superior Court on June 14, 2016. On July 12, 2016, the case was appealed before the Constitutional Court. On November 20, 2018, the Constitutional Court reversed the previous decisions and remanded the case to the lower court for further action. In the third quarter of 2020, the Company was notified that the complaint had been reinstated. The Company answered the complaint on September 15, 2020. On December 2, 2020, the lower court issued a resolution, considering the complaint answered. On September 27, 2021, the Court ordered to temporarily archive the case. As of June 30, 2024, the case remains pending resolution. The Guillen Lopez case is currently before the lower court. Oral arguments took place on July 19, 2019. On January 7, 2020, the Judge decided to suspend the proceedings until the del Carpio Lazo case is concluded. On March 8, 2022, SCC’s Peruvian Branch informed the Court that the del Carpio Lazo case had concluded. On September 7, 2023, the Judge cancelled the suspension and declared the case ready for a resolution. On May 18, 2024, the Judge declared, once again, that the case was ready for resolution. As of June 30, 2024, the case remains pending resolution. The Junta de Usuarios del Valle del Tambo case is currently before the lower court. In May 2016, the Company was included in the process after the Ministry of Energy and Mines filed a civil complaint. On March 6, 2019, the Company was formally notified of the lawsuit and answered the complaint on March 20, 2019. On July 8, 2019, the Company requested the suspension of the proceeding until the del Carpio Lazo case is concluded. On March 11, 2022, SCC’s Peruvian Branch informed the Court that the del Carpio Lazo case had concluded. On January 5, 2024, SCC´s Peruvian Branch reiterated its petition to continue the process given that a final decision has already been handed down in Carpio Lazo case. As of June 30, 2024, the case remains pending resolution. The Gobierno Regional de Arequipa case is currently before the Superior Court. The Company answered the complaint on September 15, 2020. On February 8, 2021, the Judge decided to suspend the proceeding until the del Carpio Lazo case was concluded. On March 24, 2022, SCC’s Peruvian Branch informed the Court that the del Carpio Lazo case had concluded. On March 28, 2022, the Judge cancelled the suspension. On May 24, 2022, the parties presented their closing arguments. On March 15, 2023, the Judge dismissed the lawsuit. The plaintiff missed the chance to appeal the ruling, therefore, the Judge declared the case had concluded in favor of SCC’s Peruvian Branch. On October 20, 2023 the Superior Court declared that the plaintiff had not been properly informed of the ruling and ordered issuance of a new notification of the First Instance ruling. The Superior Court instructed the First Instance Court to inform the Gobierno Regional de Arequipa Gobierno Regional de Arequipa The Municipalidad Distrital de Dean Valdivia case is currently before the lower court. On August 17, 2022, the Company was formally notified of the lawsuit and answered the complaint on September 2, 2022. SCC’s Peruvian Branch informed the Court the result of the del Carpio Lazo case. As of June 30, 2024, the case is pending resolution. The Company asserts that these lawsuits are without merit and is vigorously defending against them. The potential contingency amount for these cases cannot be reasonably estimated by management at this time. Special Regional Pasto Grande Project (“Pasto Grande Project”) In 2012, the Pasto Grande Project, an entity of the Regional Government of Moquegua, filed a lawsuit against SCC’s Peruvian Branch alleging property rights over a certain area used by the Peruvian Branch and seeking the demolition of the tailings dam where SCC’s Peruvian Branch has deposited its tailings from the Toquepala and Cuajone operations since 1995. The Peruvian Branch has had title to use the area in question since 1960 and has constructed and operated the tailings dams with proper governmental authorization since 1995. Following a motion filed by the Peruvian Branch, the lower court included MINEM as a defendant in this lawsuit. MINEM has answered the complaint and denied the validity of the claim. On July 2, 2022, the case was temporarily archived. On May 26, 2023, the Judge ordered termination of the proceeding due to the lack of interest of the plaintiff. On June 2, 2023, the plaintiff appealed the termination of the proceeding. On September 18, 2023, the Superior Court reversed the termination and ordered the Judge to continue the proceeding. As of June 30, 2024, the case is pending resolution. SCC’s Peruvian Branch asserts that the lawsuit is without merit and is vigorously defending against it. The amount of this contingency cannot be reasonably estimated by management at this time. Mexican operations: The Accidental Spill at Buenavista Mine of 2014 Regarding the 2014 accidental spill of copper sulfate solution at a leaching pond in the Buenavista mine, the following legal procedures are pending against the Company: On August 19, 2014, PROFEPA, as part of the administrative proceeding initiated after the spill, announced the filing of a criminal complaint against Buenavista del Cobre S.A. de C.V. (“BVC”), a subsidiary of the Company to determine those responsible for environmental damages. During the second quarter of 2018, the criminal complaint was dismissed. This decision was appealed and was pending resolution as of June 30, 2024. On October 12, 2023, SEMARNAT publicly announced the filing of another criminal complaint regarding the Sonora River spill, arguing that remediation of damages to the river was incomplete and compensation for said damages was insufficient. The Company has been directed to provide information regarding remediation activities and compensation for damages. In due course, BVC will analyze this new complaint. Nonetheless, the Company strongly believes that it has duly completed all remediation and compensation-related activities as required by the competent Mexican authorities and as such, this new complaint lacks merit. Through the first half of 2015, six collective action lawsuits were filed in federal courts in Mexico City and Sonora against two subsidiaries of the Company seeking economic compensation, clean up and remedial activities in order to restore the environment to its pre-existing conditions. Three of the collective action lawsuits have been dismissed by the court. As of June 30, 2024, three lawsuits are still pending: two were filed by Acciones Colectivas de Sinaloa, A.C. and one, by Defensa Colectiva, A.C.; requesting precautionary measures about construction of facilities for monitoring public health services and prohibiting the closure of the Rio Sonora Trust. Similarly, during 2015, eight civil action lawsuits were filed against BVC in the state courts of Sonora seeking damages for alleged injuries and for moral damages as a consequence of the spill. The plaintiffs in the state court lawsuits are: Jose Vicente Arriola Nunez et al; Santana Ruiz Molina et al; Andres Nogales Romero et al; Teodoro Javier Robles et al; Gildardo Vasquez Carvajal et al; Rafael Noriega Souffle et al; Grupo Banamichi Unido de Sonora El Dorado, S.C. de R.L. de C.V; and Marcelino Mercado Cruz. In 2016, three additional civil action lawsuits, claiming similar damages, were filed by Juan Melquicedec Lebaron; Blanca Lidia Valenzuela Rivera et al and Ramona Franco Quijada et al. In 2017, BVC was served with thirty-three additional civil action lawsuits, claiming similar damages. The lawsuits were filed by Francisco Javier Molina Peralta et al; Anacleto Cohen Machini et al; Francisco Rafael Alvarez Ruiz et al; Jose Alberto Martinez Bracamonte et al; Gloria del Carmen Ramirez Duarte et al; Flor Margarita Sabori et al; Blanca Esthela Ruiz Toledo et al; Julio Alfonso Corral Dominguez et al; Maria Eduwiges Bracamonte Villa et al; Francisca Marquez Dominguez et al; Jose Juan Romo Bravo et al; Jose Alfredo Garcia Leyva et al; Gloria Irma Dominguez Perez et al; Maria del Refugio Romero et al; Miguel Rivas Medina et al; Yolanda Valenzuela Garrobo et al; Maria Elena Garcia Leyva et al; Manuel Alfonso Ortiz Valenzuela et al; Francisco Alberto Arvayo Romero et al; Maria del Carmen Villanueva Lopez et al; Manuel Martin Garcia Salazar; Miguel Garcia Arguelles et al; Dora Elena Rodriguez Ochoa et al; Honora Eduwiges Ortiz Rodriguez et al; Francisco Jose Martinez Lopez et al; Maria Eduwiges Lopez Bustamante; Rodolfo Barron Villa et al, Jose Carlos Martinez Fernandez et al, Maria de los Angeles Fabela et al; Rafaela Edith Haro et al; Luz Mercedes Cruz et al; Juan Pedro Montaño et al; and Juana Irma Alday Villa. In the first quarter of 2018, BVC was served with another civil action lawsuit, claiming similar damages. The lawsuit was filed by Alma Angelina Del Cid Rivera et al. In the last quarter of 2018, BVC was served with other three civil action lawsuits, claiming similar damages, these lawsuits were filed by Los Corrales de la Estancia, S.C. de R.L.; Jose Antonio Navarro; Jesus Maria Peña Molina, et al; these three actions were dismissed by the court, because they have expired. As of June 30, 2024, forty-five cases were pending resolution. In 2015, four constitutional lawsuits (juicios de amparo) were filed before Federal Courts against various authorities and against a subsidiary of the Company, arguing; (i) the alleged lack of a waste management program approved by SEMARNAT; (ii) the alleged lack of a remediation plan approved by SEMARNAT with regard to the August 2014 spill; (iii) the alleged lack of community approval regarding the environmental impact authorizations granted by SEMARNAT to one subsidiary of the Company; and (iv) the alleged inactivity of the authorities with regard of the spill in August 2014. The plaintiffs of these lawsuits are: Francisca Garcia Enriquez, et al filed two lawsuits, Francisco Ramon Miranda, et al and Jesus David Lopez Peralta et al. In the third quarter of 2016, four additional constitutional lawsuits, claiming similar damages were filed by Mario Alberto Salcido et al; Maria Elena Heredia Bustamante et al; Martin Eligio Ortiz Gamez et al; and Maria de los Angeles Enriquez Bacame et al. In the third quarter of 2017, BVC was served with another constitutional lawsuit filed by Francisca García Enriquez et al. In 2018, BVC was served with two additional constitutional lawsuits that were filed against SEMARNAT by Norberto Bustamante et al. With regard to the constitutional lawsuit filed by Maria Elena Heredia Bustamante et al; in which it was claimed the lack of community approval regarding the authorization granted by SEMARNAT to build the new BVC tailings dam, on September 5, 2018, the Supreme Court of Justice issued a resolution establishing that such authorization was granted to BVC in compliance with the applicable legislation. However, SEMARNAT must carry out a public meeting to inform the community of the technical aspects required to build the dam, potential impacts and prevention measures. This public meeting will have no material effects to BVC’s operations. SEMARNAT has carried out the consultation ordered by the Supreme Court. As a result, it has informed the corresponding Judge about its compliance with the resolution, in which BVC was required to implement additional measures of environmental impact prevention, such as: (i) the building of at least three monitoring wells downstream from the curtain of the contingency dam in a period of six months; (ii) monitoring of the groundwater level and water quality every six months; (iii) carrying out rain collection work in order to restore water to the Sonora River basin, with six months granted to present the execution program; (iv) determine the location of wildlife conservation and protection areas and define the need to establish biological corridors; (v) obtain photographic or videographic evidence every six months; (vi) submitting to SEMARNAT two years before the closure and abandonment of the site, or earlier if necessary, the closure program that includes the cleaning and restoration of the soil including Mexican regulation NOM-141; (vii) include the measures in the Environmental Monitoring Program according to the environmental components impacted; and (viii) hiring an external environmental consultant to validate compliance with the current and new conditions imposed. The foregoing does not impact BVC’s operations. Additionally, the lawsuits filed by Maria de los Angeles Enriquez Bacame and Norberto Bustamante have been dismissed and closed without prejudice to the Company. As of June 30, 2024, the remaining cases were pending resolution. It is currently not possible to determine the extent of the damages sought in these state and federal lawsuits but the Company believes that these lawsuits are without merit. Accordingly, the Company is vigorously defending against them. Nevertheless, the Company believes that none of the legal proceedings resulting from the spill, individually or in the aggregate, would have a material effect on its financial position or results of operations. Labor matters Peruvian operations: In the first quarter of 2023, the Company began applying the terms of the agreement entered into with the six unions pursuant to Law 31632, which stipulates new conditions for compensation of leaves granted during COVID-19. Within the current framework of labor regulations and the agreements with all six unions, this compensation has been adapted to align with current working hours of the mining sector. These conditions were in effect until December 1, 2023. In June 2023, the Company held two meetings with the unions to discuss different issues of collective interest. In these meetings, the unions expressed concerns regarding the current economic situation, including the rise in the cost of living in Peru, as well as issues related to the provision of services granted by the Company. In this regard, in the third quarter of 2023, the Company released a formal response to each union where it is confirmed that there are collective labor agreements in force with each union. These agreements have regulated all the benefits related to salaries and working conditions. The Company has been complying with all its obligations under such collective labor agreements and guarantees it will continue to maintain on-going communication with the unions to ensure harmony. In the last quarter of 2023, one of the unions which represents 24.7% of affiliated workers in the Company’s three productive units, held elections for 2023-2025. Another union, which represents 25.7% of affiliated workers, is in the process of electing its new representatives. In the second quarter of 2024, meetings were held with five of the Company's six unions. At the meetings, the unions collectively emphasized their requests petition for a "Productivity Bonus" starting in 2024. Additionally, the unions requested that discussions regarding their collective labor agreements move forward. The Company is still evaluating this request. The Company maintains permanent communication with union representatives to ensure labor harmony and proper management of labor relations. Southern Peru has collective bargaining An important development in labor relations with the Company´s unions stems from a ruling by the Peruvian Supreme Court that was notified to the Company on October 23, 2023. After 12 years of litigation, the Court ruled in favor of the Company to settle a suit involving a worker payment the amount of S/11,000 (approximately $2,866.8) that a lower court had ordered the Company to pay to one of the unions in 2011. The Company had been legally pursuing recovery of the total amount paid to the workers. The union has expressed its intention to comply with the court order and to reach an agreement to return the amount paid by the Company. Mexican operations : The workers of the San Martin mine were on strike since July 2007. On February 28, 2018, the striking workers of the San Martín mine of IMMSA held an election to vote on the union that would hold the collective bargaining agreement at the San Martin mine. The Federacion Nacional de Sindicatos Independientes (the National Federation of Independent Unions) won the vote by a majority. Nevertheless, the vote was challenged by the National Mining Union. On June 26, 2018, the Federal Mediation and Arbitration Board issued a ruling recognizing the election results. Due to the agreement between workers and the Company to end the protracted strike, on August 22, 2018, the Federal Mediation and Arbitration Board authorized the restart of operations of the San Martin mine. Such authorization was challenged by the National Mining Union. On April 4, 2019, the Federal Mediation and Arbitration Board recognized, once again, the election results from February 28, 2018, by which the National Federation of Independent Unions won by a majority. In the last quarter of 2019, a Federal Court issued a resolution that established that the Labor Court should analyze the list of workers with the right to vote in the union election. The Company and the National Federation of Independent Unions challenged such determination before the Supreme Court of Justice. Such challenges were dismissed by the Supreme Court. Consequently, on September 6, 2021, the Federal Mediation and Arbitration Board issued a new resolution determining that, based on the documents submitted by the National Federation of Independent Unions and given the status of the strike until 2018, it was not possible to create a registry of workers holding a right to vote. Therefore, in case of a strike, any collective bargaining proceedings shall remain suspended. On June 9, 2023, the Federal Mediation and Arbitration Board, in a ruling that veered from its previous stance, did not recognize the common representatives of the coalition workers and consequently ruled that the agreement which such representatives had made with the Company to lift the strike in 2018 lacked validity. Notwithstanding, on June 14, 2023 the Federal Mediation and Arbitration Board handed down a ruling that terminated the strike and ordered workers to resume activities within 15 days. The Mining Union filed a protective action (Amparo) against this resolution, which is pending resolution as of June 30, 2024. Additionally, the Mining Union filed a complaint before the Government of the United States of America under the rules of the Rapid Response Mechanism contained in the Mexico-United States-Canada Treaty (“T-MEC”), alleging denial of free association rights. On April 26, 2024, the arbitration panel of the Labor Rapid Response Mechanism ruled in favor of the Government of Mexico, determining that they did not have jurisdiction to rule on the denial of union rights at the mine. The Company collaborated by providing background information on the case and followed up every stage of the arbitration. The Company´s operations at the San Martin unit continue to evolve normally and the conflict is expected to be resolved in accordance with the legal framework set by labor authorities; any actions taken will respect the will of the workers In the case of the Taxco mine, its workers have been on strike since July 2007. After several legal procedures, in August 2015, the Supreme Court decided to assert jurisdiction over the case and to rule on it directly. As of June 30, 2024, the case was pending resolution without further developments. It is expected that operations at the Taxco mine will remain suspended until the labor issues are resolved. In view of the lengthy strike, the Company has reviewed the carrying value of the Taxco mine to ascertain whether impairment exists. The Company concluded that there is a non-material impairment of the assets located at this mine. Other legal matters The Company is involved in various other legal proceedings incidental to its operations, but the Company does not believe that decisions adverse to it in any such proceedings, individually or in the aggregate, would have a material effect on its financial position or results of operations. Other commitments: Peruvian Operations: Michiquillay In June 2018, the Company signed a contract for the acquisition of the Michiquillay copper project in Cajamarca, Peru, at a purchase price of $400 million. Michiquillay is a world-class mining project with estimated inferred mineral resources of 2,288 million tonnes with an estimated copper grade of 0.43%. It is expected to produce 225,000 tonnes of copper per year (along with by-products of molybdenum, gold and silver) for an initial mine life of more than 25 years. As per the purchase agreement, the Company paid $12.5 million at the signing of the contract and $12.5 million in June 2021. The remaining balance of $375.0 million will be paid if the Company decides to develop the project. Therefore, it is not a present obligation. In June 2022, the Company notified the Peruvian authorities of the end of the suspension period and the start of the preoperational period that lasts 12 years and it can be extended for three In 2021, the Company signed social agreements with the Michiquillay and La Encañada communities. In addition, in October 2021, the Peruvian Ministry of Energy and Mines approved the semi-detailed environmental impact study for the project. In the last quarter of 2022, the Company informed MINEM that exploration activities had begun and that it initiated an in-depth assessment of existing mineral resources. In 2023, in accordance with the social agreements with the Michiquillay and La Encañada communities, the Company has hired unskilled labor and is paying for the use of surface land. The Company is supporting social programs in both communities. Additionally, the Company continues exploration activities on this project and as of June 30, 2024, total advancement on the project stood at 30%. We have drilled 104,000 meters and obtained 33,991 core samples for chemical analysis. Diamond drilling is underway, which will provide data for cross-section interpretation, geological modeling and resource evaluation. We expect to begin hydrogeological and geotechnical studies soon, and will also assess the results of metallurgical testing at the deposit. Social agreements with the Michiquillay and La Encañada communities represent an opportunity to improve quality of life for their residents through the Company´s strong social programs, backed by a solid framework for technical work at the project level. The main commitments signed by the Company regarding the social agreements are related to providing support for agricultural and livestock activities, financial support for local initiatives, and social programs in favor of education, water management, waste disposal, and healthcare for vulnerable groups. Corporate Social Responsibility The Company has a corporate social responsibility policy to maintain and promote the continuity of its mining operations while obtaining the best results. The main objective of this policy is to integrate the Company´s operations with local communities in the areas of influence of its operations by creating permanent positive relationships to develop optimum social conditions and promote sustainable development in the area. Accordingly, the Company has made the following commitments: Tacna Region million). Among the most important projects are the construction of the Cularjahuira dam for S/ As the Toquepala expansion project was completed, the Company considers that these commitments constitute present obligations of the Company and consequently has recorded a liability of $21.4 million in its consolidated financial statements as of June 30, 2024. In addition, the Company has committed S/102.1 million (approximately $26.6 million) for the construction of a high-achievement school in the Tacna region under the “Works for Taxes” ( obras por impuestos Moquegua Region In addition, the Company has committed S/233.0 million (approximately $60.7 million) to build four infrastructure projects in the Moquegua region and has financed pre-investment studies for basic sanitation for S/0.3 million (approximately $0.1 million), all of that under the “Works for Taxes” (obras por impuestos) program, which allows the Company to use these amounts as an advance payment of taxes. Apurimac Region Arequipa Region Power purchase agreements ● Electroperu S.A.: In June 2014, the Company entered into a power purchase agreement for 120 megawatts (“MW”) with the state power company Electroperu S.A., under which Electroperu S.A. began supplying energy for the Peruvian operations for twenty years starting on April 17, 2017. ● Kallpa Generacion S.A. (“Kallpa”): In July 2014, the Company entered into a power purchase agreement for 120 MW with Kallpa, an independent Israeli owned power company, under which Kallpa will supply energy for the Peruvian operations for ten years starting on April 17, 2017 and ending on April 30, 2027. In May 2016, the Company signed an additional power purchase agreement for a maximum of 80 MW with Kallpa, under which Kallpa began supplying energy for the Peruvian operations related to the Toquepala Expansion and other minor projects starting on May 1, 2017 and ending on October 31, 2029. Mexican operations: Power purchase agreements ● MGE: In 2012, the Company signed a power purchase agreement with MGE, an indirect subsidiary of Grupo Mexico, to supply power to some of the Company’s Mexican operations through 2032. For further information, please see Note 5 “Related party transactions”. ● Eolica el Retiro, S.A.P.I. de C.V.: In 2013, the Company signed a power purchase agreement with Eolica el Retiro, S.A.P.I. de C.V. a windfarm e |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 6 Months Ended |
Jun. 30, 2024 | |
STOCKHOLDERS' EQUITY: | |
STOCKHOLDERS' EQUITY: | NOTE 10 — STOCKHOLDERS’EQUITY: Treasury Stock: Activity in treasury stock in the six-month period ended June 30, 2024 and 2023 is as follows (in millions): 2024 2023 Southern Copper common shares Balance as of January 1, $ 2,766.7 $ 2,766.9 Used for corporate purposes (199.7) (0.1) Balance as of June 30, 2,566.9 2,766.8 Parent Company (Grupo Mexico) common shares Balance as of January 1, 382.3 340.7 Other activity, including dividend, interest and foreign currency transaction effect (3.1) 24.3 Balance as of June 30, 379.3 365.0 Treasury stock balance as of June 30, $ 2,946.2 $ 3,131.8 (*) Less than $0.1 million. Common Stock: In September 2022, Grupo Mexico, through its wholly owned subsidiary AMC, purchased 350,000 shares of SCC’s Common Stock. With this purchase and the Company’s repurchase of shares of its Common Stock, the indirect ownership of Grupo Mexico increased to 88.92% at December 31, 2022. Southern Copper Common Shares: On May 23, 2024 the Company paid a dividend of 0.0104 shares per common share which represents a reduction of 8,039,992 shares of common stock in Treasury for a total of $199.5 million On June 30, 2024 and on December 31, 2023, 103,436,825 and 111,485,617 shares of SCC’s common stock were in Treasury, respectively. Directors’ Stock Award Plan: The Company has established a Director´s Stock Award Plan for certain non-employee directors. Southern Copper has reserved 600,000 shares of common stock for the plan. Under this plan, participants are entitled to an award of 1,600 shares of common stock upon election to the Board of Directors and are eligible to receive 1,600 additional shares of common stock per year thereafter. Commencing with the second quarter of 2021, Directors receive quarterly awards of 400 shares, contingent upon attendance of each quarterly Board meeting. The fair value of the award is measured each year at the date of the grant. On May 27, 2022, the Company’s stockholders approved a five-year extension of the Plan until January 27, 2028. The award is not subject to vesting requirements. For the first six months of 2024 and 2023, the stock-based compensation expense associated with this plan amounted $0.9 million and $0.5 million, respectively. The activity of this plan for the years ended June 30, 2024 and 2023 was as follows: 2024 2023 Total SCC shares reserved for the plan 600,000 600,000 Total shares granted at January 1, (428,800) (416,800) Granted in the period (8,800) (6,400) Total shares granted at June 30, (437,600) (423,200) Remaining shares reserved 162,400 176,800 Parent Company common shares: Total common shares of Grupo Mexico held by the treasury stood at 65,082,830 and 69,277,412 as of June 30, 2024 and June 30, 2023, respectively. Employee Stock Purchase Plan: 2018 Plan: 1 If Grupo Mexico pays dividends on shares during the eight-year period, the participants will be entitled to receive the dividend in cash for all shares that have been fully purchased and paid as of the date that the dividend is paid. If the participant has only partially paid for shares, the entitled dividends will be used to reduce the remaining liability owed for purchased shares. In the case of voluntary or involuntary resignation/termination of the employee, the Company will pay to the employee the fair market sales price on the date of resignation of the fully paid shares, net of costs and taxes. When the fair market sales value of the shares is higher than the purchase price, the Company will apply a deduction over the amount to be paid to the employee based on a decreasing schedule specified in the plan. In case of retirement or death of the employee, the Company will render the buyer or his legal beneficiary, the fair market sales value as of the date of retirement or death of the shares effectively paid, net of costs and taxes. The stock based compensation expense for the six-month period ended June 30, 2024 and 2023 and the unrecognized compensation expense under this plan were as follows (in millions): 2024 2023 Stock based compensation expense $ 0.3 $ 0.3 Unrecognized compensation expense $ 1.4 $ 2.1 The following table presents the stock award activity of this plan for the six-month period ended June 30, 2024 and 2023: Unit Weighted Average Shares Grant Date Fair Value Outstanding shares at January 1, 2024 1,962,936 $ 1.86 Granted — Exercised (41,742) $ 1.86 Forfeited — Outstanding shares at June 30, 2024 1,921,194 $ 1.86 Outstanding shares at January 1, 2023 2,754,506 $ 1.86 Granted — — Exercised (694,565) 1.86 Forfeited — — Outstanding shares at June 30, 2023 2,059,941 $ 1.86 Executive Stock Purchase Plan: Grupo Mexico also offers a stock purchase plan to certain members of its executive management; to executive management at its subsidiaries; and to certain affiliated companies. Under this plan, participants will receive cash incentive bonuses to purchase shares of Grupo Mexico, which are deposited in a trust. Non-controlling interest: The following table presents the non-controlling interest activity the six-month period ended June 30, 2024 and 2023 (in millions): 2024 2023 Balance as of January 1, $ 63.1 $ 62.7 Net earnings 6.4 4.9 Dividend paid (1.8) (4.6) Balance as of June 30, $ 67.7 $ 63.0 |
FAIR VALUE MEASUREMENT_
FAIR VALUE MEASUREMENT: | 6 Months Ended |
Jun. 30, 2024 | |
FAIR VALUE MEASUREMENT: | |
FAIR VALUE MEASUREMENT: | NOTE 11 — FAIR VALUE MEASUREMENT: Subtopic 820-10 of ASC “Fair value measurement and disclosures — Overall” establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under Subtopic 820-10 are described below: Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2 - Inputs that are observable, either directly or indirectly, but do not qualify as Level 1 inputs. (i.e., quoted prices for similar assets or liabilities). Level 3 - Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). The carrying amounts of certain financial instruments, including cash and cash equivalents, accounts receivable (other than accounts receivable associated with provisionally priced sales) and accounts payable approximate fair value due to their short maturities. Consequently, such financial instruments are not included in the following table, which provides information about the carrying amounts and estimated fair values of other financial instruments that are not measured at fair value in the condensed consolidated balance sheet as of June 30, 2024 and December 31, 2023 (in millions): At June 30, 2024 At December 31, 2023 Carrying Value Fair Value Carrying Value Fair Value Liabilities: Long-term debt level 1 $ 6,205.3 $ 6,217.9 $ 6,203.4 $ 6,431.9 Long-term debt level 2 51.2 54.7 51.2 54.0 Total long-term debt $ 6,256.5 $ 6,272.6 $ 6,254.6 $ 6,485.9 Long-term debt is carried at amortized cost and its estimated fair value is based on quoted market prices classified as Level 1 in the fair value hierarchy except for the case of the Yankee bonds, which qualify as Level 2 in the fair value hierarchy as they are based on quoted prices in markets that are not active. Fair values of assets and liabilities measured at fair value on a recurring basis were calculated as follows as of June 30, 2024 and December 31, 2023 (in millions): Fair Value at Measurement Date Using: Significant Fair Value Quoted prices in other Significant as of active markets for observable unobservable June 30, identical assets inputs inputs Description 2024 (Level 1) (Level 2) (Level 3) Assets: Short term investment: — $ 328.9 $ 328.9 $ — $ — — Asset backed securities (*) — (*) — Mortgage backed securities 0.1 — 0.1 — Accounts receivable: — — Provisionally priced sales: Copper 834.0 834.0 — — Molybdenum 371.1 371.1 — — Total $ 1,534.2 $ 1,534.0 $ 0.2 $ — (*) Less than $0.1 million Fair Value at Measurement Date Using: Significant Fair Value Quoted prices in other Significant as of active markets for observable unobservable December 31, identical assets inputs inputs Description 2023 (Level 1) (Level 2) (Level 3) Assets: Short term investment: — $ 599.1 $ 599.1 $ — $ — — Asset backed securities 0.1 — 0.1 — Mortgage backed securities 0.1 — 0.1 — Accounts receivable: — Provisionally priced sales: Copper 657.5 657.5 — — Molybdenum 264.9 264.9 — — Total $ 1,521.7 $ 1,521.5 $ 0.2 $ — The Company’s short-term trading securities investments were classified as Level 1 because they were valued using quoted prices of the same securities as they consisted of bonds issued by public companies and were publicly traded. The Company’s short-term available-for-sale investments are classified as Level 2 because they are valued using quoted prices for similar investments. The Company’s accounts receivables associated with provisionally priced copper sales are valued using quoted market prices based on the forward price on the LME or on the COMEX. Such value is classified within Level 1 of the fair value hierarchy. Molybdenum prices are established by reference to the publication Platts Metals Week and are considered Level 1 in the fair value hierarchy. |
REVENUE_
REVENUE: | 6 Months Ended |
Jun. 30, 2024 | |
REVENUE: | |
REVENUE: | NOTE 12 — REVENUE: The Company’s net sales were $3,118.3 million and $5,718.1 million in the three and six-month period ended June 30, 2024, compared to $2,300.7 million and $5,094.6 million in the same period of 2023. The geographic breakdown of the Company’s sales is as follows (in millions): Three Months Ended June 30, 2024 Mexican Mexican IMMSA Peruvian Corporate & Open-Pit Unit Operations Elimination Consolidated The Americas: Mexico $ 654.7 $ 121.0 $ 9.3 $ (41.3) $ 743.8 United States 325.4 0.3 63.5 389.2 Peru — 10.6 168.2 (10.8) 167.9 Brazil — 13.1 127.9 141.0 Chile — — 131.9 131.9 Other American countries 13.5 — 7.2 20.7 Europe: Switzerland 152.3 25.4 196.9 374.6 Italy — 6.4 108.4 114.8 Spain 131.3 — 25.8 157.1 Other European countries 29.0 4.0 132.5 165.6 Asia: China 334.7 2.4 60.2 397.3 Singapore 45.7 2.0 28.6 76.3 Japan 27.2 — 155.3 182.5 Other Asian countries 24.7 — 30.9 55.6 Total $ 1,738.5 $ 185.2 $ 1,246.7 $ (52.1) $ 3,118.3 (*) Less than $0.1 million. Three Months Ended June 30, 2023 Mexican Mexican IMMSA Peruvian Corporate & Open-Pit Unit Operations Elimination Consolidated The Americas: Mexico $ 529.5 $ 117.9 $ — $ (32.4) $ 615.0 United States 237.8 1.3 104.1 — 343.2 Peru — 6.1 109.0 (6.2) 108.9 Brazil — 4.4 78.9 — 83.3 Chile (3.2) — 63.7 — 60.5 Other American countries 10.7 0.5 8.8 — 20.0 Europe: Switzerland 174.5 3.4 181.0 — 358.9 Italy 0.4 3.1 93.3 — 96.8 Spain 88.6 — 19.4 — 108.0 Other European countries 14.1 3.4 43.9 — 61.4 Asia: China 139.3 1.0 28.9 — 169.2 Singapore 64.7 — 51.9 — 116.6 Japan 30.1 — 101.7 — 131.8 Other Asian countries 24.7 0.1 2.3 — 27.1 Total $ 1,311.2 $ 141.2 $ 886.9 $ (38.6) $ 2,300.7 Six Months Ended June 30, 2024 Mexican Mexican IMMSA Peruvian Corporate & Open-Pit Unit Operations Elimination Consolidated The Americas: Mexico $ 1,246.0 $ 227.2 $ 17.2 $ (74.3) $ 1,416.1 United States 597.6 2.0 102.2 701.8 Peru — 19.0 334.1 (19.1) 334.0 Brazil — 22.0 243.9 265.9 Chile — — 226.4 226.4 Other American countries 20.7 — 11.3 32.0 Europe: Switzerland 314.1 40.7 248.9 603.6 Italy (*) 12.5 183.7 196.1 Spain 241.6 — 45.7 287.2 Other European countries 87.6 5.4 239.4 332.4 Asia: China 510.3 3.5 169.9 683.7 Singapore 63.3 (0.6) 70.9 133.6 Japan 81.3 — 346.2 427.5 Other Asian countries 42.0 — 35.6 77.7 Total $ 3,204.4 $ 331.6 $ 2,275.4 $ (93.4) $ 5,718.1 (*) Less than $0.1 million. Six Months Ended June 30, 2023 Mexican Mexican IMMSA Peruvian Corporate & Open-Pit Unit Operations Elimination Consolidated The Americas: Mexico $ 1,190.4 $ 254.9 $ — $ (68.9) $ 1,376.4 United States 594.5 8.6 252.4 — 855.5 Peru — 7.8 273.4 (7.9) 273.3 Brazil — 15.3 176.1 — 191.4 Chile (8.4) — 169.7 — 161.3 Other American countries 20.2 0.6 15.0 — 35.8 Europe: Switzerland 311.3 12.0 284.5 — 607.8 Italy 0.2 9.5 210.4 — 220.1 Spain 212.5 — 19.4 — 231.9 Other European countries 73.7 10.8 97.2 — 181.7 Asia: China 292.6 1.0 58.6 — 352.2 Singapore 108.8 — 109.2 — 218.0 Japan 92.0 — 239.3 — 331.3 Other Asian countries 50.3 0.2 7.4 — 57.9 Total $ 2,938.1 $ 320.7 $ 1,912.6 $ (76.8) $ 5,094.6 The following table presents information regarding the sales value by reporting segment of the Company’s significant products for the three and six-month period ended June 30, 2024 and 2023 (in millions): Three Months Ended June 30, 2024 Mexican Mexican IMMSA Peruvian Corporate, Other & Total Open-pit Unit Operations Eliminations Consolidated Copper $ 1,347.1 $ 41.8 $ 1,001.7 $ (24.0) $ 2,366.6 Molybdenum 213.3 — 166.0 — 379.2 Silver 91.5 52.1 39.9 (26.3) 157.2 Zinc 44.8 70.1 — (0.1) 114.9 Other 41.8 21.1 39.2 (1.8) 100.3 Total $ 1,738.5 $ 185.2 $ 1,246.7 $ (52.1) $ 3,118.3 Three Months Ended June 30, 2023 Mexican Mexican IMMSA Peruvian Corporate, Other & Total Open-pit Unit Operations Eliminations Consolidated Copper $ 1,042.7 $ 21.9 $ 735.0 $ (17.1) $ 1,782.5 Molybdenum 170.5 — 83.9 — 254.4 Zinc 54.2 38.2 25.2 (18.9) 98.7 Silver — 63.3 — (0.3) 63.0 Other 43.8 17.8 42.8 (2.3) 102.1 Total $ 1,311.2 $ 141.2 $ 886.9 $ (38.6) $ 2,300.7 Six Months Ended June 30, 2024 Mexican Mexican IMMSA Peruvian Corporate, Other & Total Open-pit Unit Operations Eliminations Consolidated Copper $ 2,553.3 $ 69.3 $ 1,830.7 $ (42.9) $ 4,410.3 Molybdenum 357.8 — 295.0 — 652.8 Silver 158.1 87.6 71.0 (48.0) 268.7 Zinc 49.1 135.4 — 0.6 185.0 Other 86.1 39.4 78.8 (3.0) 201.2 Total $ 3,204.4 $ 331.6 $ 2,275.4 $ (93.4) $ 5,718.1 Six Months Ended June 30, 2023 Mexican Mexican IMMSA Peruvian Corporate, Other & Total Open-pit Unit Operations Eliminations Consolidated Copper $ 2,383.3 $ 41.4 $ 1,539.9 $ (34.3) $ 3,930.3 Molybdenum 331.2 — 224.8 — 556.0 Zinc 119.5 81.0 50.7 (37.4) 213.8 Silver — 154.8 — 0.3 155.1 Other 104.1 43.5 97.2 (5.4) 239.4 Total $ 2,938.1 $ 320.7 $ 1,912.6 $ (76.8) $ 5,094.6 The opening and closing balances of receivables by reporting segment of the Company were as follows (in millions): Mexican Mexican IMMSA Peruvian Corporate & Open-Pit Unit Operations Elimination Consolidated As of June 30, 2024: Trade receivables $ 913.6 $ 71.0 $ 637.7 $ $ 1,622.3 Related parties, current 43.8 25.6 0.3 (52.8) 16.9 As of December 31, 2023: Trade receivables $ 556.3 $ 49.1 $ 535.7 $ — $ 1,141.1 Related parties, current 25.7 0.9 0.8 (0.1) 27.3 As of June 30, 2024, the Company has long-term contracts with promises to deliver the following products in 2024: Copper concentrates (in tonnes) 177,500 Copper cathodes (in tonnes) 48,000 Molybdenum concentrates (in tonnes) 23,543 Sulfuric acid (in tonnes) 271,628 Provisionally priced sales Following are the provisionally priced copper and molybdenum sales outstanding at June 30, 2024: Sales volume Priced at (million lbs.) (per pound) Month of settlement Copper 190.7 4.37 July 2024 through October 2024 Molybdenum 16.2 22.90 July 2024 through October 2024 The provisional sales price adjustment included in accounts receivable and net sales as of June 30, 2024 incorporates a positive adjustments of 12.2 million for copper and 20.2 million for molybdenum. Management believes that the final pricing of these sales will not have a material effect on the Company’s financial position or on operating results. |
SEGMENT AND RELATED INFORMATION
SEGMENT AND RELATED INFORMATION: | 6 Months Ended |
Jun. 30, 2024 | |
SEGMENT AND RELATED INFORMATION: | |
SEGMENT AND RELATED INFORMATION: | NOTE 13 — SEGMENT AND RELATED INFORMATION: Company management views Southern Copper as having three reportable segments and manages it on the basis of these segments. The reportable segments identified by the Company are: the Peruvian operations, the Mexican open-pit operations and the Mexican underground mining operations segment identified as the IMMSA unit. The three reportable segments identified are groups of mines, each of which constitute an operating segment, with similar economic characteristics, types of products, processes and support facilities, similar regulatory environments, similar employee bargaining contracts and similar currency risks. In addition, each mine within the individual group earns revenues from similar types of customers for their products and services and each group incurs expenses independently, including commercial transactions between groups. Financial information is regularly prepared for each of the three segments and the results of the Company’s operations are regularly reported to the Chief Operating Decision Maker (“CODM”) on the segment basis. The CODM of the Company focuses on operating income and on total assets as measures of performance to evaluate different segments and to make decisions to allocate resources to the reported segments. These are common measures in the mining industry. Financial information relating to Southern Copper’s segments is as follows: Three Months Ended June 30, 2024 (in millions) Mexican Corporate, other Mexican IMMSA Peruvian and Open-pit Unit Operations eliminations Consolidated Net sales outside of segments $ 1,738.5 $ 133.1 $ 1,246.7 $ — $ 3,118.3 Intersegment sales — 52.1 — (52.1) (0.0) Cost of sales (exclusive of depreciation, amortization and depletion) 663.0 109.9 526.1 (50.1) 1,248.9 Selling, general and administrative 18.1 3.3 9.7 2.8 33.9 Depreciation, amortization and depletion 102.6 18.2 79.8 9.0 209.6 Exploration 2.4 2.6 10.7 2.9 18.6 Operating income $ 952.4 $ 51.1 $ 620.4 $ (16.7) 1,607.3 Less: Interest, net (56.8) Other income (expense) (19.9) Income taxes (578.8) Equity earnings of affiliate 2.0 Non-controlling interest (3.6) Net income attributable to SCC $ 950.2 Capital investment $ 234.7 $ 29.4 $ 65.9 $ 1.8 $ 331.8 Property and mine development, net $ 4,687.2 $ 775.0 $ 3,766.7 $ 642.6 $ 9,871.5 Total assets $ 9,164.4 $ 1,214.7 $ 5,735.6 $ 1,663.0 $ 17,777.7 Three Months Ended June 30, 2023 (in millions) Mexican Corporate, other Mexican IMMSA Peruvian and Open-pit Unit Operations eliminations Consolidated Net sales outside of segments $ 1,311.2 $ 102.6 $ 886.9 $ — $ 2,300.7 Intersegment sales — 38.6 — (38.6) — Cost of sales (exclusive of depreciation, amortization and depletion) 572.0 122.8 470.4 (17.5) 1,147.7 Selling, general and administrative 16.9 2.3 9.5 2.3 31.0 Depreciation, amortization and depletion 115.7 17.3 82.8 (6.6) 209.2 Exploration 1.4 1.7 7.5 1.5 12.1 Operating income $ 605.2 $ (2.9) $ 316.7 $ (18.3) 900.7 Less: Interest, net (58.4) Other income (expense) 5.6 Income taxes (294.5) Equity earnings of affiliate (3.8) Non-controlling interest (2.1) Net income attributable to SCC $ 547.5 Capital investment $ 149.1 $ 33.7 $ 66.6 $ 3.1 $ 252.5 Property and mine development, net $ 4,705.8 $ 704.9 $ 3,636.5 $ 640.9 $ 9,688.1 Total assets $ 8,976.3 $ 1,130.7 $ 4,648.9 $ 2,183.6 $ 16,939.5 Six Months Ended June 30, 2024 (in millions) Mexican Corporate, other Mexican IMMSA Peruvian and Open-pit Unit Operations eliminations Consolidated Net sales outside of segments $ 3,204.4 $ 238.2 $ 2,275.4 $ — $ 5,718.1 Intersegment sales — 93.4 — (93.4) (0.0) Cost of sales (exclusive of depreciation, amortization and depletion) 1,257.6 239.6 1,000.7 (91.5) 2,406.5 Selling, general and administrative 35.2 5.9 19.1 4.6 64.8 Depreciation, amortization and depletion 202.3 37.4 161.2 17.7 418.6 Exploration 6.0 4.4 16.5 4.4 31.2 Operating income $ 1,703.3 $ 44.4 $ 1,077.9 $ (28.7) 2,797.0 Less: Interest, net (109.9) Other income (expense) (0.9) Income taxes (1,002.1) Equity earnings of affiliate 8.6 Non-controlling interest (6.4) Net income attributable to SCC $ 1,686.2 Capital investment $ 341.7 $ 61.2 $ 136.4 $ 6.2 $ 545.6 Property and mine development, net $ 4,687.2 $ 775.0 $ 3,766.7 $ 642.6 $ 9,871.5 Total assets $ 9,164.4 $ 1,214.7 $ 5,735.6 $ 1,663.0 $ 17,777.7 Six Months Ended June 30, 2023 (in millions) Mexican Corporate, other Mexican IMMSA Peruvian and Open-pit Unit Operations eliminations Consolidated Net sales outside of segments $ 2,938.1 $ 243.9 $ 1,912.6 $ — $ 5,094.6 Intersegment sales — 76.8 — (76.8) — Cost of sales (exclusive of depreciation, amortization and depletion) 1,190.4 278.2 951.7 (78.4) 2,341.9 Selling, general and administrative 32.8 5.3 18.5 4.8 61.4 Depreciation, amortization and depletion 191.2 34.8 164.4 22.5 412.9 Exploration 2.7 3.9 12.1 5.3 24.0 Operating income $ 1,521.0 $ (1.5) $ 765.9 $ (31.0) 2,254.4 Less: Interest, net (119.8) Other income (expense) 16.1 Income taxes (774.9) Equity earnings of affiliate (10.2) Non-controlling interest (4.9) Net income attributable to SCC $ 1,360.7 Capital investment $ 264.8 $ 62.5 $ 156.4 $ 6.9 $ 490.6 Property and mine development, net $ 4,705.8 $ 704.9 $ 3,636.5 $ 640.9 $ 9,688.1 Total assets $ 8,976.3 $ 1,130.7 $ 4,648.9 $ 2,183.6 $ 16,939.5 |
SUBSEQUENT EVENTS_
SUBSEQUENT EVENTS: | 6 Months Ended |
Jun. 30, 2024 | |
SUBSEQUENT EVENTS: | |
SUBSEQUENT EVENTS: | NOTE 14 — SUBSEQUENT EVENTS: On July 1, 2024, Southern Peru Copper Corporation announced that it will restart construction of the Tia Maria project. The decision to restart construction follows discussions with the Peruvian government regarding the best course of action for the project based on the social and political conditions in the province of Islay, in the region, and at the national level. Dividends On July 18, 2024, the Board of Directors authorized a quarterly cash dividend of $0.60 per share of common stock and a stock dividend of 0.0056 shares of common stock per share of common stock, payable on August 26, 2024 for shareholders of record at the close of business on August 9, 2024. In lieu of fractional shares, cash will be distributed to each shareholder who would otherwise have been entitled to receive a fractional share, based on a share price of $106.54, which is the average of the high and low share price on July 18, 2024. Shareholders will not be required to take any action to receive the stock dividend. After the payment date, shareholders' book entry accounts will be credited with the additional shares that represent the stock dividend. When shares are held in a brokerage account in the name of a broker, the additional shares will be distributed to the broker on the shareholder's behalf. The stock dividend is administered by Computershare, the Company's transfer agent. |
SHORT-TERM INVESTMENTS_ (Tables
SHORT-TERM INVESTMENTS: (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
SHORT-TERM INVESTMENTS: | |
Schedule of short-term investments | Short-term investments were as follows (in millions): At June 30, At December 31, 2024 2023 Trading securities $ 328.9 $ 599.1 Weighted average interest rate 5.5 % 5.7 % Available-for-sale $ 0.2 $ 0.2 Weighted average interest rate 0.8 % 0.8 % Total $ 329.1 $ 599.3 |
Summary of activity investments | The following table summarizes the activity of these investments by category (in millions): Three months ended Six months ended June 30, June 30, 2024 2023 2024 2023 Trading: Interest earned $ 7.6 $ 3.5 $ 13.7 $ 6.9 Unrealized gain (loss) at the end of the period $ (*) $ (*) $ (*) $ (*) Available-for-sale: Interest earned $ (*) $ (*) $ (*) $ (*) Investment redeemed $ — $ — $ — $ — (*) Less than $0.1 million . |
INVENTORIES_ (Tables)
INVENTORIES: (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
INVENTORIES: | |
Schedule of inventories | At June 30, At December 31, (in millions) 2024 2023 Inventory, current: Metals at average cost: Finished goods $ 58.9 $ 68.8 Work-in-process 308.4 313.0 Ore stockpiles on leach pads 227.6 230.9 Supplies at average cost 422.3 404.2 Total current inventory $ 1,017.2 $ 1,016.9 Inventory, long-term: Ore stockpiles on leach pads $ 1,146.4 $ 1,121.7 |
INCOME TAXES_ (Tables)
INCOME TAXES: (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
INCOME TAXES: | |
Schedule of income tax provision and effective income tax rate | The income tax provision and the effective income tax rate for the six-month period ended June 30, 2024 and 2023 consisted of (in millions): 2024 2023 Statutory income tax provision $ 852.3 $ 649.2 Peruvian royalty 29.1 18.7 Mexican royalty 75.7 72.3 Peruvian special mining tax 45.0 34.7 Total income tax provision $ 1,002.1 $ 774.9 Effective income tax rate 37.3 % 36.0 % |
RELATED PARTY TRANSACTIONS_ (Ta
RELATED PARTY TRANSACTIONS: (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
RELATED PARTY TRANSACTIONS: | |
Schedule of receivable and payable balances with related parties | Receivable and payable balances with related parties are shown below (in millions): At June 30, At December 31, 2024 2023 Related parties receivable current: Grupo Mexico and affiliates: Asarco LLC $ 7.7 $ 9.4 AMMINCO Apoyo Administrativo, S.A. de C.V. (“AMMINCO”) (*) (*) Ferrocarril Mexicano, S.A. de C.V. (*) (*) Mexico Generadora de Energia S. de R.L. ("MGE") 8.1 17.1 Mexico Compania Constructora S.A de C.V. (*) (*) Related to the controlling group: Empresarios Industriales de Mexico, S.A. de C.V. 0.6 0.6 Mexico Transportes Aereos, S.A. de C.V. ("Mextransport") 0.4 0.1 Operadora de Cinemas, S.A. de C.V. 0.1 0.1 $ 16.9 $ 27.3 Related parties payable: Grupo Mexico and affiliates: AMMINCO $ 6.2 $ 5.0 Asarco LLC 14.9 13.8 Eolica El Retiro, S.A.P.I. de C.V. 2.6 0.2 Ferrocarril Mexicano, S.A. de C.V. 6.1 7.9 Grupo Mexico Servicios 3.5 2.7 MGE 19.9 50.3 Mexico Compania Constructora S.A de C.V. 7.1 9.5 Grupo Mexico Servicios de Ingenieria, S.A. de C.V. 0.7 3.5 Related to the controlling group: Boutique Bowling de Mexico, S.A. de C.V. 0.4 0.3 Mexico Transportes Aereos, S.A. de C.V. (“Mextransport”) 0.1 0.3 Operadora de Cinemas, S.A. de C.V. 0.3 0.1 $ 61.8 $ 93.6 (*) Less than $0.1 million. |
Grupo Mexico and affiliates | |
RELATED PARTY TRANSACTIONS: | |
Schedule of purchase and sales activities with related parties | The following table summarizes the purchase and sale activities with Grupo Mexico and its affiliates in the six-month period ended June 30, 2024 and 2023 (in millions): 2024 2023 Purchase activity Asarco LLC $ 2.7 $ 29.5 Eolica El Retiro, S.A.P.I. de C.V. 4.0 1.5 Ferrocarril Mexicano, S.A. de C.V. 24.0 28.9 Grupo Mexico Servicios 10.1 10.1 AMMINCO 5.0 5.0 MGE 92.3 116.4 Mexico Compania Constructora S.A. de C.V. 44.0 24.1 Grupo Mexico Servicios de Ingenieria S. A. de C.V. 9.5 7.9 Total purchases $ 191.6 $ 223.4 Sales activity Asarco LLC $ 14.3 $ 17.3 AMMINCO (*) (*) Ferrocarril Mexicano, S.A. de C.V. (*) — MGE 23.3 28.3 Total sales $ 37.6 $ 45.6 (*) Less than $0.1 million. |
Companies with relationship to the controlling group | |
RELATED PARTY TRANSACTIONS: | |
Schedule of purchase and sales activities with related parties | The following table summarizes the purchase and sales activities with other Larrea family companies in the six-month period ended June 30, 2024 and 2023 (in millions): 2024 2023 Purchase activity Boutique Bowling de Mexico S.A. de C.V. $ 0.3 $ 0.3 Mextransport 1.2 1.3 Operadora de Cinemas S.A. de C.V. 0.2 0.2 Total purchases $ 1.7 $ 1.8 Sales activity Boutique Bowling de Mexico S.A. de C.V. $ 0.1 $ 0.1 Empresarios Industriales de Mexico, S.A. de C.V. 0.1 — Mextransport 1.2 1.1 Operadora de Cinemas S.A. de C.V. 0.1 0.1 Total sales $ 1.5 $ 1.3 (*) amount is lower than $0.1 million |
LEASES_ (Tables)
LEASES: (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
LEASES: | |
Schedule of the operating lease expense recognized | The operating lease expense recognized in the six-month period ended June 30, 2024 and 2023 was classified as follows (in millions): Classification 2024 2023 Cost of sales (exclusive of depreciation, amortization and depletion) $ 48.7 $ 58.2 Selling, general and administrative (*) 0.1 Exploration 0.1 (*) Total lease expense $ 48.8 $ 58.3 (*) amount is lower than $0.1 million |
Schedule of Maturities of lease liabilities | Lease liabilities Year (in millions) 2024 $ 56.5 2025 106.9 2026 106.7 2027 106.3 2028 106.0 After 2028 422.1 Total lease payments $ 904.5 Less: interest on lease liabilities (159.2) Present value of lease payments $ 745.4 |
ASSET RETIREMENT OBLIGATION_ (T
ASSET RETIREMENT OBLIGATION: (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
ASSET RETIREMENT OBLIGATION: | |
Summary of asset retirement obligation activity | The following table summarizes the asset retirement obligation activity for the six-month period ended June 30, 2024 and 2023 (in millions): 2024 2023 Balance as of January 1 $ 612.6 $ 585.3 Changes in estimates (7.7) — Closure payments — (0.3) Accretion expense 14.3 12.9 Balance as of June 30, $ 619.2 $ 597.9 |
BENEFIT PLANS_ (Tables)
BENEFIT PLANS: (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Post retirement defined benefit plans and defined contribution plan | |
Components of net periodic benefit costs | |
Schedule of the components of net periodic benefit costs | The components of net periodic benefit costs for the six-month period ended June 30, 2024 and 2023 are as follows (in millions): (in millions) 2024 2023 Service cost $ 1.3 $ 1.0 Interest cost 2.0 1.7 Expected return on plan assets (3.2) (2.7) Amortization of prior service cost / (credit) 0.2 0.2 Amortization of net loss/(gain) — — Net periodic benefit cost $ 0.3 $ 0.2 |
Post-retirement health care plans | |
Components of net periodic benefit costs | |
Schedule of the components of net periodic benefit costs | The components of net periodic benefit cost for the six-month period ended June 30, 2024 and 2023 are as follows (in millions): (in millions) 2024 2023 Interest cost $ 1.1 $ 1.0 Amortization of net loss (gain) — — Amortization of prior service cost/ (credit) — — Net periodic benefit cost $ 1.1 $ 1.0 |
COMMITMENTS AND CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES: (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
COMMITMENTS AND CONTINGENCIES: | |
Schedule of environmental capital investments | Environmental capital investments in the six-month period ended June 30, 2024 and 2023 were as follows (in millions): 2024 2023 Peruvian operations $ 2.0 $ 3.5 Mexican operations 92.8 43.9 $ 94.8 $ 47.4 |
STOCKHOLDERS' EQUITY_ (Tables)
STOCKHOLDERS' EQUITY: (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Share based Compensation Plan | |
Schedule of activity in treasury stock | Activity in treasury stock in the six-month period ended June 30, 2024 and 2023 is as follows (in millions): 2024 2023 Southern Copper common shares Balance as of January 1, $ 2,766.7 $ 2,766.9 Used for corporate purposes (199.7) (0.1) Balance as of June 30, 2,566.9 2,766.8 Parent Company (Grupo Mexico) common shares Balance as of January 1, 382.3 340.7 Other activity, including dividend, interest and foreign currency transaction effect (3.1) 24.3 Balance as of June 30, 379.3 365.0 Treasury stock balance as of June 30, $ 2,946.2 $ 3,131.8 (*) Less than $0.1 million. |
Schedule of activity in Directors' Stock Award Plan | 2024 2023 Total SCC shares reserved for the plan 600,000 600,000 Total shares granted at January 1, (428,800) (416,800) Granted in the period (8,800) (6,400) Total shares granted at June 30, (437,600) (423,200) Remaining shares reserved 162,400 176,800 |
Summary of non-controlling interest activity | The following table presents the non-controlling interest activity the six-month period ended June 30, 2024 and 2023 (in millions): 2024 2023 Balance as of January 1, $ 63.1 $ 62.7 Net earnings 6.4 4.9 Dividend paid (1.8) (4.6) Balance as of June 30, $ 67.7 $ 63.0 |
Employee Stock Purchase 2018 Plan | |
Share based Compensation Plan | |
Schedule of stock based compensation expense and unrecognized compensation expense | The stock based compensation expense for the six-month period ended June 30, 2024 and 2023 and the unrecognized compensation expense under this plan were as follows (in millions): 2024 2023 Stock based compensation expense $ 0.3 $ 0.3 Unrecognized compensation expense $ 1.4 $ 2.1 |
Schedule of stock award activity | Unit Weighted Average Shares Grant Date Fair Value Outstanding shares at January 1, 2024 1,962,936 $ 1.86 Granted — Exercised (41,742) $ 1.86 Forfeited — Outstanding shares at June 30, 2024 1,921,194 $ 1.86 Outstanding shares at January 1, 2023 2,754,506 $ 1.86 Granted — — Exercised (694,565) 1.86 Forfeited — — Outstanding shares at June 30, 2023 2,059,941 $ 1.86 |
FAIR VALUE MEASUREMENT_ (Tables
FAIR VALUE MEASUREMENT: (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
FAIR VALUE MEASUREMENT: | |
Schedule of carrying amount and estimated fair values of the Company's financial instruments | Consequently, such financial instruments are not included in the following table, which provides information about the carrying amounts and estimated fair values of other financial instruments that are not measured at fair value in the condensed consolidated balance sheet as of June 30, 2024 and December 31, 2023 (in millions): At June 30, 2024 At December 31, 2023 Carrying Value Fair Value Carrying Value Fair Value Liabilities: Long-term debt level 1 $ 6,205.3 $ 6,217.9 $ 6,203.4 $ 6,431.9 Long-term debt level 2 51.2 54.7 51.2 54.0 Total long-term debt $ 6,256.5 $ 6,272.6 $ 6,254.6 $ 6,485.9 |
Schedule of fair values of assets and liabilities measured at fair value on a recurring basis | Fair values of assets and liabilities measured at fair value on a recurring basis were calculated as follows as of June 30, 2024 and December 31, 2023 (in millions): Fair Value at Measurement Date Using: Significant Fair Value Quoted prices in other Significant as of active markets for observable unobservable June 30, identical assets inputs inputs Description 2024 (Level 1) (Level 2) (Level 3) Assets: Short term investment: — $ 328.9 $ 328.9 $ — $ — — Asset backed securities (*) — (*) — Mortgage backed securities 0.1 — 0.1 — Accounts receivable: — — Provisionally priced sales: Copper 834.0 834.0 — — Molybdenum 371.1 371.1 — — Total $ 1,534.2 $ 1,534.0 $ 0.2 $ — (*) Less than $0.1 million Fair Value at Measurement Date Using: Significant Fair Value Quoted prices in other Significant as of active markets for observable unobservable December 31, identical assets inputs inputs Description 2023 (Level 1) (Level 2) (Level 3) Assets: Short term investment: — $ 599.1 $ 599.1 $ — $ — — Asset backed securities 0.1 — 0.1 — Mortgage backed securities 0.1 — 0.1 — Accounts receivable: — Provisionally priced sales: Copper 657.5 657.5 — — Molybdenum 264.9 264.9 — — Total $ 1,521.7 $ 1,521.5 $ 0.2 $ — |
REVENUE_ (Tables)
REVENUE: (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
REVENUE: | |
Summary of company's sales by geographic wise and segment wise | The geographic breakdown of the Company’s sales is as follows (in millions): Three Months Ended June 30, 2024 Mexican Mexican IMMSA Peruvian Corporate & Open-Pit Unit Operations Elimination Consolidated The Americas: Mexico $ 654.7 $ 121.0 $ 9.3 $ (41.3) $ 743.8 United States 325.4 0.3 63.5 389.2 Peru — 10.6 168.2 (10.8) 167.9 Brazil — 13.1 127.9 141.0 Chile — — 131.9 131.9 Other American countries 13.5 — 7.2 20.7 Europe: Switzerland 152.3 25.4 196.9 374.6 Italy — 6.4 108.4 114.8 Spain 131.3 — 25.8 157.1 Other European countries 29.0 4.0 132.5 165.6 Asia: China 334.7 2.4 60.2 397.3 Singapore 45.7 2.0 28.6 76.3 Japan 27.2 — 155.3 182.5 Other Asian countries 24.7 — 30.9 55.6 Total $ 1,738.5 $ 185.2 $ 1,246.7 $ (52.1) $ 3,118.3 (*) Less than $0.1 million. Three Months Ended June 30, 2023 Mexican Mexican IMMSA Peruvian Corporate & Open-Pit Unit Operations Elimination Consolidated The Americas: Mexico $ 529.5 $ 117.9 $ — $ (32.4) $ 615.0 United States 237.8 1.3 104.1 — 343.2 Peru — 6.1 109.0 (6.2) 108.9 Brazil — 4.4 78.9 — 83.3 Chile (3.2) — 63.7 — 60.5 Other American countries 10.7 0.5 8.8 — 20.0 Europe: Switzerland 174.5 3.4 181.0 — 358.9 Italy 0.4 3.1 93.3 — 96.8 Spain 88.6 — 19.4 — 108.0 Other European countries 14.1 3.4 43.9 — 61.4 Asia: China 139.3 1.0 28.9 — 169.2 Singapore 64.7 — 51.9 — 116.6 Japan 30.1 — 101.7 — 131.8 Other Asian countries 24.7 0.1 2.3 — 27.1 Total $ 1,311.2 $ 141.2 $ 886.9 $ (38.6) $ 2,300.7 Six Months Ended June 30, 2024 Mexican Mexican IMMSA Peruvian Corporate & Open-Pit Unit Operations Elimination Consolidated The Americas: Mexico $ 1,246.0 $ 227.2 $ 17.2 $ (74.3) $ 1,416.1 United States 597.6 2.0 102.2 701.8 Peru — 19.0 334.1 (19.1) 334.0 Brazil — 22.0 243.9 265.9 Chile — — 226.4 226.4 Other American countries 20.7 — 11.3 32.0 Europe: Switzerland 314.1 40.7 248.9 603.6 Italy (*) 12.5 183.7 196.1 Spain 241.6 — 45.7 287.2 Other European countries 87.6 5.4 239.4 332.4 Asia: China 510.3 3.5 169.9 683.7 Singapore 63.3 (0.6) 70.9 133.6 Japan 81.3 — 346.2 427.5 Other Asian countries 42.0 — 35.6 77.7 Total $ 3,204.4 $ 331.6 $ 2,275.4 $ (93.4) $ 5,718.1 (*) Less than $0.1 million. Six Months Ended June 30, 2023 Mexican Mexican IMMSA Peruvian Corporate & Open-Pit Unit Operations Elimination Consolidated The Americas: Mexico $ 1,190.4 $ 254.9 $ — $ (68.9) $ 1,376.4 United States 594.5 8.6 252.4 — 855.5 Peru — 7.8 273.4 (7.9) 273.3 Brazil — 15.3 176.1 — 191.4 Chile (8.4) — 169.7 — 161.3 Other American countries 20.2 0.6 15.0 — 35.8 Europe: Switzerland 311.3 12.0 284.5 — 607.8 Italy 0.2 9.5 210.4 — 220.1 Spain 212.5 — 19.4 — 231.9 Other European countries 73.7 10.8 97.2 — 181.7 Asia: China 292.6 1.0 58.6 — 352.2 Singapore 108.8 — 109.2 — 218.0 Japan 92.0 — 239.3 — 331.3 Other Asian countries 50.3 0.2 7.4 — 57.9 Total $ 2,938.1 $ 320.7 $ 1,912.6 $ (76.8) $ 5,094.6 The following table presents information regarding the sales value by reporting segment of the Company’s significant products for the three and six-month period ended June 30, 2024 and 2023 (in millions): Three Months Ended June 30, 2024 Mexican Mexican IMMSA Peruvian Corporate, Other & Total Open-pit Unit Operations Eliminations Consolidated Copper $ 1,347.1 $ 41.8 $ 1,001.7 $ (24.0) $ 2,366.6 Molybdenum 213.3 — 166.0 — 379.2 Silver 91.5 52.1 39.9 (26.3) 157.2 Zinc 44.8 70.1 — (0.1) 114.9 Other 41.8 21.1 39.2 (1.8) 100.3 Total $ 1,738.5 $ 185.2 $ 1,246.7 $ (52.1) $ 3,118.3 Three Months Ended June 30, 2023 Mexican Mexican IMMSA Peruvian Corporate, Other & Total Open-pit Unit Operations Eliminations Consolidated Copper $ 1,042.7 $ 21.9 $ 735.0 $ (17.1) $ 1,782.5 Molybdenum 170.5 — 83.9 — 254.4 Zinc 54.2 38.2 25.2 (18.9) 98.7 Silver — 63.3 — (0.3) 63.0 Other 43.8 17.8 42.8 (2.3) 102.1 Total $ 1,311.2 $ 141.2 $ 886.9 $ (38.6) $ 2,300.7 Six Months Ended June 30, 2024 Mexican Mexican IMMSA Peruvian Corporate, Other & Total Open-pit Unit Operations Eliminations Consolidated Copper $ 2,553.3 $ 69.3 $ 1,830.7 $ (42.9) $ 4,410.3 Molybdenum 357.8 — 295.0 — 652.8 Silver 158.1 87.6 71.0 (48.0) 268.7 Zinc 49.1 135.4 — 0.6 185.0 Other 86.1 39.4 78.8 (3.0) 201.2 Total $ 3,204.4 $ 331.6 $ 2,275.4 $ (93.4) $ 5,718.1 Six Months Ended June 30, 2023 Mexican Mexican IMMSA Peruvian Corporate, Other & Total Open-pit Unit Operations Eliminations Consolidated Copper $ 2,383.3 $ 41.4 $ 1,539.9 $ (34.3) $ 3,930.3 Molybdenum 331.2 — 224.8 — 556.0 Zinc 119.5 81.0 50.7 (37.4) 213.8 Silver — 154.8 — 0.3 155.1 Other 104.1 43.5 97.2 (5.4) 239.4 Total $ 2,938.1 $ 320.7 $ 1,912.6 $ (76.8) $ 5,094.6 |
Schedule of opening and closing balances of receivables by reporting segment | The opening and closing balances of receivables by reporting segment of the Company were as follows (in millions): Mexican Mexican IMMSA Peruvian Corporate & Open-Pit Unit Operations Elimination Consolidated As of June 30, 2024: Trade receivables $ 913.6 $ 71.0 $ 637.7 $ $ 1,622.3 Related parties, current 43.8 25.6 0.3 (52.8) 16.9 As of December 31, 2023: Trade receivables $ 556.3 $ 49.1 $ 535.7 $ — $ 1,141.1 Related parties, current 25.7 0.9 0.8 (0.1) 27.3 |
Schedule long term contracts by products | Copper concentrates (in tonnes) 177,500 Copper cathodes (in tonnes) 48,000 Molybdenum concentrates (in tonnes) 23,543 Sulfuric acid (in tonnes) 271,628 |
Schedule of provisionally priced copper and molybdenum sales outstanding | Sales volume Priced at (million lbs.) (per pound) Month of settlement Copper 190.7 4.37 July 2024 through October 2024 Molybdenum 16.2 22.90 July 2024 through October 2024 |
SEGMENT AND RELATED INFORMATI_2
SEGMENT AND RELATED INFORMATION: (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
SEGMENT AND RELATED INFORMATION: | |
Schedule of financial information relating to Company's segments | Three Months Ended June 30, 2024 (in millions) Mexican Corporate, other Mexican IMMSA Peruvian and Open-pit Unit Operations eliminations Consolidated Net sales outside of segments $ 1,738.5 $ 133.1 $ 1,246.7 $ — $ 3,118.3 Intersegment sales — 52.1 — (52.1) (0.0) Cost of sales (exclusive of depreciation, amortization and depletion) 663.0 109.9 526.1 (50.1) 1,248.9 Selling, general and administrative 18.1 3.3 9.7 2.8 33.9 Depreciation, amortization and depletion 102.6 18.2 79.8 9.0 209.6 Exploration 2.4 2.6 10.7 2.9 18.6 Operating income $ 952.4 $ 51.1 $ 620.4 $ (16.7) 1,607.3 Less: Interest, net (56.8) Other income (expense) (19.9) Income taxes (578.8) Equity earnings of affiliate 2.0 Non-controlling interest (3.6) Net income attributable to SCC $ 950.2 Capital investment $ 234.7 $ 29.4 $ 65.9 $ 1.8 $ 331.8 Property and mine development, net $ 4,687.2 $ 775.0 $ 3,766.7 $ 642.6 $ 9,871.5 Total assets $ 9,164.4 $ 1,214.7 $ 5,735.6 $ 1,663.0 $ 17,777.7 Three Months Ended June 30, 2023 (in millions) Mexican Corporate, other Mexican IMMSA Peruvian and Open-pit Unit Operations eliminations Consolidated Net sales outside of segments $ 1,311.2 $ 102.6 $ 886.9 $ — $ 2,300.7 Intersegment sales — 38.6 — (38.6) — Cost of sales (exclusive of depreciation, amortization and depletion) 572.0 122.8 470.4 (17.5) 1,147.7 Selling, general and administrative 16.9 2.3 9.5 2.3 31.0 Depreciation, amortization and depletion 115.7 17.3 82.8 (6.6) 209.2 Exploration 1.4 1.7 7.5 1.5 12.1 Operating income $ 605.2 $ (2.9) $ 316.7 $ (18.3) 900.7 Less: Interest, net (58.4) Other income (expense) 5.6 Income taxes (294.5) Equity earnings of affiliate (3.8) Non-controlling interest (2.1) Net income attributable to SCC $ 547.5 Capital investment $ 149.1 $ 33.7 $ 66.6 $ 3.1 $ 252.5 Property and mine development, net $ 4,705.8 $ 704.9 $ 3,636.5 $ 640.9 $ 9,688.1 Total assets $ 8,976.3 $ 1,130.7 $ 4,648.9 $ 2,183.6 $ 16,939.5 Six Months Ended June 30, 2024 (in millions) Mexican Corporate, other Mexican IMMSA Peruvian and Open-pit Unit Operations eliminations Consolidated Net sales outside of segments $ 3,204.4 $ 238.2 $ 2,275.4 $ — $ 5,718.1 Intersegment sales — 93.4 — (93.4) (0.0) Cost of sales (exclusive of depreciation, amortization and depletion) 1,257.6 239.6 1,000.7 (91.5) 2,406.5 Selling, general and administrative 35.2 5.9 19.1 4.6 64.8 Depreciation, amortization and depletion 202.3 37.4 161.2 17.7 418.6 Exploration 6.0 4.4 16.5 4.4 31.2 Operating income $ 1,703.3 $ 44.4 $ 1,077.9 $ (28.7) 2,797.0 Less: Interest, net (109.9) Other income (expense) (0.9) Income taxes (1,002.1) Equity earnings of affiliate 8.6 Non-controlling interest (6.4) Net income attributable to SCC $ 1,686.2 Capital investment $ 341.7 $ 61.2 $ 136.4 $ 6.2 $ 545.6 Property and mine development, net $ 4,687.2 $ 775.0 $ 3,766.7 $ 642.6 $ 9,871.5 Total assets $ 9,164.4 $ 1,214.7 $ 5,735.6 $ 1,663.0 $ 17,777.7 Six Months Ended June 30, 2023 (in millions) Mexican Corporate, other Mexican IMMSA Peruvian and Open-pit Unit Operations eliminations Consolidated Net sales outside of segments $ 2,938.1 $ 243.9 $ 1,912.6 $ — $ 5,094.6 Intersegment sales — 76.8 — (76.8) — Cost of sales (exclusive of depreciation, amortization and depletion) 1,190.4 278.2 951.7 (78.4) 2,341.9 Selling, general and administrative 32.8 5.3 18.5 4.8 61.4 Depreciation, amortization and depletion 191.2 34.8 164.4 22.5 412.9 Exploration 2.7 3.9 12.1 5.3 24.0 Operating income $ 1,521.0 $ (1.5) $ 765.9 $ (31.0) 2,254.4 Less: Interest, net (119.8) Other income (expense) 16.1 Income taxes (774.9) Equity earnings of affiliate (10.2) Non-controlling interest (4.9) Net income attributable to SCC $ 1,360.7 Capital investment $ 264.8 $ 62.5 $ 156.4 $ 6.9 $ 490.6 Property and mine development, net $ 4,705.8 $ 704.9 $ 3,636.5 $ 640.9 $ 9,688.1 Total assets $ 8,976.3 $ 1,130.7 $ 4,648.9 $ 2,183.6 $ 16,939.5 |
DESCRIPTION OF THE BUSINESS_ (D
DESCRIPTION OF THE BUSINESS: (Details) | Jun. 30, 2024 |
DESCRIPTION OF THE BUSINESS: | |
Percentage of ownership interest held by the parent company | 88.90% |
SHORT-TERM INVESTMENTS_ (Detail
SHORT-TERM INVESTMENTS: (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Short-term investment: | |||||
Trading securities | $ 328.9 | $ 328.9 | $ 599.1 | ||
Weighted average interest rate (as a percent) | 5.50% | 5.70% | |||
Available-for-sale | 0.2 | $ 0.2 | $ 0.2 | ||
Weighted average interest rate (as a percent) | 0.80% | 0.80% | |||
Total | 329.1 | $ 329.1 | $ 599.3 | ||
Trading: | |||||
Interest earned | 7.6 | $ 3.5 | 13.7 | $ 6.9 | |
Available-for-sale: | |||||
Interest earned | $ 26.5 | $ 23.2 | 53.8 | 44.5 | |
Maximum | |||||
Available-for-sale: | |||||
Interest earned | $ 0.1 | $ 0.1 |
INVENTORIES_ (Details)
INVENTORIES: (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Metals at average cost: | |||
Finished goods | $ 58.9 | $ 68.8 | |
Work-in-process | 308.4 | 313 | |
Ore stockpiles on leach pads | 227.6 | 230.9 | |
Supplies at average cost | 422.3 | 404.2 | |
Total current inventory | 1,017.2 | 1,016.9 | |
Inventory, long-term: | |||
Ore stockpiles on leach pads | 1,146.4 | $ 1,121.7 | |
Total leaching costs added as long-term inventory of ore stockpiles in leach pads | 128.8 | $ 147 | |
Long-term leaching inventories recognized as cost of sales | $ 107.5 | $ 141.4 |
INCOME TAXES_ (Details)
INCOME TAXES: (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
May 31, 2019 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
INCOME TAXES | |||||
Statutory income tax provision | $ 852.3 | $ 649.2 | |||
Peruvian royalty | 29.1 | 18.7 | |||
Mexican royalty | 75.7 | 72.3 | |||
Peruvian special mining tax | 45 | 34.7 | |||
Total provision for income taxes | $ 578.8 | $ 294.5 | $ 1,002.1 | $ 774.9 | |
Effective income tax rate (as a percent) | 37.30% | 36% | |||
Global minimum tax rate | 15% | ||||
Peru | |||||
INCOME TAXES | |||||
Royalty charges | $ 74.1 | $ 53.4 | |||
Income Taxes Paid | 72.5 | ||||
Increase (Decrease) in Income tax expense (benefit) | 10 | ||||
Unrecognized tax benefits | 18.3 | 18.3 | |||
Mexico | |||||
INCOME TAXES | |||||
Mexican royalty | 75.7 | $ 72.3 | |||
Income Taxes Paid | 17.2 | ||||
Increase (Decrease) in Income tax expense (benefit) | 12.1 | ||||
Unrecognized tax benefits | $ 13.2 | $ 13.2 |
RELATED PARTY TRANSACTIONS_ (De
RELATED PARTY TRANSACTIONS: (Details) $ in Millions | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Dec. 31, 2012 item MW | Dec. 31, 2023 USD ($) | Dec. 31, 2014 item | |
RELATED PARTY TRANSACTIONS: | |||||
Related parties receivable current: | $ 16.9 | $ 27.3 | |||
Affiliates | |||||
RELATED PARTY TRANSACTIONS: | |||||
Related parties receivable current: | 16.9 | 27.3 | |||
Other accrued liabilities | 61.8 | 93.6 | |||
Total purchases | 191.6 | $ 223.4 | |||
Total sales | $ 1.5 | 1.3 | |||
Affiliates | Equity investment in affiliate | |||||
RELATED PARTY TRANSACTIONS: | |||||
Ownership percentage | 44.20% | ||||
Affiliates | Apu Coropuna S.R.L. | |||||
RELATED PARTY TRANSACTIONS: | |||||
Ownership percentage | 30% | ||||
Affiliates | Minimum | |||||
RELATED PARTY TRANSACTIONS: | |||||
Aggregate consideration of Material Affiliate Transaction to be be authorized by the General Counsel and CFO | $ 8 | ||||
Affiliates | Maximum | |||||
RELATED PARTY TRANSACTIONS: | |||||
Aggregate consideration of Material Affiliate Transaction to be be authorized by the General Counsel and CFO | 10 | ||||
Total sales | 0.1 | 0.1 | |||
Grupo Mexico and affiliates | Affiliates | |||||
RELATED PARTY TRANSACTIONS: | |||||
Total sales | 37.6 | 45.6 | |||
Asarco LLC ("Asarco") | Affiliates | |||||
RELATED PARTY TRANSACTIONS: | |||||
Related parties receivable current: | 7.7 | 9.4 | |||
Other accrued liabilities | 14.9 | 13.8 | |||
Total purchases | 2.7 | 29.5 | |||
Total sales | 14.3 | 17.3 | |||
AMMINCO Apoyo Administrativo, S.A. de C.V. ("AMMINCO") | Affiliates | |||||
RELATED PARTY TRANSACTIONS: | |||||
Other accrued liabilities | 6.2 | 5 | |||
Total purchases | 5 | 5 | |||
Eolica El Retiro, S.A.P.I. de C.V. | |||||
RELATED PARTY TRANSACTIONS: | |||||
Number of wind turbines | item | 37 | ||||
Eolica El Retiro, S.A.P.I. de C.V. | Affiliates | |||||
RELATED PARTY TRANSACTIONS: | |||||
Other accrued liabilities | 2.6 | 0.2 | |||
Total purchases | $ 4 | $ 1.5 | |||
Percentage of supply to third-party energy users | 37% | 18.50% | |||
Ferrocarril Mexicano, S.A. de C.V. | Affiliates | |||||
RELATED PARTY TRANSACTIONS: | |||||
Other accrued liabilities | $ 6.1 | 7.9 | |||
Total purchases | 24 | $ 28.9 | |||
Grupo Mexico | Affiliates | |||||
RELATED PARTY TRANSACTIONS: | |||||
Total purchases | 1.7 | 1.8 | |||
Grupo Mexico Servicios | Affiliates | |||||
RELATED PARTY TRANSACTIONS: | |||||
Other accrued liabilities | 3.5 | 2.7 | |||
Total purchases | 10.1 | 10.1 | |||
Donations | 1.5 | 2 | |||
MGE | Mexico | |||||
RELATED PARTY TRANSACTIONS: | |||||
Number of natural gas-fired combined cycle power generating units | item | 2 | ||||
MGE | Affiliates | |||||
RELATED PARTY TRANSACTIONS: | |||||
Related parties receivable current: | 8.1 | 17.1 | |||
Other accrued liabilities | 19.9 | 50.3 | |||
Total purchases | 92.3 | 116.4 | |||
Total sales | $ 23.3 | $ 28.3 | |||
MGE | Affiliates | Mexico | |||||
RELATED PARTY TRANSACTIONS: | |||||
Net total capacity (in megawatts) | MW | 516.2 | ||||
Percentage of supply to third-party energy users | 7% | 4% | |||
Mexico Compania Constructora S.A de C.V. | Affiliates | |||||
RELATED PARTY TRANSACTIONS: | |||||
Other accrued liabilities | $ 7.1 | 9.5 | |||
Total purchases | 44 | $ 24.1 | |||
Grupo Mexico Servicios de Ingenieria, S.A. de C.V. | Affiliates | |||||
RELATED PARTY TRANSACTIONS: | |||||
Other accrued liabilities | 0.7 | 3.5 | |||
Total purchases | 9.5 | 7.9 | |||
Boutique Bowling de Mexico, S.A. de C.V. | Affiliates | |||||
RELATED PARTY TRANSACTIONS: | |||||
Other accrued liabilities | 0.4 | 0.3 | |||
Total purchases | 0.3 | 0.3 | |||
Total sales | 0.1 | 0.1 | |||
Empresarios Industriales de Mexico, S.A. de C.V | Affiliates | |||||
RELATED PARTY TRANSACTIONS: | |||||
Related parties receivable current: | 0.6 | 0.6 | |||
Total sales | 0.1 | ||||
Mexico Transportes Aereos S.A. de C.V. ("Mextransport") | Affiliates | |||||
RELATED PARTY TRANSACTIONS: | |||||
Related parties receivable current: | 0.4 | 0.1 | |||
Other accrued liabilities | 0.1 | 0.3 | |||
Total purchases | 1.2 | 1.3 | |||
Total sales | 1.2 | 1.1 | |||
Operadora de Cinemas S.A. de C.V. | Affiliates | |||||
RELATED PARTY TRANSACTIONS: | |||||
Related parties receivable current: | 0.1 | 0.1 | |||
Other accrued liabilities | 0.3 | 0.1 | |||
Total purchases | 0.2 | 0.2 | |||
Total sales | $ 0.1 | 0.1 | |||
Amminco Apoyo, Ferrocarril Mexicano and Operadora De Cinemas | Affiliates | Maximum | |||||
RELATED PARTY TRANSACTIONS: | |||||
Related party receivable and payable | $ 0.1 | ||||
Amminco Apoyo and Ferrocarril Mexicano | Affiliates | Maximum | |||||
RELATED PARTY TRANSACTIONS: | |||||
Threshold revenue from related parties | $ 0.1 |
LEASES_ (Details)
LEASES: (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Leases | ||
Lessee, operating lease, option to extend | false | |
Lessee, operating lease, option to terminate | false | |
The weighted average remaining lease term | 8 years | |
The weighted average discount rate | 4% | |
Total lease expense | $ 48.8 | $ 58.3 |
Maturities of lease liabilities | ||
2024 | 56.5 | |
2025 | 106.9 | |
2026 | 106.7 | |
2027 | 106.3 | |
2028 | 106 | |
After 2028 | 422.1 | |
Total lease payments | 904.5 | |
Less: interest on lease liabilities | (159.2) | |
Present value of lease payments | 745.4 | |
Cost of sales (exclusive of depreciation, amortization and depletion) | ||
Leases | ||
Total lease expense | 48.7 | 58.2 |
Selling, general and administrative | ||
Leases | ||
Total lease expense | 0.1 | |
Exploration | ||
Leases | ||
Total lease expense | $ 0.1 | |
Minimum | ||
Leases | ||
Remaining lease terms | 1 year | |
Maximum | ||
Leases | ||
Remaining lease terms | 9 years | |
Maximum | Exploration | ||
Leases | ||
Total lease expense | $ 0.1 |
ASSET RETIREMENT OBLIGATION_ (D
ASSET RETIREMENT OBLIGATION: (Details) $ in Millions | 6 Months Ended | |||
Jun. 24, 2019 | Jun. 30, 2024 USD ($) item | Jun. 30, 2023 USD ($) | Jan. 31, 2024 USD ($) | |
ASSET RETIREMENT OBLIGATION: | ||||
Maximum annual guarantees secured | 50% | |||
Percentage of guarantee for Lima complex | 50% | |||
Percentage of security for LOC | 50% | |||
Total guarantees | $ 87.7 | |||
Asset retirement obligation activity | ||||
Balance at the beginning of the year | $ 612.6 | $ 585.3 | ||
Decrease in estimates | (7.7) | |||
Closure payments | (0.3) | |||
Accretion expense | 14.3 | 12.9 | ||
Balance at the end of the year | $ 619.2 | $ 597.9 | ||
Peru | ||||
ASSET RETIREMENT OBLIGATION: | ||||
Period after which successive reviews are required by the law (in years) | 5 years | |||
Number of units with future closure costs recognized as an asset retirement obligation | item | 3 | |||
Change in asset retirement liability | $ (3.2) | |||
Mexico | ||||
Asset retirement obligation activity | ||||
Decrease in estimates | $ 4.5 |
BENEFIT PLANS_ (Details)
BENEFIT PLANS: (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 USD ($) plan | Jun. 30, 2023 USD ($) | |
Benefit plans | ||
Number of noncontributory defined benefit pension plans | plan | 2 | |
Post retirement defined benefit plans and defined contribution plan | ||
Defined benefit plan, net periodic benefit costs | ||
Service cost | $ 1.3 | $ 1 |
Interest cost | 2 | 1.7 |
Expected return on plan assets | (3.2) | (2.7) |
Amortization of prior service cost / (credit) | 0.2 | 0.2 |
Net periodic benefit cost | 0.3 | 0.2 |
Post-retirement health care plans | ||
Defined benefit plan, net periodic benefit costs | ||
Interest cost | 1.1 | 1 |
Net periodic benefit cost | $ 1.1 | $ 1 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES: - Environmental matters (Details) $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Dec. 31, 2011 category person | |
Environmental costs | |||
Environmental capital investment | $ 94.8 | $ 47.4 | |
Peru | |||
Environmental costs | |||
Environmental capital investment | 2 | 3.5 | |
Mexico | |||
Environmental costs | |||
Environmental capital investment | $ 92.8 | $ 43.9 | |
Number of categories of collective actions | category | 3 | ||
Minimum number of people claiming injury due to collective action initiative in Civil Federal Procedures Code (CFPC) | person | 30 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES: - Guaymas sulfuric acid spill (Details) | 6 Months Ended | 12 Months Ended | ||
Jul. 09, 2019 m³ | Jun. 30, 2024 USD ($) item T | Dec. 31, 2023 $ / item | May 09, 2023 | |
Percentage of net earnings contribution | 5% | |||
Climate change | ||||
Number of business units | item | 2 | |||
Threshold annual greenhouse gas emissions | T | 100,000 | |||
Climate change | Minimum | ||||
Tax rate per tonne Of Carbon dioxide | $ / item | 9 | |||
Average cost per business unit | $ | $ 6,000 | |||
Climate change | Maximum | ||||
Tax rate per tonne Of Carbon dioxide | $ / item | 18 | |||
Threshold annual greenhouse gas emissions reporting to National emissions registry | T | 25,000 | |||
Marine Terminal in Guaymas | ||||
Volume of sulfuric acid discharged in the incident at Guaymas | m³ | 3 | |||
El Pilar | Minimum | ||||
Estimated useful lives of buildings and equipment | 50 years | |||
El Pilar | Maximum | ||||
Estimated useful lives of buildings and equipment | 30 years |
COMMITMENTS AND CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES: - Litigation matters (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Sep. 30, 2016 lawsuit | Jun. 30, 2024 lawsuit claim item | Jun. 30, 2015 item lawsuit | Dec. 31, 2018 item lawsuit | Dec. 31, 2015 lawsuit item | Dec. 31, 2017 lawsuit | Dec. 31, 2016 lawsuit | |
Litigation Matter | |||||||
Number of civil actions seeking damages | 33 | ||||||
Number Of Constitutional Action Lawsuits | 4 | ||||||
Number of subsidiaries to which environmental impact authorizations were granted | item | 1 | ||||||
Tia Maria | |||||||
Litigation Matter | |||||||
Number of lawsuits | 5 | ||||||
Buenavista del Cobre, S.A. de C.V | |||||||
Litigation Matter | |||||||
Number of civil actions seeking damages | 3 | 8 | 3 | ||||
Number of resolutions | claim | 45 | ||||||
Francisca Garcia Enriquez | |||||||
Litigation Matter | |||||||
Number of additional constitutional lawsuits filed | 2 | ||||||
Norberto Bustamante et al | |||||||
Litigation Matter | |||||||
Number of additional constitutional lawsuits filed | 2 | ||||||
Mario Alberto Salcido et al; Maria Elena Heredia Bustamante et al; Martin Eligio Ortiz Gamez et al and Maria de los Angeles Enriquez Bacame et al | |||||||
Litigation Matter | |||||||
Number of additional constitutional lawsuits filed | 4 | ||||||
Mexico | |||||||
Litigation Matter | |||||||
Number of collective action lawsuits | 6 | ||||||
Number of subsidiaries against which lawsuits were filed | item | 2 | ||||||
Number of collective action lawsuits dismissed | 3 | ||||||
Number of lawsuits in process | 3 | ||||||
Mexico | Defensa Colectiva | |||||||
Litigation Matter | |||||||
Number of lawsuits in process | 1 | ||||||
Mexico | Acciones Colectivas de Sinaloa | |||||||
Litigation Matter | |||||||
Number of lawsuits in process | 2 | ||||||
Mexico | Mario Alberto Salcido et al; Maria Elena Heredia Bustamante et al; Martin Eligio Ortiz Gamez et al and Maria de los Angeles Enriquez Bacame et al | |||||||
Litigation Matter | |||||||
Number of monitoring wells downstream from the dam | item | 3 | ||||||
Period to submit Semarnat | 2 years |
COMMITMENTS AND CONTINGENCIES_5
COMMITMENTS AND CONTINGENCIES: - Labor matters (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Oct. 23, 2023 PEN (S/) | Oct. 23, 2023 USD ($) | Jun. 30, 2023 item | Dec. 31, 2023 item | Jun. 30, 2024 item | Jun. 30, 2023 item | |
Labor matters | ||||||
Number of productive units | 3 | |||||
Period of litigation | 12 years | |||||
Percentage of affiliated workers in a union renewed its representatives | 24.70% | |||||
Percentage of workers in a union | 25.70% | |||||
Ilo and Cuajone | ||||||
Labor matters | ||||||
Number of labor unions | 6 | 6 | ||||
Peru | Labor Matters | ||||||
Labor matters | ||||||
Percentage of labor unionized | 57.90% | |||||
Total number of workers | 5,157 | |||||
Number of labor unions | 6 | |||||
Amount of Litigation settlement award | S/ 11,000 | $ 2,866.8 | ||||
Number of labor unions represent majority of workers | 0 | |||||
Number Of meetings with the unions to discuss different issues of collective interest. | 2 |
COMMITMENTS AND CONTINGENCIES_6
COMMITMENTS AND CONTINGENCIES: - Others (Details) S/ in Millions, $ in Millions | 1 Months Ended | 6 Months Ended | ||||||||||
Feb. 20, 2020 MWh | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2018 USD ($) T | May 31, 2016 MW | Jul. 31, 2014 MW | Jun. 30, 2014 MW | Jun. 30, 2024 USD ($) item | Jun. 30, 2024 PEN (S/) item | Jun. 30, 2024 PEN (S/) | Dec. 31, 2023 USD ($) | Jun. 30, 2023 USD ($) | |
Other commitments: | ||||||||||||
Property net book value | $ 9,871.5 | $ 9,782.9 | $ 9,688.1 | |||||||||
Commitment for capital projects | $ 274.7 | |||||||||||
Michiquillay | ||||||||||||
Other commitments: | ||||||||||||
Pre-operational period | 12 years | |||||||||||
Extended pre-operational period | 3 years | |||||||||||
Investment in projects in next five years | $ 20 | |||||||||||
Number of meters drilled | item | 104,000 | 104,000 | ||||||||||
Advancement of the project | 30% | 30% | ||||||||||
Number of core samples obtained | item | 33,991 | 33,991 | ||||||||||
Period of investment in projects | 5 years | |||||||||||
Toquepala Concentrator Expansion | Peru | ||||||||||||
Other commitments: | ||||||||||||
Amount committed to funding for social and infrastructure improvement projects | $ 4.9 | S/ 445.0 | ||||||||||
Commitment liability recorded in the balance sheet | 21.4 | |||||||||||
Amount committed to funding for social and infrastructure improvement projects | S/ | 18.8 | |||||||||||
Development Fund Moquegua Region | Peru | ||||||||||||
Other commitments: | ||||||||||||
Amount committed to funding for social and infrastructure improvement projects | $ 260.6 | S/ 1,000.0 | ||||||||||
Number of schools agreed for construction. | item | 3 | 3 | ||||||||||
Amount committed to funding for school projects | $ 4.7 | S/ 18.2 | ||||||||||
Amount committed for funding social and infrastructure improvement projects, build tracks and sidewalks | 1.8 | 7 | ||||||||||
Copper | Michiquillay | Peru | ||||||||||||
Other commitments: | ||||||||||||
Contingent contractual obligation | $ 400 | |||||||||||
Estimated mineralized material (in tons) | T | 2,288,000,000 | |||||||||||
Copper grade percentage | 0.43% | |||||||||||
Annual production ( in tons) | T | 225,000 | |||||||||||
Initial mine life | 25 years | |||||||||||
Contractual obligation paid on project | $ 12.5 | $ 12.5 | ||||||||||
Remaining amount to pay if project is developed | $ 375 | |||||||||||
Funding for Different Projects | Development Fund Moquegua Region | Peru | ||||||||||||
Other commitments: | ||||||||||||
Amount committed to funding for social and infrastructure improvement projects | 65.5 | 251.3 | ||||||||||
Educational Project | Toquepala Concentrator Expansion | Peru | ||||||||||||
Other commitments: | ||||||||||||
Amount committed to funding for social and infrastructure improvement projects | 116 | |||||||||||
Educational Project | Development Fund Moquegua Region | Peru | ||||||||||||
Other commitments: | ||||||||||||
Amount committed to funding for social and infrastructure improvement projects | 28.3 | 108.4 | ||||||||||
Amount of investment in project | 27.8 | S/ 106.7 | ||||||||||
Agricultural Projects | Toquepala Concentrator Expansion | Peru | ||||||||||||
Other commitments: | ||||||||||||
Amount committed to funding for social and infrastructure improvement projects | 29.2 | 112 | ||||||||||
Agricultural Projects | Development Fund Moquegua Region | Peru | ||||||||||||
Other commitments: | ||||||||||||
Amount committed for funding social and infrastructure improvement projects, build tracks and sidewalks | 3.2 | 12.1 | ||||||||||
Construction of Cularjahuira Dam | Toquepala Concentrator Expansion | Peru | ||||||||||||
Other commitments: | ||||||||||||
Amount committed to funding for social and infrastructure improvement projects | 4.1 | 15.6 | ||||||||||
Study Of Engineering For Collazas Dam | Toquepala Concentrator Expansion | Peru | ||||||||||||
Other commitments: | ||||||||||||
Amount committed to funding for social and infrastructure improvement projects | 0.7 | 2.6 | ||||||||||
Infrastructure Projects | Toquepala Concentrator Expansion | Peru | ||||||||||||
Other commitments: | ||||||||||||
Amount committed to funding for social and infrastructure improvement projects | 15.7 | 60.4 | ||||||||||
Water Treatment | Development Fund Moquegua Region | Peru | ||||||||||||
Other commitments: | ||||||||||||
Amount committed to funding for social and infrastructure improvement projects | $ 27.5 | S/ 105.5 | ||||||||||
Percentage of progress on construction | 46% | 46% | ||||||||||
Drinking Water Project | Toquepala Concentrator Expansion | Peru | ||||||||||||
Other commitments: | ||||||||||||
Amount committed to funding for social and infrastructure improvement projects | $ 2.5 | S/ 9.6 | ||||||||||
Works For Taxes | Toquepala Concentrator Expansion | Peru | ||||||||||||
Other commitments: | ||||||||||||
Amount committed to funding for social and infrastructure improvement projects | S/ | 102.1 | |||||||||||
Amount committed to funding for social and infrastructure improvement projects | 26.6 | |||||||||||
Works For Taxes | Development Fund Moquegua Region | Peru | ||||||||||||
Other commitments: | ||||||||||||
Amount committed to funding for social and infrastructure improvement projects | $ 60.7 | S/ 233.0 | ||||||||||
Number of Infrastructure Projects Agreed for Construction | item | 4 | 4 | ||||||||||
Amount financed per-investment studies for basic sanitation | $ 0.1 | S/ 0.3 | ||||||||||
Works For Taxes | Apurimac Region | ||||||||||||
Other commitments: | ||||||||||||
Number of schools agreed for construction. | item | 2 | 2 | ||||||||||
Amount committed to funding for school projects | $ 21.8 | S/ 83.7 | ||||||||||
Works For Taxes | Arequipa Region | ||||||||||||
Other commitments: | ||||||||||||
Number of schools agreed for construction. | item | 2 | 2 | ||||||||||
Amount committed to funding for school projects | $ 28.5 | S/ 109.5 | ||||||||||
amount committed to Finance for past infrastructure project | $ 1.6 | S/ 6.3 | ||||||||||
Electroperu S.A | Power purchase agreements | Peru | ||||||||||||
Other commitments: | ||||||||||||
Purchase agreement, contracted power capacity (in megawatts) | MW | 120 | |||||||||||
Term of power purchase agreement related to sale of power plant | 20 years | |||||||||||
Parque Eolico de Fenicias, S. de R.L. de C.V | Power purchase agreements | Mexico | ||||||||||||
Other commitments: | ||||||||||||
Term of power purchase agreement related to sale of power plant | 20 years | |||||||||||
Purchase agreement, contracted power capacity (in megawatts per year) | MWh | 611,400 | |||||||||||
Kallpa | Power purchase agreements | Peru | ||||||||||||
Other commitments: | ||||||||||||
Purchase agreement, contracted power capacity (in megawatts) | MW | 120 | |||||||||||
Term of power purchase agreement related to sale of power plant | 10 years | |||||||||||
Kallpa | Power purchase agreements | Peru | Maximum | ||||||||||||
Other commitments: | ||||||||||||
Purchase agreement, contracted power capacity (in megawatts) | MW | 80 |
STOCKHOLDERS' EQUITY - Treasury
STOCKHOLDERS' EQUITY - Treasury Stock (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
May 23, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Activity in treasury stock | ||||||
Balance at the beginning of the period | $ 3,149 | |||||
Balance at the end of the period | $ 2,946.2 | $ 3,131.8 | $ 2,946.2 | $ 3,131.8 | ||
Dividends paid as cash dividend (in dollars per share) | $ 2 | $ 2.25 | ||||
Parent Company (Grupo Mexico) common shares | ||||||
Activity in treasury stock | ||||||
Treasury stock balance at the end of the period (in shares) | 103,436,825 | 103,436,825 | 111,485,617 | |||
Dividends paid as cash dividend (in dollars per share) | $ 0.0104 | |||||
Reduction of shares in treasury stock | 8,039,992 | |||||
Treasury stock retired amount | $ 199.5 | |||||
TREASURY STOCK: | Parent Company (Grupo Mexico) common shares | ||||||
Activity in treasury stock | ||||||
Balance at the beginning of the period | $ 2,766.7 | $ 2,766.9 | ||||
Used for corporate purposes | (199.7) | (0.1) | ||||
Balance at the end of the period | $ 2,566.9 | 2,766.8 | 2,566.9 | 2,766.8 | ||
TREASURY STOCK: | Parent Company (Grupo Mexico) | ||||||
Activity in treasury stock | ||||||
Balance at the beginning of the period | 382.3 | 340.7 | ||||
Other activity, including dividend, interest and foreign currency transaction effect | (11.3) | 16.7 | (3.1) | 24.3 | ||
Balance at the end of the period | $ 379.3 | $ 365 | 379.3 | $ 365 | ||
TREASURY STOCK: | Maximum | Parent Company (Grupo Mexico) common shares | ||||||
Activity in treasury stock | ||||||
Used for corporate purposes | $ 0.1 |
STOCKHOLDERS' EQUITY - Repurcha
STOCKHOLDERS' EQUITY - Repurchase Program (Details) - shares | 1 Months Ended | |
Sep. 30, 2022 | Jun. 30, 2024 | |
SCC share repurchase program: | ||
Percentage of ownership by parent | 88.90% | |
Parent Company (Grupo Mexico) common shares | ||
SCC share repurchase program: | ||
Shares purchased | 350,000 | |
Percentage of ownership by parent | 88.92% |
STOCKHOLDERS' EQUITY - Director
STOCKHOLDERS' EQUITY - Directors Stock Award Plan (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
May 27, 2022 | Jun. 30, 2021 | Jun. 30, 2024 | Jun. 30, 2023 | |
Parent Company (Grupo Mexico) | ||||
Activity in directors' stock award plan | ||||
Treasury stock balance at the end of the period (in shares) | 65,082,830 | 69,277,412 | ||
Directors' Stock Award Plan | ||||
Share based Compensation Plan | ||||
Common shares received on election as director | 1,600 | |||
Additional shares issued at each annual general meeting | 1,600 | |||
Total SCC shares reserved for the plan | 600,000 | 600,000 | ||
Period of extension of plan | 5 years | |||
Numbers of shares shall be granted quarterly and conditioned upon the attendance of each director to each Board meeting | 400 | |||
Stock based compensation expense | $ 0.9 | $ 0.5 | ||
Activity in directors' stock award plan | ||||
Total shares granted at the beginning of the period (in shares) | (428,800) | (416,800) | ||
Granted (in shares) | (8,800) | (6,400) | ||
Total shares granted at the end of the period (in shares) | (437,600) | (423,200) | ||
Remaining shares reserved | 162,400 | 176,800 |
STOCKHOLDERS' EQUITY - Employee
STOCKHOLDERS' EQUITY - Employee Stock Purchase Plan (Details) - Employee Stock Purchase 2018 Plan $ / shares in Units, $ in Millions | 1 Months Ended | 6 Months Ended | ||
Nov. 30, 2018 $ / shares | Nov. 30, 2018 $ / shares | Jun. 30, 2024 USD ($) $ / shares shares | Jun. 30, 2023 USD ($) $ / shares shares | |
Information related to compensation cost | ||||
Purchase price for initial subscription (in dollars per share) | (per share) | $ 37.89 | $ 1.86 | ||
Percentage of title acquired by employee in every two years on shares paid in previous two years | 50% | |||
Period of plan | 8 years | |||
Ratio of bonus shares granted to participant | 0.1 | |||
Stock based compensation expense | $ | $ 0.3 | $ 0.3 | ||
Unrecognized compensation expense | $ | $ 1.4 | $ 2.1 | ||
Stock award activity, Shares | ||||
Outstanding shares at the beginning of the period | shares | 1,962,936 | 2,754,506 | ||
Exercised (in shares) | shares | (41,742) | (694,565) | ||
Outstanding shares at the end of the period | shares | 1,921,194 | 2,059,941 | ||
Unit Weighted Average Grant Date Fair Value | ||||
Outstanding shares at the beginning of the period (in dollars per share) | $ / shares | $ 1.86 | $ 1.86 | ||
Exercised (in dollars per share) | $ / shares | 1.86 | 1.86 | ||
Outstanding shares at the end of the period (in dollars per share) | $ / shares | $ 1.86 | $ 1.86 |
STOCKHOLDERS' EQUITY - Non Cont
STOCKHOLDERS' EQUITY - Non Controlling Interest (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Non-controlling interest activity | ||||
Balance at the beginning of the period | $ 63.1 | $ 62.7 | ||
Net earnings | $ 3.6 | $ 2.1 | 6.4 | 4.9 |
Dividend paid | (1.8) | (4.6) | ||
Balance at the end of the period | $ 67.7 | $ 63 | $ 67.7 | $ 63 |
FAIR VALUE MEASUREMENT_ (Detail
FAIR VALUE MEASUREMENT: (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Liabilities: | ||
Long-term debt, Carrying Value | $ 6,256.5 | $ 6,254.6 |
Long-term debt, Fair Value | 6,272.6 | 6,485.9 |
Short-term investment: | ||
Trading securities | 328.9 | 599.1 |
Available-for-sale: | ||
Available-for-sale Securities, Current, Total | 0.2 | 0.2 |
Quoted prices in active markets for identical assets (Level 1) | ||
Liabilities: | ||
Long-term debt, Carrying Value | 6,205.3 | 6,203.4 |
Long-term debt, Fair Value | 6,217.9 | 6,431.9 |
Significant other observable inputs (Level 2) | ||
Liabilities: | ||
Long-term debt, Carrying Value | 51.2 | 51.2 |
Long-term debt, Fair Value | 54.7 | 54 |
Fair value measurements recurring | Fair value as of the end of the period | ||
Short-term investment: | ||
Trading securities | 328.9 | 599.1 |
Derivative: | ||
Total assets, fair value | 1,534.2 | 1,521.7 |
Fair value measurements recurring | Fair value as of the end of the period | Copper | ||
Derivative: | ||
Provisionally priced sales | 834 | 657.5 |
Fair value measurements recurring | Fair value as of the end of the period | Molybdenum | ||
Derivative: | ||
Provisionally priced sales | 371.1 | 264.9 |
Fair value measurements recurring | Asset backed securities | Fair value as of the end of the period | ||
Available-for-sale: | ||
Available-for-sale debt securities | 0.1 | |
Fair value measurements recurring | Mortgage backed securities | Fair value as of the end of the period | ||
Available-for-sale: | ||
Available-for-sale debt securities | 0.1 | 0.1 |
Fair value measurements recurring | Quoted prices in active markets for identical assets (Level 1) | ||
Short-term investment: | ||
Trading securities | 328.9 | 599.1 |
Derivative: | ||
Total assets, fair value | 1,534 | 1,521.5 |
Fair value measurements recurring | Quoted prices in active markets for identical assets (Level 1) | Copper | ||
Derivative: | ||
Provisionally priced sales | 834 | 657.5 |
Fair value measurements recurring | Quoted prices in active markets for identical assets (Level 1) | Molybdenum | ||
Derivative: | ||
Provisionally priced sales | 371.1 | 264.9 |
Fair value measurements recurring | Significant other observable inputs (Level 2) | ||
Available-for-sale: | ||
Available-for-sale Securities, Current, Total | 0.2 | 0.2 |
Fair value measurements recurring | Significant other observable inputs (Level 2) | Asset backed securities | ||
Available-for-sale: | ||
Available-for-sale debt securities | 0.1 | |
Fair value measurements recurring | Significant other observable inputs (Level 2) | Mortgage backed securities | ||
Available-for-sale: | ||
Available-for-sale debt securities | $ 0.1 | $ 0.1 |
REVENUE_ - Revenue by Geographi
REVENUE: - Revenue by Geographical Areas (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenue Recognition | ||||
Net sales | $ 3,118.3 | $ 2,300.7 | $ 5,718.1 | $ 5,094.6 |
Corporate, other and eliminations | ||||
Revenue Recognition | ||||
Net sales | (52.1) | (38.6) | (93.4) | (76.8) |
Mexican Open-Pit | Operating segment | ||||
Revenue Recognition | ||||
Net sales | 1,738.5 | 1,311.2 | 3,204.4 | 2,938.1 |
Mexican IMMSA Unit | Operating segment | ||||
Revenue Recognition | ||||
Net sales | 185.2 | 141.2 | 331.6 | 320.7 |
Peruvian Operations | Operating segment | ||||
Revenue Recognition | ||||
Net sales | 1,246.7 | 886.9 | 2,275.4 | 1,912.6 |
Mexico | ||||
Revenue Recognition | ||||
Net sales | 743.8 | 615 | 1,416.1 | 1,376.4 |
Mexico | Corporate, other and eliminations | ||||
Revenue Recognition | ||||
Net sales | (41.3) | (32.4) | (74.3) | (68.9) |
Mexico | Mexican Open-Pit | Operating segment | ||||
Revenue Recognition | ||||
Net sales | 654.7 | 529.5 | 1,246 | 1,190.4 |
Mexico | Mexican IMMSA Unit | Operating segment | ||||
Revenue Recognition | ||||
Net sales | 121 | 117.9 | 227.2 | 254.9 |
Mexico | Peruvian Operations | Operating segment | ||||
Revenue Recognition | ||||
Net sales | 9.3 | 17.2 | ||
United States | ||||
Revenue Recognition | ||||
Net sales | 389.2 | 343.2 | 701.8 | 855.5 |
United States | Mexican Open-Pit | Operating segment | ||||
Revenue Recognition | ||||
Net sales | 325.4 | 237.8 | 597.6 | 594.5 |
United States | Mexican IMMSA Unit | Operating segment | ||||
Revenue Recognition | ||||
Net sales | 0.3 | 1.3 | 2 | 8.6 |
United States | Peruvian Operations | Operating segment | ||||
Revenue Recognition | ||||
Net sales | 63.5 | 104.1 | 102.2 | 252.4 |
Peru | ||||
Revenue Recognition | ||||
Net sales | 167.9 | 108.9 | 334 | 273.3 |
Peru | Corporate, other and eliminations | ||||
Revenue Recognition | ||||
Net sales | (10.8) | (6.2) | (19.1) | (7.9) |
Peru | Mexican IMMSA Unit | Operating segment | ||||
Revenue Recognition | ||||
Net sales | 10.6 | 6.1 | 19 | 7.8 |
Peru | Peruvian Operations | Operating segment | ||||
Revenue Recognition | ||||
Net sales | 168.2 | 109 | 334.1 | 273.4 |
Brazil | ||||
Revenue Recognition | ||||
Net sales | 141 | 83.3 | 265.9 | 191.4 |
Brazil | Mexican IMMSA Unit | Operating segment | ||||
Revenue Recognition | ||||
Net sales | 13.1 | 4.4 | 22 | 15.3 |
Brazil | Peruvian Operations | Operating segment | ||||
Revenue Recognition | ||||
Net sales | 127.9 | 78.9 | 243.9 | 176.1 |
Chile | ||||
Revenue Recognition | ||||
Net sales | 131.9 | 60.5 | 226.4 | 161.3 |
Chile | Mexican Open-Pit | Operating segment | ||||
Revenue Recognition | ||||
Net sales | (3.2) | (8.4) | ||
Chile | Peruvian Operations | Operating segment | ||||
Revenue Recognition | ||||
Net sales | 131.9 | 63.7 | 226.4 | 169.7 |
Other American countries | ||||
Revenue Recognition | ||||
Net sales | 20.7 | 20 | 32 | 35.8 |
Other American countries | Mexican Open-Pit | Operating segment | ||||
Revenue Recognition | ||||
Net sales | 13.5 | 10.7 | 20.7 | 20.2 |
Other American countries | Mexican IMMSA Unit | Operating segment | ||||
Revenue Recognition | ||||
Net sales | 0.5 | 0.6 | ||
Other American countries | Peruvian Operations | Operating segment | ||||
Revenue Recognition | ||||
Net sales | 7.2 | 8.8 | 11.3 | 15 |
Switzerland | ||||
Revenue Recognition | ||||
Net sales | 374.6 | 358.9 | 603.6 | 607.8 |
Switzerland | Mexican Open-Pit | Operating segment | ||||
Revenue Recognition | ||||
Net sales | 152.3 | 174.5 | 314.1 | 311.3 |
Switzerland | Mexican IMMSA Unit | Operating segment | ||||
Revenue Recognition | ||||
Net sales | 25.4 | 3.4 | 40.7 | 12 |
Switzerland | Peruvian Operations | Operating segment | ||||
Revenue Recognition | ||||
Net sales | 196.9 | 181 | 248.9 | 284.5 |
Italy | ||||
Revenue Recognition | ||||
Net sales | 114.8 | 96.8 | 196.1 | 220.1 |
Italy | Mexican Open-Pit | Operating segment | ||||
Revenue Recognition | ||||
Net sales | 0.4 | 0.2 | ||
Italy | Mexican IMMSA Unit | Operating segment | ||||
Revenue Recognition | ||||
Net sales | 6.4 | 3.1 | 12.5 | 9.5 |
Italy | Peruvian Operations | Operating segment | ||||
Revenue Recognition | ||||
Net sales | 108.4 | 93.3 | 183.7 | 210.4 |
Italy | Maximum | ||||
Revenue Recognition | ||||
Net sales | 0.1 | 0.1 | ||
Spain | ||||
Revenue Recognition | ||||
Net sales | 157.1 | 108 | 287.2 | 231.9 |
Spain | Mexican Open-Pit | Operating segment | ||||
Revenue Recognition | ||||
Net sales | 131.3 | 88.6 | 241.6 | 212.5 |
Spain | Peruvian Operations | Operating segment | ||||
Revenue Recognition | ||||
Net sales | 25.8 | 19.4 | 45.7 | 19.4 |
Other European Countries | ||||
Revenue Recognition | ||||
Net sales | 165.6 | 61.4 | 332.4 | 181.7 |
Other European Countries | Mexican Open-Pit | Operating segment | ||||
Revenue Recognition | ||||
Net sales | 29 | 14.1 | 87.6 | 73.7 |
Other European Countries | Mexican IMMSA Unit | Operating segment | ||||
Revenue Recognition | ||||
Net sales | 4 | 3.4 | 5.4 | 10.8 |
Other European Countries | Peruvian Operations | Operating segment | ||||
Revenue Recognition | ||||
Net sales | 132.5 | 43.9 | 239.4 | 97.2 |
China | ||||
Revenue Recognition | ||||
Net sales | 397.3 | 169.2 | 683.7 | 352.2 |
China | Mexican Open-Pit | Operating segment | ||||
Revenue Recognition | ||||
Net sales | 334.7 | 139.3 | 510.3 | 292.6 |
China | Mexican IMMSA Unit | Operating segment | ||||
Revenue Recognition | ||||
Net sales | 2.4 | 1 | 3.5 | 1 |
China | Peruvian Operations | Operating segment | ||||
Revenue Recognition | ||||
Net sales | 60.2 | 28.9 | 169.9 | 58.6 |
Singapore | ||||
Revenue Recognition | ||||
Net sales | 76.3 | 116.6 | 133.6 | 218 |
Singapore | Mexican Open-Pit | Operating segment | ||||
Revenue Recognition | ||||
Net sales | 45.7 | 64.7 | 63.3 | 108.8 |
Singapore | Mexican IMMSA Unit | Operating segment | ||||
Revenue Recognition | ||||
Net sales | 2 | (0.6) | ||
Singapore | Peruvian Operations | Operating segment | ||||
Revenue Recognition | ||||
Net sales | 28.6 | 51.9 | 70.9 | 109.2 |
Japan | ||||
Revenue Recognition | ||||
Net sales | 182.5 | 131.8 | 427.5 | 331.3 |
Japan | Mexican Open-Pit | Operating segment | ||||
Revenue Recognition | ||||
Net sales | 27.2 | 30.1 | 81.3 | 92 |
Japan | Peruvian Operations | Operating segment | ||||
Revenue Recognition | ||||
Net sales | 155.3 | 101.7 | 346.2 | 239.3 |
Other Asian countries | ||||
Revenue Recognition | ||||
Net sales | 55.6 | 27.1 | 77.7 | 57.9 |
Other Asian countries | Mexican Open-Pit | Operating segment | ||||
Revenue Recognition | ||||
Net sales | 24.7 | 24.7 | 42 | 50.3 |
Other Asian countries | Mexican IMMSA Unit | Operating segment | ||||
Revenue Recognition | ||||
Net sales | 0.1 | 0.2 | ||
Other Asian countries | Peruvian Operations | Operating segment | ||||
Revenue Recognition | ||||
Net sales | $ 30.9 | $ 2.3 | $ 35.6 | $ 7.4 |
REVENUE_ - Revenue by Segment (
REVENUE: - Revenue by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenue Recognition | ||||
Net sales | $ 3,118.3 | $ 2,300.7 | $ 5,718.1 | $ 5,094.6 |
Corporate, other and eliminations | ||||
Revenue Recognition | ||||
Net sales | (52.1) | (38.6) | (93.4) | (76.8) |
Mexican Open-Pit | Operating segment | ||||
Revenue Recognition | ||||
Net sales | 1,738.5 | 1,311.2 | 3,204.4 | 2,938.1 |
Mexican IMMSA Unit | Operating segment | ||||
Revenue Recognition | ||||
Net sales | 185.2 | 141.2 | 331.6 | 320.7 |
Peruvian Operations | Operating segment | ||||
Revenue Recognition | ||||
Net sales | 1,246.7 | 886.9 | 2,275.4 | 1,912.6 |
Copper | ||||
Revenue Recognition | ||||
Net sales | 2,366.6 | 1,782.5 | 4,410.3 | 3,930.3 |
Copper | Corporate, other and eliminations | ||||
Revenue Recognition | ||||
Net sales | (24) | (17.1) | (42.9) | (34.3) |
Copper | Mexican Open-Pit | Operating segment | ||||
Revenue Recognition | ||||
Net sales | 1,347.1 | 1,042.7 | 2,553.3 | 2,383.3 |
Copper | Mexican IMMSA Unit | Operating segment | ||||
Revenue Recognition | ||||
Net sales | 41.8 | 21.9 | 69.3 | 41.4 |
Copper | Peruvian Operations | Operating segment | ||||
Revenue Recognition | ||||
Net sales | 1,001.7 | 735 | 1,830.7 | 1,539.9 |
Molybdenum | ||||
Revenue Recognition | ||||
Net sales | 379.2 | 254.4 | 652.8 | 556 |
Molybdenum | Mexican Open-Pit | Operating segment | ||||
Revenue Recognition | ||||
Net sales | 213.3 | 170.5 | 357.8 | 331.2 |
Molybdenum | Peruvian Operations | Operating segment | ||||
Revenue Recognition | ||||
Net sales | 166 | 83.9 | 295 | 224.8 |
Silver | ||||
Revenue Recognition | ||||
Net sales | 157.2 | 98.7 | 268.7 | 213.8 |
Silver | Corporate, other and eliminations | ||||
Revenue Recognition | ||||
Net sales | (26.3) | (18.9) | (48) | (37.4) |
Silver | Mexican Open-Pit | Operating segment | ||||
Revenue Recognition | ||||
Net sales | 91.5 | 54.2 | 158.1 | 119.5 |
Silver | Mexican IMMSA Unit | Operating segment | ||||
Revenue Recognition | ||||
Net sales | 52.1 | 38.2 | 87.6 | 81 |
Silver | Peruvian Operations | Operating segment | ||||
Revenue Recognition | ||||
Net sales | 39.9 | 25.2 | 71 | 50.7 |
Zinc | ||||
Revenue Recognition | ||||
Net sales | 114.9 | 63 | 185 | 155.1 |
Zinc | Corporate, other and eliminations | ||||
Revenue Recognition | ||||
Net sales | (0.1) | (0.3) | 0.6 | 0.3 |
Zinc | Mexican Open-Pit | Operating segment | ||||
Revenue Recognition | ||||
Net sales | 44.8 | 49.1 | ||
Zinc | Mexican IMMSA Unit | Operating segment | ||||
Revenue Recognition | ||||
Net sales | 70.1 | 63.3 | 135.4 | 154.8 |
Other | ||||
Revenue Recognition | ||||
Net sales | 100.3 | 102.1 | 201.2 | 239.4 |
Other | Corporate, other and eliminations | ||||
Revenue Recognition | ||||
Net sales | (1.8) | (2.3) | (3) | (5.4) |
Other | Mexican Open-Pit | Operating segment | ||||
Revenue Recognition | ||||
Net sales | 41.8 | 43.8 | 86.1 | 104.1 |
Other | Mexican IMMSA Unit | Operating segment | ||||
Revenue Recognition | ||||
Net sales | 21.1 | 17.8 | 39.4 | 43.5 |
Other | Peruvian Operations | Operating segment | ||||
Revenue Recognition | ||||
Net sales | $ 39.2 | $ 42.8 | $ 78.8 | $ 97.2 |
REVENUE_ - Receivables by repor
REVENUE: - Receivables by reporting segment (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 USD ($) T | Dec. 31, 2023 USD ($) | |
Opening and closing balances of receivables | ||
Trade receivables | $ 1,622.3 | $ 1,141.1 |
Related parties, current | 16.9 | 27.3 |
Corporate, other and eliminations | ||
Opening and closing balances of receivables | ||
Related parties, current | $ (52.8) | (0.1) |
Copper concentrates | ||
Long Term Contracts | ||
Long term contracts | T | 177,500 | |
Copper cathodes | ||
Long Term Contracts | ||
Long term contracts | T | 48,000 | |
Molybdenum concentrates | ||
Long Term Contracts | ||
Long term contracts | T | 23,543 | |
Sulfuric acid | ||
Long Term Contracts | ||
Long term contracts | T | 271,628 | |
Mexican Open-Pit | Operating segment | ||
Opening and closing balances of receivables | ||
Trade receivables | $ 913.6 | 556.3 |
Related parties, current | 43.8 | 25.7 |
Mexican IMMSA Unit | Operating segment | ||
Opening and closing balances of receivables | ||
Trade receivables | 71 | 49.1 |
Related parties, current | 25.6 | 0.9 |
Peruvian Operations | Operating segment | ||
Opening and closing balances of receivables | ||
Trade receivables | 637.7 | 535.7 |
Related parties, current | $ 0.3 | $ 0.8 |
REVENUE_ - Provisionally prices
REVENUE: - Provisionally prices sales (Details) lb in Millions, $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) lb $ / item | |
Copper | |
Provisionally priced sales: | |
Provisional price sales adjustment amounts included in accounts receivable and net sales | $ | $ 12.2 |
Copper | July 2024 Through October 2024 | |
Provisionally priced sales: | |
Sales volume (in million lbs.) | lb | 190.7 |
Provisional price | $ / item | 4.37 |
Molybdenum | |
Provisionally priced sales: | |
Provisional price sales adjustment amounts included in accounts receivable and net sales | $ | $ 20.2 |
Molybdenum | July 2024 Through October 2024 | |
Provisionally priced sales: | |
Sales volume (in million lbs.) | lb | 16.2 |
Provisional price | $ / item | 22.90 |
SEGMENT AND RELATED INFORMATI_3
SEGMENT AND RELATED INFORMATION: (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) segment | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Financial information related to segments | |||||
Number of reportable segments | segment | 3 | ||||
Financial information relating to segments | |||||
Net sales | $ 3,118.3 | $ 2,300.7 | $ 5,718.1 | $ 5,094.6 | |
Cost of sales (exclusive of depreciation, amortization and depletion) | 1,248.9 | 1,147.7 | 2,406.5 | 2,341.9 | |
Selling, general and administrative | 33.9 | 31 | 64.8 | 61.4 | |
Depreciation, amortization and depletion | 209.6 | 209.2 | 418.6 | 412.9 | |
Exploration | 18.6 | 12.1 | 31.2 | 24 | |
Operating income | 1,607.3 | 900.7 | 2,797 | 2,254.4 | |
Interest, net | (56.8) | (58.4) | (109.9) | (119.8) | |
Other income (expense) | (19.9) | 5.6 | (0.9) | 16.1 | |
Income taxes | (578.8) | (294.5) | (1,002.1) | (774.9) | |
Equity earnings of affiliate | 2 | (3.8) | 8.6 | (10.2) | |
Non-controlling interest | (3.6) | (2.1) | (6.4) | (4.9) | |
Net income attributable to SCC | 950.2 | 547.5 | 1,686.2 | 1,360.7 | |
Capital investment | 331.8 | 252.5 | 545.6 | 490.6 | |
Property and mine development, net | 9,871.5 | 9,688.1 | 9,871.5 | 9,688.1 | $ 9,782.9 |
Total assets | 17,777.7 | 16,939.5 | 17,777.7 | 16,939.5 | $ 16,725.3 |
Corporate, other and eliminations | |||||
Financial information relating to segments | |||||
Net sales | (52.1) | (38.6) | (93.4) | (76.8) | |
Cost of sales (exclusive of depreciation, amortization and depletion) | (50.1) | (17.5) | (91.5) | (78.4) | |
Selling, general and administrative | 2.8 | 2.3 | 4.6 | 4.8 | |
Depreciation, amortization and depletion | 9 | (6.6) | 17.7 | 22.5 | |
Exploration | 2.9 | 1.5 | 4.4 | 5.3 | |
Operating income | (16.7) | (18.3) | (28.7) | (31) | |
Capital investment | 1.8 | 3.1 | 6.2 | 6.9 | |
Property and mine development, net | 642.6 | 640.9 | 642.6 | 640.9 | |
Total assets | 1,663 | 2,183.6 | 1,663 | 2,183.6 | |
Reportable subsegments | |||||
Financial information relating to segments | |||||
Net sales | 3,118.3 | 2,300.7 | 5,718.1 | 5,094.6 | |
Intersegment sales | |||||
Financial information relating to segments | |||||
Net sales | 0 | 0 | |||
Intersegment sales | Corporate, other and eliminations | |||||
Financial information relating to segments | |||||
Net sales | (52.1) | (38.6) | (93.4) | (76.8) | |
Mexican Open-Pit | Operating segment | |||||
Financial information relating to segments | |||||
Net sales | 1,738.5 | 1,311.2 | 3,204.4 | 2,938.1 | |
Cost of sales (exclusive of depreciation, amortization and depletion) | 663 | 572 | 1,257.6 | 1,190.4 | |
Selling, general and administrative | 18.1 | 16.9 | 35.2 | 32.8 | |
Depreciation, amortization and depletion | 102.6 | 115.7 | 202.3 | 191.2 | |
Exploration | 2.4 | 1.4 | 6 | 2.7 | |
Operating income | 952.4 | 605.2 | 1,703.3 | 1,521 | |
Capital investment | 234.7 | 149.1 | 341.7 | 264.8 | |
Property and mine development, net | 4,687.2 | 4,705.8 | 4,687.2 | 4,705.8 | |
Total assets | 9,164.4 | 8,976.3 | 9,164.4 | 8,976.3 | |
Mexican Open-Pit | Reportable subsegments | Operating segment | |||||
Financial information relating to segments | |||||
Net sales | 1,738.5 | 1,311.2 | 3,204.4 | 2,938.1 | |
Mexican IMMSA Unit | Operating segment | |||||
Financial information relating to segments | |||||
Net sales | 185.2 | 141.2 | 331.6 | 320.7 | |
Cost of sales (exclusive of depreciation, amortization and depletion) | 109.9 | 122.8 | 239.6 | 278.2 | |
Selling, general and administrative | 3.3 | 2.3 | 5.9 | 5.3 | |
Depreciation, amortization and depletion | 18.2 | 17.3 | 37.4 | 34.8 | |
Exploration | 2.6 | 1.7 | 4.4 | 3.9 | |
Operating income | 51.1 | (2.9) | 44.4 | (1.5) | |
Capital investment | 29.4 | 33.7 | 61.2 | 62.5 | |
Property and mine development, net | 775 | 704.9 | 775 | 704.9 | |
Total assets | 1,214.7 | 1,130.7 | 1,214.7 | 1,130.7 | |
Mexican IMMSA Unit | Reportable subsegments | Operating segment | |||||
Financial information relating to segments | |||||
Net sales | 133.1 | 102.6 | 238.2 | 243.9 | |
Mexican IMMSA Unit | Intersegment sales | Operating segment | |||||
Financial information relating to segments | |||||
Net sales | 52.1 | 38.6 | 93.4 | 76.8 | |
Peruvian Operations | Operating segment | |||||
Financial information relating to segments | |||||
Net sales | 1,246.7 | 886.9 | 2,275.4 | 1,912.6 | |
Cost of sales (exclusive of depreciation, amortization and depletion) | 526.1 | 470.4 | 1,000.7 | 951.7 | |
Selling, general and administrative | 9.7 | 9.5 | 19.1 | 18.5 | |
Depreciation, amortization and depletion | 79.8 | 82.8 | 161.2 | 164.4 | |
Exploration | 10.7 | 7.5 | 16.5 | 12.1 | |
Operating income | 620.4 | 316.7 | 1,077.9 | 765.9 | |
Capital investment | 65.9 | 66.6 | 136.4 | 156.4 | |
Property and mine development, net | 3,766.7 | 3,636.5 | 3,766.7 | 3,636.5 | |
Total assets | 5,735.6 | 4,648.9 | 5,735.6 | 4,648.9 | |
Peruvian Operations | Reportable subsegments | Operating segment | |||||
Financial information relating to segments | |||||
Net sales | $ 1,246.7 | $ 886.9 | $ 2,275.4 | $ 1,912.6 |
SUBSEQUENT EVENTS_ (Details)
SUBSEQUENT EVENTS: (Details) | 1 Months Ended |
Jul. 18, 2024 $ / shares | |
O 2024 Q3 Dividends | |
SUBSEQUENT EVENTS | |
Quarterly dividend authorized (in dollars per share) | $ 0.60 |
Common stock, stock dividends, per share, declared | 0.0056 |
Subsequent Events | Arithmetic Average Member | |
SUBSEQUENT EVENTS | |
Share price | $ 106.54 |