Sociedad Minera Cerro Verde (CVERDEC1) Q3 2024 earnings summary

Executive summary

• Net income for Q3 2024 reached $253.6M, up from $225.5M in Q3 2023, driven by higher copper prices despite lower sales volumes and increased tax and financial expenses.

• Revenue for Q3 2024 was $1,077.2M, a 3% increase year-over-year, mainly due to higher realized copper prices ($4.23/lb vs $3.77/lb), partially offset by lower copper sales volumes.

• Favorable foreign exchange impact of $29.7M contributed to results, while non-recurring labor agreement costs of $32.5M were incurred.

Financial highlights

• Net income for the nine months ended September 2024 was $752.5M, up from $613.5M year-over-year.

• EBITDA for the nine months was $1,176.2M, compared to $1,102.0M in the same period last year.

• Basic and diluted EPS for Q3 2024 was $0.724, and $2.15 for the nine-month period, up from $0.644 and $1.753, respectively.

• Gross margin for Q3 2024 was 40.0%, up from 38.8% in Q3 2023.

• Operating cash flow for the nine months was $1,265.4M, with $243.8M invested in property, plant, and equipment.

Outlook and guidance

• Management highlights continued exposure to copper price volatility and exchange rate fluctuations as key factors for future performance.

• The company is evaluating the impact of new international sustainability and financial reporting standards effective from 2024 and 2027.