Southern Copper : 10.25.2019 8K reporting the 3Q 2019 results

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): October 25, 2019(October 23, 2019)

SOUTHERN COPPER CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	1-14066	13-3849074
(State or Other Jurisdiction	(Commission File Number)	(IRS Employer
of Incorporation)		Identification Number)
	1440 E. Missouri Ave., Suite 160, Phoenix, AZ 85014
	(Address of principal executive offices, including zip code)
	[phone]
	(Registrant's telephone number, including area code)
	Not Applicable
	(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

• Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
• Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
• Pre-commencementcommunications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
• Pre-commencementcommunications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Securities registered pursuant to Section 12(b) of the Act:

Title of each class:		Trading Symbol		Name of each exchange on which registered:
				New York Stock Exchange
Common stock, par value $0.01 per share		SCCO		Lima Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

ITEM 2.02 Results of Operations and Financial Condition

On October 23, 2019, Southern Copper Corporation ("SCC") issued a press release announcing financial results for the quarter ended on September 30, 2019. A copy of this press release is attached hereto as Exhibit 99.1. In this press release, SCC reported that on October 17, 2019, the Board of Directors authorized a dividend of $0.40 per share payable on November 21, 2019, to shareholders of record at the close of business on November 7, 2019. A copy of this press release is attached hereto as Exhibit 99.1

The information in this report and the exhibit attached hereto are being furnished and shall not be deemed as "filed" for purposes of Section 18 of the Securities Act of 1934. Accordingly, this information will not be incorporated by reference into any registration statement or other document filed by Southern Copper Corporation pursuant to the Securities Act of 1933 or the Securities Exchange Act of 1934, except as expressly stated in such filing.

ITEM 9.01 Financial Statements and Exhibits

1. Exhibits:

99.1 Press release of Southern Copper Corporation dated October 23, 2019, furnished pursuant to Item 2.02 of this Form 8-K.

104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

SOUTHERN COPPER CORPORATION

By:	/s/ Andres Carlos Ferrero
Name:	Andres Carlos Ferrero
Title:	General Counsel

Date: October 25, 2019

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INDEX TO EXHIBITS

Exhibits

99.1 Press release of Southern Copper Corporation dated October 23, 2019, furnished pursuant to Item 2.02 of this Form 8-K.

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Exhibit 99.1

Investor Relations:
Raul Jacob	October 23, 2019
Víctor Pedraglio	Southern Copper Corporation (NYSE and BVL: SCCO)
+[phone]
[e-mail]
www.southerncoppercorp.com

• Copper production increased 12.7% to 252,380 tons in 3Q19 compared with 3Q18 due to higher production at our Peruvian Toquepala mine (+55.5%) and our Buenavista mine (+4.6%) in Mexico. These increases were partially offset by lower production at the Cuajone mine (-3.1%) due to lower ore grades. Copper production increased 13.7% in the 9M19 when compared with 9M18 as result of higher production at Toquepala (+54.4%) due to the successful start-up of the new Toquepala concentrator, and higher production at Buenavista (+7.5%) principally as a result of operating improvements at its SX-EW plants (+18.8%).
• 3Q19 net sales were $1,859.5 million, 7.9% higher than 3Q18, principally due to higher sales volume of copper (+15.1%), silver (+11.9%) and molybdenum (+22.3%); as well as better silver prices (+13.8%). Metal prices decreased for copper (-5.1%, LME) and zinc (-7.8%), partially offsetting the significant contribution of the additional sales volume.
• Despite lower copper and zinc prices, 3Q19 net income of $389.6 million was 5.5% higher than 3Q18 net income of $369.4 million. Net income margin in 3Q19 was 21.0% compared with 21.4% in 3Q18.
• 3Q19 adjusted EBITDA was $907.7 million, 4.6% higher than 3Q18 of $868.1 million. The adjusted EBITDA margin in 3Q19 was 48.8% compared with 50.4% in 3Q18.
• By-productproduction: Molybdenum production increased (+23.8%) in 3Q19 compared with 3Q18 principally due to higher production at our Toquepala mine (+91.3%) from the new molybdenum plant that started production in April 2019. Mined silver production increased by 27.4% in 3Q19 compared with 3Q18 due to higher production at Toquepala (+57.8%), Buenavista (+17.5%) and IMMSA (+47.4%) operations. Mined zinc production decreased 1.2% in 3Q19, compared with 3Q18 production at the IMMSA mines which offset the 2,072 tons production increase at the San Martin mine.
• Operating cash cost per pound of copper net of by-product revenues was $0.82 in 3Q19, compared to $0.90 in 3Q18. This decrease of 8.9% in cash cost is mainly the result of higher by-product revenues (+18.1%) and the unit cost effect of 12.9% higher production.
• Capital investments in 9M19 were $536.1 million. These investments are in line with our growth program, which aims to reach annual production of 1.5 million tons of copper by 2026.
• Financing: On September 26, 2019, our subsidiary Minera Mexico S.A. de C.V. issued $1.0 billion of fixed-rate senior unsecured notes. This debt is due in 2050 and has an annual interest rate of 4.5%.
  During our marketing effort, we held meetings with investors in 4 cities worldwide and received 154 purchase orders from high quality institutional investors. We received orders for $3.7 billion, a demand of 3.7 times the offering.