Southern Copper is an indirect subsidiary of its majority shareholder, Grupo México S.A.B. de C.V. ("Grupo Mexico"). It is an integrated producer of copper and other minerals and operates mines, smelters, and refineries in Peru and Mexico.
As of September 30, 2021, the Company's production facilities in Mexico and Peru were operating at approximately 96% of their production capacity due to the progressive recovery from COVID-19. It had also fully restored exploration activities at all of its locations except in Argentina, where the Company is developing social and environmental programs for the local communities.
During the third quarter of 2021, net sales amounted to $2,680.9 million, which represented an increase of 25.9% over 3Q20, mainly attributed to higher metal market prices for its main products.
Net income for 3Q21 was $867.6 million, representing an increase of 71.5% over the $506.0 million recorded in 3Q20. Net income margin in 3Q21 was 32.4% versus 23.8% in 3Q20. These significant improvements were attributable to higher sales and our strict cost control measures.
Adjusted EBITDA for 3Q21 was $1,709.3 million, which represented a 51.8% increase from the $1,125.9 million recorded in the same quarter of the previous year. Adjusted EBITDA margin for 3Q2021 was 63.8%, compared to 52.9% in 3Q2020. Cumulative adjusted EBITDA as of September 30, 2021 was $5,126.2 million, 96.1% higher than in 9M20. Likewise, the adjusted EBITDA margin in 9M21 was 63.2% compared to 46.4% in the same period of the previous year.
Copper production registered a slight decrease of 0.6% in 3Q21 on a quarter-over-quarter basis and reached the 245,146-ton mark.
Operating cash cost per pound of copper, including by-product revenue credit, was $0.58 in 3Q21, which represented an improvement of 9.9% compared to the $0.65 reported in 3Q20. In 9M21, the operating cash cost per pound of copper, including the by-products revenue credit, was $0.64. This reflects a 7.5% improvement compared to the $0.69 reported in 9M20. These results were mainly attributable to an increase in the by-product revenue credit, which was partially offset by a rebound in production costs.
The Company's president reported "While there are concerns about Chinese copper consumption in the near term due to real estate issues and energy shortages, we believe that projections for copper demand due to growth in public infrastructure investment in the United States and global initiatives to address climate change will provide significant drivers. The combination of these factors will provide strong support for copper and the other metals we produce in the coming decades. We believe we are entering a new stage in the COVID-19 crisis where outbreaks will be better controlled globally, which bodes well for a solid recovery around the world."
