Southern Copper Q2 net profit up 64% to $726m

Southern Copper Corp said its net profit jumped 65 percent year-on-year in the quarter ended June 30 on higher copper prices and increased output.

Income rose to $726 million while sales increased by $549.8 million to $1,826.5 million, an increase of 43. percent, it said.

Copper production jumped 28.1 percent in the second quarter when the company produced 159,211 tonnes of copper.

Almost the entire increase came from the company`s open pit mines in Mexico.

Production in Peru slid 4,853 tonnes at its Toquepala operation on lower ore grades and mill recoveries.

Molybdenum production increased to 3,901 tonnes in the second quarter of 2007 from 2,313 tonnes in the second quarter of 2006.

The earnings were "attributable to the sustained price levels for most of our metals and equally as important, to an increase of more than 28 percent and 68 percent in copper and molybdenum mined production, respectively," said Southern Copper Corp chairman German Larrea in a statement.

Meanwhile, talks continued in Peru between the company and three of its biggest unions at the Toquepala, Cuajone and Ilo smelter and refinery, after the unions agreed to suspend strikes to resume negotiations.

Publication: Metal Bulletin
Provider: Metal Bulletin com
Date: July 27, 2007