UPDATE 2-Southern Copper Q1 net profit jumps 34 pct
Thu Apr 26, 2007 7:56pm
today.reuters.com
Adds chairman comment, production and other figures, investment and feasibility study plans)
LIMA, April 26 (Reuters) - Southern Copper Corp. (SPC.LM: Quote, Profile , Research), one of the world's top copper producers, reported a 34 percent rise in first-quarter net profit on Thursday due primarily to strong prices as well as increased production.
First-quarter net profit rose to $563.5 million from $421.6 million a year ago and was in line with forecasts between $532.2 million and $575 million from three analysts, according to Reuters Estimates.
The rise in earnings "is attributable to the continued robust prices for most of our metals and to an increase of more than 6 percent in copper production," the company's chairman, German Larrea, said in a statement.
The company said average copper prices rose 20 percent from the first quarter last year to $2.69-$2.70 per pound.
Southern Copper(PCU.N: Quote, Profile , Research), which is controlled by Grupo Mexico (GMEXICOB.MX: Quote, Profile , Research), said that copper output increased 6.9 percent from January through March to 378.4 million pounds.
Quarterly net sales jumped 21 percent to $1.36 billion, while the cost of sales rose 15 percent to $466.6 million.
The company also declared a dividend of $1.50 per share, which will be paid on June 1 to shareholders of record as of May 16.
Southern Copper owns the Toquepala and Cuajone mines and Ilo smelter in Peru and the Cananea and La Caridad pits in Mexico.
The company said its capital expenditures fell 38 percent in the first quarter, mainly because in January it finished modernizing the Ilo smelter to comply with environmental regulations at a total cost of over $600 million.
Southern Copper said it was evaluating the expansion of a concentrator at the Cananea mine and that it planned to build a molybdenum plant there.
A pre-feasibility study on the Los Chancas copper-molybdenum site in Peru is due to be completed in the second quarter, while a feasibility study on the Tia Maria copper oxide deposit should be finished by the third quarter, the company said. |
