Reuters reported that Southern Copper Corporation’s Q3 net profit fell 25% to USD 312.5 million from USD 417.8 million in the year ago period as prices for metals fell. Net sales in the quarter were down 20% to USD 1.15 billion from USD 1.44 billion a year ago.

The company said that sales slipped on lower prices but that production rose and costs fell. Copper production increased 1.3% in the quarter to 120,240 tonnes while molybdenum output climbed 14.3% and zinc production rose 3.5% in the same period. It said that total costs in the quarter fell 15.8% to USD 643 million.

Mr German Larrea president of Southern Copper's board said that "We believe the forecast for the copper market is strengthening for the next few years and we expect more improvement in our results."

He said that among the projects the company said are progressing are its Toquepala expansion and the Tia Maria development in southern Peru. The company has approved USD 934 million investment program for Tia Maria and has spent about USD 250 million on it so far. It has spent USD 74.9 million on its Toquepala expansion. Once operational, Toquepala and Tia Maria are respectively expected to add 40,000 tonnes and 120,000 tonnes of copper a year to Southern's overall output. Tia Maria is scheduled to start production in the Q2 2011 while construction at Toquepala is set to begin in the middle of 2010.

He added that "We've revised our cash flows for the next few years and, under current conditions we expect to have sufficient cash flows generated internally to continue with the projects."

(Sourced from Reuters)