Southern Copper Corporation announced the result of first 6th month 2012;
1. First 6 months 2012 net sales were USD 3,465.8 million, 1.8% higher than the 6 month 2011. This increase was the result of higher copper sales volume from increased production at our open pit mines despite lower metal prices for copper (-14%), silver (-11%) and Molybdenum (-18%).
2. EBITDA in first 6 months 2012 and Q2 2012 were USD 2,029.4 million and USD 972.3 million both with an EBITDA margin of 59%.
3. Net income for the first 6 months 2012 was USD 1,185.0 million, an increase of 4% compared with first 6 months 2011. Net income represented 34% of total revenues.
4. Copper mine production increased by 16% in first 6 months 2012 compared with the first 6 months 2011 due to better ore grades and recovery of the Buenavista, La Caridad and Cuajone production. Total copper production in first 6 months 2012 was 313,500 tonnes. Molybdenum, silver and zinc production, our three major by products, also increased by 6%, 14%, and 8% respectively.
5. Operating cash cost per pound of copper before by product credits was USD 1.71 per pound in Q2 2012 compared with USD 1.75 per pound in Q2 2011, a decrease of 2%. Operating cash cost per pound, net of by products was USD 0.59 in 2Q12.
6. Capital expenditures were USD 230.3 million for Q2 2012 and USD 407.7 million for first 6 months 2012 mainly used for our Buenavista projects.
7. On July 26th 2012, the Board of Directors authorized a cash dividend of USD 0.24 per share. The dividend is payable on August 28th 2012 to shareholders of record at the close of business on August 15th 2012.
Mr German Larrea chairman of the Board said that “Looking beyond the current volatile markets, the medium to long term outlook remains positive for metals, as strong demand growth from China and the emerging economies is poised to continue. The quality of our assets and expansion plans, combined with our positive long term view of copper prices gives us confidence in the sustainable cash generating ability of our business. Additionally, I would like to highlight our continued focus on value creation, investing in our organic growth through expansion projects, especially at the Buenavista mine in Mexico. We have spent USD 407.7 million in first 6 month 2012 on our capital projects and have additionally committed approximately USD 300 million for mine equipment to support the Buenavista projects.”
Source - Southern Copper
(www.steelguru.com)
