Southern Copper Corp. Announces Earnings and Production Results for the Second Quarter and Six Months Ended June 30, 2017; Provides Production and Capex Guidance for the Full Year 2017, 2018, 2019, 2020 and 2021
July 25, 2017
Share
Southern Copper Corp. announced earnings and production results for the second quarter and six months ended June 30, 2017. For the quarter, the company reported net sales of $1,529.8 million compared to $1,335.1 million a year ago. Operating income was $525.9 million compared to $385.1 million a year ago. Income before income tax was $457.3 million compared to $320.9 million a year ago. Net income was $300.5 million compared to $222.5 million a year ago. Net income attributable to company was $299.7 million compared to $221.9 million a year ago. Net income attributable to company common shareholders basic and diluted was $0.39 compared to $0.29 a year ago. Net cash provided by operating activities was $353.8 million compared to $264.6 million a year ago. Adjusted EBITDA was $707.4 million compared to $555.4 million a year ago.
For the six months, the company reported net sales of $3,113.8 million compared to $2,580.1 million a year ago. Operating income was $1,096.4 million compared to $731.2 million a year ago. Income before income tax was $942.6 million compared to $593.8 million a year ago. Net income was $615.7 million compared to $408.3 million a year ago. Net income attributable to company was $614.1 million compared to $407.0 million a year ago. Net income attributable to company common shareholders basic and diluted was $0.79 compared to $0.53 a year ago. Net cash provided by operating activities was $843.9 million compared to $328.8 million a year ago. Adjusted EBITDA was $1,429.7 million compared to $1,036.4 million a year ago.
For the quarter, the company reported copper mined was 215,632 tons, compared to 225,833 tons for the last year. Total production was 221,384 tons, compared to 227,495 tons for the last year. Molybdenum mined was 5,403 tons, compared to 5,305 tons for the last year. Zinc mined was 17,815 tons, compared to 19,993 tons for the last year. Silver mined was 3,992 tons, compared to 4,097 tons for the last year.
For the six months, the company reported copper mined was 429,373 tons, compared to 447,462 tons for the last year. Total production was 443,558 tons, compared to 457,246 tons for the last year. Molybdenum mined was 10,679 tons, compared to 10,876 tons for the last year. Zinc mined was 36,412 tons, compared to 38,017 tons for the last year. Silver mined was 7,978 tons, compared to 8,090 tons for the last year.
For 2017, the company now adjusting production forecast level from 900,000 tons of copper to 890,000 tons for the year. The company expects to produce 16.3 million ounces of silver, which is in line with last year's production of 16.2 million ounces. The company expects to spend capital of $1.2 billion. That includes maintenance CapEx for about $400 million.
For 2018, the company will initiate production at the new Toquepala concentrator, and expect to produce 986,000 tons of copper, continuing aggressive organic growth program. The company expects to spend CapEx of $1.7 billion.
For 2019, the company expects to produce 1,030,000 tons of copper. The company expects to spend CapEx of $1.5 billion.
For 2020, the company expects to produce 1.2 million tons of copper. The company expects to spend CapEx of $1 billion.
For 2021, the company expects to produce 1.2 million tons of copper. The company expects to spend CapEx of $500 million.
Southern Copper Corporation is an integrated copper producer. The Company is engaged in the production of copper, molybdenum, silver, and zinc. The Companyâs mining, smelting and refining facilities are located in Peru and Mexico and conducts exploration activities in those countries and in Argentina, Chile and Ecuador. Its segments include the Peruvian operations, Mexican open-pit operations and Mexican underground mining operations. Its Peruvian operations include the Toquepala and Cuajone mine complexes and smelting and refining plants, including a precious metals plant, industrial railroad and port facilities. Its Mexican open-pit operations include the La Caridad and Buenavista mine complexes and the smelting and refining plants, including a precious metals plant and a copper rod plant and support facilities that service both mines. Its Mexican underground mining operations include five underground mines that produce zinc, copper, lead, silver and gold, and a zinc refinery.
Southern Copper Corp. Announces Earnings and Production Results for the Second Quarter and Six Months Ended June 30, 2017; Provides Production and Capex Guidance for the Full Year 2017, 2018, 2019, 2020 and 2021