Southern Copper Corp. announced unaudited consolidated earnings and production results for the second quarter and six months ended June 30, 2018. For the quarter, the company reported net sales of $1,837.2 million compared to $1,529.8 million a year ago. Operating income was $787.6 million compared to $385.1 million a year ago. Income before income tax was $718.7 million compared to $457.3 million a year ago. Net income was $411.1 million compared to $300.5 million a year ago. Net income attributable to company was $409.6 million compared to $299.7 million a year ago. Net income attributable to company common shareholders basic and diluted was $0.53 compared to $0.39 a year ago. Net cash provided by operating activities was $406.2 million compared to $353.8 million a year ago. Adjusted EBITDA was $955.2 million compared to $707.4 million a year ago. The increase was principally due to higher sales. Capital investments was $266.4 million against $252.1 million a year ago.

For the six months, the company reported net sales of $3,678.4 million compared to $3,113.8 million a year ago. Operating income was $1,561 million compared to $1,096.4 million a year ago. Income before income tax was $1,423 million compared to $942.6 million a year ago. Net income was $882.9 million compared to $615.7 million a year ago. Net income attributable to company was $880.3 million compared to $614.1 million a year ago. Net income attributable to company common shareholders basic and diluted was $1.14 compared to $0.79 a year ago. Net cash provided by operating activities was $1,056.1 million compared to $843.9 million a year ago. Adjusted EBITDA was $1,894.6 million compared to $1,429.7 million a year ago. Capital investments was $562.1 million against $497.7 million a year ago.

For the quarter, the company reported copper mined was 219,962 tons as compared to 215,632 tonnes a year ago. This is increased mainly due to higher production at their Peruvian operations of Toquepala (+14.8%) and Cuajone (+15.8%) as a result of higher ore grades at both mines. This increase was partially offset by lower production at their Mexican operations. Total production was 228,005 tons as compared to 221,384 tons a year ago. Molybdenum mined was 5,395 tons against 5,403 tons a year ago. Zinc mined was 17,983 tons against 17,815 tons a year ago. Silver mined was 4,635,000 ounces against 3,992,000 ounces a year ago.

For the six months months, the company reported copper mined was 424,777 tons as compared to 429,373 tonnes a year ago. Total production was 449,021 tons as compared to 443,558 tons a year ago. Molybdenum mined was 10,570 tons against 10,679 tons a year ago. Zinc mined was 35,719 tons against 36,412 tons a year ago. Silver mined was 8,778,000 ounces against 7,978,000 ounces a year ago.

The company provides production guidance for year 2018. For the period, the company reported Michiquillay to produce 225,000 tons of copper per year (along with by-products of molybdenum, gold and silver) for an initial mine life of more than 25 years, at a competitive cash-cost. They estimate an investment of approximately $2.5 billion will be required and expect production start-up by 2025, with Michiquillay becoming one of Peru's large copper mines. The project will create significant business opportunities in the Cajamarca region, generate new jobs for the local communities and contribute with taxes and royalties to the national, regional and local governments. The company reducing CapEx guidance to $1.3 billion of expenses.