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Peru's Southern Copper 3Q profit falls 34 percent

Peru's Southern Copper 3Q profit falls 34 percent

Peruvian mining company Southern Copper Corp. said Monday that net income fell 34 percent in the third quarter due to strikes, falling copper prices and higher fuel and production costs.
Profits fell to $417.8 million, or $0.47 a share, from $627.8 million, or $0.71 a share, in the same quarter last year, the Lima-based company said in an earnings report.
Company shares fell 4.6 percent to $9.84 on the New York Stock Exchange Monday before earnings were reported.
Third quarter sales fell to $1.4 billion from $1.6 billion in the same period last year, as copper production dipped 13.3 percent to 118,655 metric tons. The company blamed the drop in part on strikes at the Cananea copper mine in Mexico.
Southern Copper, 75 percent owned by Grupo Mexico SA, is one of the world's largest copper producers. It operates mines, smelting and refining facilities in Peru and Mexico.
The company said in a statement that due to the current global financial crisis, capital expenditures "will be carefully reviewed." Southern said it plans to go ahead with investment in developing the planned Tia Maria copper mine and expanding the Toquepala mine. Both sites are in Peru.
But Southern Copper said it will "continue to evaluate" copper deposit projects in El Arco and Los Chancas and Angangeo, "taking into account the changes in the financial and economic conditions."


Updated : 2021-05-11 13:09 GMT+08:00