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Southern Copper Q2 earnings fall 24.7% despite YOY rise in production


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Southern Copper Q2 earnings fall 24.7% despite YOY rise in production

reportednet income of US$221.9 million in the second quarter, representing a 24.7%decrease on a yearly basis, despite an increase in production across most ofits commodities during the three-month period.

Salesdropped 3.5% to US$1.34 billion, while EBITDA came in at US$555.4 million,sliding 12.9% year over year, according to a July 25 release.

Copper mineproduction grew 26.1% to 225,842 tons, driven primarily by a 78% increase inoutput at the Buenavista mine in Mexico.

Zinc outputtotaled 19,994 tons, a 43% improvement on a yearly basis, as the companyresolved operational issues at the Charcas and Santa Eulalia mines that have affected production lastyear.

The strongperformance of the Buenavista mine also contributed to a 27.5% increase insilver production to 4.1 million ounces, according to the statement.

Molybdenumoutput, however, fell by 7.9% to 5,305 tons as a result of lower ore grades atthe company's Peruvian operations.

Capitalinvestments totaled US$341.6 million during the quarter, representing a 21.6%increase year over year.

In 2016,the company continues to develop its investment program to boost copperproduction capacity by 90% to 1.2 million tons from 617,000 tons in 2013.

SouthernCopper's board recently approved a dividend of 5 cents per share, payable Aug.25 to shareholders on record as of Aug. 11.