Summary
Southern Copper Corporation (SCCO) reported a decline in net earnings for the third quarter and the first nine months of 2001 compared to the prior year, primarily due to lower copper prices and decreased production. Net sales for Q3 2001 were $171.5 million, down from $185.1 million in Q3 2000, reflecting a drop in the average selling price of copper. Despite lower earnings, the company maintained significant liquidity, with cash and cash equivalents increasing to $462.4 million as of September 30, 2001. SCCO is actively managing its capital structure, with plans to refinance $550 million to extend debt maturities and reduce interest rates. The company is also progressing with several expansion and modernization projects at its mines, which are expected to increase future production capacity.
Key Highlights
- 1Net earnings for Q3 2001 were $11.6 million ($0.14 per share), a decrease from $27.8 million ($0.35 per share) in Q3 2000.
- 2Nine-month net earnings for 2001 were $34.7 million ($0.43 per share), down from $62.3 million ($0.78 per share) in the same period of 2000.
- 3Total net sales for Q3 2001 decreased to $171.5 million from $185.1 million in Q3 2000, driven by lower average copper prices.
- 4Average copper prices (LME) fell to $0.67/lb in Q3 2001 from $0.85/lb in Q3 2000, and for the nine-month period, from $0.82/lb to $0.74/lb.
- 5Mine copper production decreased by 1.5% in Q3 2001 compared to Q3 2000.
- 6Cash and cash equivalents significantly increased to $462.4 million as of September 30, 2001, up from $149.1 million at the end of 2000.
- 7The company is undertaking a significant refinancing plan, including increasing Peruvian bond placements and redeeming existing debt, to extend maturities and lower interest costs.