Summary
Southern Copper Corporation (SCCO) reported a significant increase in financial performance for the six months ended June 30, 2010, compared to the same period in 2009. This surge was primarily driven by a substantial rise in average copper prices, which were approximately 75.5% higher year-over-year, along with favorable price movements for key by-products like molybdenum, zinc, and silver. Net sales increased by 65.4% to $2.39 billion, and net income attributable to SCCO more than doubled, reaching $696.6 million from $253.7 million in the prior year. The company also made significant operational progress, notably regaining control of its Cananea mine in June 2010 after a prolonged stoppage, with efforts underway to restore full production capacity by early 2011. Looking ahead, SCCO announced an ambitious $3.8 billion capital investment program in Sonora, Mexico, aimed at expanding production and improving cost competitiveness, including a major expansion of the Cananea mine. Furthermore, the company received a non-binding proposal for an all-stock business combination with its parent company, Americas Mining Corporation (AMC), which is currently under evaluation by a special committee of independent directors.
Financial Highlights
51 data points| Cost of Revenue | $531.48M |
| Gross Profit | $575.20M |
| SG&A Expenses | $21.96M |
| Operating Expenses | $632.82M |
| Operating Income | $540.40M |
| Net Income | $315.30M |
| EPS (Basic) | $0.37 |
| EPS (Diluted) | $0.37 |
| Shares Outstanding (Basic) | 850.00M |
| Shares Outstanding (Diluted) | 850.00M |
Key Highlights
- 1Net sales surged by 65.4% to $2.39 billion for the six months ended June 30, 2010, driven by higher commodity prices.
- 2Net income attributable to SCCO more than doubled to $696.6 million, reflecting strong operational performance and favorable market conditions.
- 3Average LME copper prices increased by 75.5% to $3.23 per pound in the first six months of 2010 compared to the same period in 2009.
- 4Southern Copper regained control of the Cananea mine on June 6, 2010, after a nearly three-year stoppage, with a plan to restore full capacity by February 2011.
- 5A significant new 5-year, $3.8 billion capital investment program was announced for Sonora, Mexico, focused on production expansion and cost competitiveness, including a major expansion of the Cananea mine.
- 6The company received a non-binding proposal from its parent, Americas Mining Corporation (AMC), for an all-stock business combination, which is under review by independent directors.