8-KRegulation FD

SOUTHERN COPPER CORP/ 8-K Report, Regulation FD Disclosure (Jul 11, 2005)

Filed July 11, 2005For Securities:SCCO

Summary

Southern Peru Copper Corporation (SCCO) filed an 8-K on July 11, 2005, providing an update on its financial position as of May 31, 2005. The report highlights a significant decrease in cash, cash equivalents, and marketable securities, falling from approximately $809 million at March 31, 2005, to $345 million at May 31, 2005. This reduction in liquidity is primarily attributed to a substantial $350 million dividend payment made on May 13, 2005, and a $172 million final income tax payment for 2004. Concurrently, the company's long-term debt, including the current portion, saw a slight decrease from $1,211 million to $1,117 million during the same period. Investors should note that all figures as of May 31, 2005, are preliminary, unaudited, and subject to revision.

Key Highlights

  • 1SCCO reported cash, cash equivalents, and marketable securities of approximately $345 million as of May 31, 2005.
  • 2This represents a decrease from $809 million reported at March 31, 2005.
  • 3The primary driver for the cash reduction was a $350 million dividend payment on May 13, 2005.
  • 4A final 2004 income tax payment of $172 million also contributed to the decrease in cash.
  • 5Long-term debt (including current portion) decreased to approximately $1,117 million as of May 31, 2005, from $1,211 million at March 31, 2005.
  • 6All financial information as of May 31, 2005, is preliminary, unaudited, and subject to change.

Frequently Asked Questions

The primary reasons for the decrease in cash, cash equivalents, and marketable securities from $809 million to $345 million between March 31, 2005, and May 31, 2005, were a substantial dividend payment of $350 million on May 13, 2005, and a final 2004 income tax payment of $172 million.

The company's long-term debt, including the current portion, saw a slight decrease. It fell from approximately $1,211 million at March 31, 2005, to about $1,117 million at May 31, 2005.

No, the financial information reported as of May 31, 2005, is preliminary, unaudited, and subject to change. Investors should consider these figures as estimates that may be revised in future filings.