Copper production by Southern Copper’s (SCC) operations in Peru and Mexico stood at 237,000mt in Q2, 2021, down by 6.3pc from Q1, 2021 due to a drop in ore grades and maintenance work rescheduled in 2021 from 2020 due to the COVID-19 pandemic. In H1, copper production fell by 3.9pc to 475,512mt from the prior-year period. The company’s output in Q2,2021 was lower than the estimated production of 241,630mt in Q2, 2021.
The company, however, reported a rise in its profits driven by elevated copper prices, driven by the global economic recovery in the post-pandemic period.
It expects copper production to be at 960,000mt in 2021.
The company reported adjusted EBITDA of $1,862.4mn in Q2,2021, up by 141.9pc from $770.0mn Q2, 2020. The company is hopeful of obtaining a license for its Tia Maria project under Peruvian President Pedro Castillo’s regime.
SCC’s net income was $932.7mn in Q2, 2021, up by 259.4pc from $259.5mn Q2,2020. The net income margin in Q2,2021 was 32.2pc as against 14.5pc in Q2,2020.
The company is an integrated copper producer, producing copper, molybdenum, zinc, lead, coal, and silver. The company’s mining, smelting, and refining facilities are located in Peru and Mexico. It conducts exploration activities in Peru, Mexico, and Chile.