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Southern Copper reports 72% net income jump in Q3 while copper output remains flat

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(Kitco News) - Southern Copper (NYSE: SCCO), one of the largest copper producers worldwide, announced today that its copper output of 245,146 tonnes in Q3 2021 was virtually unchanged compared to 246,560 tonnes mined in Q3 2020.

The company said that higher production at its Cuajone unit (+10%) was offset by lower levels at the company's other open pit operations due to variations in ore grade and recoveries.

The company added that its molybdenum production increased (+5.4%) in Q3 2021 compared to Q3 2020 due to an uptick in production at both the Toquepala and Buenavista mines.

Mined zinc production decreased 1.8% this quarter due to lower production at the Charcas and Santa Barbara mines, whereas mined silver production decreased by 8.8% after production fell at the company's IMMSA, Buenavista and Toquepala operations.

Importantly, the company pointed out that its net income in Q3 2021 was $867.6 million, which represented a 71.5% increase with regard to the $506.0 million registered in Q3 2020.

On a year-on-year basis, Southern Copper said that its net income was 161.6% higher than in 2020.

"These significant improvements were attributable to higher sales and our strict cost control measures," the company added.

Southern Copper expects its copper production in 2021 to total 957,000 tonnes.

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