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(Kitco News) - Southern Copper (NYSE: SCCO), one of the world’s largest copper producers, announced yesterday that its mined copper production in Q1 2023 increased by 4.1% y-o-y to 223,272 tons.
The company explained that the higher mined copper output in Q1 2023 was primarily attributable to the fact that production at its Cuajone mine was up 48.5% y-o-y, adding that this result was driven by higher ore grades and a return to full operating capacity this year.
Production at the company’s Toquepala mine and IMMSA operations increased 0.6% and 7.5% respectively compared to Q1 2022; this was partially offset by a drop in production at La Caridad (-10.8%) and Buenavista operations (-0.3%) due to lower ore grades.
The company’s molybdenum production fell 8.8% in Q1 2023 compared to Q1 2022, while total mined silver production increased 3.1% and mined zinc production rose 2.4%.
Q1 2023 operating cash cost per pound of copper, net of by-product revenue credits, was $0.76, which represented an increase of 30.8% compared to the $0.56 reported in Q1 2022 primarily due to an uptick in the production cost.
The company’s Q1 2023 net sales were $2,793.9 million, up 1.1% over Q1 2022, which was primarily fueled by an increase in the sales volumes of copper, silver and zinc.
Southern Copper also reported that its Q1 2023 net income was $813.2 million, which represented a 3.6% increase when compared to the $784.7 million registered in Q1 2022. The net income margin in Q1 2023 was 29.1%, versus 28.4% in Q1 2022.
Cash flow from operating activities in Q1 2023 was $1,185.2 million, which represented an increase of 44.4% over the $820.7 million posted in Q1 2022, due to strong cash generation at the company’s operations, which was driven by higher sales and cost-control efficiencies.
Looking at the copper market, Southern Copper said it believes that current prices will be supported by the fact that available inventories are low worldwide, adding that in the long term, it expects demand to be strong as copper consolidates its role as a leading player in the global shift to clean energy.
Southern Copper is one of the largest integrated copper producers in the world. The company believes it currently has the largest copper reserves in the industry. The company is 88.9% owned by Grupo Mexico. Southern Copper operates mining units and metallurgical facilities in Mexico and Peru and conducts exploration activities in Argentina, Chile, Ecuador, Mexico and Peru.
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