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(Kitco News) - Southern Copper (NYSE: SCCO), one of the world’s largest copper producers, announced Thursday that its mined copper production in Q2 2023 increased by 9.2% y-o-y to 227,533 tons (Q2 2022: 208,428 tons).
The company explained that the higher mined copper output in Q2 2023 reflects higher production at all of its operations.
According to a press release, production at Cuajone was up 22%, driven by higher recoveries and by the return to full operating capacity this year, while output at Toquepala increased 19.5%, which was mainly attributable to higher ore grades. Production at the company’s Mexican operations increased 2.7%.
The company’s molybdenum mined production increased marginally (0.2%) to 6,334 tons in Q2 2023 compared to Q2 2022, while total mined silver production increased 8.0% to 4,803 thousand ounces and mined zinc production rose 13.8% to 17,223 tons.
Q2 2023 operating cash costs, net of by-product revenue credits, were $1.12 per pound of copper, which represents an increase of 4% compared to the Q2 2022 figures, primarily due to higher production costs and lower by-product credits for zinc and sulfuric acid.
The company’s Q2 2023 net sales were $2,300.7 million, slightly below compared to Q2 2022 principally due to lower metal prices for copper (-10.9%, LME) and zinc (-35.4%) and to a decrease in sales volumes for silver (-8.9%).
Southern Copper also reported that its Q2 2023 net income was $547.5 million, which represents a 26.6% increase with regard to the $432.3 million registered in 2Q22.
The net income margin in Q2 2023 stood at 23.8%, versus 18.7% in Q2 2022. This increase was mainly the result of a 7.9% reduction in cost of sales, which was mainly attributable to a decrease in lower third-party copper concentrate purchases.
Importantly, Chairman German Larrea noted in a statement that the company continues to focus on expansion.
“We have been operating the Pilares mine since Q4 2022 and have subsequently increased our annual copper production capacity by 35,000 tons. Additionally, the new zinc concentrator at Buenavista has already received material to process and ramping up is underway. This project is expected to elevate yearly production by 100,000 tons of zinc, doubling our current capacity, and 20,000 tons of copper. Our El Pilar project (+36,000 tons of copper) is under development and we are engaged in on-site environmental activities,” he said.
Southern Copper is one of the largest integrated copper producers in the world.
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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