The bonds, due in July 2007 with a fixed rate of 8.75%, were sold to Peruvian investors and are the first in a series of bond offerings that are expected to total US$200-million.
The company is reviewing proposals to modernize the Ilo smelter and has begun basic engineering for expansion of the concentrator at Toquepala.
Expansion is also under way at SPC’s Cuajone mine. In late June, the company diverted the Torata River to protect the pit from flooding, and construction on the solution extraction-electrowinning project is expected to begin by year-end. So far, the company has spent US$61 million of the US$75.5-million budgeted for the expansion.
In the second quarter, SPC increased mine production by 2.4% to 184.3 million lbs. copper. Sales were US$157 million.
The average price of copper on the London Metal Exchange was US79 per lb. in the quarter of 2000, compared with US67 per lb. in the corresponding period of 1999.
The company reported net earnings of US$18 million (or 22 per share), compared with earnings of US$3.6 million (5 per share) a year ago. For the first six months of the year, earnings were US$34.5 million (43 per share), compared with US$7.6 million (10 per share) in the first half of 1999.
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