Higher copper prices translated into higher profits for
The average price of copper on the London Metals Exchange during the 3-month period was US81 per lb., compared with US64 per lb. in first quarter of 1999.
The higher prices resulted in revenue of US$163.1 million, compared with revenue of US$123.9 million in the first quarter of 1999.
The company reported net earnings of US$16.5 million (or 21 per share) for the first quarter, compared with earnings of US$4 million (5 per share) in the corresponding period of 1999.
Mine production was off fractionally to 176.3 million lbs. copper during the recent quarter. Decreases in ore grade at the Toquepala and Cuajone mines and a fire in a conveyor belt at Cuajone were responsible for the dip in production. However, the decreases were largely offset by improved recovery and higher throughput resulting from the Cuajone expansion.
The Cuajone fire resulted in a production loss of 11.9 million lbs. The company is pursuing the loss with its insurers.
Meanwhile, Southern Peru is continuing expansion and modernization at Cuajone. Towards that end, it has so far invested US$47.2 million of a US$75.5-million budget. The company plans to divert the Torata River in June to allow expansion of the pit. The company is also proceeding with engineering studies for modification of the Ilo smelter, while beginning feasibility work for expansion of the Toquepala mine and concentrator.
Once these projects are completed, Southern Peru expects copper production to reach 900 million lbs. per year. Grupo Mexico acquired a 54% interest in Southern Peru when it purchased Asarco in November 1999.
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