Revenue, earnings down at SPCC

First-quarter earnings at Southern Peru Copper (PCU-N) were weaker on lower production and lower realized copper prices. For the quarter ended March 31, the company earned US$6.4 million on revenues of US$136.2 million.

Average London Metal Exchange copper prices for the quarter were US$1,556 per tonne, down from US$1,763 per tonne in the first three months of 2001. By comparison, Southern Peru earned US$15.7 million on revenues of US$162.4 million in that period.

Southern Peru also suffered from lower prices for byproduct silver, which averaged US$4.47 per oz. in the first quarter of 2002, down from US$4.53 in the first quarter of 2001. This was offset by molybdenum prices, which were higher: molybdenum oxide concentrates sold for an average US$2.74 per lb. in the period, up from US$2.25 the year before.

Production at the company’s Toquepala and Cuajone mines was 8.5% higher than in the corresponding period last year, at 85,600 tonnes, including 14,400 tonnes from Toquepala’s solvent extraction-electrowinning plant. Mine throughput and ore grades were both better than in 2001, and the company said costs were lower but did not release specific figures.

An expansion and refit of the Toquepala mill is 84% complete, and is on track to be finished by August. The mill will then be able to handle 60,000 tonnes per day, up from 45,000 at present.

Southern Peru also declared a dividend of US4 per share, payable to shareholders at May 20.

The company’s principal shareholders are Grupo Mexico, with 54%, and Phelps Dodge (PD-N) and Cerro Trading, each with about 14%.