Southern Copper 4th-Quarter Net Slips to $531.8 Million
01/31/2013| 05:40pm US/Eastern
By Ryan Dube
LIMA, Peru--Southern Copper Corp. (SCCO, SCCO.VL) said Thursday its fourth-quarter net income totaled $531.8 million, compared with $537 million in the same period a year earlier.
Fourth-quarter net earnings were 63 cents a share, the same as the year-earlier quarter.
For full-year 2012, Southern Copper said its net income was $1.93 billion, down 17.2% from $2.34 billion the previous year. The decline was due to a one-time payment of $316 million for legal fees related to the Minera Mexico derivative lawsuit.
Southern Copper said sales last year declined 2.2% to $6.67 billion as a result of lower copper prices. However, the company said higher-than-expected production, which was due to better ore grades and recoveries at all of its operations, helped offset the impact of lower copper prices.
Southern Copper operates mines, smelting and refining facilities in Mexico and Peru.
Southern Copper's total copper output was 651,801 tons in 2012, up from 638,810 tons the previous year. The company had expected to produce 640,000 tons of copper in 2012.
Southern Copper said capital expenditures were a record $1.05 billion in 2012, which was 72% higher than the previous year.
"In 2013, we will continue our investment program to increase copper production capacity by approximately 84% from 640,000 tons to 1,175,000 tons by 2017," the company said.
Grupo Mexico SAB (GMEXICO.MX) has a controlling stake in Southern Copper.
Write to Ryan Dube at email@example.com
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