|
1Q20 net sales
were $1,719.7 million. Copper sales volume increased (+10.6%) mainly due
to additional production from our new Toquepala concentrator. By-product
volumes of silver (+8.2%), molybdenum (+41.9%) and zinc (+7.1%)
increased when compared with 1Q19 sales volumes. However, due to lower
metal prices, net sales were 1.9% lower than in 1Q19.
1Q20 net income
was $214.8 million, 44.7% lower than 1Q19 net income of $388.2 million.
Net income margin in 1Q20 was 12.5% compared with 22.1% in 1Q19. These
decreases were mainly due to lower sales and higher operating costs
(+12.0%). Costs increased due to higher sales volumes, leachable
material and third parties copper purchases. The higher costs were
partially offset by lower fuel cost and the effect of exchange rates
depreciation on local currencies costs.
1Q20 adjusted EBITDA
was $718.8 million, 19.2% lower than 1Q19 adjusted EBITDA of $889.9
million. The adjusted EBITDA margin in 1Q20 was 41.8% compared with
50.8% in 1Q19.
Copper production
increased 5.8% in 1Q20 when compared with 1Q19, due to higher production
at our Peruvian mines (+17.8%) as result of the new Toquepala
concentrator and higher ore grades and recoveries in the Cuajone mine.
This was partially offset by lower production in our Buenavista mine
(-3.1%) due to lower ore grades.
By-product production:
Molybdenum production increased 39.7% when compared 1Q20 with 1Q19 due
to higher production at all our mines, led by our Toquepala new
molybdenum plant. Mined silver production increased by 21.6% in 1Q20
compared with 1Q19 due to higher production at all our mines, led by our
IMMSA operations. Mined zinc production increased 3.8% in 1Q20, compared
with 1Q19 production, due to higher production at Charcas, Santa Barbara
and San Martin mines partially offset by lower production at the Santa
Eulalia mine, which suspended operations due to a flooding.
Average Metal Prices
|
|
LME Copper ($/lb.) |
COMEX Copper ($/lb.) |
Molybdenum ($/lb.) |
Zinc ($/lb.) |
Silver ($/oz.) |
Gold ($/oz.) |
|
1Q 2020 |
2.56 |
2.57 |
9.56 |
0.97 |
16.87 |
1583.23 |
|
1Q 2019 |
2.82 |
2.81 |
11.7 |
1.23 |
15.52 |
1304.24 |
|
2Q 2019 |
2.77 |
2.78 |
12.13 |
1.25 |
14.85 |
1309.81 |
|
3Q 2019 |
2.63 |
2.62 |
11.76 |
1.06 |
16.98 |
1474.36 |
|
4Q 2019 |
2.67 |
2.68 |
9.49 |
1.08 |
17.27 |
1480.29 |
|
Average 2019 |
2.72 |
2.72 |
11.27 |
1.16 |
16.16 |
1392.17 |
|
Variance: 1Q20 vs. 1Q19 |
-0.092 |
-0.085 |
-0.183 |
-0.211 |
0.087 |
0.214 |
|
Variance: 1Q20 vs. 4Q19 |
-0.041 |
-0.041 |
0.007 |
-0.102 |
-0.023 |
0.07 |
Production and Sales
|
|
Three Months Ended March 31, |
|
2020 |
2019 |
% |
|
Copper (tons) |
|
|
|
|
Mined |
241967 |
228629 |
6% |
|
3rd party concentrates |
9308 |
731 |
1173% |
|
Total production |
251275 |
229360 |
10% |
|
Smelted |
163384 |
118516 |
38% |
|
Refined and rod |
214052 |
177739 |
20% |
|
Sales |
251533 |
227424 |
11% |
|
Molybdenum (tons) |
|
|
|
|
Mined |
7185 |
5145 |
40% |
|
Sales |
7239 |
5103 |
42% |
|
Zinc (tons) |
|
|
|
|
Mined |
19263 |
18550 |
4% |
|
Refined |
28560 |
26332 |
9% |
|
Sales |
28885 |
26962 |
7% |
|
Silver (000s ounces) |
|
|
|
|
Mined |
5278 |
4342 |
22% |
|
Refined |
3161 |
3134 |
1% |
|
Sales |
5520 |
5104 |
8% |
Source:
Southern Copper |
(To contact the reporter on this story: jemma.shang@steelhome.cn or 86-555-2238875 18155520624) |
