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Mar 31, 2021
Southern Copper Q1 2021 Earnings Report
Southern Copper's quarterly results reflected expansion programs and cost control improvements, leading to a competitive cash cost of $0.74 per pound of copper.
Key Takeaways
Southern Copper Corporation reported strong quarterly results driven by expansion programs and cost control. The company's cash cost was $0.74 per pound of copper. Vaccination efforts are progressing, and the company is contributing logistical support.
Quarterly results reflect expansion programs and cost control improvements.
Copper produced at a very competitive cash cost of $0.74 per pound.
Vaccination efforts are progressing at the company's operations.
The company is contributing to vaccination efforts by providing logistical support.
Southern Copper
Southern Copper
Forward Guidance
The company expects some delays in the execution of investment projects due to COVID-19 related measures, primarily affecting construction activities. All other engineering, procurement and construction activities are on schedule.
Positive Outlook
- Vaccination efforts are progressing, providing protection to workers and normalizing operating levels.
- Buenavista Zinc project is progressing with the mill manufacturing process completed and elements being shipped.
- Pilares project is expected to begin production in 1Q22, improving the overall mineral ore grade.
- El Pilar project is expected to start production in 2023, utilizing cost-efficient SX-EW technology.
- The company is committed to improving its ESG record by adopting best practices.
Challenges Ahead
- Some activities in the project execution stage have experienced delays due to COVID-19.
- Delays primarily affect construction activities requiring close physical proximity.
- The company acknowledges the need for government support to initiate construction at the Tia Maria project.
- COVID-19 preventive measures have been put in place to combat the spread.
- Potential vulnerability at the project execution level due to COVID-19 conditions.