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Dec 31, 2020
Southern Copper Q4 2020 Earnings Report
Southern Copper Corporation's performance reflected resilience and strategic investments amidst the pandemic.
Key Takeaways
Southern Copper Corporation reported strong operational performance driven by high economic contributions from its units, which led to production records for copper, molybdenum, and silver. The company produced over one million tons of copper at a competitive operating cash cost of $0.69 per pound.
Implemented strict COVID-19 protocols to maintain operations.
Achieved record production for copper, molybdenum, and silver.
Maintained a competitive operating cash cost for copper production.
Invested in projects to reduce vulnerability at the project execution level.
Southern Copper
Southern Copper
Forward Guidance
Southern Copper anticipates a positive evolution in the copper market, driven by growth in consumption in China and other economies, supported by the rollout of COVID-19 vaccines.
Positive Outlook
- Expectations of significant economic recovery following the COVID-19 pandemic.
- Anticipated uptick in copper consumption in 2021.
- Positive outlook for the copper market, sustained by growth in consumption in China and other economies.
- Approval and rollout of several COVID-19 vaccines globally.
- Projected increase in economic opportunities in the Islay province and the Arequipa region.
Challenges Ahead
- Potential delays in project execution due to COVID-19 related measures.
- Enforcement of social distance rules and quarantine periods for personnel impacting project timelines.
- Rising cases of infection in regions in Peru or Mexico affecting construction activities.
- Delays primarily affecting construction activities that require close physical proximity.
- Vulnerability at the project execution level due to COVID-19 conditions.