Southern Copper closes lower on surprise loss
VANCOUVER (miningweekly.com) – Base metals miner Southern Copper has reported a surprise loss of $287.5-million in the fourth quarter ended December 31, saying a $743.3-million one-time payment related to US tax reforms weighed on its financial results.
Excluding special items, the company would have reported earnings of $455.8-million, or $0.59 a share, which was on par with analyst earnings forecasts.
Based in Arizona and controlled by Grupo Mexico, Southern Copper said the adjusted fourth-quarter profit reflected a 165.2% improvement over the $171.9-million it earned in the comparable period of 2016.
Enacted in the fourth quarter, the new US income tax legislation resulted in foreign tax credit carryforwards that were generated before the new legislation by taxes paid in Peru and Mexico, where its operates, being cancelled.
Fourth-quarter sales totalled $1.86-billion – a 33.3% year-on-year improvement, as higher sales volumes for copper (5.7%) and zinc (19.8%) and higher prices for copper (29.7%), molybdenum (32.5%) and zinc (28.9%) boosted the top line.
Copper output rose 4.2% year-on-year in the fourth quarter to 237 307 t.
The company's NYSE-listed equity closed 3.56% lower at C$47.40 apiece on Friday.
Operating cash cost per pound of copper net of by-product revenues was $0.89/lb in the fourth quarter, compared with $0.96/lb in the comparable period of 2016.
Meanwhile, its majority owner Grupo Mexico – the fourth largest miner in Mexico, and which also has a transportation business – reported a fourth-quarter net profit of $131-million on Friday. Revenue for the quarter was $2.74-billion, up 33% year-on-year.
Comments
The
content
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation