Southern Copper Crushes Q2 Earnings Despite Slumping Production

Southern Copper (NYSE:SCCO) reported strong second-quarter results despite a decline in mined copper production. The company's net income attributable to shareholders rose 71.6% year-over-year to $1,670.0 million, with earnings per diluted share increasing to $2.01.

The average London Metal Exchange (LME) copper price surged 39.8% to $6.04 per pound, offsetting the decline in production. Mined copper output fell 3.5% to 230,662 tonnes, while mined molybdenum and zinc volumes also decreased due to lower ore grades in Peru.

Southern Copper's operating income reached $2,623.2 million on a GAAP basis, with an operating cash cost per pound of copper increasing to 228.8 cents before by-product credits. However, net of by-product credits, the cost fell to 4.6 cents from 63.1 cents.