Dallas, Texas 05/08/2014 (FINANCIALSTRENDS) – Southern Copper Corp (NYSE:SCCO), which was heading towards $30 in the lead-up to the first quarter earnings report, is now moving away from $30, and not in the direction that investors want to see it go. The retreat in the share price follows the 11.8% drop in sales the company reported for the first quarter, as compared to the previous quarter.
Southern Copper Corp First Quarter Results
Southern Copper Corp reported first quarter 2014 net sales worth $1,354.4 million. This is 11.8% lower than the net sales of $1,535.2 million reported in the fourth quarter of 2013.
EBITDA for the first quarter in 2014 was $669.2 million, which is 7.7% lower than the $724.8 million in EBITDA the company reported for the last quarter in 2013. Net income for the first quarter was $323.4 million, which is 20.4% lower as compared to the $406.2 million in net income reported in the previous quarter.
The company blamed the drop in revenue and earnings on lower metal prices and copper sales volume, as their inventory built-up because production levels were maintained. As a matter of fact, their copper mine production actually increased by 13,683 tons or 9.2%, as compared to first quarter last year, because of higher throughput at Buenavista and their other mines.
Statement by Southern Copper Corp Chairman German Larrea
Southern Copper Corp Chairman of the Board German Larrea said that, “Consistent with our positive long term view on metal prices, we continue developing our $3.4 billion investment program at Buenavista to reach the full production potential of this asset…Also, the construction of the new concentrator is moving forward on budget and on schedule. These projects should increase Buenavista’s production capacity from 180,000 tons to 488,000 tons of copper by 2015.”