Southern Copper Corporation (SCCO) has reported a 69.85 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $314.40 million, or $0.41 a share in the quarter, compared with $185.10 million, or $0.24 a share for the same period last year.
Revenue during the quarter grew 27.21 percent to $1,583.90 million from $1,245.10 million in the previous year period. Gross margin for the quarter expanded 510 basis points over the previous year period to 46.73 percent. Total expenses were 63.99 percent of quarterly revenues, down from 72.20 percent for the same period last year. This has led to an improvement of 821 basis points in operating margin to 36.01 percent.
Operating income for the quarter was $570.40 million, compared with $346.20 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $722.30 million compared with $481 million in the prior year period. At the same time, adjusted EBITDA margin improved 697 basis points in the quarter to 45.60 percent from 38.63 percent in the last year period.
Mr. German Larrea, chairman of the Board, commenting on the quarter's results and the Company's outlook said: "The continuing progress of our investment program is reflected in the consistent reduction of our unit cash cost and in our strong production volumes. The Toquepala expansion is on time and on budget and has reached a progress level of 58% and is expected to start production by the 2Q18. This expansion will add 100,000 tons of annual copper production as well as significant amounts of molybdenum. With the Toquepala expansion project moving forward on schedule we will arrive to a production level of one million tons by 2019.”
Operating cash flow improves significantly
Southern Copper Corporation has generated cash of $490.10 million from operating activities during the quarter, up 664.59 percent or $426 million, when compared with the last year period.
The company has spent $246.60 million cash to meet investing activities during the quarter as against cash inflow of $98.30 million in the last year period.
The company has spent $61.80 million cash to carry out financing activities during the quarter as against cash outgo of $76.90 million in the last year period.
Debt remains almost stable
Total debt of Southern Copper Corporation remained almost stable for the quarter at $5,954.90 million, when compared with the last year period. Long-term debt of SOUTHERN COPPER remained almost stable for the quarter at $5,954.90 million, when compared with the last year period. Interest coverage ratio improved to 6.34 for the quarter from 4.76 for the same period last year.
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