June 2007 -- Fueled by a spike in copper prices, Southern Copper Corp.'s profit increased 44% in 2006. For the year, net earnings totaled $2.02 billion compared with $1.4 billion the previous year. The copper mining company said it benefited in the fourth quarter from higher copper prices. Copper increased from an average price of $1.68 per pound on the Comex division of the New York Commodities Exchange in 2005 to $3.09 per pound in 2006, according to the company's year-end report.
In the fourth quarter net sales increased by $483.8 million, a 41.5% increase over the year-ago period. Mine copper production decreased by 3.8 million pounds during the year-end quarter, primarily because of lower copper grade and recovery at its Toquepala mine. Molybdenum production increased 800,000 pounds because of increased production at its Mexican operations as a result of higher grade and recoveries, the company reported. Mine zinc production totaled 73.7 million pounds in the fourth quarter, a 4% decrease from the year-earlier period, because of lower grade.
