Global Copper Mining Production Could See Steady Growth Over Next Few Years - Seite 3

In other mining news of note:

Southern Copper Corporation (NYSE: SCCO) recently reported its 2nd Quarter and Six Months 2020 Reports, saying, 2Q20 net sales were $1,785.4 million. Sales volumes increased for copper (+11.0%), molybdenum (+15.4%) and silver (+28.1%). However, due to lower metal prices for copper (-12.6% LME), molybdenum (-32.1%) and zinc (-28.8%), net sales fell 1.8% when compared to 2Q19. On a QoQ basis, net sales were 3.8% higher than in 1Q20.

2Q20 net income was $259.5 million, which represented a 35.5% decrease with regard to the $402.4 million registered in 2Q19. The net income margin in 2Q20 was situated at 14.5%, versus 22.1% in 2Q19. These decreases were mainly attributable to lower sales and an increase in operating costs (+9.4%). Costs increased due to growth in: sales volumes, leachable material costs, and third parties copper purchases. Higher costs were partially offset by a decrease in fuel costs and by the effect of exchange rate depreciation on local currency costs. On a QoQ basis, net income was 20.8% higher than in 1Q20.   Copper production decreased slightly, falling 1.3% YoY to situate at 253,097 tons. This drop was attributable to lower production at our Buenavista mine (-6.8%) due to a decrease in ore grades. This was partially offset by higher production at our Cuajone mine (+9.9%) due to higher ore grades and recoveries.

Alamos Gold Inc. (TSX: AGI) (NYSE: AGI) recently reported results of the positive Phase III Expansion Study conducted on its Island Gold mine, located in Ontario, Canada. Based on the results of the study, the Company is proceeding with an expansion of the operation to 2,000 tonnes per day ("tpd") ("Shaft Expansion"). This follows a detailed evaluation of several scenarios which demonstrated the Shaft Expansion as the best option, having the strongest economics, being the most efficient and productive scenario, and the best positioned to capitalize on further growth in Mineral Reserves and Resources. All amounts are in United States dollars, unless otherwise stated. 

"Island Gold has been a tremendous acquisition for Alamos Gold. We acquired Island Gold in 2017 at a cost of approximately $600 million when it had 1.8 million ounces of Mineral Reserves and Resources. This high-grade deposit has more than doubled to 3.7 million ounces and we expect further growth yet. The Phase III Expansion Study showcases the growing value of Island Gold. Already one of the most profitable mines in Canada, the expansion will increase production, lower costs, and make this operation even more profitable. The expansion will also best position the operation to benefit from additional exploration success," said John A. McCluskey, President and Chief Executive Officer.