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Peru mines expect to post strong results
October 21, 2011
Mining companies in Peru are expected to post strong financial results in the third quarter of 2011, supported by higher metal prices compared to the same period last year.
Southern Copper Corp., one of the world's biggest producers of copper, is expected to post a $614 million net profit in the third quarter, up 68% compared to the same period last year, brokerage Inteligo SAB said in a report this week.
Inteligo said Southern Copper's results was supported by an increase in base metal prices and higher output thanks to strong production from the Buenavista del Cobre mine in Mexico, MarketWatch reported.
Morgan Stanley said it expects the company to produce 155,000 tons of copper in the third quarter, which would represent a 24% increase over the same period last year. Morgan Stanley said it forecasts Southern Copper's third-quarter net profit will rise 87% to $682 million.
Deutsche Bank said in a report that it sees Southern Copper's net profit rising 73% to $633 million, supported by a 33% increase in copper production to approximately 175,000 tons.
It added that higher copper volumes are expected to be offset by higher net cash costs.
Peru is the world's second biggest copper and silver producer and major producer of gold, zinc, lead and other minerals.
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