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Southern Copper cuts 2013 production forecast

Keywords: Tags  Southern Copper, copper guidance, copper production, Raul Jacon Ruisanchez, Buenavista Mine, Rey Mashayekhi

NEW YORK — Southern Copper Corp. has reduced its 2013 copper production forecast to 640,000 tonnes, down from an original guidance of 670,000 tonnes that was revised to 650,000 tonnes in February.

Chief financial officer Raul Jacob Ruisanchez said the reduction was due in part to flooding at Southern Copper’s Buenavista Mine in Mexico, which was responsible for an 8.2-percent decline in copper production in the second quarter compared with a year earlier.

Ruisanchez also attributed declines in production and sales to "negative macroeconomic events that affected consumer expectations," including a slowdown in Chinese growth and continuing low consumption in Europe.

"We maintain our view that (the copper market) is being affected by concerns about Chinese growth, London Metal Exchange increases, the stock increases, macroeconomic worries related to the end of quantitative easing in the U.S. and Europe’s continuing economic crisis," he said during the company’s earnings conference call July 24.

Southern Copper also announced it was lowering its 2013 capital expenditures guidance to $1.6 billion from $1.8 billion.

The company maintained a positive outlook for the copper market, however, and aims to increase annual production to more than 1 million tonnes by 2017.

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