Southern Copper Corporation spent $892.3 million on capital investments in 2021, which reflected a 50.7% increase year over year and represented 26.3% of net income in that same year.
Currently, in Peru, the company has an approved project portfolio of 2.8 billion dollars, of which 1.6 billion have already been invested.
If the projects of Michiquillay (2,500 million dollars) and Los Chancas (2,600 million) are considered, its total investment program in Peru shows a commitment of 7,900 million.
Meanwhile, in Mexico, Southern Copper Corporation has five projects, one of them is Buenavista Zinc, in Sonora, consisting of a new concentrator to produce approximately 100,000 tons of zinc and 20,000 tons of copper per year.
As of December 31, 2021, the company had invested 217 million in this project, where it expects to start operations in 2023.
When completed, this new facility will double the company’s zinc production capacity and provide 490 direct jobs and 1,470 indirect jobs.
A second project is Pilares, in the same state of Sonora, which consists of an open-pit mine operation with an annual production capacity of 35,000 tons of copper concentrates and which implies an investment budget of 159 million.
And finally, El Pilar, which will be an open pit mine with an annual production capacity of 36,000 tons of copper cathodes, with a budget of 310 million. The company projects that production will begin in 2023 and a mine life of 13 years is estimated.
Southern Copper Corporation
During 2021, the company’s net sales, net income, adjusted EBITDA and cash from operations reached historical records.
Net sales for 2021 reached a record of 10,934.1 million dollars, an increase of 36.9% over the figure reported in 2020.
This growth was mainly due to higher prices for all its main products. Metal prices increased for copper (+51.1%, LME); molybdenum (+81.0%); zinc (+32.0%); and silver (+22.1 percent).
Net income in 2021 was 3,387.1 million dollars, this is 116.3% higher than in 2020.
Finally, the adjusted EBITDA in 2021 also reached a historical record of 6,852.7 million; 77.1% higher than the 2020 figure.
The adjusted EBITDA margin in 2021 was 62.7% against 48.5% in 2020.