Tuesday, October 28, 2008

Southern Copper has cash to move ahead even as profits drop

Profits fell by 1/3 in the third quarter for Phoenix-based Southern Copper Corp, one of the world's largest copper producers, and it may delay new projects. The company said it has $1.1 billion in cash so it is not dependent on credit markets but it is still carefully reviewing capital expenditures. [right copper cathode sheets, credit Southern Copper]

Net profits fell from $627.8 million a year ago to $417.8 due to higher costs, and declining copper prices as demand falls with weakening global economies.

The company said it is going ahead with plans to develop and expand copper projects in Peru.

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