Date: Thu, 20 Nov 1997 22:41:22 GMT Server: Apache/1.2.4 Last-Modified: Tue, 17 Jun 1997 15:04:28 GMT ETag: "dd460-6000-33a6a77c" Content-Length: 24576 Accept-Ranges: bytes Connection: close Content-Type: text/html ASARCO Southern Peru News
Southern Peru News


SPCC REPORTS FIRST QUARTER RESULTS

NEW YORK, N.Y. April 22, 1996 -- Southern Peru Copper Corporation (NYSE and LSE:PCU) today reported net earnings of $49.1 million, or $0.61 per share, for the first quarter of 1996 compared with net earnings of $44.4 million or $0.67 per share, for the first quarter of 1995.

Sales of products were $196.4 million in the first quarter of 1996 compared with $204.7 million in the first quarter of 1995.

Copper mine production in the first quarter of 1996 increased nearly 26% over the first quarter of 1995 to 161.6 million pounds. The increase in production is principally attributable to higher ore grades at the Cuajone mine and 22.6 million pounds of refined copper from the new solvent extraction, electrowinning plant (SX/EW) at the Company's Toquepala mine which commenced operations in the fourth quarter of 1995.

Copper prices were lower in the first quarter of 1996 compared with the year earlier period. The average price for copper on the London Metal Exchange (LME) was $1.17 per pound for the first quarter of 1996 compared with $1.33 per pound in the first quarter of 1995. The price for molybdenum, a by-product of the Company's copper production, was lower in the first quarter of 1996 at $4.07 per pound compared with $13.77 per pound in the first quarter of 1995. The price for silver was $5.54 per ounce in the first quarter of 1996 compared with $4.70 in the first quarter of 1995.

First quarter 1996 reported sales were reduced by pricing adjustments on provisionally priced fourth quarter 1995 sales. Most of the Company's sales are recorded on a provisional price basis when copper is shipped to customers. Final pricing generally occurs within the two months following shipment.

Commenting on the Company's results, Charles G. Preble, President and Chief Executive Officer of SPCC said, "Lower copper and molybdenum prices decreased net earnings by an estimated $29 million. The Company's increased production as well as lower unit operating costs offset most of the effect of the lower metal prices."

Net earnings for the first quarter 1996 were increased due to a reduction in the minority interest of labor shares in the Company's Peruvian branch. An exchange of common shares for labor shares was completed in the fourth quarter of 1995 and reduced the interest of labor shares from 17.3% to 3.3%. The exchange offer increased the number of common shares outstanding to 80.2 million from 65.7 million in 1995.

SPCC is the largest mining company in Peru and operates two mines, a smelter and a refinery in the southern region of Peru, employing approximately 5,000 people. Shareholders in SPCC are ASARCO Incorporated (NYSE:AR) (54.1%); a subsidiary of the Marmon Corporation (15.0%); Phelps Dodge Overseas Capital Corporation (13.9%) and common shareholders (17.0%).


Southern Peru Copper Corporation and Subsidiaries

First Quarter Results
(in millions, except for per share data)

Three Months Ended March 31,

Historical Pro Forma
1996 1995 1995
Net sales
$196.4
$204.7
$204.7
Earnings before taxes on income and
minority interest of labor shares
77.4
81.2
81.2
Taxes on income
26.3
26.8
26.8
Earnings before minority interest
of labor shares
51.1
54.4
54.4
Minority interest of labor shares in
income of Peruvian Branch
2.0
10.0
1.9
Net earnings
$49.1
$44.4
$52.5
Weighted average number of
shares outstanding
80.2
65.7
80.2
Net earnings per share
$0.61
$0.67
$0.65
Cash dividends paid per share
$0.65
$0.41
$0.33

Note: Pro Forma 1995 assumes that the exchange offer for labor shares was completed January 1, 1995 and is presented for comparison purposes.


Average Metal Prices

Three Months Ended

March 31,

1996 1995
Copper (per pound - LME)
$1.17
$ 1.33
Silver (per ounce - COMEX)
$5.54
$ 4.70
Molybdenum (per pound -
Metals Week Dealer Oxide)
$4.07
$13.77


Metal Production and Sales

Three Months Ended

March 31,

1996 1995
Copper (000s pounds)
Mined
161,600
128,400
Refined
127,400
106,000
Sales
169,000
127,200
Silver (000s ounces)
Mined
651
619
Refined
557
535
Sales
819
667
Molybdenum (000s pounds)
Mined
1,769
1,617
Sales
1,867
1,892


Southern Peru Copper Corporation and Subsidiaries

Consolidated Statement of Earnings
(unaudited)

3 Months Ended
March 31,
1996 1995
(in thousands except per share amounts)

Net sales $ 196,408 $ 204,738
Operating costs and expenses:
Cost of sales 94,679 94,672
Administrative and other expenses 13,005 14,420
Depreciation, amortization and depletion 10,327 10,723
Provision for workers' participation 5,638 7,390
Exploration expense 655 323
Total operating costs and expenses 124,304 127,528
Operating income 72,104 77,210
Interest income 6,169 2,543
Interest expense (3,132) (1,524)
Other income 2,273 3,006
Earnings before taxes on income and minority interest of
labor shares 77,414 81,235
Taxes on income 26,288 26,834
Minority interest of labor shares 2,018 10,046
Net earnings $ 49,108
_______
$ 44,355
_______
Per common share amounts:
Net earnings $ 0.61 $ 0.67
Dividends paid $ 0.65 $ 0.41
Weighted average number of shares outstanding 80,206 65,717


Southern Peru Copper Corporation and Subsidiaries
Consolidated Balance Sheet (unaudited)

March 31, December 31,
1996 1995
(dollars in thousands)
ASSETS
Current assets:
Cash and cash equivalents $242,740 $219,646
Marketable securities - 42,453
Accounts receivable:
Trade:
Stockholders and affiliates 6,664 8,732
Other trade 63,850 80,100
Other 9,377 11,631
Inventories 97,095 103,635
Other current assets 12,428 16,648
Total current assets 432,154 482,845
Net property 783,209 779,368
Other assets 19,886 9,488
Total Assets $1,235,249
_________
$1,271,701
_________
LIABILITIES
Current liabilities
Current portion of long-term debt $26,856 $17,034
Accounts payable - trade 16,458 32,889
Accounts payable - other 6,842 8,056
Accrued liabilities 50,435 112,390
Total current liabilities 100,591 170,369
Long-term debt 113,086 76,828
Accrued severance pay 6,343 6,354
Deferred income taxes 39,677 39,677
Total non-current liabilities 159,106 122,859
Minority interest of labor shares 26,256 24,986
STOCKHOLDERS' EQUITY:
Common stock, par value $0.01;
31,249,167 shares authorized, 13,679,667 shares
issued and 13,630,248 shares outstanding
137 115
Class A common stock, par value $0,01;
68,750,833 shares issued and authorized,
66,550,833 shares outstanding
666 688
Additional paid-in capital 265,738 265,738
Retained earnings 683,585 686,946
Treasury stock at cost, 49,419 common shares (830) -
Total stockholders' equity 949,296 953,487
Total Liabilities, Minority Interest
and Stockholders' Equity


$1,235,249
_________


$1,271,701
_________


Southern Peru Copper Corporation and Subsidiaries

Consolidated Statement of Cash Flows
(unaudited)
3 Months Ended
March 31,
1996 1995
(dollars in thousands)

OPERATING ACTIVITIES:
Net earnings $49,108 $44,355
Adjustments to reconcile net earnings to net

cash provided from operating activities:

Depreciation, amortization and depletion 10,327 10,723
Deferred income taxes 1,032 617
Minority interest of labor shares, net of distributions 139 10,046
Loss on dispositions and sales of assets 407
-
Cash provided from (used for) operating assets and liabilities:
Accounts receivable 20,505 34,681
Inventories 6,540 11,209
Accounts payable (16,943) (36,883)
Accrued taxes on income (36,016) 4,677
Other operating liabilities and reserves (25,292) (5,820)
Other operating assets 2,846 657
Foreign currency translation gain (1,293) (2,213)
Net cash provided from operating activities 11,360 49,631
INVESTING ACTIVITIES:
Capital expenditures (14,575) (43,400)
Purchases of held to maturity investments
-
(33,880)
Proceeds from maturity of investments 42,453 40,523
Net cash provided from (used for) investing activities 27,878 (36,757)
FINANCING ACTIVITIES:
Dividends paid (52,150) (26,812)
Proceeds from borrowings 47,000