losses due to zinc price being too low, page-2

Southern Copper’s zinc production slumps in Q4 07


Production well down for this company. looks like zfx's prediction re the likely shortfall to projections is starting to materialize.

Metals Insider - 30 January 2008

Southern Copper Corp, the listed metals arm of Grupo Mexico, reported mined zinc production of 57.2 million pounds (around 25,945t) in Q4 2007, down by 22.4% from production of 73.7 million pounds (around 33,430t) in the year-earlier period (Q4 06.



Mined production in calendar 2007 fell by 11.4% to 266.8 million pounds from 301.1 million pounds in 2006.

Read on:





The company gave no explanation of the slide in its results but the probable main reason was the strike at two of its mines—Taxco and San Martin. The action started at the end of July and is still continuing. It has been overshadowed by the strike at the bigger Cananea mine, although has its roots in the same dispute (see item in our copper section).



The two mines are not the biggest in terms of Southern Copper’s zinc production but between them they accounted for around 30,000t of contained metal production in 2006.



Southern Copper reported a sharp 77.9% increase in refined zinc production to 220.1 million pounds last year but remember that 2006 production at 112.5 million pounds was depressed by the prolonged closure of the 105,000tpy San Luis Potosi smelter after a transformer failure in Q1 2006.