Sociedad Minera Cerro Verde's third quarter 2021 result shows a net income of US$293.3 million, a very significant increase compared to the net income of US$115.8 million in the third quarter of 2020. This higher net income is most evident in higher sales revenues mainly attributed to an increase in the realized copper price and higher sales volumes.
The Freeport-McMoRan controlled company added that its results were partially offset by "an increase in cost of sales of US$121.0 million as a result of an unfavorable variance in finished goods (US$51.9 million), mainly associated with a higher volume shipped as a consequence of the surge restrictions at the port of Matarani at the end of the second quarter of 2021." Cerro Verde's third quarter net sales increased by US$392.9 million compared to the third quarter of 2020 as a result of higher realized copper prices and higher sales volumes.
Net sales for the third quarter of 2021 increased by US$392.9 million compared to the third quarter of 2020, due to higher realized copper prices and higher sales volumes.
Cost of sales in Q3 2021 was 52% of sales, a significant reduction compared to 64% in the same period of 2020.
During the third quarter, material processing at the concentrator plants averaged 380,300 metric tons per day. Subject to continued monitoring of COVID-19 protocols, Cerro Verde is targeting average milling rates of approximately 400,000 metric tons per day in 2022.
Copper concentrate and cathode production in the third quarter of 2021 amounted to 225.7 million pounds of copper compared to 217.6 million pounds in the same quarter of 2020, mainly related to higher tonnage processed by the concentrator plants (380,300 metric tons of ore processed per day in the third quarter of 2021 compared to 351,000 metric tons of ore processed per day in the third quarter of 2020). The quality of the cathodes produced continues to be "A" grade (99.99%).
During the third quarter of 2021, material processing at the concentrator plants averaged 380,300 metric tons per day. Subject to continued monitoring of COVID-19 protocols, Cerro Verde is targeting average milling rates of approximately 400,000 metric tons per day in 2022.
At the headline mining level, Compañía Minera Antamina S.A. maintained first place with a 20.5% share. In second and third place were Sociedad Minera Cerro Verde S.A.A. and Southern Peru Copper Corporation with 18.3% and 18.2% shares, respectively.
