Garcia good today's Gigi, to second Oscar Quevedo, Copper's and Rocha, conference de earnings are Thank XXXX everyone, Participating call. CEO Copper's to member; Southern and Mr. very executives. of and morning and Mr. member you with the quarter other conference some much, welcome Southern me Xavier Board Board in González company; company
In with then open and After that, view will questions. our session we operating related today's We Copper's expansion of projects. for Southern sales, call, results, results key will an update the financial will review markets. we to begin the copper production, on cost,
Now, core the copper let of our the focus us market, on business.
the reflected good slowdown sentiment escalation a for believe XXXX we falling of of protectionism between Brexit an Even year decreased trade market $X.XX past During see per Exchange copper of around reduction. China. the pound economy, is of half a and the price copper, quarter, prices possible concerns world of second in an quarter we the the Metal the this that second with an average of physical London $X.XX per second XX.X% from though the of quarter, pound to last and U.S. the
recovery a prices We expect the in copper months. in coming
of of XXXX. now growth We're our this X%. At for point, expecting adjusting a refined demand view copper we're a
X.X% refined higher consumption XXXX. This XXXX. the copper with by than was in China driven mark in nation, previous Our for be year X.X% the more U.S. demanding will
had to Peru a of refined labor heavy view side, in supply and in the deficit rains strike, technical reinforce this to our as refined result the market year Chile copper problems. On and production copper – of losses
of production copper has tons the Wood approximately of XXX,XXX expect the deficit this the now supply considers of had that year. tons losses. for reference, Mackenzie is Consequently, today world's a XXX,XXX X.X% industry we As that
We of pressure XXXX. upward put expect copper second half the this market prices deficit during to on
our Let production XXXX. to of production for Copper the Copper's second sales XX.X% second quarter. due same this. Copper period in of to successful result represented our to its copper us the the It higher in of mine, at year, additional the XXX,XXX of this from of principally XX,XXX Toquepala of was concentrator which in increased on now the by production XXXX. production quarter XX.X% quarter new as tons focus Southern tons production past increased compared up ramping XX.X% of a
its compared and increased copper of facility, second operation, the but production by new increased plant of was where when of last to the increase. operating already plants still some the by SX-EW it's year. X% Mexico, new improvements In concentrator new at to This Buenavista our relatively X.X% quarter XX.X% had due production years
in the new end usage Peru reached the capacity concentrator full Toquepala second of at The quarter.
molybdenum new of the of new in we plant part production as the – expansion, this initiated the Additionally, April. in
this X,XXX Toquepala expect with and competitive of tons We very XXX,XXX molybdenum cost. to copper a produce cash tons year of
to reach state-of-the-art lower unit tons is production cash per with new This copper record allow year. reach pound copper. of a our capacity, XXX,XXX of concentrator new this For XXX,XXX production to us allowing XXXX, a new copper Toquepala the production annual annual to will adding us cost tons
reinforce cost cost of expect as Considered $X.XX from at our per by-product, for Copper's pound. last average producer. additional to cash XXXX, leadership cost year's prices we our Southern this An low for X% main reduction will set $X.XX year's of cash
state, quarter second quarter the $XX.XX quarter, XXXX. our molybdenum, which company most second $XX.XX sales as Looking by-product. I with prices the increase value significant is of X.X% it's represented molybdenum in at which the it compares of Molybdenum in our price. main is in per This the currently, averaged by-product, in X% pound and a
in with last by production one, of the this result mines, increased molybdenum new this second production of year. the as started all higher XX.X% of the in compared plant particularly Toquepala, period year, where XX.X% same quarter due April at the by production molybdenum in increased of production mine that of Molybdenum our to a
that contribution we of Toquepala to the of produce new of is molybdenum tons. year expect XXXX, [indiscernible] tons [X,XXX] the In which molybdenum, XX,XXX XX% plant is
pound decrease For per of average price represented sales XX.X% an price a XXXX. zinc, the it X.X% of a from quarter value of [indiscernible] of with quarter, $X.XX our second
mine quarter of last XX,XXX and second the was compared Charcas overproduction quarter, to decreased the of X.X%, mine. in by tons year, lower tons production second This with basically grade the production X,XXX Zinc offset due result Martin from at mine. ore the San mainly the coming
for capacity [indiscernible] San full mine the have As and this in you process rehabilitation quarter. by are Martin we we know, the
contribution per quarter a Silver For produce XXXX, XX,XXX our value in sales of with decrease XX% tons zinc, of last XXXX, the represented is from increase, price of [indiscernible] a we that XX,XXX year, average of from a pound year. of quarter significant to second San the tons compared this to expect the of an XX% last quarter, Martin $XX.XX second mine.
result where Cuajone by operations, a production as in X.X% copper as mainly This production the higher of result in increased offset their a of had Toquepala. the of new by decrease production in our increased the [indiscernible]. La which Mined a XX.X% from coming facility last we Caridad additional at quarter, San lower production production concentrator production Toquepala at silver
silver, port cubic mainly mine meters acid [XX Terminal X in July of sea industrial approximately to of contribution of incident ounces Marine X into at to area. the Martin an Guaymas and the increase X.X million discharge or the was produce X, last million Sonora, XXXX, expect XX% an operations. million] silver of sulfuric the we On compared of Toquepala resulting our ounces and important when in the For additional the caused from that there of San year,
in cubic The was alkaline acid spill sulfuric the volume diluted meters. upon The naturally the Guaymas the quickly and discharge XXX well an of and bay entering contact conditions, was has immediately estimated with million sea's neutralized. water
As the affected, report Navy. was and it flora neither of found a harmless, of that were discharge nor – this considered was a Ministry according area the according result, the to fauna from the the was
of the impact resulting the environment protection incident. was existence the No the procedures made Mexican PROFEPA, first in On reference company environmental concluding the order July the all area made the discharge. XX, executed contain to from a the that to inspection agency, on of negative correct
and this are important XXXX laws. Therefore, before XXXX, for the XX, Ecological It been declaring On operation of at to July a in revisited a not facility the companies temporary to only to since Protection is General the a arguing PROFEPA shutdown facility that out that Mexican last these of the terminal, the carry the of Law storage acid note mentioned previous environmental Friday, of process second the to has partial absence impact. have an operating of sulfuric transportation inspection, Environment. requirement licenses authorization the related Balance and been
Industry for Clean which renewed In certification was PROFEPA's of of times for X addition, subsequently period in Environmental such and four XXXX award Quality years. facility,
order We but to with authorities closure, adherence with provide in contributing reasons we the all will partial the necessary environmental continue certainty regulations. causes in to operation, don't temporary know elements with or the strict environmental the these to and for respect
late any on We this expect environmental August. authorities impact point, once don't no we temporary until to their our concern. shutdown expect this partial has as At the revoke terminal they shipment clarify scheduled operations,
our financial at Looking results.
For Copper by That sales by the but our sales decreased million year by volume increased XXXX second XX.X%, [indiscernible]. is prices of second quarter [indiscernible]. decreased were $X,XXX of of In sales quarter the or last million. XX.X%. lower total, $XX.X value than
Regarding our by-products. main
XX.X% due sales we this higher prices both due have as and have higher silver, to prices, and Zinc, to for volume better volume sales increased by metal. prices. lower of as for silver And decreased which sales had XX.X%. volume well molybdenum, lower We and we lower by
costs. operating Looking at our
[indiscernible] $XX.X operating million X.X% second and to total expenses the compared cost Our or same to quarter XXXX. of when
by our XX.X%. copper production increased However,
production So increment been Toquepala operating concentrator in has XX.X% and and increase new that's the and mine. the San of of a costs a and cost X.X% The cost in main expenses depreciation in copper. operating increase Martin
lower margin, second XX% margin and purchased These consumption The partially lower second by compensated the $XXX.X XXXX. inventory or quarter is was from third a million parties. cost adjusted $XXX.X million, the quarter increments a compared with for were copper EBITDA for of this XX.X%
result quarter. by [by-product cost from is operating $X.XX the This pound decrease cost XXXX. production Our for of cash was is operating of quarter that the the lower than the decreased lower per sales] per X%. per in copper first cost That of in cost cash before second X.X% pound pound $X.XX
were treatment a Our that that lower cost reduced its basis. refining also expenses by charges and reduced partially [indiscernible]. administrative XX.X% offset were on per These by pound and
than Southern per year. first this cost of reduction. This the This benefit [$X.XXXX] cash including per Copper's of of cost quarter the in year. operating cash an is by-product $X.XXXX this was quarter the credit; flow, XX% of the second cash $X.XXXX was pound pound lower in
increase the by-products, XXXX. Regarding the million, credit you first of total in of compare we dollar quarter absolute a XX.X% credit $XXX.X had $XXX.X million when with
of this decreased second year, of the in and with and which On first zinc we Total increased credit had per $X.XX quarter silver a compares credits credit per for for $X.XXXX acid pound sulfuric pound and basis, molybdenum, gold. the of quarter. in
$XXX.X of earnings income per $X.XX of income per to of SCC This figure quarter or Net quarter sales share. shareholders earnings $X.XX. second this is SCC share this that to the first in net shareholders with compares of year XX.X% year was million of diluted $XXX.X the for share attributable diluted of or per attributable million,
expenditures. Capital
six the not allowed our Southern on Copper's develop. of but and is on Throughout year, copper the the outlook in-line financial discipline of first XXXX, that to half, produce us investment a copper Capital consistently million. basis investments aiming in superior operate by to has philosophy the quality XXXX. we with prices, growth strong based of are our on asset the These invest assets continuous million were $XXX.X our program months of in tons X.X the portfolio. investments
Looking projects. at our Peruvian
Chancas, Michiquillay $X.X which top already a project, $X.X Los of currently projects billion a been billion billion. line approved have to in $X.X project for our Peru, in increases of billion investment $X.X billion the Peru portfolio We and invested. Considering $X.X program has
expansion as this this Toquepala we state-of-the-art mentioned, from new $X.X including, a For in billion operation reach is project increased production to year. tons increase a has year, a to XX% production concentrator that the when compared this XXX,XXX last project, – Toquepala as annual
was production expansion. June in quarter this Full million was the construction XXXX, of reached production As quarter of second and in The the in initiated of XX, XXXX. invested project of we fourth $X,XXX.X have completed XXXX.
Tia Maria. For
you project regulatory process, a profitability, for with all with the raised. on received project. know, will X, construction the We strongly competitive company Maria production invest strict cost. believe where copper This permit the an increase was requirements complying additional after at all tons Tia $X.X July cash established review and As license Maria company's Tia the of further addressing and all a annual observations the completing improve base capacity XXX,XXX very billion asset we of obtained
in build and guarantee local railway we with think for increase copper Valley. We business will million, that our distance $XXX seawater economy activities will population of supplies at industrial the regional, will for of improve and and this, project Peru's at production, use from XX-kilometer our benefit with top at the and Islay Tambo Tia will the a other transport and taxes. adversely local economic We a Maria not royalties On and desalinized estimated affect employment the its an project road opportunities, will access Peru of level this Tia the operations to through a we also Maria because X.X% safe GDP. sales national,
support has population, dialogue We any reiterate assurances neighboring until address social to our the the established, government, for with to more provide a coordination of ground construction and achieve concerns commitment in the for the project delay project. the common it with
continue will population. of local work we the Meanwhile, the to for welfare
the health programs development as productive in education, in and activities Our in Valley Islay. social the fishing the Tambo and quality of tourism care life as will continue to and well and improve agricultural livestock
be operation a labor During local will phase, and the construction priority. hiring
Maria jobs this construction the will we year purpose, launched program phase. benefit June years apply Tia free the the XXXX, have will next this After in participants to For and for year training Forging which X,XXX persons during year. this technical be successfully of Future, estimated of eligible required in in one training, XXX the province the this
We and strongly and and believe that contribution XXX expect we and generate Arequipa of opportunities directly Islay operation, provide activities province When royalties Maria region. day mining Tia will Maria from Tia jobs the for taxes significant X,XXX. of construction the in initiation workers the significant employ generate for will through a will indirectly X another economic
Tia of includes of greenfield the with us the confidence Los the our which good and investment $X.X news $X.X billion, Tia $X.X and Maria efforts projects The the with Chancas Toquepala with billion. to of program, Peruvian investment Michiquillay projects Maria billion $X.X billion continue give
approximately per of For have of the other a tons state the produce This projects. is and XX,XXX we zinc of Mexico. Buenavista tons copper development concentrator the new and some includes between project XX,XXX Mexican year. In Buenavista, of in facility to located zinc concentrator a
and in process. quarter of project's this double company's expect direct new and initiate to completed, zinc will XXXX. facility X,XXX budget million, operations When we production the in provide are will $XXX basic The Currently, completed indirect is the studies Environmental and fourth jobs. capacity we XXX engineering. the have jobs
The Caridad tons be of mining crushers Sonora, to open-pit off-road an of mine copper located X primary operation in capacity La the concentrates. will via in wide project XX,XXX for La Caridad. Pilares a annual the new This concentrator pit trucks. an copper also kilometers production The consists of XX-meter the is of facility from with ore transported from Project,
second expected improve from project additional I ore ore permits as XXX the from being budget grade and X.XX% the of combining is have will Pilares XXXX. just is the Caridad. grade obtained the X.XX% half grade expect ore the La we is Environmental Pilares said for acquired. it to X.XX% and been with Pilares, mineral production overall land The million, start significantly of The during
dividends. Regarding
to Directors share on financial X, $X.XX to meeting expected quarterly of determine at As in appropriate a generation policy position, announced company's payable August cash Board the of dividend. Accordingly, review of company cash XX operations, market plans August the other cash means Board shareholders of the you flow capital dividend order know, XXXX. as investment on to from the each it at XX, to resources is and business record July of close the a authorized common stock on per the
like joining for questions. in with and mind, and open we this now the Well, very to for ladies us, gentlemen, up you thank forum will much
