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Molybdenum Production By Grupo Mexico In Jan. - Mar. 2009 Quarter
= Produced 4,056 Tons Of Moly In Concentrate As Increased Slightly
Grupo Mexico in Mexico released recently their settlement of accounts for the first quarter (January - March) of 2009. According to this report, Southern Peru Copper Corporation (SPCC), which is an affiliated company of Grupo Mexico in Peru, produced 4,056 tons of molybdenum in molybdenum concentrate in January - March quarter of 2009 (compared with 3,924 tons in the same quarter of 2008) and sold 4,022 tons of molybdenum in concentrate in the first quarter of 2009 (compared to 4,029 tons in the same quarter of 2008).

SPCC has been recovering molybdenum as by-product from copper production at mines in Mexico and Peru and the production activities of molybdenum in January - March quarter of 2009 were (1) at La Carida mine / Mexico : molybdenum content in crude ore was high and favorable for production, (2) at Cuajone mine / Peru : molybdenum content in crude ore was high and caused a raise of yield, but (3), on the other hand, at Toquepala mine / Peru : molybdenum content in crude ore was on a low level.

Consequently, SPCC produced 4,056 tons of molybdenum in concentrate in January - March quarter of 2009, having increased by 3.4% compared to that (3,924 tons) in the same quarter of 2008.

The unit price of molybdenum oxide published in January - March quarter of 2009 came to US$8.75 per lb. of Mo on the average, which had a considerable fall of 73.5% from that (US$33.01) in the same quarter of 2008, and this sharp fall of molybdenum price has been influenced by a crisis of the world economy emerged from October of 2008. Incidentally, while production of copper cathodes is the core business for SPCC, LME copper price averaged on movements in January - March quarter of 2009 was 155.51 US-Cents per lb., having fallen by 56.0% from that (353.62 US-Cents) in the same quarter of 2008.

Owing to the steeply fallen prices of such nonferrous metals as copper, molybdenum, and so on, the revenue at SPCC in January - March quarter of 2009 came to US$622.0 million, having had a considerable decrease of 58.5% compared to that (US$1,499.2 million) in the same quarter of 2008. Accordingly, EBITDA for January - March quarter of 2009 was US$255.0 million (compared with US$945.3 million for the same quarter of 2008) and its net profit came down to US$78.7 million (compared to US$568.0 million for the same quarter of 2008).
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