Southern Copper's net profit falls 5.8 pct in third quarter
LIMA Oct 28 (Reuters) - Southern Copper Corp's net income fell 5.8 percent in the third quarter from the same period a year earlier on higher sales costs and a new mining tax in Mexico, the global miner said on Tuesday.
The company's reported third-quarter net income of $324.3 million, or 0.39 cents per share, came in slightly below analysts' average estimate of $337.29 million, according to Thomson Reuters I/B/E/S.
Earnings before interest, taxes, depreciation and amortization slipped 1.6 percent to $675.7 million in the quarter, the company said in a statement.
Southern Copper, controlled by Grupo Mexico, said its sales were up 6.5 percent on rising production in the third quarter, but the cost of sales rose 10 percent.
A new tax on mining in Mexico has taken $65 million from its net income so far this year, the company said.
Southern Copper reported paying $37.2 million for environmental recovery in the third quarter, when it spilled a copper sulfate solution near its Buenavista mine in Mexico.
Southern Copper also operates La Caridad mine in Mexico, and the Toquepala and Cuajone mines and the Ilo refinery in Peru.
Peru approved its environmental impact study for its $1.4 billion Tia Maria project in August, and the company said it will likely start construction in the first quarter of 2015.
Southern Copper has previously said it will likely produce some 672,000 tonnes of copper in 2014, up from 637,000 tonnes in 2013, and 830,000 tonnes next year.
The miner said its copper production rose 9 percent in the first nine months of 2014 from a year ago, while its output of molybdenum was up 24 percent. (Reporting by Mitra Taj and Patricia Velez; Editing by Meredith Mazzilli)
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