| Stockholders Equity: |
O. Stockholders Equity:
Common stock:
During the first quarter of 2009 Grupo Mexico, through its wholly owned subsidiary AMC, purchased 4.9 million shares. With this purchase and the Companys repurchase of its common shares, the indirect ownership of Grupo Mexico increased to 80% at March31, 2009 and remains at 80% at June30, 2009. Please see Note E, Income taxes, for disclosure about the US federal income tax implications of this increase in ownership.
Treasury Stock:
Activity in treasury stock in the six month period ended June30, 2009 and 2008 is as follows (in millions):
2009
2008
Southern Copper common shares
Balance as of January1,
$
388.9
$
4.4
Purchase of shares
71.6
Used for corporate purposes
(0.1
)
(0.1
)
Balance as of June30,
460.4
4.3
Parent Company (Grupo Mexico) common shares
Balance as of January1,
125.5
170.3
Other activity, including dividend, interest and currency translation effect
11.2
35.6
Balance as of June30,
136.7
205.9
Treasury stock balance as of June30,
$
597.1
$
210.2
In the first six months of 2009 the Company distributed 12,000 shares of Southern Copper to Directors under the Directors Stock Award Plan.
In the first six months of 2009 and 2008 the Company awarded 11.8 million shares and 14.5 million shares of Grupo Mexico, respectively, under the employee stock purchase plan.
SCC share repurchase program:
Pursuant to the $500 million share repurchase program authorized by the Companys Board of Directors in 2008, in the first quarter of 2009 the Company purchased 4.9 million shares of its common stock at a cost of $71.6 million. These shares will be available for general corporate purposes. The Company may purchase additional shares from time to time, based on market conditions and other factors. This repurchase program has no expiration date and may be modified or discontinued at any time. There was no purchase of shares in the second quarter of 2009.
The following table summarizes the repurchase program activity since its inception in 2008:
Period
Total Number
of Shares
Purchased
Average
Price
Paid
per
Share
Total Number
of Shares
Purchased as
Partof
Publicly
Announced Plan
Maximum Number
of Shares that
MayYet Be
Purchased Under
the Plan
@ $20.44
Total Cost
($in
million)
From
To
2008:
08/11/08
12/31/08
28,510,150
13.49
28,510,150
$
384.6
First quarter 2009:
01/12/09
01/31/09
1,075,000
15.17
29,585,150
16.3
02/01/09
02/28/09
2,260,350
13.45
31,845,500
30.4
03/01/09
03/27/09
1,564,650
15.89
33,410,150
24.9
Total
4,900,000
14.61
71.6
Second Quarter 2009
2,141,760
Total purchased
33,410,150
13.66
$
456.2
As a result of the repurchase of SCC common shares and AMCs purchase of SCC shares, Grupo Mexicos direct and indirect ownership increased to 80% at March31, 2009 and remains at 80% at June30, 2009.
Directors Stock Award Plan:
The Company established a stock award compensation |
