Core Insights - The world's largest mining companies have experienced stock losses nearing 30% since the onset of the war, with copper entering a bear market, silver down 40% from its peak, and gold facing its worst week in decades [1][2] Market Performance - Gold futures fell by $225 an ounce, closing at $4,492, marking a 3.5% decline for the day and over 11% for the week [1] - Silver dropped to $67.81, a 6.9% decrease from the start of trading on Friday [1] - Copper ended the day down 4.0% at $5.30 per pound ($11,690 per tonne), with a weekly decline of 7.4% [2] Company-Specific Impacts - Newmont's stock is down 26.3% since the war began, trading at a market cap of $104 billion, down from $143 billion [3][4] - Barrick Mining has seen a 26.8% decline, with a market cap of $62 billion, down $27 billion since late January [4] - Teck Resources holds a royalty on Barrick's Fourmile gold project, which could significantly impact Barrick's valuation [5] Other Mining Companies - AngloGold Ashanti's shares have plummeted 37.4% in March, resulting in a market value of $40 billion, while Gold Fields lost 33.6% to $35 billion [5] - Wheaton Precious Metals has fallen nearly 30% since the conflict began, now valued at $52 billion [6] - Fresnillo's shares are down 31.3% in March, reducing its market cap to $30 billion [7] Broader Industry Trends - BHP's shares have decreased by 20.0%, with a market cap of $168.58 billion, despite record profits [8] - Glencore has only lost 4.3% since the start of the conflict, now valued at $81 billion, making it the best performer among major mining companies year-to-date [18] - Vale's stock has declined by 18.2%, with a market cap of $61 billion, positioning it as one of the better-performing large-cap miners [20]

Southern Copper Corporation (NYSE: SCCO) is a prime example for investors to identify other organizations with massive operational leverage.Producing mining companies and diversified funds form the foundation of a winning copper portfolio. These vehicles offer linear exposure to rising commodity prices while maintaining stronger operational stability than pre-revenue developers.Retail investors see this massive demand and rush to buy any copper-branded stock. This blind buying often leads to severe portfoli ...

Core Viewpoint - Southern Copper (SCCO) is considered an overvalued equity, leading to a Hold rating with recommendations for conservative investors to avoid buying now and to consider partial profit-booking [1] Company Analysis - The current assessment indicates that Southern Copper's stock is not a favorable investment opportunity at this time due to its overvaluation [1]

Group 1 - Significant bullish interest from deep-pocketed investors in Southern Copper (SCCO) suggests potential upcoming developments [1] - Recent options activity shows 11 extraordinary trades, with 45% of investors leaning bullish and 27% bearish; notable trades include 6 puts totaling $224,800 and 5 calls amounting to $195,435 [2] - Expected price movements for SCCO are projected between $97.5 and $215.0 over the past three months based on trading activity [3] Group 2 - Insights into volume and open interest indicate crucial liquidity and interest levels for SCCO's options within the strike price range of $97.5 to $215.0 over the past month [4] - Current market position shows SCCO's price at $189.92, down 8.1%, with a trading volume of 1,377,770; RSI indicators suggest a neutral position [7] - An industry analyst from B of A Securities has revised the rating for SCCO to Underperform, with an average target price set at $175.0 [6]

Market Overview - A rapidly escalating military conflict in the Middle East is causing significant volatility in global markets, leading to declines in materials and mining stocks while oil prices surge [1] - Major US indices are experiencing declines, with the S&P 500 down 1.20%, Dow Jones down 1.16%, and Nasdaq down 1.29% [1] Company-Specific Impacts - Linde (LIN) is down 1.68% due to rising natural gas costs, which are up approximately 6% today, threatening the company's margins [1] - Southern Copper (SCCO) has fallen 5.22%, with copper prices being pressured by a stronger US dollar, which compresses realized prices [1] - BHP Group (BHP) is down 5.58%, affected by fears of global growth and a stronger dollar impacting its copper and iron ore prices, with China as its largest customer [1] Commodity Market Dynamics - The surge in Brent crude oil prices is occurring alongside a strong US dollar index, which is near three-month highs, negatively impacting dollar-denominated commodities such as metals [1] - Metals including gold, silver, and platinum are under significant pressure due to the stronger dollar [1] Economic Outlook - Federal Reserve officials have indicated that geopolitical conflicts of this scale may heighten near-term inflation and economic uncertainty, suggesting potential revisions to rate cut expectations [1]

Core Viewpoint - Southern Copper Corporation is a significant player in the mining industry, primarily focused on copper production, and operates in Peru and Mexico, making it one of the largest integrated copper producers globally [1] Company Overview - Southern Copper Corporation (NYSE:SCCO) is engaged in the production of copper, molybdenum, zinc, and silver [1] - The company faces competition from major players like Freeport-McMoRan and BHP Group in the copper mining sector [1] Insider Transactions - On March 2, 2026, a director at Southern Copper sold 4,587 shares at $217.39 each, leaving him with 600 shares, which may indicate insights into the company's future performance or personal financial planning [2][6] Analyst Ratings - The stock has received a consensus "Reduce" rating from thirteen ratings firms, with eight analysts issuing a "sell" rating, three a "hold" rating, and two a "buy" rating [3] - Recent evaluations show a cautious outlook, with Scotiabank reaffirming an "underperform" rating, Zacks Research downgrading from "strong-buy" to "hold," and UBS Group maintaining a "sell" rating with a price target adjustment to $148.74 [4] Financial Metrics - Southern Copper has a price-to-earnings (P/E) ratio of 42.01, indicating that investors are paying a premium for earnings [5] - The company's price-to-sales ratio is 13.37, and its enterprise value to sales ratio is 13.60, reflecting its market valuation [5] - An earnings yield of 2.38% suggests moderate profitability, while a debt-to-equity ratio of 0.66 indicates a balanced approach to leveraging debt [5] - The current ratio of 3.89 demonstrates strong liquidity [5][6]

Sales and Revenue - Net sales in 2025 reached a record high of $13,420.0 million, an increase of $1,986.6 million (+17.4%) compared to 2024, driven by higher sales volumes of molybdenum (+7.4%), zinc (+19.3%), and silver (+15.3%) as well as better prices for copper (+8.7% LME; +14.2% COMEX), silver (+41.6%), molybdenum (+3.8%), and zinc (+3.2%) [661] - Copper sales accounted for 74.8% of total net sales in 2025, down from 76.6% in 2024 [663] - Total copper sales volume in 2025 was 2,067.0 million pounds, a slight decrease of 2.1% from 2024 [665] - Net sales from Peruvian open-pit operations increased by $643.0 million in 2025, driven by higher sales volumes for copper (+0.4%), molybdenum (+12.2%), and silver (+16.6%) as well as improved prices for copper (+8.7%) and silver (+41.6%) [676] - Net sales from Mexican open-pit operations increased by $1,305.9 million in 2025, primarily due to a 99.0% increase in zinc sales volumes and improved metal prices, despite a 2.0% decline in copper sales volumes [678] Production and Operations - The company produced 2,035.6 million pounds of copper in 2025, slightly down from 2,057.7 million pounds in 2024 [711] - Operating costs and expenses increased to $6,418.3 million in 2025, up by $539.6 million from 2024 [667] - Operating costs for Peruvian operations rose to $2,647.0 million in 2025, an increase of $134.8 million from 2024, mainly due to higher costs of sales and inventory variances [677] - Operating costs for Mexican open-pit operations increased to $3,347.8 million in 2025, an increase of $414.9 million from 2024, driven by higher costs related to workers participation and energy [680] - Operating income from Mexican underground operations (IMMSA) improved to $162.4 million in 2025, supported by higher sales volumes of silver (+8.0%) and lead (+18.2%) despite lower copper and zinc sales volumes [681] Financial Performance - Net income attributable to SCC in 2025 was $4,334.9 million, an increase of $958.1 million compared to 2024 [661] - Non-operating income (expense) for 2025 was reported at $(217.4) million, a decrease of $20.1 million from 2024 [661] - Income taxes for 2025 amounted to $(2,504.1) million, an increase of $476.6 million compared to 2024 [661] - Effective income tax rate decreased to 36.4% in 2025 from 36.9% in 2024 [670] - Net cash provided by operating activities in 2025 was $4,752.1 million, an increase of $330.4 million or 7.5% compared to 2024, with net income contributing $4,348.2 million [687] Investments and Projects - The Company made capital investments of $1,325.3 million in 2025 and $1,027.3 million in 2024, aimed at increasing production and addressing social and environmental commitments [591] - The Company plans to invest $1,925.5 million in capital projects in 2026, with potential investments in Peruvian projects exceeding $10.3 billion over the next decade [594] - The Tia Maria project in Arequipa, Peru, is budgeted at $1,805 million and is expected to generate $20.2 billion in exports and contribute $4.6 billion in taxes and royalties over the first 20 years of operation [597] - The company invested $25.2 million in social infrastructure in Mexico and Peru, completing various projects aimed at community development [630] - As of December 31, 2025, the company had committed approximately $1,310.5 million for capital investment projects, including Mexican and Peruvian expansions [709] Employee and Workforce Management - The company has a workforce of 16,617 employees, with approximately 64.4% covered by collective labor agreements [42] - The employee retention rate was approximately 90% as of December 31, 2025, with 48% of roles filled by internal employees [58] - In 2025, the company delivered over 573,000 hours of formal instruction related to occupational safety, health, and technical competencies [43] - The company conducted over 34,000 health initiatives in 2025, including campaigns and workshops, to promote employee well-being [49] - The "Add Steps, Lose Weight" challenge engaged 2,036 employees, resulting in a combined weight loss of 1,692 kilograms [53] Environmental and Safety Commitments - By the end of 2025, all mining operations in Mexico and Peru maintained ISO 45001 certification, reinforcing the commitment to health and safety [55] - The Company has maintained ISO 14001 environmental management certifications across all operations, demonstrating commitment to environmental performance [623] - The Company has implemented biodiversity management plans aligned with international standards, contributing to the preservation of the Mexican grey wolf population [626] - The Company is committed to aligning its climate change disclosures with TCFD recommendations, addressing potential climate-related risks and opportunities [634] - The company expects to avoid CO2 emissions of approximately 250,000 tonnes per year from the Fenicias wind park, which will account for 7% of its carbon footprint once fully operational by December 2025 [636] Market and Pricing - The average COMEX copper price over the last 5 years was $4.23 per pound, while the average LME copper price was $4.15 per pound [38] - The average price of silver per ounce over the last 5 years was $26.75, while the average molybdenum price per pound was $20.21 [41] - The average price of zinc per pound over the last 5 years was $1.33, reflecting market conditions and competition [41] - The average copper price used in business plans is $3.50 per pound, with a molybdenum price of $10.00 per pound, reflecting the lower level of the current price environment [658] - Average copper price (LME) in 2025 was $4.51 per pound, an increase of 8.7% from 2024 [662]

Core Viewpoint - Southern Copper has shown a positive performance with a 3.7% increase in shares since the last earnings report, outperforming the S&P 500, raising questions about the sustainability of this trend leading up to the next earnings release [1] Financial Performance - Southern Copper reported Q3 2025 earnings of $1.35 per share, exceeding the Zacks Consensus Estimate of $1.25, marking a 21% year-over-year increase [2] - Sales increased by 15% year-over-year to $3.38 billion, surpassing the Zacks Consensus Estimate of $3.16 billion, driven by higher sales volumes of silver, zinc, and molybdenum, despite a decline in copper sales volumes [3] - The cost of sales rose 11% year-over-year to $1.36 billion, while operating profit increased by 22% year-over-year to $1.77 billion, resulting in an operating margin of 52.4%, up from 49.5% in the previous year [4] Production Details - Copper production decreased by 6.9% year-over-year to 234,892 tons, primarily due to a 7.3% decline in output from Peru operations [5] - Molybdenum production increased by 8.3% year-over-year to 7,874 tons, while zinc production surged 46% year-over-year to 45,482 tons, attributed to increased output at the Buenavista zinc concentrator [6][7] - Silver production improved by 16.4% year-over-year to 6.21 million ounces, with sales rising 21.9% year-over-year to 6.32 million ounces [7] Cash Flow and Balance Sheet - The company generated net cash from operating activities of $1.56 billion in Q3 2025, an increase from $1.44 billion in Q3 2024, with cash and cash equivalents reaching $3.95 billion [8] - Long-term debt increased to $6.75 billion as of September 30, 2025, compared to $5.76 billion at the end of 2024 [8] Future Guidance - Southern Copper targets copper production of approximately 958,800 tons for 2025, a 2% decrease from the previous year, while zinc production is projected to grow by 34% to 174,700 tons [9] - Silver production is expected to reach around 23 million ounces, a 10% increase from 2024, and molybdenum production is anticipated to rise by 4% to 30,000 tons [9] Market Sentiment - There has been an upward trend in estimates for Southern Copper, with the consensus estimate shifting by 27.03% recently [10] - The company currently holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [12]

Core Insights - Southern Copper Corporation (SCCO) reported copper production of 956,270 tons in 2025, reflecting a 1.8% year-over-year decline and falling 1% short of its guidance [1][11] - The company expects weaker ore grades at its Peruvian mines, projecting 2026 copper production at around 911,400 tons, suggesting a 4.7% decline from 2025 levels [1][2] Production and Growth Outlook - Despite near-term challenges, Southern Copper maintains a strong long-term outlook, targeting a significant ramp-up in output to roughly 1.6 million tons by 2035, implying a compound annual growth rate (CAGR) of approximately 5.3% from 2025 levels [2] - To support this growth plan, the company intends to invest nearly $19.9 billion over the next decade, with the majority allocated to projects in Peru [3] - Production is expected to increase to about 1.15 million tons by 2031, surge to roughly 1.476 million tons in 2032, and continue rising steadily to reach the 1.6 million ton target by 2035 [4] Key Projects - Among the key projects, the Tia Maria project in Arequipa, Peru, is expected to start in 2027 with an annual capacity of 120,000 tons of SX-EW copper cathodes [4] - In Mexico, the El Pilar project is expected to start in 2029, contributing around 36,000 tons of copper cathodes annually [4] - The El Arco project in Baja California is projected to come online by 2030, contributing around 190,000 tons of copper [5] - Peru's Los Chancas project is slated to add 130,000 tons of copper starting in 2031, followed by Michiquillay in 2032 with an expected 225,000 tons of copper [5] Market Performance - Southern Copper shares have gained 126.5% in the past year compared to the industry's 102.8% growth [10] - The company is trading at a forward 12-month price/sales multiple of 11.95X, a significant premium to the industry's 5.49X [12]

COMPANY PRESENTATION February 2026 Safe Harbor Statement The material in this presentation contains certain statements that are neither reported financial results nor other historical information . These estimates are forward -looking statements within the meaning of the safe - harbor provisions of the securities laws . These forward -looking estimates are subject to risk and uncertainties that could cause actual results to differ materially from the expressed in the forward -looking statements . Many of th ...