Industry Overview - Copper prices are rising due to supply issues, particularly from a production stoppage at the Grasberg mine in Indonesia, one of the largest copper producers globally [1] - Demand for copper is high, especially from China, which accounts for approximately 60% of global demand over the past year [2] - The demand for copper is expected to increase significantly as infrastructure and clean energy projects expand, particularly in electric vehicles and AI data centers [6] Market Activity - Copper trading activity has increased by around 50% compared to normal expectations [4] - Recent price fluctuations include a 7% bounce following news from Freeport regarding its Grasberg operations, although prices remain about 20% below pre-tariff highs [5] - Investors have shown strong interest in copper assets, with sector ETFs attracting $2.3 billion in net inflows in 2025, nearly 50% higher than in 2024 [3] Company Performance - Freeport-McMoRan has faced challenges due to its Grasberg operations but remains a significant player in the copper market [9] - Southern Copper Corp. has shown strong operational and financial performance, with year-to-date performance at +33.01% and high EBITDA margins of 56% [11][12] - Antofagasta PLC reported a year-to-date performance of +65.22% and is well-positioned for growth through projects initiated last year [13][14] Investment Opportunities - The Global X Copper Miners ETF (COPX) is recommended for investors seeking exposure to the copper mining industry without the risks associated with individual stocks [15] - Investing in copper is seen as a way to capture growth tied to electrification and AI expansion, contrasting with gold, which is often viewed as a hedge against economic downturns [6][7]

Group 1 - Southern Copper Corp. (NYSE:SCCO) shares reached a new 52-week high, closing at $119.50 after an 8.38% increase, driven by a rally in copper prices [1][2] - The price of copper surged to a 15-month high, influenced by Freeport-McMoran Inc. declaring force majeure at its Grasberg mine in Indonesia, a significant copper mining site [3] - The benchmark three-month copper index at the London Metal Exchange rose by 3.63% to $10,336.50 per metric ton, the highest price since May 2024, indicating potential supply disruptions that could benefit Southern Copper and other producers [4]

Core Viewpoint - Southern Copper (SCCO) shares experienced an 8.4% increase, attributed to rising copper prices and significant trading volume [1][2]. Company Performance - Southern Copper is expected to report quarterly earnings of $1.11 per share, reflecting a year-over-year decline of 3.5%, while revenues are projected to be $3.09 billion, marking a 5.3% increase from the previous year [3]. - The consensus EPS estimate for Southern Copper has been revised 11.1% higher in the last 30 days, indicating a positive trend that may lead to further price appreciation [4]. Industry Context - The rise in Southern Copper's stock is linked to higher copper prices, which surged 3.77% to $4.84 per pound due to Freeport-McMoRan Inc. declaring force majeure at its Grasberg mine, impacting supply [2]. - Other companies in the non-ferrous mining industry, such as Energy Fuels, also showed positive stock performance, with Energy Fuels closing 1.2% higher [5].

Group 1 - The core viewpoint of the article highlights a significant rise in the U.S. copper mining sector, with companies like Ero Copper, Southern Copper, Taseko Mines, and Hudbay Minerals experiencing notable stock price increases [1] - The international copper futures contract saw an increase of over 2%, currently priced at 72,480.00 yuan per ton [1] - UBS has revised its copper price forecasts upward for the next two years, increasing the projections by 3% to $4.37 per pound for 2024 and $4.80 per pound for 2025 [1] Group 2 - The rise in copper prices is attributed to limited supply growth, pressure on refined output, and a recovery in traditional demand dynamics [1] - The fundamental outlook for copper in 2026 and 2027 is expected to continue supporting prices due to these factors [1]

Company Performance - Southern Copper (SCCO) closed at $99.91, reflecting a -3.37% change from the previous day, underperforming the S&P 500's gain of 0.27% [1] - Over the past month, shares of Southern Copper have appreciated by 7.56%, outperforming the Basic Materials sector's gain of 5.86% and the S&P 500's gain of 1.85% [1] Earnings Forecast - The upcoming earnings disclosure is anticipated to show an EPS of $1.11, indicating a 3.48% decline compared to the same quarter last year [2] - Revenue is forecasted to be $3.09 billion, reflecting a 5.28% growth compared to the corresponding quarter of the previous year [2] Full Year Estimates - For the full year, earnings are projected at $4.84 per share and revenue at $12.29 billion, showing changes of +11.78% and +7.52% respectively from the previous year [3] - Recent changes in analyst estimates are crucial as they reflect near-term business trends, with positive revisions indicating analyst optimism [3] Valuation Metrics - Southern Copper is currently trading at a Forward P/E ratio of 21.35, which is below the industry average of 23.94, indicating a discount [6] - The company has a PEG ratio of 1.47, compared to the Mining - Non Ferrous industry's average PEG ratio of 0.83 [7] Industry Context - The Mining - Non Ferrous industry is part of the Basic Materials sector and currently holds a Zacks Industry Rank of 174, placing it in the bottom 30% of over 250 industries [8] - The Zacks Industry Rank measures the strength of industry groups, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [8]

Industry Overview - The Zacks Mining - Non Ferrous industry faces challenges due to metal price volatility, weak demand, and tariff uncertainties, alongside inflated costs, labor shortages, and supply-chain issues [1][4][5] - Despite these challenges, demand for non-ferrous metals is expected to be supported by the energy-transition trend, which may buoy the industry [1][6] Key Companies to Watch - Southern Copper Corporation (SCCO) is positioned for growth with significant copper reserves and ongoing investments exceeding $10.3 billion in Peru and $10.2 billion in Mexico [2][16] - Freeport-McMoRan Inc. (FCX) is expanding reserves and implementing new technologies, targeting an annual run rate of 300 million pounds of copper by year-end, with plans to increase to 800 million pounds in 3-5 years [2][21] - First Quantum Minerals (FQVLF) has received government approval for its Cobre Panamá mine and expects to achieve production targets of 160,000-190,000 tons of copper in 2025 [2][24] - Coeur Mining (CDE) has enhanced its position in the silver market through the acquisition of SilverCrest Metals, reporting a 79% year-over-year increase in silver production [2][28] - Centrus Energy (LEU) is pioneering High-Assay, Low-Enriched Uranium (HALEU) production, with a solid backlog of $3.6 billion in contracts and plans to expand production capacity [2][31] Market Performance - The Zacks Mining - Non Ferrous industry has underperformed compared to the Zacks Basic Materials sector and the S&P 500, with a collective loss of 7.5% over the past year [9] - The industry's current trailing 12-month EV/EBITDA ratio is 9.48X, significantly lower than the S&P 500's 17.81X and the Basic Materials sector's 13.85X [12] Future Outlook - The demand for non-ferrous metals is expected to remain high, driven by sectors such as transportation, construction, and renewable energy, particularly for metals like copper and nickel [6] - The industry is facing a potential future deficit in metal supply due to depleting resources and declining production from old mines, which may eventually bolster metal prices [4][6]

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - The current marginal growth pattern of global silver shows "limited primary growth + increased by - product output + regional disturbances." The short - term supply elasticity is weak, and the price is more sensitive to demand and financial variables [42]. - Recent dovish signals from Fed officials strengthen the downward expectation of the forward real - interest - rate curve. The financial attribute premium of silver is supported. In the benchmark scenario, the view of "declining gold - silver ratio, silver outperforming gold, and price rising with high volatility" is maintained [43]. 3. Summary according to the Table of Contents 3.1 Recent Market Background and Summary of Major Silver Mining Enterprises - Major silver producers generally have the characteristics of "tightening primary ore increment and relying on by - products for silver increment." Pure silver ore increment is limited, and global new supply more depends on by - product recovery from copper/zinc projects. The supply side continues to feature "low elasticity + regional disturbances" [2]. 3.2 Hedging Strategy Suggestions - At the macro level, the co - existence of global growth slowdown and the bottom - up repair of the manufacturing industry, along with the rising market expectation of the Fed's moderate easing within the year and the high - level slowdown of real interest rates, support the main line of silver's "financial elasticity + stable industrial demand" [3]. 3.3 Global Major Silver Producers' Situation 3.3.1 Fresnillo plc - In 2024, its silver equity production was 56.31 million ounces, basically flat with 2023. In 2025 H1, the silver equity production was 24.9 million ounces, a year - on - year decline of about 8.30%. The company maintains the annual production guidance of 49 - 56 million ounces [8][9]. 3.3.2 KGHM Polska Miedz S.A. - In 2024, its silver production was 1341 tons, a year - on - year decline of 6%. In 2025 H1, it was about 657.2 tons, a year - on - year decline of 3%. The Sierra Gorda mine in Chile is expected to expand in mid - 2025, which may increase copper and silver production [14][15]. 3.3.3 Newmont Corporation - In 2024, its silver production was about 33 million ounces, a year - on - year increase of 83%. In 2025 H1, it was about 14 million ounces, a year - on - year decline of 17.6%. The 2025 annual production guidance is about 28 million ounces, a year - on - year decline of 15.21% compared with 2024 [21]. 3.3.4 Pan American Silver Corp. - In 2024, its silver production was 21.061 million ounces, a year - on - year increase of 3.05%. In 2025 H1, it was 10.097 million ounces, a year - on - year increase of 5.44%. The main increments come from La Colorada and El Peñon [23][24]. 3.3.5 Southern Copper Corporation - In 2024, its silver production was 20.983 million ounces, a year - on - year increase of 14%. In 2025 H1, it was 11.43 million ounces, a year - on - year increase of 14.6%. The 2025 annual guidance is 23 million ounces, a 9% increase compared with 2024 [30][31]. 3.3.6 Glencore plc - In 2024, its silver production was 19.286 million ounces, a year - on - year decline of 4%. In 2025 H1, it was 9.097 million ounces, basically flat year - on - year. The decline in Collahuasi is offset by the increase in Antamina, Kazzinc, and Kidd [33][34]. 3.4 Gold - Silver Ratio Review - Since 1980, the gold - silver ratio has generally shown a long - cycle pattern of "high - level fluctuation - periodic convergence - expansion again." The ratio converges when "loose policy + industrial recovery + re - inflation" resonate, and expands in the stage of "tightening/stagflation + declining risk appetite" [39]. 3.5 Summary and Hedging Suggestions - The short - term supply elasticity of silver is weak. If the Fed continues to compress the real - interest - rate spread and the economy has a "moderate slowdown," silver will benefit from the dual - drive of "metal financial attribute + industrial buffer" [42][43].

Group 1 - Hudbay Minerals dropped over 4%, while Freeport-McMoRan, Southern Copper, and Ero Copper fell more than 2% [1] - The Chilean National Copper Corporation significantly revised down its copper production growth forecast for 2025, now expecting a 1.5% increase compared to last year's figures, which is only half of the growth predicted in May [1] - The downward revision in production growth is attributed to a decline in output from BHP's Escondida mine (the world's largest copper mine) and the Collahuasi mine operated by Anglo American and Glencore [1]

Group 1 - The core viewpoint of the article highlights a collective decline in U.S. copper stocks, with major companies like Rio Tinto and BHP experiencing notable pre-market drops due to revised copper production forecasts from Chile's National Copper Corporation [1] - Chile's National Copper Corporation has significantly lowered its 2025 copper production growth forecast to 1.5%, which is half of the previously predicted 3% increase made in May [1] - The downward revision in production growth is attributed to decreased output from major mines, specifically BHP's Escondida mine and the joint-operated Coya Sur mine by Anglo American and Glencore, which saw a decline in June production [1] Group 2 - Pre-market performance shows Rio Tinto down nearly 2% at $63.570, BHP down 1.4% at $54.730, Freeport-McMoRan down 0.54% at $42.740, and Southern Copper down 0.20% at $99.500 [1] - The article provides specific stock price changes and percentages, indicating a broader trend of declining investor confidence in copper-related equities amid production concerns [1]

Group 1 - Copper prices experienced a historic drop, with a 22% decline on the COMEX, marking the largest single-day drop since 1968, falling to $4.33 per pound [1] - The U.S. government announced new tariffs on copper products, excluding raw copper and scrap, leading to significant sell-offs by investors who had stockpiled copper in anticipation of the tariffs [1] - Major copper mining companies saw their stock prices plummet, with Southern Copper Corp down nearly 7% and Freeport-McMoRan down 11% [1] Group 2 - Some analysts view the price drop as a "rational return," as U.S. copper prices had surged approximately 40% this year due to trade tensions, creating a significant premium over London Metal Exchange prices [2] - The recent tariff announcement has led to a narrowing of the price gap between U.S. and LME copper prices, which had previously been nearly 30% [2] - Despite a return to fundamentals, the copper market remains sensitive to economic conditions, particularly the growth outlook for the U.S. and China [2] Group 3 - Historical price trends raise concerns, with comparisons made to oil prices before the 2008 financial crisis, suggesting copper could fall to around $3 per pound if a significant correction occurs [3] - The price of copper has fluctuated around $3 for most of the past two decades, indicating potential for a return to this level following recent highs [3] - The phenomenon of sharp corrections after reaching high price points is common in commodity markets, raising questions about the sustainability of current copper prices [3]