Core Viewpoint - Southern Copper Corporation reported strong first-quarter results for 2025, with notable increases in production and sales across various metals, despite challenges such as a decrease in copper production at La Caridad and potential tariffs on U.S. copper imports. Production and Sales - Copper production for 2025 is expected to reach 968,200 tons, a 2,400-ton increase from the initial plan of 965,000 tons [1] - Copper represented 78% of total sales in Q1 2025, with stable production at 240,226 tons [2] - Molybdenum production rose by 9% year-over-year, contributing 10% to sales value [1][5] - Silver sales increased by 58% due to higher prices and larger volumes, with an average price of $32.31 per ounce [5][8] - Zinc sales surged by 59%, driven by better prices and a 42% increase in sold volumes [8] Financial Performance - Net sales for Q1 2025 reached $3 billion, a 20% increase from Q1 2024 [8] - Adjusted EBITDA for Q1 2025 was $1,746 million, up 23% from $1,418 million in Q1 2024, with an EBITDA margin of 56% [9] - Net income for Q1 2025 was $946 million, a 29% improvement compared to $736 million in Q1 2024 [12] Cost Management - Total operating costs increased by $176 million or 12% compared to Q1 2024, primarily due to higher inventory consumption and repair materials [9] - Operating cash cost per pound of copper before by-product credits was $2.05, a 12% decrease from the previous quarter [10] - Cash cost including by-product credits was $0.77 per pound, a 21% reduction from $0.96 in Q4 2024 [11] Market Outlook - The London Metal Exchange copper price increased by 11% year-over-year, averaging $4.24 per pound [3] - A projected copper market deficit of approximately 300,000 metric tons is expected by year-end [3] - The company maintains a positive long-term outlook for copper, despite potential impacts from U.S.-China trade tensions [2][56] Capital Investments and Projects - The capital program for the decade exceeds $15 billion, focusing on projects in Mexico and Peru [13] - Significant investments are planned for the Tia Maria project, with $200 million expected in 2025 [29] - Progress on the Los Chancas project includes acquiring land and addressing illegal mining issues [16][52] Environmental, Social, and Governance (ESG) Initiatives - Southern Copper has invested $60 million in building high-performance schools in Peru, contributing to educational development [18] - The company received the Exceptional Company award for its commitment to community development in Mexico [19] Dividends - A quarterly cash dividend of $0.70 per share and a stock dividend of 0.0099 shares per share were announced, payable on May 19, 2025 [21]

Core Viewpoint - Southern Copper Corporation reported a strong performance in Q3 2024, with significant increases in production and sales across multiple metals, particularly copper, zinc, and silver, driven by operational improvements and favorable market conditions. Production and Sales - Copper production increased by 11% quarter-on-quarter to 252,219 tons, with copper representing 77% of total sales [2][9] - Molybdenum production rose by 6% compared to Q3 2023, while molybdenum prices averaged $21.68 per pound [5] - Silver production increased by 22% year-on-year, with silver representing 5% of sales value and an average price of $29.43 per ounce [6] - Zinc production saw a remarkable increase of 91%, totaling 31,078 tons, driven by the new Buenavista Zinc concentrator [7][8] Financial Performance - Total sales for Q3 2024 reached $2.9 billion, a 17% increase from Q3 2023, with copper sales value up by 21% [9][10] - Adjusted EBITDA for Q3 2024 was $1,685 million, reflecting a 31% increase year-on-year, with an EBITDA margin of 57% [11] - Net income for Q3 2024 was $897 million, a 45% increase compared to $620 million in Q3 2023, with a net income margin of 31% [14][15] Cost and Cash Flow - Operating cash cost was $0.76 per pound in Q3 2024, consistent with the previous quarter [12] - The cash cost before by-product credits was $1.95 per pound, a 9% decrease from the previous quarter [13] - Cash flow from operating activities in Q3 2024 was $1,440 million, a 37% increase year-on-year [15][16] Capital Investments and Projects - The company has a capital investment program exceeding $15 billion, focusing on projects in Peru and Mexico, including Tia Maria and Buenavista Zinc [16] - For 2024, the expected production is 975,000 tons of copper, 28,200 tons of molybdenum, 20.8 million ounces of silver, and 120,300 tons of zinc [39] Market Outlook - The London Metal Exchange copper price increased by 10% to $4.17 per pound, with expectations of a slight market surplus of 100,000 tons for 2024 [3] - Long-term copper demand is expected to be supported by a resilient U.S. economy and new demands from decarbonization technologies and artificial intelligence [2]

Core Viewpoint - Southern Copper's third quarter results reflect strong performance driven by improved metal prices and production increases in byproducts, despite a slight decrease in copper production. The company remains optimistic about long-term copper market fundamentals and is focused on enhancing productivity and cost efficiency. Production and Sales - Copper production decreased by 7% year-over-year to 234,892 tons, primarily due to lower output from the Toquepala and Cuajone mines in Peru [5]. - The company expects to produce 960,000 tons of copper in 2025, slightly below the previous plan, with a year-to-date production of 714,098 tons, down 3% from 2024 [6]. - Molybdenum production increased by 8% to 30,000 tons in 2025, while silver production rose 16% to 23 million ounces, reflecting a 34% increase in average price [7][8]. Financial Performance - Net sales for the third quarter reached $3.4 billion, a 15% increase compared to the same period in 2024 [10]. - Adjusted EBITDA was $1,975 million, up 17% from $1,685 million in Q3 2024, with an adjusted EBITDA margin of 59% [11][12]. - Net income for the quarter was $1,108 million, representing a 23% increase year-over-year, with a net income margin of 33% [14][15]. Cost Management - Operating cash cost per pound of copper was $2.23, a 5% increase from the previous quarter, but the cash cost including by-product credits was $0.42, significantly lower than $0.63 in Q2 2025 [12][13]. - By-product credits totaled $895 million, a 22% increase compared to the previous quarter, driven by higher prices for molybdenum and silver [14]. Market Dynamics - The LME copper price increased by 7% to $4.44 per pound, while COMEX prices rose by 14% [2]. - A copper market deficit of nearly 400,000 tons is anticipated due to negative production effects in Indonesia and Chile [2]. Capital Projects and Investments - The Tia Maria project in Peru is progressing, with 23% completion and expected to generate significant employment upon operation in 2027 [16][18]. - Total capital investments in Peruvian projects could exceed $10.3 billion over the next decade [16]. Environmental, Social, and Governance (ESG) Initiatives - Southern Copper's sustainability ratings have improved, with a notable increase in transparency and environmental management [22]. - The company has made significant strides in reducing greenhouse gas emissions and restoring ecosystems in Mexico and Peru [23]. Future Outlook - The company forecasts copper production of approximately 911,000 tons for 2026, with ongoing evaluations to potentially improve this estimate [37]. - Capital expenditures are expected to reach around $2 billion in 2026, driven by the Tia Maria project and other initiatives [38].

Core Insights - Gold and silver experienced significant price increases in 2025, with gold rising over 60% and silver surging over 150%, continuing into 2026 as geopolitical tensions drive investors towards safe-haven assets [1] - Copper is emerging as a key investment opportunity, having risen around 40% in 2025, with expectations for further price increases due to new demand drivers [2][10] Copper Market Dynamics - The demand for copper is being fueled by its essential role in electric vehicles, renewable energy systems, and the AI economy, with massive data centers requiring substantial amounts of copper [5] - China, as the largest copper consumer, is actively securing long-term supplies, contributing to a lasting shortage in the market as demand outpaces supply [6] Investment Opportunities in Copper Stocks - Ero Copper Corp. is positioned well with record production of 16,664 tonnes of copper concentrate at a low cash cost of $2 per pound, and is advancing the Furnas Copper-Gold Project [7][8] - BHP Group Limited is targeting around 2 million tons of copper production per year by the 2030s, with significant investments in expanding operations [11][12] - Rio Tinto is developing major projects like Resolution Copper and Oyu Tolgoi, which is set to be one of the largest copper mines globally by 2030 [14][15] - Southern Copper Corporation holds the largest copper reserves in the industry and has a $15 billion capital investment plan, focusing on major projects in Peru [16][17] Financial Projections - Ero Copper's 2026 sales and EPS are expected to grow by 38% and 100% year-over-year, respectively, with a Zacks Rank of 1 (Strong Buy) [9] - BHP's fiscal 2026 EPS is projected to grow by 23%, also holding a Zacks Rank of 1 [13] - Rio Tinto's 2026 sales and EPS are estimated to grow by 6% each, with a Zacks Rank of 1 [16] - Southern Copper's 2026 sales and EPS are expected to grow by 10% and 18%, respectively, with a Zacks Rank of 2 (Buy) [18]

Core Viewpoint - Southern Copper Corporation is a significant player in the mining industry, primarily producing copper, molybdenum, zinc, and silver, with operations in Peru and Mexico, making it one of the largest integrated copper producers globally [1] Group 1: Stock Performance - UBS downgraded Southern Copper from a Neutral rating to a Sell rating, with the stock priced at $186.25, yet the stock recently closed at $182.97, marking a 1.5% increase from its previous close [2] - Over the past month, Southern Copper's shares surged by 27.44%, significantly outperforming the Basic Materials sector's gain of 8.62% and the S&P 500's increase of 1.57% [3][6] - The stock has fluctuated between a low of $179 and a high of $186.63 on the day of reporting [4] Group 2: Earnings Expectations - Investors are anticipating the upcoming earnings release, with expectations of an EPS of $1.44, reflecting a 42.57% increase from the previous year, and projected revenue of $3.62 billion, indicating a 30.11% rise from the same quarter last year [3][6] - For the entire year, Zacks Consensus Estimates predict earnings of $5.3 per share and revenue of $13.17 billion, indicating a 22.4% increase in earnings with stable revenue [4] Group 3: Market Capitalization and Trading Volume - Southern Copper's market capitalization stands at approximately $152.56 billion, with a trading volume of 1,807,273 shares [5] - Over the past year, the stock has reached a high of $186.67 and a low of $72.86, indicating strong performance despite the recent downgrade by UBS [5]

Core Viewpoint - Precious metals like gold and silver are expected to continue outperforming due to rising geopolitical tensions, making the metals and miners sector an attractive investment opportunity [1]. Group 1: Precious Metals Miners Overview - Six large-cap precious metals miners have been identified as potential investment opportunities, each with a net profit margin of at least 15% and a Benzinga Edge Quality Score of at least 90 [2]. Group 2: Hecla Mining Co. - Hecla Mining (NYSE:HL) has a Benzinga Edge Quality Score of 97.64, a market cap of nearly $17 billion, and generates over $1.2 billion in annual sales with a net profit margin of 16.2% [3]. - The stock is trading above its 50-day and 200-day simple moving averages (SMAs), indicating a bullish trend supported by the Moving Average Convergence Divergence (MACD) indicator [5]. Group 3: DRDGold Ltd. - DRDGold (NYSE:DRD) has a Benzinga Edge Quality Score of 98.47 and a market cap of $3 billion, utilizing surface-tailing retreatment strategies for gold recovery, resulting in a high net profit margin of 28.5% [6][7]. - The stock has experienced a 280% gain over the last 12 months and recently made a new all-time high, supported by bullish MACD signals [9]. Group 4: Kinross Gold Corp. - Kinross Gold (NYSE:KGC) has a Benzinga Edge Quality Score of 97.49, a market cap of $40 billion, and reported annual sales exceeding $5 billion, with a net profit margin of 27.3% [10]. - The stock has rallied over 200% in the last year, supported by a strong balance sheet, although caution is advised as the MACD indicators suggest a potential short-term pullback [12]. Group 5: OR Royalties Inc. - OR Royalties (NYSE:OR) has a Benzinga Edge Quality Score of 94.14, a market cap of $7.68 billion, and net margins exceeding 60% [13]. - The stock has gained over 15% in 2026 and is positioned for potential new all-time highs, supported by bullish MACD indicators [15]. Group 6: Southern Copper Corp. - Southern Copper Corp. (NYSE:SCCO) has a Benzinga Edge Quality Score of 92.36, a market cap of $150 billion, and generated over $12 billion in revenue last year with a net margin of 31% [16]. - The stock has increased by 27% in January 2026, with bullish MACD confirmations indicating strong momentum [18]. Group 7: SSR Mining Inc. - SSR Mining (NASDAQ:SSRM) has a Benzinga Edge Quality Score of 92.96 and a market cap of $4.8 billion, with a net profit margin of 15% [19]. - The stock appears undervalued compared to peers, trading at 23 times earnings and 1.2 times book value, and is poised to resume its rally from 2025 [21].

Core Thesis - Southern Copper Corporation (SCCO) is positioned as a high-quality copper producer with vertically integrated operations in Peru and Mexico, benefiting from a significant reserve base and a robust growth pipeline [2][5]. Company Overview - SCCO's share price was $174.37 as of January 13th, with trailing and forward P/E ratios of 37.65 and 34.84 respectively [1]. - The company has over 112 billion pounds of copper reserves, supporting projects like Tia Maria, Los Chancas, Michiquillay, and El Arco [2]. Financial Performance - In Q3 2025, SCCO achieved record EBITDA of $1.975 billion and net income of $1.108 billion, despite a temporary decline in copper production [3]. - The net cash costs were reported at $0.42 per pound, significantly lower than peer levels, indicating a low-cost, high-margin profile [3]. Growth Prospects - Although production is expected to be at a trough in 2026-2027, a ramp-up is anticipated from 2028 onwards, driven by large-scale projects [4]. - The company's strong cash flow generation supports an attractive dividend yield, and management's experience enhances execution credibility [4]. Investment Considerations - SCCO combines low-cost production with high byproduct leverage and a visible growth pipeline, positioning it for substantial upside if commodity prices remain high [5]. - The company maintains controlled net debt and disciplined capital allocation, presenting a bullish risk/reward profile for investors seeking premium copper exposure [5]. - Comparatively, SCCO's scale and vertical integration are emphasized as key advantages over other companies in the sector [6].

Core Insights - Copper prices have surged significantly, exceeding $13,000 per metric ton, with an annual gain of over 40% in 2025, marking the strongest increase since the late 2000s [2][5] - The current copper price rally reflects a structural reassessment of its role in the global economy, driven by long-term demand from electrification and renewable energy [5][9] Demand Dynamics - Copper is essential for the global energy transition, powering electric vehicles, battery systems, and renewable energy installations, with AI and cloud computing requiring significantly more copper than traditional infrastructures [6][9] - Industry projections indicate that copper demand may rise by approximately 50% by 2040, driven by electrification and climate investments [10] Supply Constraints - Major copper-producing countries like Indonesia, Chile, and Peru face supply disruptions due to technical challenges, environmental issues, and labor conflicts, leading to a tightening market characterized as a structural deficit [7][10] - Aging infrastructure and lower ore quality are challenges for leading producers such as Freeport-McMoRan and Codelco, while new large-scale mining projects take years to develop [7] Market Reactions - Companies involved in copper production, such as Freeport-McMoRan and Southern Copper Corporation, have seen substantial stock performance due to higher copper prices and constrained supply [11][12] - Diversified mining companies like BHP Group also benefit from rising copper prices, enhancing their overall resource portfolios [12] Future Outlook - Modest production growth is anticipated, but refined copper output may struggle to meet demand, leading to sustained price support through 2026 [13] - Geopolitical factors, trade policies, and investments in mine developments will significantly influence global supply resilience, potentially intensifying market tightness [14] - Copper's evolving role as a strategic commodity central to energy transition and digital infrastructure will be closely monitored, with the potential for a long-term supercycle or high plateau [15]

Company Overview - Southern Copper Corporation (NYSE:SCCO) is engaged in mining, smelting, and refining copper, and also processes other materials such as molybdenum, zinc, silver, gold, and sulfuric acid [2]. Stock Performance - The stock has experienced a significant increase, being up 25% this year and showing a parabolic move with a recent increase of $5 in a single day [1]. - The current yield of the stock is 1.98%, which is considered low given its recent performance [1]. Analyst Insights - Wells Fargo has raised the price target for Southern Copper's stock from $144 to $182 while maintaining an Equal-Weight rating, indicating a cautious outlook on the stock's future performance [2]. - The firm anticipates strong performance in copper and aluminum in 2026 due to limited new supply in the first half of the year, alongside expectations that tariffs on steel and aluminum imports will remain in place, keeping US prices elevated [3]. Investment Considerations - While Southern Copper is recognized for its potential, there are suggestions that certain AI stocks may offer greater upside potential and carry less downside risk, indicating a competitive investment landscape [4].

Group 1: Stock Market Trends - Approximately 18% of S&P 500 stocks have seen a year-to-date increase of 10% or more, doubling the average of 9.4% from the past five years [1] - The technology, financial, and metals mining sectors have seen dozens of stocks rise over 50% in the past year, with the total market capitalization of this "surging stock" group exceeding $4 trillion [1] - Notable examples include Micron Technology, Western Digital, and SanDisk, which have benefited from strong storage demand driven by the AI wave, with related storage stocks rising over 200% in the past year [1] Group 2: Semiconductor and Data Center Demand - The demand for computing power has surged as companies integrate AI agents into software systems, leading to an expansion of data centers and a direct increase in semiconductor demand [2] - Connector manufacturer Amphenol has seen its revenue from data centers rise significantly, with its stock price doubling in the past year [2] - Corning, a materials giant, has experienced an 88% increase in stock price due to rising demand from data center expansions [2] Group 3: Commodity Market Impact - Copper prices have risen approximately 30% in the past year, driven by increased demand from data centers, benefiting mining companies like Southern Copper, whose stock has increased by about 91% [2] - Gold mining stocks have also rebounded strongly, with Newmont Mining and Barrick Mining both doubling in stock price, coinciding with a 66% increase in gold prices [2] Group 4: Financial Sector Performance - Major U.S. investment banks, including Citigroup and Goldman Sachs, have seen stock prices rise over 50% in the past year, driven by expectations of a Fed rate cut and increased credit demand [3] - Regulatory changes, such as relaxed capital and reserve requirements, have boosted bank valuations and facilitated more lending and mergers [3] - The acceleration of merger review processes by the FTC and DOJ has reduced transaction costs and increased certainty in deal completions [3]