Company Performance - Southern Copper (SCCO) closed at $97.11, reflecting a -1.1% change from the previous day, underperforming the S&P 500's gain of 0.02% [1] - Prior to the latest trading session, shares of Southern Copper had declined by 4.21%, while the Basic Materials sector gained 4.33% and the S&P 500 increased by 4.93% [1] Earnings Expectations - Analysts anticipate Southern Copper to report earnings of $1.07 per share, indicating a year-over-year decline of 12.3% [2] - The consensus estimate for quarterly revenue is projected at $3.02 billion, down 3.25% from the same period last year [2] Full Year Projections - For the full year, earnings are expected to be $4.63 per share and revenue at $12.38 billion, representing increases of +6.93% and +8.24% respectively from the previous year [3] - Recent changes in analyst estimates are crucial as they reflect the evolving business trends and analysts' confidence in performance [3] Valuation Metrics - Southern Copper is currently trading at a Forward P/E ratio of 21.19, which is lower than the industry average Forward P/E of 21.81 [6] - The company has a PEG ratio of 2.52, compared to the Mining - Non Ferrous industry's average PEG ratio of 0.81 [6] Industry Context - The Mining - Non Ferrous industry is part of the Basic Materials sector, holding a Zacks Industry Rank of 44, placing it in the top 18% of over 250 industries [7] - The Zacks Industry Rank measures the strength of industry groups based on the average Zacks Rank of individual stocks, indicating that top-rated industries outperform lower-rated ones by a factor of 2 to 1 [7]

Group 1 - Morgan Stanley downgraded Freeport-McMoRan (FCX.US) and Teck Resources (TECK.US) from "Overweight" to "Hold," with target prices set at $54 and $44 respectively [1] - The performance of copper stocks covered by Morgan Stanley has outpaced LME copper prices by 28 percentage points since April 8, making the risk/reward profile less attractive [1] - Analysts believe Freeport-McMoRan has upside potential due to its exposure to Comex copper and strong gold prospects, but the current risk/reward ratio appears unattractive with few short-term catalysts [1] Group 2 - Morgan Stanley downgraded Southern Copper (SCCO.US) from "Hold" to "Underweight," setting a target price of $99, citing that the stock's valuation seems high relative to historical averages and industry peers [2] - The firm also downgraded Nexa Resources (NEXA.US) from "Hold" to "Underweight," with a target price of $5, due to pessimistic expectations regarding zinc prices and operational issues affecting production targets [2]

Core Viewpoint - Southern Copper (SCCO) is anticipated to report a year-over-year decline in earnings due to lower revenues for the quarter ended June 2025, which could significantly influence its near-term stock price [1][2]. Earnings Expectations - The consensus estimate for Southern Copper's quarterly earnings is $1.06 per share, reflecting a year-over-year decrease of 13.1% [3]. - Expected revenues for the quarter are $3.01 billion, down 3.5% from the same quarter last year [3]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised down by 14.96%, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Southern Copper matches the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likely deviation of actual earnings from the consensus estimate, with a strong predictive power for positive readings [9][10]. - Southern Copper currently holds a Zacks Rank of 3, making it challenging to predict an earnings beat conclusively [12]. Historical Performance - In the last reported quarter, Southern Copper exceeded the expected earnings of $1.13 per share, achieving $1.19, resulting in a surprise of +5.31% [13]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [14]. Conclusion - While Southern Copper does not appear to be a strong candidate for an earnings beat, investors should consider other factors when making investment decisions ahead of the earnings release [17].

Core Viewpoint - Southern Copper's stock performance has shown a decline recently, with a notable drop compared to major indices, while the company is expected to report lower earnings and revenue in the upcoming earnings release [1][2]. Company Performance - Southern Copper's stock closed at $104.51, reflecting a -1.28% change from the previous day, underperforming the S&P 500, which lost 0.79% [1]. - Over the past month, shares of Southern Copper have gained 10.69%, outperforming the Basic Materials sector's gain of 4.52% and the S&P 500's gain of 5.22% [1]. Earnings Expectations - The upcoming earnings report is anticipated to show an EPS of $1.09, which is a decrease of 10.66% from the same quarter last year [2]. - The Zacks Consensus Estimate for revenue is projected at $2.9 billion, down 6.86% from the previous year [2]. - Full-year estimates predict earnings of $4.75 per share and revenue of $12.21 billion, indicating year-over-year increases of +9.7% and +6.82%, respectively [3]. Analyst Estimates - Changes in analyst estimates for Southern Copper are crucial as they reflect the shifting dynamics of business performance [4]. - The Zacks Rank system, which incorporates these estimate changes, currently ranks Southern Copper at 3 (Hold) [6]. Valuation Metrics - Southern Copper has a Forward P/E ratio of 22.3, which is lower than the industry average of 23.25 [7]. - The company has a PEG ratio of 2.37, compared to the Mining - Non Ferrous industry's average PEG ratio of 0.89 [8]. Industry Context - The Mining - Non Ferrous industry, part of the Basic Materials sector, holds a Zacks Industry Rank of 69, placing it in the top 28% of all industries [9].

F E B R U A R Y 2 0 2 5 4Q24 RESULTS Disclaimer The material in this presentation has been prepared Southern Copper Corporation (SCC) and is general background information about SCC's activities current as at the date of this presentation. This information is given in summary form and does not purport to be complete. Information in this presentation, including financial forecasts, should not be considered as advice or a recommendation to investors or prospective investors in relation to holding, purchasing ...

Financial Performance - Net sales increased by 36% from $2301 million in 2Q23 to $3118 million in 2Q24[23, 25] - EBITDA increased by 61% from $1116 million in 2Q23 to $1797 million in 2Q24[23, 26] - Net income increased by 74% from $548 million in 2Q23 to $950 million in 2Q24[23, 28] - Cash cost decreased by 32% from $112 in 2Q23 to $076 in 2Q24[23] Production - Copper production increased by 7% from 227,534 tons in 2Q23 to 242,474 tons in 2Q24[19] - Silver production increased by 8% from 48 million ounces in 2Q23 to 52 million ounces in 2Q24[21] - Molybdenum production increased by 21% from 6334 tons in 2Q23 to 7654 tons in 2Q24[21] - Zinc production increased significantly by 71% from 17,223 tons in 2Q23 to 29,419 tons in 2Q24[21] Market Outlook and Dividends - The company expects a market deficit in 2024, driven by strong demand and new technologies, but notes weakness in China's real estate sector and a resilient US economy[15] - The company announced dividends, reflecting its commitment to shareholder returns[38, 40] ESG Initiatives - The company is committed to improving its ESG record, including reducing CO2 emissions by approximately 250,000 tons per year, equivalent to 7% of SCC's carbon footprint, through the use of eolic energy[32, 33]

Financial Performance - Net sales increased by 17% from $2506 million in 3Q23 to $2931 million in 3Q24[22] - EBITDA increased by 31% from $1291 million in 3Q23 to $1685 million in 3Q24[22] - Net income increased by 45% from $620 million in 3Q23 to $897 million in 3Q24[22] - Cash cost decreased by 22% from $098 in 3Q23 to $076 in 3Q24[22] Production - Copper production increased by 4% from 242474 tons in 3Q23 to 252219 tons in 3Q24[19] - Molybdenum production increased by 6% from 6859 tons in 3Q23 to 7271 tons in 3Q24[20] - Silver production increased by 91% from 16281 MM Ounces in 3Q23 to 31078 MM Ounces in 3Q24[20] - Zinc production increased by 21% from 44 tons in 3Q23 to 53 tons in 3Q24[20] Capital Investments - The company has board-approved projects that will add +156k tons of copper production[31] - Other projects are planned to add +545k tons of copper production[31] ESG Initiatives - The company delivered a Center for Research to the Universidad Nacional de San Agustín de Arequipa (UNSA), Peru, at a cost of $18 million[33] - Dr Vagón provided more than 6000 free medical services to 2050 people in Cananea in September 2024[36]

Core Insights - The article emphasizes the importance of utilizing Zacks Premium for investors to enhance their stock market strategies and confidence [1] Zacks Style Scores - Zacks Style Scores are indicators designed to help investors select stocks with the highest potential to outperform the market within a 30-day timeframe [2] - Stocks are rated from A to F based on value, growth, and momentum characteristics, with A being the highest score [2] Value Score - The Value Style Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Style Score assesses a company's future growth potential by analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Style Score is based on price trends and earnings outlook changes, helping investors identify optimal times to invest in high-momentum stocks [5] VGM Score - The VGM Score combines Value, Growth, and Momentum Scores, providing a comprehensive evaluation of stocks based on their weighted styles [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to assist investors in building successful portfolios [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8] Stock Selection Strategy - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B to maximize potential success [9] - The direction of earnings estimate revisions is crucial; stocks with lower ranks but high Style Scores may still face downward price pressure [10] Company Spotlight: Southern Copper Corporation - Southern Copper Corporation (SCCO) is engaged in mining, exploring, smelting, and refining copper and other minerals across several countries [11] - SCCO holds a Zacks Rank of 3 (Hold) and a VGM Score of B, indicating moderate potential [11] - The company is projected to experience a 6% year-over-year earnings growth for the current fiscal year, with positive earnings estimate revisions [12] - SCCO has an average earnings surprise of 3.7%, making it a noteworthy option for growth investors [12]

Group 1 - Southern Copper Corporation has recently achieved record revenue and net income, driven by high copper prices [1] - The future supply-demand balance of copper remains uncertain, which may impact the stock's performance [1] Group 2 - The analyst has over 10 years of experience researching various companies across different sectors, including metals and mining [1]

Core Viewpoint - Solis Minerals Limited is advancing its copper-gold projects in Peru, with significant drilling activities planned to explore and unlock value in its portfolio [2][4][10]. Group 1: Chancho al Palo Project - Drilling will commence at the 100% owned Chancho al Palo copper-gold project, with a diamond drill-rig mobilized to the site [3][4]. - The diamond drilling program will cover approximately 2,500 meters across several priority targets, aimed at testing multiple anomalies identified through recent surface mapping and geophysics [4][10]. - This marks the first drilling at Chancho al Palo, representing a major milestone in the company's exploration strategy [4][8]. Group 2: Ilo Este and Cinto Projects - The Ministry of Energy and Mines of Peru has approved the drill permit for the Ilo Este project, which is also 100% owned by Solis Minerals and located 20 kilometers from Chancho al Palo [5]. - A 5,000-meter diamond drilling program at Ilo Este is expected to commence in June 2025 [5][10]. - An induced polarization (IP) survey at the Cinto project is nearing completion, with results anticipated in June 2025 [6][10]. Group 3: Company Strategy and Leadership - The CEO of Solis Minerals expressed excitement about the maiden drill campaign at Chancho al Palo, highlighting its potential in a premier copper-producing region [8]. - The company is committed to maintaining a strong news flow across its copper-gold portfolio, with ongoing drilling and survey activities [9][10]. - Solis Minerals is strategically positioned to capitalize on growth opportunities within the mineral-rich region of South America, holding concessions totaling 69,200 hectares [12][13].