Group 1 - The company anticipates that tariffs initiated by President Trump will lead to a cost increase of 1%-3% [1]

Part I. Financial Information [Condensed Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) For the first quarter of 2025, Southern Copper Corporation reported a net income attributable to SCC of $945.9 million, a 28.5% increase year-over-year, driven by higher sales and metal prices [Condensed Consolidated Statements of Earnings](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Earnings) Net sales for Q1 2025 increased by 20.1% year-over-year to $3,121.9 million, leading to a 29.1% rise in operating income to $1,535.5 million and a diluted EPS of $1.19 Condensed Consolidated Statements of Earnings | Financial Metric | Q1 2025 (in millions) | Q1 2024 (in millions) | Change (%) | | :--- | :--- | :--- | :--- | | Net Sales | $3,121.9 | $2,599.8 | 20.1% | | Operating Income | $1,535.5 | $1,189.7 | 29.1% | | Net Income Attributable to SCC | $945.9 | $736.0 | 28.5% | | Diluted EPS | $1.19 | $0.95 | 25.3% | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets increased to $19.79 billion from $18.71 billion at year-end 2024, primarily due to a significant increase in cash and cash equivalents to $4.12 billion Condensed Consolidated Balance Sheets | Balance Sheet Item | March 31, 2025 (in millions) | Dec 31, 2024 (in millions) | | :--- | :--- | :--- | | **Total Current Assets** | $7,220.0 | $6,174.3 | | Cash and cash equivalents | $4,116.3 | $3,258.1 | | **Total Assets** | **$19,791.2** | **$18,713.5** | | **Total Current Liabilities** | $1,944.4 | $2,248.1 | | Long-term debt, net | $6,747.0 | $5,758.5 | | **Total Liabilities** | $10,154.5 | $9,475.4 | | **Total Equity** | **$9,636.7** | **$9,238.1** | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) In Q1 2025, net cash from operating activities was $721.4 million, with cash and cash equivalents increasing by $858.2 million, supported by new debt issuance and partially offset by capital expenditures and dividend payments Condensed Consolidated Statements of Cash Flows | Cash Flow Activity (in millions) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $721.4 | $659.7 | | Net cash (used in) provided by investing activities | $(290.7) | $56.2 | | Net cash provided by (used in) financing activities | $432.9 | $(620.1) | | **Increase in cash and cash equivalents** | **$858.2** | **$100.7** | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail significant financial events, including a $1.0 billion senior note issuance, ongoing legal challenges for the Tia Maria project, secured labor stability in Peru, and subsequent dividend declarations and debt payments - In February 2025, the company's subsidiary, Minera Mexico S.A. de C.V., issued **$1.0 billion** of fixed-rate senior notes due in 2032 with an annual interest rate of 5.625%[53](index=53&type=chunk) - The company faces five ongoing lawsuits related to the Tia Maria project in Peru, challenging its Environmental Impact Assessment and construction license, which the company asserts are without merit[85](index=85&type=chunk) - In Peru, the company signed long-term collective bargaining agreements with all six of its unions, with expirations ranging from 2027 to 2033, ensuring labor stability[106](index=106&type=chunk)[107](index=107&type=chunk)[108](index=108&type=chunk) - As of March 31, 2025, the company had committed approximately **$305.2 million** to capital investment project developments[135](index=135&type=chunk) - Subsequent to the quarter end, on April 10, 2025, the Board authorized a quarterly dividend of **$0.70 cash** and a stock dividend of **0.0099 shares per share**, and on April 22, 2025, the company paid off **$500 million** in principal on its 2015 senior notes[166](index=166&type=chunk)[168](index=168&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=53&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reported a 20.1% year-over-year increase in Q1 2025 net sales, driven by higher metal prices and volumes, resulting in a 28.5% rise in net income and an improved operating cash cost per pound of copper [Executive Overview & Key Matters](index=53&type=section&id=Executive%20Overview%20%26%20Key%20Matters) In Q1 2025, net sales reached $3.12 billion and net income attributable to SCC was $945.9 million, driven by favorable metal prices and higher sales volumes, with operating cash cost per pound of copper falling to $0.77 Executive Overview & Key Matters | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Net Sales | $3,121.9 M | $2,599.8 M | 20.1% | | Net Income (SCC) | $945.9 M | $736.0 M | 28.5% | | EPS | $1.19 | $0.95 | 25.3% | - Sales composition in Q1 2025 was dominated by copper (**77.9%**), followed by molybdenum (**9.6%**), silver (**5.7%**), and zinc (**3.6%**)[174](index=174&type=chunk) - Mined production highlights for Q1 2025 vs Q1 2024: - Copper: Stable at **529.6 million pounds** - Molybdenum: Increased **8.6%** to **16.9 million pounds** - Silver: Increased **13.8%** to **5.4 million ounces** - Zinc: Increased **49.3%** to **86.8 million pounds**, driven by the Buenavista Zinc concentrator[182](index=182&type=chunk)[183](index=183&type=chunk)[184](index=184&type=chunk)[185](index=185&type=chunk) - Operating cash cost per pound of copper, net of by-product revenues, decreased by **28.4%** from **$1.07** in Q1 2024 to **$0.77** in Q1 2025[193](index=193&type=chunk)[195](index=195&type=chunk) [Capital Investment Programs](index=61&type=section&id=Capital%20Investment%20Programs) The company's capital investments totaled $317.8 million in Q1 2025, with major projects like Tia Maria ($1.8 billion) and El Pilar ($310 million) advancing to support long-term organic growth - Tia Maria (Peru): A **$1.8 billion** project to produce **120,000 tons** of copper cathodes annually, now in early construction with access road progress at **61%**[206](index=206&type=chunk)[207](index=207&type=chunk)[209](index=209&type=chunk) - El Pilar (Mexico): A **$310 million** project to produce **36,000 tonnes** of copper cathodes annually, with project development and on-site environmental activities in progress[203](index=203&type=chunk)[204](index=204&type=chunk) - Los Chancas (Peru): An illegal miner attack in March 2025 damaged facilities, and the company is working with authorities to remove the squatters to continue project development[215](index=215&type=chunk) - Michiquillay (Peru): A **$2.5 billion** project with an expected output of **225,000 tonnes** of copper per year, with exploration **39%** complete and geo-metallurgical and hydrological studies underway[216](index=216&type=chunk)[217](index=217&type=chunk)[218](index=218&type=chunk) [Results of Operations](index=66&type=section&id=Results%20of%20Operations) Consolidated net sales for Q1 2025 increased 20.1% to $3,121.9 million, and operating income rose 29.1% to $1,535.5 million, driven by strong performance across Peruvian and Mexican operations Average Metal Price | Average Metal Price | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Copper (LME, $/lb) | $4.24 | $3.83 | 10.7% | | Molybdenum ($/lb) | $20.43 | $19.84 | 3.0% | | Zinc (LME, $/lb) | $1.29 | $1.11 | 16.2% | | Silver (COMEX, $/oz) | $32.31 | $23.35 | 38.4% | - Peruvian Operations: Operating income rose **22.7%** to **$561.5 million**, driven by higher sales volumes of copper, molybdenum, and silver, along with higher metal prices[234](index=234&type=chunk) - Mexican Open-pit Operations: Operating income grew **28.6%** to **$965.5 million**, mainly due to a significant increase in zinc sales volume from the Buenavista concentrator and higher metal prices[235](index=235&type=chunk) - Mexican Underground (IMMSA): Turned a **$6.8 million** operating loss in Q1 2024 into an **$18.4 million** operating income in Q1 2025, driven by higher metal prices and a **10.6%** reduction in operating costs[237](index=237&type=chunk) [Liquidity and Capital Resources](index=73&type=section&id=Liquidity%20and%20Capital%20Resources) The company's cash position strengthened significantly in Q1 2025, with cash and cash equivalents increasing by $858.2 million to end the quarter at $4.12 billion, supported by operating cash flow and new debt issuance Cash Flow Summary (in millions) | Cash Flow Summary (in millions) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $721.4 | $659.7 | | Net cash (used in) provided by investing activities | $(290.7) | $56.2 | | Net cash provided by (used in) financing activities | $432.9 | $(620.1) | | **Increase in cash and cash equivalents** | **$858.2** | **$100.7** | - Financing activities in Q1 2025 were primarily driven by the proceeds from the issuance of debt (**$993.8 million**), partially offset by cash dividends paid to common stockholders (**$553.3 million**)[16](index=16&type=chunk) [Quantitative and Qualitative Disclosure about Market Risk](index=79&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosure%20about%20Market%20Risk) The company's primary market risks include commodity price volatility, foreign currency exchange fluctuations, and open sales risk from provisionally priced contracts, with a $0.10 per pound change in copper price estimated to impact net earnings by $92.5 million Metal Price Change Impact on Net Earnings | Metal Price Change | Impact on Net Earnings (in millions) | | :--- | :--- | | Copper: +$0.10 / lb | $92.5 | | Molybdenum: +$1.00 / lb | $26.3 | | Zinc: +$0.10 / lb | $18.6 | | Silver: +$1.00 / oz | $10.6 | - A **10%** appreciation of the USD against the Peruvian sol would increase net earnings by **$15.1 million**, while a **10%** appreciation against the Mexican peso would decrease net earnings by **$3.2 million**[252](index=252&type=chunk) - Provisionally priced sales of copper and molybdenum contain embedded derivatives that are marked to market through earnings each period, creating exposure to price fluctuations prior to final settlement[253](index=253&type=chunk) [Controls and Procedures](index=81&type=section&id=Item%204.%20Controls%20and%20Procedures) As of March 31, 2025, the company's management concluded that its disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[257](index=257&type=chunk) - No material changes in the company's internal control over financial reporting occurred during the first quarter of 2025[258](index=258&type=chunk) Part II. Other Information [Legal Proceedings](index=83&type=section&id=Item%201.%20Legal%20Proceedings) This section incorporates by reference the detailed discussion of legal matters from Note 10 of the financial statements, primarily relating to ongoing litigation concerning the Tia Maria project, the 2014 Buenavista mine spill, and various labor issues - The report refers to Note 10, "Commitments and Contingencies," for detailed information on legal proceedings[266](index=266&type=chunk) [Risk Factors](index=83&type=section&id=Item%201A.%20Risk%20Factors) The company has updated its risk factors to address the potential negative impacts of U.S. regulatory uncertainty, tariff threats, and international trade tensions, which could significantly affect cost structures and profitability - A key updated risk is the potential for new U.S. tariffs and trade tensions to adversely affect the company's cost structures, pricing, and profitability[268](index=268&type=chunk) - The company notes that reciprocal tariffs enacted in April 2025, though later paused, caused fluctuations in the market prices for its main products and common stock, highlighting the volatility of the trade environment[269](index=269&type=chunk) [Other Items (Item 2, 4, 5, 6)](index=83&type=section&id=Other%20Items%20(Item%202,%204,%205,%206)) This section addresses other required disclosures, confirming no unregistered sales of equity securities, no applicable mine safety disclosures, and no Rule 10b5-1 trading arrangement adoptions or terminations by directors or officers - Item 2: No unregistered sales of equity securities were conducted[271](index=271&type=chunk) - Item 5: No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the quarter ended March 31, 2025[273](index=273&type=chunk)

Investment Rating - The industry rating is "Recommended" [7] Core Insights - In Q1 2025, the mined copper production remained flat year-on-year at 240,226 tons, with a slight quarter-on-quarter increase of 0.6% [1][18]. - The unit operating cash cost for copper decreased by 28.0% year-on-year to $0.77 per pound, primarily due to a reduction in operating costs and an increase in by-product revenue [2]. - The net sales for Q1 2025 reached $3.1219 billion, reflecting a year-on-year growth of 20.1%, driven by increased sales volumes across copper, molybdenum, zinc, and silver [9][19]. - The net profit for Q1 2025 was $945.9 million, up 28.5% year-on-year, with a net profit margin of 30.3% [9][19]. Production and Sales Summary - Copper production in Q1 2025 was 240,226 tons, with sales of 243,601 tons, marking a 3.6% increase year-on-year [1][18]. - Molybdenum production increased by 8.5% year-on-year to 7,684 tons, with sales of 7,731 tons, reflecting a 9.9% increase [3][4]. - Zinc production surged by 49.3% year-on-year to 39,375 tons, with sales of 36,530 tons, a 42.4% increase [5][19]. - Silver production rose by 13.8% year-on-year to 5.442 million ounces, with sales of 5.653 million ounces, a 14.1% increase [6][8]. Financial Performance - The adjusted EBITDA for Q1 2025 was $1.7456 billion, up 23.1% year-on-year, with an adjusted EBITDA margin of 55.9% [9][19]. - Capital investment expenditures for Q1 2025 were $317.8 million, representing a 48.6% increase year-on-year [10][19]. Project Updates - The company plans to invest over $600 million in its Mexican projects in 2025, focusing on asset modernization and safety improvements [11]. - The Tia Maria project in Peru is expected to produce 120,000 tons of SX-EW cathode copper annually upon completion [12]. - The Los Chancas project in Peru aims for an annual production of 130,000 tons of copper and 7,500 tons of molybdenum, with an estimated capital investment of $2.6 billion [14].

Group 1 - Southern Copper expects stable copper sales despite uncertainties in tariff policies, with demand shifting from construction to energy and technology sectors [1] - The CFO of Southern Copper, Raul Jacob, maintains a positive outlook on the copper market, predicting a transition in demand from infrastructure to new energy technologies and artificial intelligence [1] - Solar power generation requires more copper than traditional carbon power, and the development of AI also necessitates significant amounts of copper, zinc, and silver, supporting price stability in the coming years [1] Group 2 - In Q1 2025, Southern Copper produced 242,004 tons of copper, an increase from 240,679 tons in the same period last year, with production growth of 11.6% at the Toquepala mine in Peru [1] - The company is prepared to shift exports to other markets if necessary, despite the U.S. suspending a 25% copper tariff, which will help mitigate external shocks [1] - The Tia Maria project in Arequipa has seen 61% completion in road and platform construction, with updated capital expenditures of $200 million for this year, $980 million for 2026, and $46 million for 2027 [2] - The Tia Maria project is expected to produce 120,000 tons annually, and there is high social acceptance with minimal opposition [2]

Financial Data and Key Metrics Changes - The London Metal Exchange copper price increased by 11% from an average of $3.83 per pound in Q1 2024 to $4.24 in Q1 2025 [4] - Net sales for Q1 2025 were $3 billion, a 20% increase compared to Q1 2024 [14] - Net income for Q1 2025 was $946 million, representing a 29% improvement from $736 million in Q1 2024 [20] - Adjusted EBITDA for Q1 2025 was $1.746 billion, a 23% increase from $1.418 billion in Q1 2024 [16] - Operating cash cost per pound of copper before byproduct credits was $2.05, a 12% decrease from $2.32 in Q4 2024 [17] Business Line Data and Key Metrics Changes - Copper production remained stable at 240,226 tons in Q1 2025, with copper representing 78% of sales [7] - Molybdenum production rose by 9% in Q1 2025 compared to Q1 2024, driven by higher ore grades [10] - Silver sales increased by 58% due to higher prices and larger volumes, with silver representing 6% of sales [11] - Zinc production increased by 49% compared to Q1 2024, totaling 39,375 tons, mainly due to the new Buena Vista Zinc Concentrator [13] Market Data and Key Metrics Changes - The copper market is expected to have a deficit of about 300,000 metric tons by year-end [4] - Copper inventories worldwide are estimated to cover about one week of global net demand [5] - Molybdenum prices averaged $20.43 per pound in Q1 2025, a 3% increase from Q1 2024 [9] - Zinc prices averaged $1.29 per pound in Q1 2025, a 16% increase compared to Q1 2024 [12] Company Strategy and Development Direction - The company plans to invest over $15 billion in capital projects throughout the decade, focusing on modernization and efficiency [21] - The Tia Maria project is expected to generate significant local employment and is progressing well despite previous protests [23][80] - The company is exploring new opportunities in Mexico, including potential projects in Michoacan and Zacatecas [55] Management's Comments on Operating Environment and Future Outlook - Management maintains a positive long-term outlook for copper, despite concerns about a potential trade war affecting global demand [6][92] - The company expects cash costs for copper to remain in the range of $0.75 to $0.80 per pound for 2025 [37][99] - Management believes that the current market conditions will allow for continued production stability and potential growth in the coming years [76][92] Other Important Information - The company announced a quarterly cash dividend of $0.70 per share and a stock dividend of 0.00999 shares per common stock [30] - The company has received recognition for its social practices and contributions to local communities in Mexico and Peru [29] Q&A Session Summary Question: How should cash costs evolve for the rest of the year? - Management expects cash costs to remain in the range of $0.75 to $0.80 per pound of copper for 2025, depending on market prices [36][37] Question: What is the expected capital expenditure for Tia Maria? - The company expects to spend less than $200 million on Tia Maria in 2025, with significant expenditures planned for subsequent years [42][43] Question: How is the company addressing potential tariffs on copper imports? - Management believes that if tariffs are imposed, they would reassign production to other markets to mitigate the impact [113][114] Question: What is the current status of the Tia Maria project and local community relations? - The project has gained significant local support, with protests being minimal compared to the population size [80][122] Question: How is the company managing costs compared to competitors? - The company maintains a cautious approach to costs and has invested in maintaining facilities, which has helped keep cash costs competitive [70][71]

Core Viewpoint - Southern Copper (SCCO) reported quarterly earnings of $1.19 per share, exceeding the Zacks Consensus Estimate of $1.13 per share, and showing an increase from $0.94 per share a year ago, indicating a positive earnings surprise of 5.31% [1][2] Financial Performance - The company achieved revenues of $3.12 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 4.67%, and up from $2.6 billion in the same quarter last year [2] - Over the last four quarters, Southern Copper has exceeded consensus EPS estimates three times and topped revenue estimates three times as well [2] Stock Performance - Southern Copper shares have increased approximately 5.2% since the beginning of the year, contrasting with a decline of -6.8% in the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $1.14, with expected revenues of $2.98 billion, and for the current fiscal year, the EPS estimate is $4.47 on revenues of $11.91 billion [7] Industry Outlook - The Mining - Non Ferrous industry, to which Southern Copper belongs, is currently ranked in the top 24% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5][6]

Financial Performance - 1Q25 net sales reached $3,121.9 million, a 20.1% increase compared to 1Q24, driven by higher sales volumes of copper (+3.6%), molybdenum (+9.9%), zinc (+42.4%), and silver (+14.1%) as well as rising metal prices[1] - Net income for 1Q25 was $945.9 million, reflecting a 28.5% improvement from $736.0 million in 1Q24, with a net income margin of 30.3%[3] - Adjusted EBITDA for 1Q25 was $1,745.6 million, up 23.1% from $1,417.7 million in 1Q24, resulting in an adjusted EBITDA margin of 55.9%[3] - Operating income for Q1 2025 was $1,535.5 million, a 29.1% increase from $1,189.7 million in Q1 2024[38] - Net income attributable to Southern Copper Corporation increased by 28.5% to $945.9 million in Q1 2025 from $736.0 million in Q1 2024[38] - Adjusted EBITDA for Q1 2025 was $1,745.6 million, compared to $1,417.7 million in Q1 2024, indicating a year-over-year growth of 23.1%[51] - Income taxes for Q1 2025 amounted to $532.8 million, compared to $423.4 million in Q1 2024, marking a 25.9% increase[51] - Interest expense for Q1 2025 was $91.9 million, up from $80.5 million in Q1 2024, indicating a 17.5% rise[51] - Depreciation, amortization, and depletion costs were $223.8 million in Q1 2025, compared to $209.0 million in Q1 2024, reflecting a 7.1% increase[51] Production and Sales - Total copper production for Q1 2025 was 242,004 tons, a slight increase of 0.6% from 240,679 tons in Q1 2024[37] - Molybdenum sales rose by 9.9% to 7,731 tons in Q1 2025, up from 7,036 tons in Q1 2024[37] - Zinc sales increased significantly by 42.4% to 36,530 tons in Q1 2025 compared to 25,653 tons in Q1 2024[37] - Total pounds of copper produced in Q1 2025 reached 511.6 million, slightly up from 510.8 million in Q1 2024[54] Costs and Expenses - Operating cash cost per pound of copper decreased to $0.77, down 28.5% from $1.07 in 1Q24, due to lower operating costs and increased by-product revenue credits[9] - Operating cash cost per pound of copper produced before by-product revenues was $205.3 in Q1 2025, a decrease from $211.2 in Q1 2024, reflecting a 2.8% improvement[54] - Operating cash cost net of by-products revenue for Q1 2025 was $76.6 per pound, down from $107.0 in Q1 2024, showing a significant reduction of 28.4%[54] - The company reported a decrease in by-products revenue to $658.5 million in Q1 2025 from $532.2 million in Q1 2024, which is a 23.7% increase[54] Capital Investments and Projects - Capital investments in 1Q25 totaled $317.8 million, a 48.6% increase compared to $213.8 million in 1Q24, representing 34% of net income[9] - The Tia Maria project in Peru is expected to generate $18.2 billion in exports and contribute $3.8 billion in taxes and royalties over its first 20 years, with a budget set at $1,802 million[18] - The Los Chancas project in Peru has estimated copper resources of 98 million tons with operations expected to begin in 2031, requiring an estimated capital investment of $2.6 billion[22] - The Michiquillay project is projected to produce 225,000 tons of copper annually with an investment of approximately $2.5 billion, expected to start operations by 2032[24] - The company plans to invest over $600 million in 2025 for modernization and improvements in water usage and tailings management at its Mexican operations[14] Employment and Community Impact - The company generated more than 628 jobs for the Tia Maria project, with a goal to fill 3,500 jobs during the construction phase with local applicants[19] Cash and Assets - Cash and cash equivalents as of March 31, 2025, were $4,116.3 million, up from $1,252.2 million a year earlier[39] - Total assets increased to $19,791.2 million as of March 31, 2025, compared to $16,789.3 million a year prior[39] - Dividends paid increased by 75.0% to $1.40 per share in Q1 2025 from $0.80 per share in Q1 2024[38]

Core Viewpoint - Freeport-McMoRan Inc. (FCX) and Southern Copper Corporation (SCCO) are significant players in the copper mining industry, both facing challenges from fluctuating copper prices and global economic uncertainties, particularly due to U.S.-China trade tensions [1][2] Group 1: Company Fundamentals - FCX has high-quality copper assets and is focused on organic growth opportunities, including a large-scale concentrator expansion at Cerro Verde in Peru, which adds approximately 600 million pounds of copper annually [4] - Southern Copper has a robust pipeline of greenfield projects with a capital investment program exceeding $15 billion for this decade, targeting significant projects in Mexico and Peru [9][10] - FCX generated operating cash flows of around $1.4 billion in Q4 2024, with full-year cash flows climbing 35% year-over-year to $7.2 billion, and ended 2024 with $3.9 billion in cash [6] - SCCO generated net cash from operating activities of $4.42 billion in 2024, a 24% increase from $3.57 billion in 2023, supported by higher net income [12] Group 2: Production and Growth Projections - FCX is evaluating a large-scale expansion at El Abra in Chile and conducting pre-feasibility studies in Arizona to define significant sulfide expansion opportunities [4] - Southern Copper targets copper production of 967,000 tons for 2025, maintaining production levels from the previous year, with growth expected from higher production in Peru [11] - FCX's expansion activities are expected to boost production capacity, while SCCO is committed to increasing low-cost production [23] Group 3: Financial Metrics and Valuation - FCX offers a dividend yield of approximately 0.9% with a payout ratio of 20% and a five-year annualized dividend growth rate of about 21.8% [7] - SCCO provides a healthier dividend yield of 3.2% with a payout ratio of 65% and a five-year annualized dividend growth rate of roughly 13.4% [12] - FCX is trading at a forward 12-month earnings multiple of 18.95X, representing a 4.2% premium over the industry average of 18.19X, while SCCO trades at 19.66X [16][19] Group 4: Cost Challenges - FCX's consolidated unit net cash costs per pound of copper for Q4 2024 were 9% higher than the previous year, with expectations of a 5% increase in Q1 2025 due to higher labor and mining costs [8] - Southern Copper experienced a 3% year-over-year increase in total operating costs and expenses in 2024, primarily due to rising labor costs and inflation for repair materials [13] Group 5: Investment Outlook - Both FCX and SCCO present compelling investment cases, with FCX having a slight edge due to more attractive valuation and higher earnings growth projections [23]

美国铜行业的主要玩家们向总统特朗普建议，应该限制矿石和精炼铜的出口，而不是加征进口关税。 铜矿概念股涨跌各异，Ero跌3.57%，美国铜指数基金跌1.4%，南方铜业公司和自由港跌超1%，铜矿 ETF跌0.7%，McEwen矿业跌0.1%，Hudbay矿业则涨0.57%。 ...

Group 1: Zacks Premium Overview - Zacks Premium offers various tools to help investors become more confident and informed, including daily updates on Zacks Rank and Industry Rank, Equity Research reports, and Premium stock screens [1] - The service includes access to Zacks Style Scores, which are designed to assist investors in selecting stocks with the highest potential to outperform the market [2] Group 2: Zacks Style Scores - Zacks Style Scores rate stocks based on value, growth, and momentum characteristics, with ratings ranging from A to F, where A indicates the highest potential for outperformance [3] - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E and Price/Sales [4] - The Growth Score emphasizes a company's financial health and future growth potential, analyzing projected and historical earnings and cash flow [5] - The Momentum Score helps investors capitalize on price trends, using factors like recent price changes and earnings estimate revisions [6] Group 3: VGM Score and Zacks Rank - The VGM Score combines the three Style Scores to provide a comprehensive rating, highlighting stocks with attractive value, strong growth forecasts, and positive momentum [6] - The Zacks Rank, based on earnings estimate revisions, has shown significant success, with 1 (Strong Buy) stocks averaging a +25.41% annual return since 1988, outperforming the S&P 500 [8] - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] Group 4: Southern Copper Corporation (SCCO) - Southern Copper Corporation, based in Phoenix, AZ, is involved in mining, exploring, smelting, and refining copper and other minerals across several countries [11] - SCCO currently holds a 3 (Hold) rating on the Zacks Rank and has a VGM Score of B, indicating potential for growth [11] - The company is projected to achieve a year-over-year earnings growth of 6.2% for the current fiscal year, with upward revisions in earnings estimates from analysts [12] - The Zacks Consensus Estimate for SCCO's earnings has increased by $0.03 to $4.60 per share, with an average earnings surprise of 7.9% [12]