Group 1 - Zijin Mining (02899) rose nearly 3% after announcing the completion of the main construction and core equipment installation for the second phase of the Xizang Julong Copper Mine, marking a key step before production [1] - Asia Pacific Satellite (01045) increased over 5.4%, with a cumulative rise of nearly 30% over the past five trading days, as it operates multiple satellites under China Satcom [1] - Zhaoyan New Drug (06127) fell over 6% following an announcement that its actual controller plans to reduce holdings by up to 14.98 million shares, representing 20.0466% of his holdings and 1.99873% of the company's total share capital [1] - Zhongwei New Materials (02579) surged nearly 7% after signing a strategic cooperation framework agreement with Xinwanda for solid-state batteries [1] Group 2 - Dongyue Group (00189) rose nearly 5% as the long-term contract prices for refrigerants were confirmed, with R32 priced at 61,200 yuan/ton (+1,000 yuan) and R410A at 55,100 yuan/ton (+1,900 yuan) [2] - MicroPort Scientific Corporation (02252) increased over 1.2%, reporting that its core products' cumulative order volume exceeded 230 units [2] - Oil stocks saw gains, with CNOOC (00883) up 4.17%, PetroChina (00857) up 2.91%, and Sinopec (00386) up 1.31%, driven by a rise in international crude oil prices due to geopolitical tensions [2] - Baidu Group (09888) rose nearly 7% after announcing a partnership with Uber and Lyft to launch a robotaxi pilot project in the UK by 2026 [2] Group 3 - NIO (09866) rose over 2.4% after announcing that it successfully delivered over 40,000 units of its new ES8 model within 100 days of the official delivery start [3] - Damai Entertainment (01060) increased nearly 5%, with the total box office for the 2025 New Year’s season reaching 5.245 billion yuan as of December 28 [3] Group 4 - Copper mining stocks collectively declined, with Hudbay Minerals (HBM.US) down 4.01%, Taseko Mines (TGB.US) down 3.1%, and Ero Copper (ERO.US) down 1.64%, as international copper futures fell over 4% [5] - Some cryptocurrency-related stocks fell, with IREN Ltd (IREN.US) down 2.21% and Circle (CRCL.US) down 0.94% [5] - NIO (NIO.US) rose 4.71% in the US market, echoing its performance in Hong Kong [6] - The Nasdaq Golden Dragon Index fell nearly 1%, with major Chinese concept stocks declining, including Alibaba (BABA.US) down 2.46% and Xpeng Motors (XPEV.US) down 1.35% [6]

Group 1 - The copper mining sector experienced a collective decline, with Hudbay Minerals (HBM.US) falling over 5%, Taseko Mines (TGB.US) dropping more than 4%, and Ero Copper (ERO.US) and Southern Copper (SCCO.US) decreasing by over 3% [1] - The international copper futures contract saw a significant drop of over 4%, trading at 86,120 yuan per ton [1]

Group 1 - The Hecht Commodity Report is a comprehensive source for commodities analysis, covering over 29 different commodities with various market calls and trading recommendations [1] - Copper is identified as a leading base metal essential for infrastructure and is increasingly in demand due to its applications in both green and traditional energy initiatives [2] - The report highlights the growing demand for copper driven by innovations such as electric vehicles (EVs) and wind turbines, indicating a significant shift in its fundamental demand equation [2]

Group 1 - The Hecht Commodity Report is a comprehensive source for commodities analysis, covering over 29 different commodities with various market calls and trading recommendations [1] - Copper is highlighted as a leading base metal essential for infrastructure and increasingly demanded in green energy applications, such as electric vehicles and wind turbines [2] - The report provides actionable ideas for traders and investors, including bullish, bearish, and neutral calls on commodities [1][2]

Group 1 - Southern Copper Corporation (NYSE:SCCO) 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] - The current stock price of SCCO is $147.18, reflecting a 2.21% increase or $3.18, with a trading range over the past year between $72.86 and $149.75, and a market capitalization of approximately $120.3 billion [4][6] - The company has achieved a Momentum Style Score of A from Zacks Investment Research, indicating strong performance in momentum investing due to significant price changes and revisions in earnings estimates [3] Group 2 - Itau BBA downgraded Southern Copper to an "Underperform" rating on December 22, 2025, despite the stock being recognized as a strong momentum stock [2][6] - Today's trading volume for SCCO is 920,961 shares, indicating active investor interest, which suggests potential opportunities for investors following momentum strategies [5][6]

Core Viewpoint - Southern Copper (SCCO) is identified as a strong momentum stock with a Zacks Momentum Style Score of A and a Zacks Rank of 1 (Strong Buy), indicating potential for significant near-term price appreciation [2][3][11]. Momentum Characteristics - Momentum investing focuses on following a stock's recent price trends, with the strategy of buying high and selling higher [1]. - SCCO's shares have increased by 1.12% over the past week, while the Zacks Mining - Non Ferrous industry has risen by 2.31% during the same period [5]. - Over the past month, SCCO's price has changed by 16.42%, compared to the industry's performance of 17.4% [5]. Long-Term Performance - In the last quarter, SCCO's shares have risen by 23.08%, and over the past year, they have increased by 54.82% [6]. - In contrast, the S&P 500 has only moved 2.85% and 17.84% over the same periods, highlighting SCCO's strong performance relative to the broader market [6]. Trading Volume - SCCO's average 20-day trading volume is 1,063,799 shares, which serves as a bullish indicator when combined with rising stock prices [7]. Earnings Outlook - Recent earnings estimate revisions for SCCO have been positive, with three estimates moving higher and none lower over the past two months [9]. - The consensus earnings estimate for SCCO has increased from $5.01 to $5.23 in the last 60 days, indicating a favorable outlook [9]. Conclusion - Given the strong momentum indicators and positive earnings outlook, SCCO is positioned as a compelling investment opportunity for those seeking stocks with potential for near-term gains [11].

Industry Overview - Copper prices are experiencing renewed momentum, with expectations for stronger prices heading into 2026 due to tightening global supply and solid demand, particularly from China and the U.S. [1][4] - Copper consumption is projected to accelerate significantly, driven by traditional industrial demand, energy transition trends, and the rapid expansion of digital infrastructure [2][9]. - The U.S. Geological Survey has included copper in its 2025 List of Critical Minerals, highlighting its strategic importance for U.S. energy independence and national security, which may lead to policy support and faster permitting [5]. Price Trends - Copper prices have fluctuated between $4.01 per pound in January and an all-time high of $5.96 per pound in July, currently trading around $5.47 per pound, with a year-to-date average of approximately $4.84 per pound [3]. - Prices have increased by roughly 35.8% this year, marking the highest gain since 2009, driven by strong demand and supply constraints [5][10]. Demand Drivers - Demand for copper has increased nearly fourfold over the last five decades, supported by sectors such as electrical and electronic products, building construction, and transportation equipment [8]. - The energy transition is a significant driver, with electric vehicles requiring more copper than traditional vehicles, and renewable energy systems heavily relying on copper supply [9][10]. Supply Constraints - Concerns over declining ore grades and lengthy timelines to bring new mines online are contributing to fears of a looming supply deficit, which supports higher copper prices [2][11]. - Supply fears are exacerbated by potential disruptions at major mining operations, including Quebrada Blanca, Grasberg, and Constancia [4]. Company Highlights BHP Group - BHP has reduced long-term debt and improved operational efficiency, with copper now contributing 39% of its EBITDA [13]. - The company has a robust pipeline that could deliver around 2 million tons per annum of copper production by the 2030s, with significant projects in Chile and the U.S. [14][15]. Southern Copper - Southern Copper has the largest copper reserves in the industry and is investing over $15 billion in capital projects, primarily in Peru [16]. - Key projects include Tía María, Los Chancas, and Michiquillay, which are expected to significantly boost copper production [18][19]. Teck Resources - Teck Resources is merging with Anglo American to form the Anglo Teck group, which will have over 70% exposure to copper and is projected to be among the top five global copper producers [20]. - The merger is expected to yield $800 million in annual pre-tax synergies and generate additional EBITDA synergies from 2030 to 2049 [21][22].

Investment Rating - The report maintains a "Recommended" investment rating for the copper industry [10]. Core Insights - The production of major copper-producing countries, Chile and Peru, has shown mixed results, with Chile's production slightly increasing and Peru's production recovering after a decline in 2024 [4][18]. - The overall production from twelve overseas copper mining companies has decreased, with significant declines noted in Freeport and Glencore due to operational disruptions [5][66]. - Future new or expanded copper mining projects are limited, indicating a potential supply constraint in the coming years [8][10]. Summary by Sections 1. Copper Production from Major Producing Countries - Chile's copper production for January to September 2025 reached 3.972 million metric tons, a year-on-year increase of 0.1% [4][18]. - Peru's copper production during the same period was 2.048 million metric tons, reflecting a year-on-year increase of 2.58% [4][18]. - The increase in Chile's production is primarily attributed to the Escondida project, while Peru's growth is driven by Las Bambas and Toromocho projects [4][18]. 2. Overseas Copper Mining Companies' Production - The total copper production from fifteen major copper mining companies in the first three quarters of 2025 was 9.3231 million metric tons, a slight increase of 0.36% year-on-year [5][43]. - Excluding three Chinese companies, the twelve overseas companies reported a total production of 7.5641 million metric tons, a decrease of 2.42% year-on-year [5][43]. - Freeport and Glencore experienced significant production declines of 13.61% and 17.26%, respectively, due to operational issues [5][66]. 3. Future Project Developments - There are few new or expanded copper mining projects anticipated, with notable projects like Codelco's Rajo Inca and First Quantum's Kansanshi expansion expected to contribute limited additional supply [8][9]. - Long-term projects such as Rio Tinto's Oyu Tolgoi are in ramp-up phases, with expected production increases by 2028 [9].

Summary of Mining Equities Conference Call Industry Overview - **Sector Performance**: In 2025, mining equities outperformed equity benchmarks, primarily driven by gold and copper, while ferrous metals and energy remained flat or declined [1][15] - **2026 Outlook**: Expectations for copper, aluminium, and lithium to outperform due to supply constraints and energy transition, with a cautious view on traditional end markets in developed economies [2][15] Key Commodities Insights Copper - **Market Dynamics**: The medium-term outlook for copper remains bullish, with expectations of market tightness in 2026 due to limited growth in global mine output and a deficit in refined output [3][4] - **Investment Opportunities**: Freeport is highlighted as a top pick due to its discounted valuation and expected production recovery at the Grasberg mine [4][23] Aluminium - **Demand vs Supply**: The outlook for aluminium is mixed; while demand holds up, supply constraints are expected, particularly from China and developed markets [5][24] - **Investment Recommendation**: A buy recommendation for Norsk Hydro is reiterated, with expectations of stable operations and potential cash returns [8][24] Gold - **Market Sentiment**: Gold remains a consensus macro trade, with equities delivering strong returns in 2025. However, valuations are less compelling than at the start of the year [9][22] - **Top Picks**: Barrick and Newmont are identified as top picks, with potential for further catalysts in 2026 [10][22] Iron Ore - **Price Forecast**: The medium-term outlook for iron ore is bearish, with prices expected to stabilize around $100/t in the short term and decline to $90/t by 2027 due to increased supply from Simandou [11][20] Coal - **Market Conditions**: Met coal prices have risen above $200/t due to demand and supply disruptions, while thermal coal remains stable at $110/t [12][20] Diversified Miners - **Performance Comparison**: Vale outperformed in the bulks sector, while RIO and BHP performed in line with benchmarks. A preference for RIO over Vale and BHP is noted due to better growth prospects [13][25] Earnings and Price Target Changes - **Adjustments**: Earnings estimates and price targets have been adjusted based on commodity price forecasts, with notable upgrades for copper miners like FCX and KGHM [28][29] Conclusion - **Investment Strategy**: The report emphasizes a selective investment approach in mining equities, focusing on commodities with strong fundamentals and potential for price gains, particularly copper, aluminium, and gold [2][15][22]

Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence through various resources like daily updates, research reports, and stock screens [1] Zacks Style Scores - Zacks Style Scores rate stocks based on value, growth, and momentum, serving as complementary indicators to the Zacks Rank, helping investors identify securities likely to outperform the market in the short term [2][3] Value Score - The Value Style Score identifies attractive and discounted stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Style Score focuses on a company's financial health and future outlook, analyzing projected and historical earnings, sales, and cash flow to find stocks with sustainable growth potential [4] Momentum Score - The Momentum Style Score helps investors capitalize on price trends by evaluating factors like one-week price changes and monthly earnings estimate changes [5] VGM Score - The VGM Score combines the three Style Scores, providing a comprehensive rating that highlights stocks with strong value, growth forecasts, and momentum, making it a valuable tool alongside the Zacks Rank [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +23.81% since 1988, significantly outperforming the S&P 500 [7][8] - 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] Company Spotlight: 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 including Argentina, Chile, Ecuador, Mexico, and Peru [11] - SCCO holds a Zacks Rank of 3 (Hold) and has a VGM Score of B, indicating a solid position in the market [11] - The company is particularly appealing to growth investors, with a Growth Style Score of B and a projected year-over-year earnings growth of 19.9% for the current fiscal year [12] - Recent upward revisions in earnings estimates by three analysts for fiscal 2025 have increased the Zacks Consensus Estimate by $0.24 to $5.19 per share, alongside an average earnings surprise of +6.3% [12]