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]

Core Viewpoint - Southern Copper (SCCO) has been experiencing significant stock performance fluctuations, with recent returns of -11.4% over the past month, underperforming both the Zacks S&P 500 composite and the Zacks Mining - Non Ferrous industry [2] Earnings Estimate Revisions - Southern Copper is expected to report earnings of $1.13 per share for the current quarter, reflecting a year-over-year increase of +20.2%. The consensus estimate for the current fiscal year is $4.60, indicating a +6.2% change year-over-year, with a slight adjustment of -2.9% over the last 30 days [5] - For the next fiscal year, the earnings estimate is $4.70, which represents a +2.2% change from the previous year, with a recent increase of +3% [6] - The Zacks Rank for Southern Copper is 3 (Hold), indicating a neutral outlook based on recent earnings estimate changes and other related factors [7] Projected Revenue Growth - The consensus sales estimate for the current quarter is $2.79 billion, showing a year-over-year growth of +7.5%. For the current fiscal year, the revenue estimate is $11.85 billion (+3.6%), while the next fiscal year's estimate is $11.48 billion (-3.1%) [10] Last Reported Results and Surprise History - In the last reported quarter, Southern Copper achieved revenues of $2.78 billion, a +21.3% increase year-over-year, with an EPS of $1.01 compared to $0.57 a year ago. The revenue surprise was +0.16%, while the EPS surprise was -0.98% [11] - Over the last four quarters, Southern Copper has surpassed consensus EPS estimates three times and has also exceeded consensus revenue estimates three times [12] Valuation - Southern Copper's valuation metrics, including price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), are essential for assessing whether the stock is fairly valued. The Zacks Value Style Score for Southern Copper is graded C, indicating it is trading at par with its peers [13][14][16] Conclusion - The analysis suggests that Southern Copper may perform in line with the broader market in the near term, as indicated by its Zacks Rank 3 [17]

Company Overview - Southern Copper Corporation (SCCO) is engaged in mining, exploring, smelting, and refining copper and other minerals, with exploration activities in Argentina, Chile, Ecuador, Mexico, and Peru [12]. Zacks Rank and Style Scores - SCCO currently holds a Zacks Rank of 3 (Hold) and has a VGM Score of B, indicating a moderate investment potential [12]. - The company has a Momentum Style Score of A, with shares increasing by 7% over the past four weeks, suggesting strong short-term performance [12][13]. Earnings Estimates - Two analysts have revised their earnings estimates upwards for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.08 to $4.63 per share [13]. - SCCO has an average earnings surprise of 7.9%, indicating a history of exceeding earnings expectations [13].

Southern Copper (SCCO) closed the most recent trading day at $96.84, moving -0.88% from the previous trading session. This change lagged the S&P 500's 0.33% loss on the day. At the same time, the Dow lost 0.37%, and the tech-heavy Nasdaq lost 0.53%.Heading into today, shares of the miner had gained 4.77% over the past month, outpacing the Basic Materials sector's gain of 0.7% and the S&P 500's loss of 4.03% in that time.Investors will be eagerly watching for the performance of Southern Copper in its upcomin ...

Core Insights - Southern Copper (SCCO) stock closed at $100.41, reflecting a +1.2% increase, outperforming the S&P 500's gain of 0.08% [1] - Over the past month, SCCO shares increased by 1.43%, while the Basic Materials sector and S&P 500 saw declines of 1.45% and 7.33%, respectively [1] Earnings Performance - Southern Copper is expected to report earnings of $1.05 per share, indicating a year-over-year growth of 11.7% [2] - Revenue is projected at $2.79 billion, representing a 7.48% increase from the same quarter last year [2] - For the fiscal year, earnings are estimated at $4.65 per share and revenue at $11.7 billion, reflecting changes of +7.39% and +2.31% from the prior year [3] Analyst Estimates - Changes in analyst estimates for Southern Copper are crucial as they reflect short-term business trends [4] - Positive revisions in estimates indicate analyst optimism regarding the company's business and profitability [4] Zacks Rank and Stock Performance - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), shows Southern Copper currently holds a rank of 3 (Hold) [6] - The consensus EPS projection has increased by 1.79% in the past 30 days [6] Valuation Metrics - Southern Copper has a Forward P/E ratio of 21.32, which is higher than the industry average of 18.96 [7] - The company has a PEG ratio of 1.93, compared to the Mining - Non Ferrous industry's average PEG ratio of 0.89 [7] Industry Context - The Mining - Non Ferrous industry is part of the Basic Materials sector and currently holds a Zacks Industry Rank of 202, placing it in the bottom 20% of over 250 industries [8] - Stronger industry groups, as measured by the Zacks Industry Rank, tend to outperform weaker groups by a factor of 2 to 1 [8]