Core Insights - Southern Copper Corporation (SCCO) stock has surged by 57% year-to-date, driven by increased revenue, margin improvements, and a rising P/E multiple, indicating renewed investor confidence [2][3] Revenue and Earnings Performance - Revenue increased by 9.2%, with Q1 2025 sales rising by 20.1% to $3.12 billion and Q3 revenues up by 15.2% to $3.38 billion [3][8] - Net margin improved by 8.4% [3] - Earnings per share (EPS) for Q3 was reported at $1.35 [8] Copper Price and Market Dynamics - Copper prices have surged over 27% year-to-date, reaching record levels above $11,200 per metric ton due to limited supply [8] Project Developments - The Tia Maria project is 23% complete as of October 2025, with an exploitation license granted and production expected by 2027 [8] Cost Efficiency and By-product Growth - Operating cash cost, excluding by-products, decreased to $0.42 per pound in Q3 2025, reflecting a year-over-year decrease of 44.7% [8] - By-product production saw significant increases: zinc by 46.3%, silver by 16.4%, and molybdenum by 8.3% in Q3 2025, contributing to revenue growth [8]

Core Insights - The analysis of Southern Copper Corporation (SCCO) indicates a cautious stance due to its high valuation, which appears to reflect an expectation of perfection in performance [1]. Company Overview - Southern Copper Corporation is recognized as an excellent company, but its share price was around $118 at the end of September, leading to concerns about its valuation [1]. Analyst Background - The analyst is an economist and independent investor based in Argentina, currently pursuing a Ph.D. in Economics, which provides a unique perspective on complex and dynamic markets [1]. - The investment philosophy focuses on identifying long-term opportunities in underfollowed or undervalued companies, as well as established leaders with emerging structural value [1].

Financial Data and Key Metrics Changes - Southern Copper Corporation achieved record net sales, adjusted EBITDA, and net income in the third quarter of 2025, driven by increased byproduct production and improved metal prices [4] - Adjusted EBITDA for the third quarter was $1,975 million, a 17% increase from $1,685 million in 2024, with an adjusted EBITDA margin of 59% compared to 58% in 2024 [16][17] - Net income for the third quarter was $1,108 million, representing a 23% increase over $897 million in 2024, with a net income margin of 33% versus 31% in the same quarter last year [19][20] Business Line Data and Key Metrics Changes - Copper production decreased by 7% year-over-year to 234,892 tons in the third quarter, primarily due to lower production at Toquepala and Cojone mines [8] - Molybdenum production increased by 8% in the third quarter, driven by higher output at La Carriata and Toquepala mines [11] - Silver production increased by 16% year-over-year, with an average price of $39.56 per ounce, reflecting a 34% increase [12] - Zinc production surged by 46%, totaling 45,482 tons, mainly due to a 108% increase at the Buena Vista zinc concentrator [13][14] Market Data and Key Metrics Changes - The LME copper price rose by 7% to an average of $4.44 per pound in the third quarter, while the COMEX price increased by 14% [5][6] - Global copper inventories were estimated at 609,000 tons, covering approximately eight days of global demand [6] Company Strategy and Development Direction - The company aims to produce 1,600,000 tonnes of copper at the lowest competitive cost per tonne, with a focus on enhancing productivity and cost efficiency [5] - Significant capital investments are planned for Peruvian projects, potentially exceeding $10.3 billion over the next decade [21] - The company is prioritizing organic growth through existing projects rather than pursuing mergers and acquisitions [42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term fundamentals of copper prices despite recent U.S. tariff policy changes having limited impact [7] - The company anticipates a copper market deficit of almost 400,000 tonnes based on current supply and demand dynamics [6] - For 2026, the company forecasts copper production of approximately 911,000 tonnes, with cash costs expected to decrease due to improved production [50][51] Other Important Information - The company announced a quarterly cash dividend of $0.90 per share and a stock dividend of 0.0085 shares per common share, payable on November 28, 2025 [29][30] - Sustainability ratings have improved, with S&P Global increasing the company's rating by four points, positioning it among leaders in the mining sector [26] Q&A Session Summary Question: Expectations for cash costs in Q4 and 2026 - Management expects a decrease in cash costs for Q4 due to a partial recovery of production, estimating costs in the range of $2.15 to $2.20 per pound [32] Question: Purchases of third-party concentrate or cathodes in Q3 - The company maintained purchases of third-party concentrates to blend with its own materials but did not acquire any copper cathodes [34] Question: Company's perspective on negotiations regarding the Rio Sonora spill - Management stated that the matter is largely resolved but remains open to discussions with the government for other objectives [36] Question: Silver production guidance and potential for increased output - The company updated its silver production forecast to 23 million ounces, a 10% increase from the previous year, and is focused on maximizing output [42] Question: Impact of political changes in Peru on operations - Management reported no significant impact from the political situation in Peru and continues to monitor social circumstances [49] Question: Financing plans for the Tia Maria project - The company is evaluating financing options, including potential debt market engagement, for the Tia Maria project [58] Question: Timeline for the Los Chancas and El Arco projects - Los Chancas is expected to be the next project in execution, with Michiquillay also in line for development [59] Question: Rationale for stock dividends - The board's decision to continue stock dividends is based on maintaining cash flow while managing capital needs [81]

Group 1 - Southern Copper Corporation has completed 23% of its $1.8 billion Tia Maria mining project and maintains its target for production in 2027, expecting to produce 120,000 tons of cathode copper annually [2] - The company plans to invest over $10.3 billion in various copper mining projects in Peru over the next decade, including Los Chancas and Michiquillay [2] - Southern Copper is working to secure the necessary administrative permits and licenses with the support of Peruvian authorities [2] Group 2 - China, as the world's largest copper consumer, faces three major challenges: increasing dependence on foreign upstream resources, overcapacity in the midstream processing sector, and suppressed downstream demand due to high copper prices [2]

Financial Performance - 3Q25 net sales reached $3,377.3 million, a 15.2% increase from 3Q24, driven by higher sales volumes of silver (+21.9%), molybdenum (+7.9%), and zinc (+7.3) despite a decline in copper sales (-3.6%) [1] - 3Q25 adjusted EBITDA was $1,975.4 million, up 17.3% from $1,684.6 million in 3Q24, with an adjusted EBITDA margin of 58.5% compared to 57.5% in 3Q24 [2] - Net income for 3Q25 was $1,107.6 million, a 23.5% increase from $896.7 million in 3Q24, resulting in a net income margin of 32.8% [3] - Operating income for Q3 2025 was $1,768.8 million, reflecting a 22.0% increase from $1,450.3 million in Q3 2024 [39] - Net income attributable to Southern Copper Corporation for Q3 2025 was $1,107.6 million, a 23.5% increase from $896.7 million in Q3 2024 [39] - Net income for the third quarter of 2025 was $1,110.9 million, compared to $899.8 million in the same period of 2024, reflecting a growth of 23.4% [41] Production and Sales - Total copper production in Q3 2025 was 237,333 tonnes, a decrease of 6.4% compared to 253,441 tonnes in Q3 2024 [38] - Copper production fell 2.8% year-to-date to 714,098 tonnes, primarily due to lower ore grades in Mexican and Peruvian operations [4] - Molybdenum sales increased by 7.9% to 7,908 tonnes in Q3 2025, compared to 7,327 tonnes in Q3 2024 [38] - Zinc mined increased significantly by 46.3% to 45,482 tonnes in Q3 2025, compared to 31,078 tonnes in Q3 2024 [38] - Year-to-date net sales increased by 10.4% compared to 2024, with molybdenum (+6.7%), silver (+16.6%), and zinc (+18.7%) sales volumes contributing positively [3] Costs and Expenses - Operating cash cost per pound of copper decreased to $0.42 in 3Q25, down 44.7% from $0.76 in 3Q24, primarily due to increased by-product revenue [2] - GAAP cost of sales (exclusive of depreciation, amortization, and depletion) for Q3 2025 was $1,356.8 million, compared to $1,223.1 million in Q3 2024, reflecting a 10.9% increase [55] - Operating cash cost before by-product revenues for Q3 2025 was $1,102.8 million, up from $1,046.1 million in Q3 2024, indicating a 5.4% rise [55] - Operating cash cost, net of by-products revenue, for Q3 2025 was $208.1 million, a decrease of 48.8% from $406.9 million in Q3 2024 [55] - Workers participation costs increased to $116.2 million in Q3 2025 from $79.0 million in Q3 2024, marking a 47.0% rise [55] - Selling, general and administrative expenses for Q3 2025 were $33.7 million, compared to $31.2 million in Q3 2024, reflecting an increase of 8.0% [55] Capital Investments - Capital investments in 3Q25 totaled $349.2 million, a 41.7% increase year-over-year, representing 31.5% of net income for the quarter [8] - The company plans to invest over $15 billion in capital projects over the decade, with more than $10.3 billion allocated to projects in Peru [12][13] - The Tia Maria project in Peru is expected to generate $18.2 billion in exports and $3.8 billion in taxes over its first 20 years, with a budget set at $1,802 million [15] Sustainability and Environmental Impact - The company has reduced greenhouse gas emissions by 180,000 carbon tons in 2025, equivalent to the electricity supply for 40,000 households in Mexico [27] - Southern Copper's sustainability rating increased by 4 points in the 2025 Corporate Sustainability Assessment, positioning the company among the leaders in the mining sector [26] Financial Position - As of September 30, 2025, total assets increased to $20,331.8 million, up from $18,713.4 million as of December 31, 2024, representing an increase of 8.6% [40] - Cash and cash equivalents rose to $3,949.6 million as of September 30, 2025, compared to $3,258.1 million at the end of 2024, indicating a growth of 21.2% [40] - Total current liabilities decreased to $1,698.0 million as of September 30, 2025, down from $2,248.1 million as of December 31, 2024, a reduction of 24.5% [40] - The company reported a total stockholders' equity of $10,449.9 million as of September 30, 2025, compared to $9,171.5 million at the end of 2024, an increase of 13.9% [40] - The number of shares outstanding increased to 812.2 million as of September 30, 2025, from 790.4 million as of December 31, 2024, reflecting a growth of 2.3% [40]

Core Insights - Investors are evaluating Lundin Mining (LUNMF) and Southern Copper (SCCO) for value investment opportunities [1] - Both companies currently hold a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions [3] Valuation Metrics - LUNMF has a forward P/E ratio of 26.07, while SCCO has a forward P/E of 26.55 [5] - LUNMF's PEG ratio is 0.61, compared to SCCO's PEG ratio of 1.24, suggesting LUNMF may be undervalued relative to its growth expectations [5] - LUNMF's P/B ratio is 1.9, significantly lower than SCCO's P/B ratio of 10.64, indicating a better market value relative to book value [6] Value Grades - Based on the valuation metrics, LUNMF has earned a Value grade of B, while SCCO has a Value grade of C, suggesting LUNMF is the more attractive option for value investors [6][7]

Market Overview - Futures are trading higher, driven by positive news regarding a potential trade agreement with China and the TikTok issue resolution [1] - Wall Street is anticipating a significant number of earnings reports this week, particularly from technology giants in the Magnificent 7 [1] - Strong retail participation and new overseas investments are contributing to the momentum towards the S&P 500 reaching 7000 [1] Treasury Yields - Yields are mixed, with shorter maturities trading modestly lower and longer maturities, such as the 30-year and 20-year bonds, showing small gains [2] - The Treasury Market and Wall Street are pricing in a near 100% chance of a 25-basis-point cut this week [2] Oil & Gas - West Texas Intermediate (WTI) and Brent Crude started the week slightly lower after a rally that pushed WTI above $60 [3] - OPEC+ production increases are identified as the main reason for recent pricing dislocation [3] - Analysts expect a jump in gasoline demand as prices drop nationwide heading into the holidays [3] - Natural Gas prices increased over 4%, closing at $3.44 [3] Gold Market - Gold prices fell below $4,000 per ounce after a significant rally, with analysts noting improved risk appetite and profit-taking [4] - A potential correction in Gold prices could last for months, although Central Bank buying may provide support [4] - Some analysts are projecting Gold prices to reach $5,000 and Silver to $60 [4] Analyst Ratings - CrowdStrike Holdings (CRWD) upgraded to Buy with a target price of $706 [5] - Southern Copper (SCCO) target price raised from $89 to $115, but maintains a Sell rating [5] - DTE Energy (DTE) initiated with an Overweight rating and a $157 target price [6] - McDonald's Corporation (MCD) started with a Neutral rating and a target price of $300 [6] - Starbucks Corporation (SBUX) initiated with a Neutral rating and a target price of $84 [6] - Constellation Energy (CEG) initiated with an Overweight rating and a $478 target price [6] - Fox Corporation (FOXA) upgraded to Buy with a target price of $97 [6] - BioMarin Pharmaceutical (BMRN) target price lowered from $90 to $80 while maintaining a Buy rating [6] - Dow Inc. (DOW) target price raised from $24 to $27 while keeping a Neutral rating [6] - Brinker International (EAT) initiated with an Outperform rating and a target price of $155 [6]

Core Viewpoint - Investors are evaluating the attractiveness of Lundin Mining (LUNMF) and Southern Copper (SCCO) for value investment opportunities [1] Valuation Metrics - Both LUNMF and SCCO currently have a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and improving earnings outlooks [3] - LUNMF has a forward P/E ratio of 25.26, while SCCO has a forward P/E of 25.82, suggesting LUNMF may be slightly more attractive based on this metric [5] - The PEG ratio for LUNMF is 0.60, compared to SCCO's PEG ratio of 1.21, indicating LUNMF may offer better value relative to its expected earnings growth [5] - LUNMF's P/B ratio is 1.84, significantly lower than SCCO's P/B of 10.35, further supporting LUNMF's position as a more attractive value option [6] Overall Assessment - Based on the valuation metrics analyzed, LUNMF is considered the superior value option compared to SCCO at this time [7]

Market Overview - The current market is characterized by high volatility across various asset classes, including equities, precious metals, and meme stocks, prompting investors to seek opportunities and strategies to cope with the fluctuations [1][2] - The podcast features insights from experts discussing the factors driving price action, including rising private-credit risk, an options-trading boom, and AI-driven market rallies [2] Precious Metals - Gold has experienced a strong momentum-driven uptrend since early 2024, maintaining levels above the 50-day moving average, with a recent nine-week breakout indicating a potential for healthy consolidation [12][13] - Gold reached an intraday peak of $4,381 before closing at $4,120, while silver peaked at $53.76 and closed at $47.93, indicating significant price movements [11] Copper Industry - Southern Copper Corp. (SCCO) is one of the largest integrated copper producers, with a favorable outlook for copper prices driven by global electrification and energy transition demands [14][15] - The explosive growth of AI is creating new demand for copper, particularly in energy-intensive data centers, alongside the increasing copper requirements for electric vehicles and renewable energy infrastructure [16] - Long-term copper supply is constrained due to declining ore grades, which have decreased by approximately 40% since 1991, leading to higher operational complexities and costs for producers [17] - SCCO maintains a strong financial profile with high profitability and robust cash flow, projecting a 15% annual growth rate in earnings per share, potentially reaching $8.97 within five years [18]

Company Overview - Invest Heroes LLC is a CIS-based research firm founded in 2018, providing equity and fixed income research services that have gained local recognition among professional investors and private clients [1] - The firm covers over 120 Russian, US, and Chinese stocks, as well as more than 200 Russian bonds, including corporate and state-owned enterprises [1] - The team consists of 2 strategists and 9 analysts, achieving global professional recognition and participating in platforms like Refinitiv and Factset [1] Achievements - In its first year, the company entered Refinitiv and Factset, and by the second year, its estimates began to contribute to the Refinitiv consensus [1] - By the third year, the firm was recognized as the best analysts in the Refinitiv rating for several Russian companies and is in the process of signing with S&P Market Intelligence [1] - The firm's forecasts are often ahead of the market due to a detailed business model built for each company [1] Industry Context - The company owns the largest reserves among public companies in the industry, benefiting from the current market situation [2] - Global demand for copper is expected to rise amid structural constraints on ramping up supply, indicating a favorable market environment for the company [2]