Jan. 14, 2015, 12:39 PM
- Citi cuts price targets for iron ore to $58 for 2015 and $62 for 2016, down from its prior estimates of $65 for both years, and lowers its outlook for thermal and met coal.
- Citi warns its downwardly revised forecast means it now expects earnings for major mining companies will fall by 9%-21% for 2015 and by 3%-16% in 2016.
- Rio Tinto (RIO -2.5%) is the exception, as Citi sees earnings rising 7.1% this year and 10.6% next year due to the company’s greater exposure to the weaker Australian dollar.
- The firm cuts its price target for Glencore (OTCPK:GLCNF -7.2%) by 8% to £3.60 from £3.90 and sees earnings falling 21% and 16% respectively in 2015 and 2016.
- Citi says it is still bullish on the sector, but warns that metals and mining companies will only slowly grind higher over the next few years.
- Also: BHP -4.5%, VALE -5%, FCX -12%, SCCO -4.9%, TCK -9.7%, CLF -4.4%, CENX -9.1%, MT -4.2%, X -4.9%, NUE -3.4%, STLD -2.6%, BTU -9.8%, ANR -8.8%, ACI -8.9%.
Jan. 14, 2015, 10:28 AM
- Freeport McMoRan (FCX -10.8%) sinks to a 52-week low as copper prices fall 4.5% to collapse to 2009 levels, though it is off overnight lows after prices were down nearly 9% at one point in London.
- Other big global miners also are sharply lower: SCCO -7.3%, RIO -2.5%, BHP -4.4%, VALE -3.8%, CLF -5.8%.
- Concerns over a supply glut and slowing consumption in China have weighed on copper prices in recent months; copper is often seen as an omen for the global economy because it is used in a wide array of construction and manufacturing activities, so today's precipitous drop explains much of the weakness in global equity markets.
- The iPath Dow Jones UBS Copper Subindex Total Return ETN (NYSEARCA:JJC) is trading so heavily that nearly 60% of the average full-day volume traded in the first 10 minutes this morning.
- ETFs: CPER, CUPM, DBB, BOM, RJZ, BOS, BDD, JJM, RGRI, UBM, BDG, USMI, HEVY
Jan. 14, 2015, 9:17 AM
Dec. 18, 2014, 1:22 PM
- Peru's government approves the environmental study for Southern Copper's (SCCO +2.8%) $1.2B expansion of its Toquepala mine, a project expected to raise the miner's copper output by 100K metric tons/year.
- Construction on the expansion, which will add a new concentrator at the mine and boost its tailings storage capacity, is scheduled to wrap up in two years.
Dec. 15, 2014, 1:55 AM
- Rio Tinto (NYSE:RIO) and BHP Billiton (NYSE:BHP) are looking to replicate their iron ore strategy in the copper business, squeezing out high-cost producers by injecting more of the red metal into an oversupplied market.
- Separately and in joint ventures, Rio and BHP intend to mine millions of additional tonnes of copper, confident in the coming years that copper will be in short supply.
- Copper producers: OTCPK:GLNCY, FCX, TCK, SCCO
- ETFs: JJC, COPX, CU, CPER, CUPM
Dec. 3, 2014, 5:56 PM
- Strong demand from China for copper and an economic recovery in other parts of the world should help keep copper prices firm next year, Southern Copper (NYSE:SCCO) CEO Oscar Gonzalez Rocha says, expecting copper to average $3/lb. next year vs. this year’s likely average of $3.11.
- SCCO's profits in the first nine months reached $985M, and the CEO says net income could end the year at ~$1.3B, which would be down from full-year 2013 net income of $1.6B; he expects to produce 780K tons of copper next year, with increased output from Mexico, vs. ~660K tons expected this year.
- Gonzalez Rocha also says SCCO should receive permits this month to start construction on the $1.4B Tia Maria project in Peru, and that the mine will be running by late 2016 or early 2017, eventually adding 120K tons/year of copper.
Nov. 19, 2014, 10:22 AM
- Top copper execs say prices could be held down by rising supply from mines in the next couple of years but then could surge due to a lack of large projects and bottlenecks at refineries.
- Copper demand growth of 3%-4% per year over the next five years means 4M-5M metric tons of new supply - the equivalent of 10-12 big mines - would be needed, but the mines do not exist, according to Freeport McMoRan (FCX -1.2%) senior VP Javier Targhetta, saying, "We may see two or three big productions in the next few years but the impact will be diluted by falling production and grades. So I'm extremely optimistic as for where markets will be."
- Southern Copper (SCCO -1.6%) CEO Oscar Gonzalez Rocha sees 2015 copper prices at ~$3.15/lb. but "with quite a lot of upside potential."
- Prices could hit a record $5/lb. over the next 4-5 years, given the lack of major new mines on the horizon and as rising impurities such as arsenic force up costs for miners, Codelco CEO Nelson Pizzaro says.
Nov. 3, 2014, 1:14 PM
Oct. 29, 2014, 3:49 PM
- Southern Copper (SCCO -2.4%) reports Q3 earnings of $0.39/share, below the analyst consensus estimate of $0.33, on revenues of $1.48B, up 6/7% Y/Y but slightly below analyst consensus $1.53B, and revises down its forecast for next year's copper output by 9.8% to 758K metric tons.
- SCCO also says it expects to receive a key environmental permit for the $1.2B expansion of its Toquepala mine in Peru in mid-November; work at Toquepala would then start at the beginning of next year, when construction of its $1.4B Tia Maria copper project also is scheduled to begin.
- The expansion at Toquepala is expected to add 100K metric tons to SCCO's annual production capacity.
Sep. 24, 2014, 8:16 AM
- Mexican authorities have issued a bi-national alert over a chemical leak from from a copper mine in northwest Mexico that could flow into southern Arizona after contaminating the San Pedro River.
- Officials said they were still investigating how much leaked, or what exactly was in the spill, and said the material was "probably toxic."
- The Buenavista del Cobre mine, owned by Grupo Mexico (OTCPK:GMBXF) and run by its Southern Copper (NYSE:SCCO) subsidiary, produces ~200K tons/year of copper.
Sep. 11, 2014, 8:55 AM
- Southern Copper (NYSE:SCCO) says it still hopes to buy a share in Anglo American's (OTCPK:AAUKF, OTCPK:AAUKY) $3.3B Quellaveco project in Peru, and that talks must now take place at the highest level.
- Negotiations on a potential sale of part of Anglo's ~82% stake in Quellaveco fell apart in the past year because each company wanted a controlling stake, but talks restarted two months ago and SCCO is now offering to hold an equal share if it can operate Quellaveco, SCCO CEO Oscar Gonzalez says.
- A lack of financing has held up Quellaveco, which is expected to produce 225K metric tons/year of copper.
Aug. 22, 2014, 2:57 PM| Aug. 22, 2014, 2:57 PM | 2 Comments
Aug. 4, 2014, 3:41 PM
- Peru's government has approved an environmental study for Southern Copper's (SCCO +2.3%) $1.4B Tia Maria project, clearing the last major hurdle to construction, the country's deputy mines minister says.
- SCCO said last week that if the approval came now, construction on the 120K metric tons/year copper mine would start late this year and take about two years.
- Peru is one of the world's largest producers of many minerals, including copper, but Tia Maria has been stalled for the last three years after local residents protested that the mine would hurt water supplies.
Jul. 31, 2014, 4:58 PM
- Peru will issue the official approval for the environmental impact study of Southern Copper's (NYSE:SCCO) stalled Tia Maria project by Monday at the latest, according to the country's deputy mines minister.
- The permit will allow SCCO to start construction on the $1.4B project, which is expected to produce ~120K metric tons/year of copper over two decades.
Jul. 29, 2014, 7:25 PM
- Southern Copper (NYSE:SCCO) says Q2 copper production at its mines in Latin America rose 4.9% Y/Y, but net income fell 9.5% due to lower copper prices and higher production costs.
- Q2 sales rose 5.5% but the cost of sales climbed 2.2%, as SCCO cites higher expenses for fuel, spare parts, tires and other materials.
- SCCO expects improved results during H2 as the 120K metric ton capacity Buenavista copper plant in Mexico reaches full capacity during Q3.
- SCCO also expects Peru to approve its environmental impact study for its stalled $1.4B Tia Maria project in Peru during Q3.
May 20, 2014, 4:40 PM
- Southern Copper (SCCO) says it expects its copper output to rise 19.4% to ~800K metric tons this year as a new leach plant in Mexico boosts capacity.
- SCCO also expects construction of the $1B Tia Maria copper mine in southern Peru to begin in H2 2014 after the government approves a key permit.
- CEO Oscar Gonzalez says the company sent the Peruvian government's environmental impact study for Tia Maria yesterday, and the government review is due within 30 days.
- SCCO has said Tia Maria should produce 120K metric tons/year of copper vs. total company output of 670K last year.
Southern Copper Corp. produces copper, molybdenum, zinc and silver. The company operates its business through the three segments: Peruvian, Mexican Open-Pit, and Mexican Underground Mining Operations. The Peruvian Operations segment includes the Toquepala and Cuajone mine complexes and the... More
Sector: Basic Materials
Country: United States
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