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.
Apr. 30, 2014, 3:48 PM
- Southern Copper (SCCO -0.4%) CEO Oscar Gonzalez Rocha says he expects Peru's government to approve a revised environmental impact study for the stalled Tia Maria copper project, perhaps during the next two months, but the company is waiting for comments from the government.
- Earlier today, SCCO reported Q1 net earnings of $323M, down 20.4% Y/Y, on sales of $1.35B, down from $1.62B in year-ago quarter, mainly due to lower metal prices and lower copper sales volume.
- Q1 copper production rose 9.2% Y/Y to ~165.4K tons, and SCCO expects flat Q2 output and increased production in H2 2014; Q1 copper cash costs rose to $1.87/lb., but could drop to $1.70/lb. in H2.
Apr. 3, 2014, 2:40 AM
- A 7.8 magnitude earthquake has struck northern Chile just a day after one of 8.2.
- However, although Tsunami warnings were issued on the coast, they have now been cancelled, and there were no initial reports of casualties or serious damage from the second quake.
- Glencore Xstrata's (GLCNF, GLNCY) and Anglo American's (AAUKF, AAUKY) Collahausi mine said it is continuing the "process of normalization" without problems following an evacuation of workers because of Tuesday's quake.
- Teck Resources (TCK) and Southern Copper (SCCO) also have mining operations in Chile; the latter's were continuing normally following the first quake.
- ETFs: JJC, CPER, CUPM
Apr. 2, 2014, 3:19 PM
- Normal operations are expected to resume by day's end at Anglo American (AAUKF, AAUKY) and Glencore's (GLCNF, GLNCY) Collahuasi copper mine in Chile after a major earthquake forced a production shutdown.
- Collahuasi produced 445K metric tons of copper content last year and accounts for nearly 6% of Chile's overall output.
- The rest of Anglo American's operations in Chile, mostly located further south, weren't affected by the earthquake.
- Southern Copper (SCCO) said last night its mining operations in the country continued normally.
- ETFs: JJC, CPER, CUPM
Feb. 7, 2014, 2:27 PM
- Southern Copper (SCCO +3.9%) says it expects record capital expenditures in 2014 as it advances projects that will boost production from its operations in Mexico and Peru.
- The miner expects to invest $2.3B in 2014, which would be a 35% increase over the $1.7B spent last year. but then decline to $1.6B in 2015, $900M in 2016 and $500M in 2017, when it wraps up its current expansion program.
- The Buenavista mine in Mexico is seen as the main driver of SCCO's increased production this year; the company has been advancing a $3.4B expansion program that will increase the mine's production capacity to 488K tons/year of copper in 2015 from the current 180K tons.
- Q4 earnings
Feb. 7, 2014, 10:49 AM
Jan. 14, 2014, 12:36 PM
- It's time to take profits in Freeport McMoRan (FCX +0.2%) after a strong six-month run, FBR Capital says in downgrading shares to Market Perform from Outperform.
- While investors are excited at the possibility of an MLP of FCX's California oil and gas assets, the firm believes proceeds ($5.3B-$6B) may not be enough to support expanded valuation and giving up diversified exposure, which was one of the rationales for the acquisition of the assets.
- FBR sees Southern Copper (SCCO +2.1%) as a better bet now; it thinks most of the production growth/dividend cut risk now has been priced in, valuation has become more attractive, and SCCO should restart work on its troubled Tia Maria project by March.
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