Mon, Jul. 25, 12:33 PM
- Southern Copper (SCCO -0.4%) is slightly lower after reporting Q2 earnings of $0.29/share, $0.02 above the $0.27 analyst consensus estimate, on revenues of $1.34B, in-line with $1.33B consensus.
- SCCO says its Q2 copper mine production rose 26% Y/Y to 225.8K metric tons from 179.1K tons in the year-ago quarter, mostly the result of a 78% increase in production at the Buenavista mine in Mexico, which increased production by more than 49K tons.
- SCCO says the result pushed H1 production to a record of 447.5K metric tons, and now expects 913.5K tons for the full year.
Fri, Jul. 1, 3:59 PM
- Gold prices likely will rise in the near to medium term as the market turns to "safe mode,” but a market surplus is expected to drive copper prices lower over the next year or two, Credit Suisse says, also downgrading Southern Copper (SCCO -1.9%) to Underperform from Neutral with a $20 price target, cut from $28.
- Copper prices likely will slip below $2/lb and reach a trough of $1.80/lb by 2018, and will hurt SCCO’s stock valuation, the firm says, even while reaffirming a positive view of the fundamentals behind the stock's investment case.
- Credit Suisse foresees strong copper production at SCCO, with a 5% compound annual growth rate during 2016-21, with the Buenavista expansion expected to be completed by 2017 and Tia Maria ramped up by 2021.
- ETFs: JJC, CPER, CUPM
Thu, May 12, 5:58 PM
- Index provider MSCI says Southern Copper (NYSE:SCCO) will remain in its Peruvian equity index rather than reclassify the stock as a U.S. company.
- Losing SCCO would have left Peru without enough stocks that meet the liquidity criteria of MSCI’s emerging market category, likely triggering its reclassification as a frontier market and billions of dollars of outflows.
- SCCO was incorporated in Delaware and is headquartered in Phoenix, Ariz., but its revenue comes from mine operations in Peru and Mexico.
Wed, Feb. 17, 3:34 PM
- Southern Copper (SCCO -3.8%) is downgraded to Neutral from Overweight with a $28 price target at J.P. Morgan, citing the 12% run-up since January which the firm believes limits upside potential.
- While JPM says it continues to like SCCO as a defensive copper play, it points to diminishing balance sheet flexibility, a more conservative stance on growth, higher capex guidance and the end of the successful buyback program as limiting share price gains from premium valuation levels.
- SCCO is curtailing the buyback program as the company's focus will be on preserving cash in response to a $5.6B capex program over the next five years, which JPM says could provide opportunities for top line and margin growth in the future but cause short-term share price uncertainty.
Sun, Feb. 14, 4:37 PM
- Southern Copper (NYSE:SCCO): Q4 EPS of $0.08 misses by $0.11.
- Revenue of $1.25B (-15.0% Y/Y) beats by $20M.
Fri, Jan. 15, 10:34 AM
- Shares in global mining companies face their biggest back-to-back weekly losses in four years after signs of slowing growth in China, plunging oil prices and asset writedowns at BHP Billiton spark a selloff.
- Copper prices hit a six-year low for the fifth time in a week in London, -1.9%, amid worries about China’s economy, and are now down nearly 9% YTD; aluminum, lead, nickel and zinc all fell more than 1%.
- Long-dated “copper prices adjusted for producer country FX are mostly unchanged, which underscores the macro nature of the recent declines,” according to Goldman Sachs.
- "No lasting price recovery appears possible at present, neither on the metal markets nor on the commodities markets in general," Commerzbank says.
- BHP -7.7%, RIO -6.4%, OTCPK:AAUKF -5.7%, VALE -5.5%, FCX -5.4%, OTCPK:GLCNF -4.4%, TCK -4.3%, SCCO -1.1%.
- ETFs: JJC, DBB, JJN, JJU, CPER, JJT, BOM, RJZ, BOS, FOIL, JJM, LD, BDD, NINI, CUPM, LEDD
Dec. 21, 2015, 2:58 PM
- Peru's energy and mines minister says the country's copper output should jump 65% in 2016 to ~2.5M metric tons after the massive Las Bambas project starts operations in February.
- Ongoing talks in communities where protests against Las Bambas turned deadly in September have been positive recently and have not held up the $7.4B project; the mine should produce 250K-300K metric tons of copper in 2016.
- But still-strong local opposition to Southern Copper's (SCCO -1.7%) $1.4B Tia Maria project likely prevent the government from issuing a construction permit for the stalled project, the minister says.
- ETFs: JJC, CPER, CUPM
Oct. 27, 2015, 2:59 PM
- Southern Copper (SCCO -1.3%) says its Q3 net profit fell 70% Y/Y to $98.4M, well below the $170M analyst consensus estimate, amid weak copper prices.
- SCCO says lower copper prices were somewhat offset by an 8.8% Y/Y rise in copper production to 536.6K metric tons in the first nine months of 2015, mainly as a result of the production performance of the Buenavista mine which increased production by the additional production of a new state of the art plant.
- SCCO says it expects to increase production capacity to 1.165M metric tons of copper by 2018.
Sep. 22, 2015, 7:05 PM
- Southern Copper (NYSE:SCCO) CEO Oscar Gonzalez says opposition to the Tia Maria copper project in southern Peru is easing because of its door-to-door campaign in communities where activists halted the project with protests earlier this year.
- SCCO put Tia Maria on hold in May after rallies against it turned violent, but the company has since ramped up efforts to dispel fears the project would pollute surrounding agricultural valleys.
- The CEO says he still hopes to get the $1.4B project back on track this year.
Sep. 19, 2015, 8:25 AM
- Metal and mining stocks have been hit hard in recent months, but analysts at FBR Capital argue that there are still attractive names to own in the sector.
- Companies with exposure to the zinc and met coal markets look appealing, FBR says, as supply reductions could act as a positive catalyst for prices; Teck Resources (NYSE:TCK) is the firm's top pick there, with Horsehead Holding (NASDAQ:ZINC) the favorite small-cap idea.
- The firm sees "no structural turnaround for domestic thermal coal," but thinks the rate of decline will begin to slow next year, justifying Outperform ratings on Alliance Resource Partners (NASDAQ:ARLP) and Westmoreland Coal (NASDAQ:WLB); Cloud Peak Energy (NYSE:CLD) and Joy Global (NYSE:JOY) are rated Underperform.
- FBR is fairly upbeat on steel names, initiating SunCoke Energy (NYSE:SXC) and SunCoke Partners (NYSE:SXCP) at Outperform, as SunCoke’s long-lived coke assets are able to generate strong margins “in almost any U.S. steel environment"; Cliffs Natural Resources (NYSE:CLF) is rated Market Perform.
- The copper market will remain in surplus through 2017, FBR says, but it rates Southern Copper (NYSE:SCCO) at Outperform; Freeport McMoRan (NYSE:FCX) is rated Market Perform.
- Among precious metals miners, the firm prefers Pan American Silver (NASDAQ:PAAS) and Royal Gold (NASDAQ:RGLD), the latter "a diversified company with a solid balance sheet and attractive acquisition opportunities."
Aug. 31, 2015, 11:25 AM
- Southern Copper (SCCO -2.2%) is downgraded to Neutral from Overweight with a $31.50 price target, cut from $37, at J.P. Morgan, which cuts its 2016 estimates for nickel by 53% to $8,750/ton and for copper by 30% to $4,400/ton because of persistently weaker commodity demand.
- While SCCO has growth potential, given its several brownfield and greenfield projects, the firm thinks investors could get exposure to the same copper growth story at more reasonable prices through its parent company, Grupo Mexico (OTCPK:GMBXF).
Aug. 11, 2015, 11:35 AM
- Commodity metals are getting hammered by China's devaluation, with aluminum trading down nearly 2%, copper prices lower by 2.5% and nickel plunging more than 3.5%.
- Hardest hit of the mining stocks is Freeport McMoRan (FCX -14.1%), which has completely surrendered yesterday's 10.8% surge; shares now are down 72% over the past year and 57% YTD.
- Iron ore miners are sharply lower: BHP -5.5%, RIO -4.2%, VALE -7.8%, CLF -7.3%.
- Steel companies: X -9.7%, MT -5.1%, AKS -5.7%, NUE -2.9%, STLD -3.5%, CMC -4%.
- Also: AA -6%, CENX -4.9%, TCK -8.2%, SCCO -4.9%.
- ETFs: XLB, JJC, XME, SLX, PEO, VAW, COPX, DBB, UYM, CU, IYM, JJN, SMN, JJU, PICK, MATL, CPER, JJT, BOM, RJZ, FXZ, PYZ, BOS, FOIL, JJM, LD, BDD
Jul. 29, 2015, 10:39 AM
- Southern Copper (SCCO +1.1%) says its H1 net income fell 12.6% to $577.1M from $660.6M in the year-ago period due to the slump in global metal prices, but it says it is well-positioned to weather the downturn.
- SCCO's H1 sales fell 6.5% to $2.658B compared with the same period in 2014, as a higher sales volume was unable to offset lower prices, and production rose 8.6% to 356.7K metric tons; H1 EBITDA declined 13.3% to $1.19B.
- SCCO says its reserve base, low cash cost, conservative capital structure and growth program makes it "the industry's best prepared company to weather this temporary downturn in metal prices."
Jul. 7, 2015, 10:23 AM
- Freeport McMoRan (FCX -7.3%) is the S&P 500's worst performer in early trading as copper prices retreat to five-month lows.
- Other global miners of copper, iron ore and other metals also are posting sharp losses: VALE -6.1%, BHP -3.8%, RIO -3.9%, SCCO -4.4%, TCK -6.4%.
- China’s stock market swoon is magnifying investor fears about weaker demand from one of the world’s largest consumers of raw materials.
- Overnight, the S&P, Goldman Sachs and the Bloomberg commodity indexes fell the most since November, and analysts say the worst is yet to come.
- "China's demand stumble comes at an awkward time, just when more and more supply of raw materials is coming on stream in many sectors. No quick fix in sight," says HSBC co-head of Asian economic research Frederic Neumann.
- ETFs: JJC, CPER, CUPM
May 26, 2015, 12:24 PM
- Peru's government over the weekend instituted a 60-day state of emergency in a region roiled by deadly protests against Southern Copper's (SCCO -1.5%) stalled $1.4B Tia Maria project.
- The state of emergency in nine districts in the southern region of Arequipa suspends civil liberties, allowing police and troops to enforce curfews and order an end to two months of protests that led SCCO to place the project on hold last week.
- The announcement followed the death of a fourth person in clashes between protesters and police as Tia Maria opponents pushed to cancel the proposed 120K metric tons/year copper mine.
May 16, 2015, 11:55 AM
- Souther Copper (NYSE:SCCO) says it is temporarily suspending development of its $1.4B Tia Maria copper project in Peru following almost two months of increasingly violent protests.
- SCCO President Oscar Gonzalez said late yesterday that the miner would "pause" operations for 60 days to resolve the concerns of residents.
- Earlier in the day, Peru's president, Ollanta Humala, said canceling the project would expose the country to lawsuits and make it less attractive to investors.