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Southern Copper Corporation (SCCO)

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  • Tue, May 26, 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.
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  • Sat, May 16, 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.
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  • Fri, May 15, 7:59 AM
    • Peru's government says it is investigating whether Southern Copper (NYSE:SCCO) knew about but failed to report an extortion attempt by an opponent of its stalled Tia Maria project.
    • The inquiry comes as the judiciary issued an arrest warrant for a major opponent of the $1.4B proposed mine who allegedly tried to extort money from Southern Copper in exchange for calling off protests against the mine that have turned violent and left three people dead this year.
    • The government says it stopped talks with SCCO over how to start construction on Tia Maria because of the accusations and may take further action.
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  • Fri, May 8, 3:37 PM
    • Peru's government sends an additional ~2,000 police to the Islay province as continuing protests against Southern Copper’s (SCCO +0.8%) Tia Maria mine project spreads to more towns.
    • More than six weeks of protests - some violent - have left ~250 police and civilians injured, with two deaths in the past two weeks.
    • SCCO’s plans to build the $1.4B mine in the mountains above Islay’s Tambo Valley are opposed by locals concerned that water and air pollution will cause crop damage.
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  • Tue, May 5, 6:59 PM
    • Continuing protests against Southern Copper's (NYSE:SCCO) proposed Tia Maria copper mine have left another protester dead - the second death in two weeks - and two more wounded.
    • Peru's interior minister says he had ordered police not to use lethal weapons, and replaced local law enforcement chiefs after the first fatality, caused by a bullet wound.
    • Talks between the government and local officials over the fate of the $1.4B mining project broke down more than two weeks ago and have not resumed.
    • Tia Maria has the potential to add 120K metric tons of copper to SCCO's annual supply, but the project has been stalled since three people died in similar rallies in 2011.
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  • Tue, Apr. 28, 3:45 PM
    • Southern Copper (SCCO +3.1%) says local protests against its $1.4B Tia Maria project in Peru might delay its scheduled rollout in 2017.
    • SCCO had been expecting a construction permit for the proposed copper mine when rallies calling for its cancellation broke out a month ago, and CFO Raul Jacob says it should receive the permit if government talks under way with local opponents ease tensions.
    • Farmers in the southern region of Arequipa are continuing their protests against Tia Maria today after a protester was killed in clashes with police last week.
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  • Fri, Apr. 24, 3:38 PM
    • Southern Copper (SCCO +2.7%) reports Q1 earnings of $0.35/share, beating the analyst consensus estimate of $0.29, on revenues that fell 6% Y/Y to $1.27B, below the $1.32B consensus, as copper prices fell.
    • Q1 EBITDA declined 16.9% Y/Y to $556.1M, and margin fell from 49.4% to 43.6%.
    • SCCO's Q1 copper production rose 8.9% Y/Y to 177.6K tons, and says it expects its copper output to nearly double to 1.15M tons in 2017 from last year.
    • Separately, Peru's energy and mines minister says the government could ask SCCO to make additional changes to its $1.4B Tia Maria project after protests turned deadly this week.
    | 1 Comment
  • Thu, Apr. 23, 9:54 AM
    • Protests in Peru’s Arequipa province yesterday against Southern Copper's (NYSE:SCCO) proposed Tia Maria copper mine left one person dead and many more wounded, and opponents say they will keep protesting until the mine project is canceled.
    • Thousands of people marched and blocked roads as part of a month-long series of protests in the province against the proposed mine; Pres. Humala's government has supported the project, and sent thousands of police officers to keep order.
    • A local newspaper says the government may declare a state of emergency in the areas around the conflict.
    | 1 Comment
  • Fri, Apr. 17, 11:19 AM
    • Peruvian Pres. Humala is throwing his weight behind Southern Copper's (SCCO -0.2%) stalled $1.4B Tia Maria copper project, sending delegations of cabinet ministers to persuade reluctant local residents of the benefits of the mine.
    • Recent protests against Tia Maria echo other fights between anti-mining groups, farmers and mining companies over the last few years over who gets to use precious water supplies in some of Peru's extremely dry areas.
    • Peru’s Energy and Mines Ministry issued a statement this week saying SCCO has guaranteed it will not touch water to be used for farming, and that dust from the mining process will be controlled.
    • SCCO expects mining at Tia Maria will start in the middle of 2017, once a construction license is granted.
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  • Wed, Apr. 15, 6:22 PM
    • Southern Copper's (NYSE:SCCO) says Peru's government has approved its planned $1.2B expansion of its Toquepala mine, putting it on track to double the operation's concentrating capacity.
    • SCCO says the expansion will boost the capacity of the mine's copper concentrator to 120K metric tons/day from the current 60K.
    • SCCO also says it expects the government to issue a construction permit for its stalled $1.4B Tia Maria project in coming months, despite ongoing protests.
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  • Fri, Mar. 27, 4:56 PM
    • Conflicting statements about whether Southern Copper (NYSE:SCCO) is canceling development of its $1.4B Tia Maria copper mine in Peru leave investors confused about the project's future.
    • Not long after a report quoted SCCO's head of institutional relations as saying the project would be canceled due to lack of support from regional authorities and continued local opposition, CEO Oscar Gonzalez said the company would "continue with its efforts to move forward with the Tia Maria project and we hope to have the support of the people and the government."
    • Grupo Mexico (OTCPK:GMBXF), which owns a controlling stake in the Peruvian company, also said its subsidiary was not cancelling the project.
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  • Fri, Mar. 27, 11:19 AM
    • Southern Copper (SCCO -3.9%) has canceled its $1.4B Tia Maria project amid protests in Peru, the company's head of institutional relations in the country reportedly tells a local radio station.
    • Tia Maria has been stalled for the last three years after local residents protested that the mine would hurt water supplies.
    • The project was expected to produce 120K metric tons/year of copper over two decades.
    | 2 Comments
  • Thu, Mar. 26, 11:58 AM
    • Southern Copper (SCCO -0.5%) is initiated with a Hold rating and a $32 price target at Brean Capital, which believes SCCO's significantly richer valuation than peers is justified by a deep bench of opportunities and strong balance sheet from which to pursue them.
    • As SCCO pursues its aggressive expansion program, the firm projects the majority of the company's capex budget - currently $4.3B through 2017 - will be funded by cash from operations, with only a modest temporary increase in leverage in 2015.
    • On the whole, Brean believes SCCO is one of the better positioned names to not only weather the cyclical downturn in commodity pricing, but also to expand and execute growth opportunities ahead of and during a market recovery.
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  • Tue, Mar. 24, 6:58 PM
    • Police in Peru clashed today with opponents of Southern Copper's (NYSE:SCCO) $1.4B proposed Tia Maria mine in protests that threaten to further delay the project.
    • Protesters called for the government to end the project because they say it will pollute agricultural valleys; the local police chief says 600-700 protesters, mostly women, took part in today's march in the second day of protests.
    • SCCO has said it expects to receive a building permit by the end of this month following the government's key approval of its environmental plan last year; the company hopes the project will produce 120K metric tons/year of copper.
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  • Wed, Feb. 4, 12:28 PM
    • Southern Copper (SCCO +2.1%) posted a 14% drop in Q4 net earnings to $348M, mainly due to lower prices for copper, but topped the consensus analyst estimate of $297M.
    • Q4 EBITDA fell 8.7% to $664M
    • Sales were $1.47B in the quarter, down from $1.54B a year earlier; sales for the full year totaled $5.79B, down 2.8% Y/Y, as weaker metal prices offset a 9.7% increase in its copper production.
    • FY 2014 production totaled 676.6K metric tons of copper, vs. 617K tons in 2013, while molybdenum production rose 16% to 23.1K tons from 19.9K tons in the prior year.
    • SCCO says the $1.2B expansion of its Toquepala mine and its $1.4B proposed mine Tia Maria, both in Peru, should add 220K metric tons of copper and 3.1K tons of molybdenum to its production capacity, and expansion to its Buenavista mine in Mexico is seen adding 308K tons of copper and 4.6K tons of molybdenum to annual production capacity.
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  • Tue, Feb. 3, 10:24 AM
    • Copper prices are on track for their biggest gains since September on speculation that China would use stimulus measures to jump-start its economy and boost demand for the metal.
    • Rising oil prices and Chinese stimulus speculation “have changed the focus to the upside and the short-covering has done the rest,” says Saxo Bank's Ole Hansen, adding that “energy is such a big and important part of the commodity sector, and the somewhat improved sentiment there also helps other” raw materials; aluminum and nickel also are rising to multi-week highs.
    • "We’re in this perverse world where bad news is good news,” says BNP Paribas analyst Stephen Briggs, and "a lot of people are thinking China’s going to join the rest of the world and lower interest rates or [offer] some kind of monetary response."
    • Raw materials companies are off to a strong start today: FCX +5.8%, BHP +3.9%, RIO +2.4%, VALE +3.9%, SCCO +3.4%.
    • ETFs: JJC, DBB, JJN, JJU, JJT, CPER, BOM, RJZ, BOS, LD, BDD, JJM, FOIL, NINI, CUPM
    | 11 Comments
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Company Description
Southern Copper Corp is producer of copper, molybdenum, zinc and silver. The Company's segments include Peruvian operations, Mexican open-pit operations, Mexican underground mining operations.
Industry: Copper
Country: United States