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| 2 Comments
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.
Dec. 30, 2013, 12:48 PM
- Southern Copper (SCCO +1.6%) is upgraded to Buy from Hold with a $34 price target at BB&T, which believes SCCO is poised to deliver significant production growth starting in 2015.
- The firm thinks the stock's risk/reward profile has improved greatly following higher expectations which have been reset in the past few quarters, tightening global copper supply/demand, and projected higher output upon completion of the Buenavista expansion.
Dec. 20, 2013, 10:53 AM
- Peru expects to approve a key environmental permit for the development of Southern Copper's (SCCO +1.9%) delayed Tia Maria copper mine project within the next 90 days, a top government official says after meeting with local residents.
- Tia Maria was suspended in 2011 after violent protests from opponents worried that it would deplete the water supply for local agriculture, but SCCO has since reworked its environmental study and says the new mine plan addresses local concerns.
Nov. 13, 2013, 10:05 AM
- Copper futures tumble to their lowest level in more than three months on concerns about the pace of Chinese economic growth; December futures fall more than $0.06 (-2%) to $3.17/lb., hitting their lowest level since late July.
- Copper and other base metals are suffering from rumors that the China will lower its 2014 growth target to 7%, says Commerzbank commodities strategist Eugen Weinberg.
- Meanwhile, China's eagerly awaited Third Plenum offered little support for markets, outlining only vague economic goals.
- ETFs: JJC, CPER, CUPM.
- U.S.-traded copper miners: FCX -0.8%, SCCO -1.8%, TCK, GMO, SVBL, TLR.
Oct. 25, 2013, 8:17 AM| Comment!
Oct. 2, 2013, 12:23 PM
- Deutsche Bank issuing ratings for several miners but upgrades only Barrick Gold (ABX +2.4%), to Buy from Hold with a $30 price target (from $20), taking on faith management's follow-through to respond to corporate governance concerns, cut costs, slim its portfolio and clear a path to free cash flow.
- The firm downgrades Silver Standard (SSRI -2.3%) to Sell from Hold and cuts its price target to C$4.50 from C$7.50, citing what it sees as an inability to fund the Pitarrilla development without issuing equity.
- Price targets are raised for Freeport McMoRan (FCX) and Teck Resources (TCK) (I, II), while they're lowered for Vale (VALE), Southern Copper (SCCO) and Coeur Mining (CDE) (I, II, III).
Sep. 25, 2013, 2:52 PM
- Southern Copper (SCCO -0.7%) says a 48-hour strike planned for tomorrow by workers in Peru won't hurt production, as the company could put an emergency plan into place.
- SCCO said recently it plans to invest $7.1B in projects in Peru and Mexico until 2016, with the aim of increasing output of copper to 1.18M tons vs. 640K tons expected to be produced this year.
Sep. 23, 2013, 9:57 AM
- Extrapolating the Fed's more dovish stance to emerging markets, JPMorgan upgrades Turkey (TUR) and Peru (EPU) to overweight, where they'll join Mexico (EWM), Thailand (THD, TTF, TF), The Philippines (EPHE), and Taiwan (EWT).
- "Turkey feels like the tapering trade," says the team. "The suffering this summer turns to euphoria as the Fed returns to dovishness and retreats from tapering."
- Taiwan and Mexico rate an overweight because of their exposure to developed world growth, but what about Korea (EWY, FKO, KORU, KORZ)? Typically, the country belongs in this group, but JPMorgan is cautious on high-end tech and thus on Samsung. Taiwan, on the other hand, should benefit from the growth in low-priced smartphones.
- Moved to underweight are Russia (RSX, ERUS, RBL, RSXJ, RUDR) and Colombia (GXG, COLX, ICOL).
- Top 10 individual stock picks include ICICI Bank (IBN), Southern Copper (SCCO), and Cemex (CX).
Sep. 11, 2013, 10:56 AM
- BofA Merrill Lynch sees huge contrarian value in global mining and steel companies while investors remain underweight in their holdings.
- A stronger global economy is coming, BAML says, noting China has been restocking iron ore, the pace of copper destocking in the country has slowed, and global steel prices have been rising.
- The top buys from the firm: ATI in steel, CNX in coal, ABX and KGC in precious metals, KALU in aluminum, and SCCO in copper, plus diversified miners FCX and VALE.
- ETFs: XME, XLB, EMT, PICK, JUNR, MSXX.
Aug. 9, 2013, 2:59 PM| 2 Comments
Jul. 28, 2013, 2:27 PM
- BHP Billiton (BHP) is betting strong returns from its copper business, even though copper prices are unlikely to rise in the near term, CEO Andrew Mackenzie says in an interview today.
- The China shift to a consumer-led economy from a construction-led economy will reduce demand, but it might not be as bad as had been thought. "I don't like to comment on prices, but we have to prepare for a copper outlook around the current price, or perhaps a bit lower, that is around $3 per pound," he says.
- Copper ETFs: JJC, CPER, CUPM
- U.S.-traded copper miners: SCCO, FCX, TCK, GMO, SVBL, TLR
Jul. 23, 2013, 9:19 AMSouthern Copper (SCCO) says its Q2 net earnings fell 34% and net sales dropped 15% Y/Y due to lower copper prices and production. Chairman German Larrea says SCCO remains committed to its investment program despite "turbulence in the current metals market," and he is concerned about new air quality standards in Peru, which could affect future investment plans. (PR) | Comment!
Jul. 9, 2013, 3:15 PMSouthern Copper (SCCO +0.4%) denies reports it was planning to close its Ilo smelter in Peru. SCCO says it was conveying to its workers that strict enforcement of sulfur dioxide emissions standards would have a negative impact and raise the possibility of closure; it says it seeks to promote air quality standards that foster but do not limit the country's industrial development. | Comment!
Jul. 5, 2013, 5:47 PMSouthern Copper (SCCO) is considering closing its foundry and refinery in southern Peru because it doesn't think it can comply with limits on sulfur dioxide emissions that will take effect next year, an internal document says. It's unclear how such a closure would affect SCCO's annual copper output, estimated at 650K metric tons this year. | 1 Comment
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