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Southern Copper Corporation (SCCO)

  • 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.
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  • 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).
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  • 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.
  • Aug. 9, 2013, 2:59 PM
  • 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 AM
    Southern 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)
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  • Jul. 9, 2013, 3:15 PM
    Southern 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.
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  • Jul. 5, 2013, 5:47 PM
    Southern 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.
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  • Jun. 24, 2013, 3:10 PM
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  • Apr. 30, 2013, 3:18 PM
    The fundamentals remain in place to support copper prices, Southern Copper (SCCO +0.4%) says in its earnings conference call. After its Q1 average price for copper fell ~4.5% Y/Y, SCCO expects a recovery in copper prices on stronger demand, particularly from Asia, in upcoming quarters; it maintains its full-year production guidance of 650K tons of copper.
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  • Apr. 29, 2013, 2:19 PM
    Credit Suisse initiates coverage of Southern Copper (SCCO +0.3%) with an Outperform rating and $43 price target after Q1 profit fell 20% on declining copper and silver prices but matching analysts’ estimates. Q1 copper production slipped 2.2% to ~149K metric tons, but CS expects SCCO to increase copper production substantially over the next four years.
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  • Apr. 5, 2013, 11:29 AM
    FBR Capital launches coverage of copper producers Freeport McMoRan (FCX), Teck Resources (TCK) and Southern Copper (SCCO) with a cautious near-term outlook, believing copper prices will remain under pressure due to choppy demand, inventory overhang and impending supply growth. Longer term, prices will remain supported above marginal cost and provide incentives for needed supply growth.
  • Feb. 20, 2013, 6:06 PM
    Southern Copper (SCCO) will sign a three-year labor agreement this week with its workers, agreeing to pay a 6.5% wage increase in the first year followed by annual 5% raises, according to Peru's smelter union leader. But there's always another strike just around the corner; Peru’s Mining Federation plans a national strike later this month.
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  • Feb. 19, 2013, 12:39 PM
    Copper investors are spooked after China authorities took steps to ease inflationary pressures, tightening liquidity by reversing policy on repos and draining $4.8B from the system. The move has affected shares of Freeport McMoRan (FCX -2.3%) and Southern Copper (SCCO -2.3%); China equities (FXI -2.1%) also are under pressure.
  • Feb. 4, 2013, 12:35 PM
    Union workers at Southern Copper's (SCCO) Peruvian operations reportedly have eased demands for higher wages during negotiations with the company for a new collective agreement. A union official says negotiations will continue for three more days, but a strike vote could be held if a deal isn't reached by the end of this week.
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  • Feb. 1, 2013, 6:17 PM
    Southern Copper (SCCO) says it will delay the projected startup of its $900M Tia Maria mine in Peru by a year to 2016 after taking longer than expected to complete a new environmental impact study. Also, SCCO plans to produce 640K metric tons of copper this year, little changed from 2012, cut third-party concentrate purchases by 29% to 10K tons and invest $1.8B in expansion projects in 2013.
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Company Description
Southern Copper Corp 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