SAND555
I covered Southern Copper Corporation (NYSE:SCCO) just over a year ago, when I rated the stock a hold - citing concerns with falling commodity prices and potential to miss earnings targets. The stock is up about 60% since then. I
Southern Copper: Global Leader Poised To Exploit Clean Energy Boom
Summary
- Southern Copper Corporation, with the world's largest reserves of the red metal, is well-positioned to exploit the expected boom in critical minerals amid the global green energy race.
- The company has industry leading operating margins of 45%, a solid dividend yielding over 5%, and expects to grow output 80% by 2032.
- The price of copper meanwhile has bounced back on good news out of China, and is out-performing other critical minerals, including battery metals like nickel, lithium, and cobalt.
- I rated the stock a hold a year ago over fears of declining commodity prices. Since then the stock is up 60%, which is great for current investors, but the price might be too high at the moment for folks just coming to the table.
Financial writer/analyst and ex-management consultant focused on long-term value stocks. Mr. Hughes has in-depth experience conducting valuations of companies in a wide-range of industries.
Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.