Motley Fool  Jul 7  Comment 
These three stocks hit new yearly highs on Monday. Find out why.
TheStreet.com  Jul 7  Comment 
NEW YORK (TheStreet) -- Shares of Southern Copper Corp. are up 1.50% to $33.20 in pre-market trading on Monday following a ratings upgrade to "outperform" from "market perform" at BMO Capital. The firm said it raised its rating on the...
Benzinga  Jul 7  Comment 
BMO Capital upgraded Southern Copper (NYSE: SCCO) from “market perform” to “outperform.” The target price for Southern Copper has been raised from $30 to $40. Southern Copper shares have surged 21.33% over the past 52 weeks, while the...
Motley Fool  Jun 30  Comment 
As China comes under pressure, input costs rise, and competition heats up, Southern Copper needs to be ready for margin compression.
DailyFinance  Apr 7  Comment 
VAUGHAN, ONTARIO -- (Marketwired) -- 04/07/14 -- PACE Credit Union (PCU) and Alterna Savings, two of Ontario's leading community-cooperative banks have announced they are merging. They will operate 39 branches in diverse communities under both...
SeekingAlpha  Apr 6  Comment 
By Alpha Strategist: Southern Copper Corp. (SCCO) is one of the largest copper producers in the world. The company mainly produces copper, silver, molybdenum, and zinc wherein 78% of the revenue is attributed to copper. The following pie charts...
SeekingAlpha  Mar 28  Comment 
ByIAEResearch: Southern Copper Corporation (SCCO) is an integrated mining company, which produces copper, molybdenum, zinc and silver. The company has three operating segments located mainly in Peru and Mexico. SCCO derives the majority of its...
DailyFinance  Feb 19  Comment 
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 02/19/14 -- MARIFIL MINES LTD. (TSX VENTURE:MFM) ("Marifil" or "the Company") announces that Southern Copper Corp. has begun an exploration drilling program on the Company's Cerro Samenta porphyry...
TheStreet.com  Feb 18  Comment 
By David Russell of OptionMonster   NEW YORK -- Southern Copper has been running hard, and the bulls were looking for more upside on Friday.   OptionMonster's tracking programs detected the purchase of almost 15,000 September 37 calls,...
SeekingAlpha  Feb 17  Comment 
By Balanced Investing: In an environment where commodity prices like copper are falling companies like Southern Copper Corporation (SCCO) are in trouble since it generates most of its revenue from copper. Therefore, investors should be cautious...


Southern Copper Corporation (NYSE:SCCO) is one of the largest integrated producers of copper, molybdenum, zinc and silver.[1] The company operates in three segments: Peruvian operations, Mexican open-pit operations, and Mexican underground mining operations. The majority of Southern Copper's revenues come from copper sales.[2] As a metals producer, the company's earnings depend largely on the demand and price of its products. In addition, Southern Coppers operations are located in Peru and Meixco and exposed to country-specific political risks.[3]

Business Growth

Southern Copper reported net income of $1.5 billion on 2010 revenues of $5.15 billion, versus earnings of $929 million on $3.7 billion in 2009 revenues.[4] Growth can partially be attributed to growing demand from emerging market economies, particularly China. In addition, the company's exploration activities in Mexico, Peru and Chile have provided additional sources of production.[5]

Trends and Forces

Emerging economies provide growth in global demand for copper

China and other emerging markets have supported growth in the demand for and price of copper.[6] In fact, global demand for copper has outpaced global supply, which has also led to higher prices. While many other emerging markets are significant sources of demand, China is by far the largest (the country comprises 40% of global demand). As a result, Southern Coppers revenues depend on the demand for copper in China.[7]

Companies like Southern Copper are spending larges amount of capital to build production facilities capable of meeting China's copper consumption. In addition, copper prices depend heavily on demand from countries like China.[8] A significant drop off in demand from China has the potential of curtailing Southern Copper's long-term growth prospects. [9]

Southern Copper's locations expose the company to political risks

In Mexico and Peru, metal resources are owned by the state, with contracts awarded by the state to firms.[10] As a result, the company is exposed to significant political and currency risks with the the Mexican and Peruvian governments.[11] In addition, the Peruvian government has significant price controls, currency controls, and investment controls, which have the potential of restricting growth and new exploration projects. Labor unrest has the potential of halting production and hindering the company's ability to meet copper demand.[12]


Southern Copper's competes with global metals producers. Its competitors are as follows:[13]


  1. Reuters: SCCO Company Profile
  2. Reuters: SCCO Company Profile
  3. Reuters: SCCO Company Profile
  4. Morningstar.com: Financials for SCCO
  5. Southerperu.com: 2010 10-k
  6. WSJ: Southern Copper Aims to Double Copper Output by 2015
  7. WSJ: Southern Copper Aims to Double Copper Output by 2015
  8. WSJ: Southern Copper Aims to Double Copper Output by 2015
  9. WSJ: Southern Copper Aims to Double Copper Output by 2015
  10. Metalsplace.com: Southern Copper reaffirms its production targets despite labour dispute
  11. Metalsplace.com: Southern Copper reaffirms its production targets despite labour dispute
  12. Metalsplace.com: Southern Copper reaffirms its production targets despite labour dispute
  13. Yahoo! Finance: Competitors for SCCO
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