QUOTE AND NEWS
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...
SeekingAlpha  Feb 13  Comment 
By Marsha Robe: Southern Copper (SCCO) reported an 11% decline in annual revenue in 2013, compared to the previous year. The company generates most (78%) of its revenue from copper sales, making it highly susceptible to low copper prices. The...
Benzinga  Feb 7  Comment 
In a report published Friday, Morgan Stanley analyst Carlos De Alba reiterated an Equal-Weight rating on Southern Copper (NYSE: SCCO), but removed the $32.90 price target. In the report, Morgan Stanley noted, “EBITDA of $726M, up 6% Q/Q and...
SeekingAlpha  Dec 26  Comment 
By The Value Investor: Investors in Southern Copper (SCCO) have completely missed out on the strong momentum in equity markets in 2013. For this reason, and the guidance for flat production costs next year, analysts at Citigroup remain upbeat...
Benzinga  Dec 18  Comment 
Analysts at Nomura upgraded Total System Services (NYSE: TSS) from “neutral” to “buy.” The target price for Total System Services has been raised from $29 to $38. Total System Services' shares closed at $31.54 yesterday. Citigroup...




 

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]

Competition

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

Notes

  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
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki