Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 3 Sep, 25 | SCCO | Buy | USD 97.25 | USD 102.5 | USD 108.0 | 9 days | Closed |
10.13%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Southern Copper Corporation engages in mining, exploring, smelting, and refining copper and other minerals in Peru, Mexico, Argentina, Ecuador, and Chile. The company is involved in the mining, milling, and flotation of copper ore to produce copper and molybdenum concentrates; smelting of copper concentrates to produce blister and anode copper; refining of anode copper to produce copper cathodes; production of molybdenum concentrate and sulfuric acid; production of refined silver, gold, and other materials; and mining and processing of zinc, copper, molybdenum, silver, gold, and lead. It operates the Toquepala and Cuajone open-pit mines, and a smelter and refinery in Peru; and La Caridad, an open-pit copper mine, as well as a copper ore concentrator, a SX-EW plant, a smelter, refinery, and a rod plant in Mexico. The company also operates Buenavista, an open-pit copper mine, as well as two copper concentrators and two operating SX-EW plants in Mexico. In addition, it operates five underground mines that produce zinc, lead, copper, silver, and gold; a coal mine that produces coal and coke; and a zinc refinery. The company has interests in 493,117 hectares of exploration concessions in Peru and Mexico; 239,077 hectares of exploration concessions in Argentina; 30,568 hectares of exploration concessions in Chile; and 7,299 hectares of exploration concessions in Ecuador. Southern Copper Corporation was incorporated in 1952 and is based in Phoenix, Arizona. Southern Copper Corporation operates as a subsidiary of Americas Mining Corporation.
Improvement in Cost Efficiency: Cash cost per pound of copper decreased by 17%, from USD 0.76 in Q2FY24 to USD 0.63 in Q2FY25, highlighting stronger operational efficiency
Significant Growth in Silver Production: Silver output surged 56% year-over-year, rising from 29,419 thousand ounces in Q2FY24 to 45,899 thousand ounces in Q2FY25
Reduction in Copper Production: Copper output declined by 1%, from 242,474 tons in Q2FY24 to 238,980 tons in Q2FY25, showing slight production weakness
Decline in Net Sales: Net sales fell by 2%, from USD 3,118 million in Q2FY24 to USD 3,051 million in Q2FY25, reflecting weaker pricing dynamics
SCCO’s investment risk lies primarily in its exposure to copper price volatility, compounded by geopolitical trade tensions, which could offset the benefits of its efficiency gains and expansion projects
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 97.25 | 89.0 | 102.5 | 108.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Copper Market Dynamics: During the second quarter of 2025, the global copper market experienced heightened uncertainty due to ongoing trade tensions between the United States and China. The potential imposition of tariffs on U.S. copper imports created further instability. Despite these challenges, a market deficit was anticipated for 2025, with inventories covering only six days of consumption. Demand was supported by a robust Chinese economy and new requirements from decarbonization and artificial intelligence technologies. Copper prices, however, declined by 2% year-over-year, from USD 4.42 in Q2FY24 to USD 4.32 in Q2FY25.
Production Performance: Copper production fell marginally by 1% year-over-year, from 242,474 tons in Q2FY24 to 238,980 tons in Q2FY25. Conversely, silver output rose significantly by 56%, reaching 45,899 thousand ounces compared to 29,419 thousand ounces in the prior year. Molybdenum production improved by 4%, while zinc production recorded a notable 15% increase. These mixed results reflected SCCO’s efforts to optimize operations across its multi-metal portfolio despite marginal setbacks in copper output.
Financial Results: Net sales decreased slightly by 2% year-over-year, falling from USD 3,118 million in Q2FY24 to USD 3,051 million in Q2FY25. Operating costs were reduced by 3%, totaling USD 1,464 million versus USD 1,511 million in the previous year. EBITDA remained largely stable at USD 1,791 million, a minor decline of 0.3% from the prior period. Notably, cash costs per pound of copper declined sharply by 17%, from USD 0.76 to USD 0.63, reflecting efficiency gains. Net income increased modestly by 2% to USD 973 million compared with USD 950 million in Q2FY24.
Capital Investments: SCCO continues to prioritize long-term growth with an extensive project pipeline across Peru and Mexico. Key projects include the Tía María development with a capacity of 120,000 tons of copper and a planned investment of USD 1.8 billion, and Michiquillay with 225,000 tons of copper capacity requiring USD 2.5 billion. Other major initiatives include the Ilo and Empalme smelters, El Arco, Los Chancas, and El Pilar, with total investments spanning over USD 10 billion through 2032. These developments are expected to substantially expand SCCO’s production base in the coming decade.
ESG Commitment: The company reinforced its environmental, social, and governance (ESG) agenda. In the Tía María project, SCCO generated 1,367 jobs, of which 802 were filled locally, representing 11% of the economically active population in the Tambo Valley. The company also partnered with 50 local suppliers, directly benefiting over 300 families. Recognitions such as inclusion in the FTSE4Good indices and awards for biodiversity projects underscored SCCO’s sustainability efforts. Moreover, the company reported a 24% reduction in lost time injury frequency since 2023, 39% of electricity sourced from renewables in 2024, and achieved Copper Mark certification across all open-pit operations.
Dividend Policy: SCCO’s financial strength allowed it to sustain shareholder returns. Dividends per share for Q2FY25 amounted to USD 1.20, consistent with recent quarters, while the company’s annual dividend yield rose to 6.4% in 2025, compared to 4.6% in 2024. This reflects SCCO’s ability to balance capital-intensive investments with attractive shareholder distributions.
Outlook: Looking ahead, SCCO faces both opportunities and risks. Strong demand from industrial and green energy sectors supports a favorable long-term copper outlook, though short-term headwinds include price volatility and geopolitical risks. The company’s robust project pipeline and continued focus on ESG provide a platform for sustainable growth while positioning SCCO to capture emerging market opportunities.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given on Southern Copper Corporation (NYSE: SCCO) at the closing market price of USD 97.25, as on September 02, 2025.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Basic Materials Industry: Copper
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| SCCO Southern Copper Corporation |
0.99 0.71% | 141.26 | 23.55 | 50.25 | 6.18 | 8.31 | 6.64 | 12.17 |
| FCX Freeport-McMoran Copper & Gold Inc |
0.40 0.83% | 47.94 | 28.12 | 19.80 | 2.61 | 3.62 | 2.77 | 7.53 |
| ANFGF Antofagasta PLC |
- -% | 41.00 | 30.01 | 21.88 | 3.61 | 2.47 | 3.54 | 6.52 |
| LUNMF Lundin Mining Corporation |
0.12 0.59% | 20.42 | 18.31 | 10.43 | 1.98 | 1.29 | 2.63 | 8.16 |
| KGHPF KGHM Polska Miedz S.A |
- -% | 64.35 | 68.83 | - | 0.19 | 0.62 | 0.22 | 2.02 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is September 02,2025. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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