Even though production of metals silver, copper, molybdenum and zinc were all up for the first half for Southern Copper (SCCO), it wasn't able to translate into earnings, as the company reported a drop in earnings from $658 million million or 77 cents a share for the second quarter of 2011 to $564 million or 66 cents a share for the second quarter of 2012.
For the first half, net income jumped to $1.19 billion, or 1.39 a share, a 4.3 percent increase over the $1.32 a share during the first six months of 2011.
The company received approval from the Board of Directors for $1.5 billion in capital expenditures for 2012. That will be used primarily for projects in Peru and Mexico, and some for replacement capital and maintenance.
For the first half and second quarter, copper production rose significantly based on better recoveries and ore grades.
"This increase was the result of higher production at the Cuajone, La Caridad and Buenavista mines, which increased production by 31 percent, 18 percent and 4 percent, respectively due to higher ore grades and recoveries," said Southern Copper.
In the second quarter copper production rose to 160,595 tons, a 10 percent increase. For the first half copper production was up 16 percent, reaching 270,435 tons.
Silver in the first half rose 14 percent, climbing from from 6,110,000 ounces in the first half of 2011 to 6,934,000 ounces.
Silver mine production rose 10 percent in the second quarter from 3,197,000 ounces in the second-quarter 2011 to 3,514,000 ounces. The company said it was "principally as a result of higher production at our Cuajone (+31 percent), Buenavista (+28 percent) and La Caridad (+12 percent) mines," said the company.
Zinc production was up 8 percent in the first half, rising from 41,361 tons in the first six months of last year to 44,910 tons. In the second quarter it rose from 21,366 tons in the second quarter of 2011 to 22,227 tons, a four percent gain.
Molybdenum production was up 6 percent in the first half, jumping from 8,775 tons during the first half of last year to 9,310 tons. In the second quarter Molybdenum rose from 4,502 tons in the second quarter of 2011 to 4,687 tons.
Talking about the performance of Southern Copper Corporation in the first half, German Larrea said, "Looking beyond the current volatile markets, the medium to long-term outlook remains positive for metals, as strong demand growth from China and the emerging economies is poised to continue."
On July 26, the board of Southern Copper authorized a cash dividend of 24 cents a share, payable on August 28, 2012.
Southern Copper closed Monday at $32.09, gaining $0.42, or 1.33 percent.
Showing posts with label Southern Copper. Show all posts
Showing posts with label Southern Copper. Show all posts
Monday, July 30, 2012
Wednesday, June 8, 2011
Price Targets on (SCCO) (NWL) (STZ) (GR) (SUN) Updated
Analysts updated price targets on Southern Copper Corp (NASDAQ: SCCO), Newell Rubbermaid (NYSE: NWL), Constellation Brands, Inc. (NYSE: STZ), Goodrich Co. (NYSE: GR) and Sunoco Incorporated (NYSE: SUN).
Deutsche Bank (NYSE:DB) cut their price target on Newell Rubbermaid (NWL) to $21.00.
Societe Generale cut their price target on Southern Copper Corp (SCCO) to $42.00.
UBS AG (NYSE:UBS) raised their price target on Constellation Brands, Inc. (STZ) from $25.00 to $28.00. They have a “buy” rating on the company.
Morgan Stanley (NYSE:MS) raised their price target on Sunoco Incorporated (SUN) to $53.00. They have an “overweight” rating on the company.
Citigroup (NYSE:C) raised their price target on Goodrich Co. (GR) to $108.00. They have a “buy” rating on the company.
Deutsche Bank (NYSE:DB) cut their price target on Newell Rubbermaid (NWL) to $21.00.
Societe Generale cut their price target on Southern Copper Corp (SCCO) to $42.00.
UBS AG (NYSE:UBS) raised their price target on Constellation Brands, Inc. (STZ) from $25.00 to $28.00. They have a “buy” rating on the company.
Morgan Stanley (NYSE:MS) raised their price target on Sunoco Incorporated (SUN) to $53.00. They have an “overweight” rating on the company.
Citigroup (NYSE:C) raised their price target on Goodrich Co. (GR) to $108.00. They have a “buy” rating on the company.
Friday, June 3, 2011
Southern Copper (SCCO) Upgraded by Barclays in Midst of Election Uncertainty
The slight decrease of the lead of Peruvian presidential candidate Keiko Fujimori over rival Ollanta Humala pressured metal stocks with exposure to Peru Wednesday, but that reversed Thursday as it appears the more business-friendly candidate will hold on to win the presidency of the country, prompting Barclays Capital to upgrade Southern Copper (NASDAQ: SCCO) from an “Underweight” rating to an “Equal Weight” rating.
Polls in the country showed on Thursday that Fujimori has 51 percent support compared with 49 percent for leftist nationalist Humala.
Humala has promised to renegotiate contracts with foreign companies if he is elected.
Southern Copper regained almost all it lost on Wednesday when it appeared Humala may gain the presidency.
A run off between the two candidates will be held on June 5.
Polls in the country showed on Thursday that Fujimori has 51 percent support compared with 49 percent for leftist nationalist Humala.
Humala has promised to renegotiate contracts with foreign companies if he is elected.
Southern Copper regained almost all it lost on Wednesday when it appeared Humala may gain the presidency.
A run off between the two candidates will be held on June 5.
Thursday, September 2, 2010
Bank of America (NYSE:BAC) Says Latin America to Invest Heavily in Mining, Steel
A report from Bank of America (NYSE:BAC) said Latin America companies could invest up to $100 billion over the next five to ten years from its mining, steel and fertilizer markets, in order to keep up with the growing domestic demand.
In a note to clients, Bank of America analysts Felipe Hirai and Thiago Lofiego said returns on investment will drop from the 30 percent over the last several years, to a range of 10 to 25 percent. They based their assertions on increasing costs and the probability that the price of metals will drop over the next three to four years.
The two analysts said, "Higher investments are coming with lower returns in an environment of a weaker global economic growth and with still significant execution risks."
Companies best positioned to invest in according to the report, were Vale (NYSE:VALE), CSN, and Southern Copper (NYSE:SCCO). Vale is the world's largest iron-ore producer, CSN is the third-largest producer of steel in Brazil, and Southern Copper is the largest producer of copper in Peru and Mexico.
In a note to clients, Bank of America analysts Felipe Hirai and Thiago Lofiego said returns on investment will drop from the 30 percent over the last several years, to a range of 10 to 25 percent. They based their assertions on increasing costs and the probability that the price of metals will drop over the next three to four years.
The two analysts said, "Higher investments are coming with lower returns in an environment of a weaker global economic growth and with still significant execution risks."
Companies best positioned to invest in according to the report, were Vale (NYSE:VALE), CSN, and Southern Copper (NYSE:SCCO). Vale is the world's largest iron-ore producer, CSN is the third-largest producer of steel in Brazil, and Southern Copper is the largest producer of copper in Peru and Mexico.
Friday, July 23, 2010
Teck (NYSE:TCK), Freeport (NYSE:FCX), Southern Copper (NYSE:SCCO) Soar on Higher Metals Prices
Teck resources (NYSE:TCK), Southern Copper (NYSE:SCCO) and Freeport-McMoRan Copper & Gold (NYSE:FCX) all performed strong on Thursday, as copper surged to its highest level in 10 weeks, and lead, aluminum, tin, nickel and zinc were all up on the LME.
On the Comex in New York, copper futures for September delivery increased by 7.15 cents to $3.1645 a pound, while on the London Metal Exchange, copper for three months delivery rose $150, to $7,010 a metric ton, or $3.18 a pound.
The U.S. dollar also plunged Thursday, helping metals prices increase.
Teck Resources ended the trading session Thursday at $35.07, gaining $1.56, or 4.66 percent. Volume was at 6,203,424, below the 3-month average.
Freeport finished the day at 68.78, gaining $2.72, or 4.12 percent. Trading volume came in at 18,854,144, a little above the 3-month average.
Southern Copper Corporation closed at $32.05 Thursday, increasing by $0.97, or 3.12 percent. volume was at 4,062,354, higher than the 3-month average of 3,219,460.
On the Comex in New York, copper futures for September delivery increased by 7.15 cents to $3.1645 a pound, while on the London Metal Exchange, copper for three months delivery rose $150, to $7,010 a metric ton, or $3.18 a pound.
The U.S. dollar also plunged Thursday, helping metals prices increase.
Teck Resources ended the trading session Thursday at $35.07, gaining $1.56, or 4.66 percent. Volume was at 6,203,424, below the 3-month average.
Freeport finished the day at 68.78, gaining $2.72, or 4.12 percent. Trading volume came in at 18,854,144, a little above the 3-month average.
Southern Copper Corporation closed at $32.05 Thursday, increasing by $0.97, or 3.12 percent. volume was at 4,062,354, higher than the 3-month average of 3,219,460.
Wednesday, July 7, 2010
Freeport (NYSE:FCX), Teck (NYSE:TCK), Southern Copper (NYSE:SCCO) and China Effect
Companies like Southern Copper (NYSE:SCCO), Freeport-McMoRan Copper & Gold (NYSE:FCX) and Teck Resources (TCK) would probably be punished the most if the economy of China slows down as expected over past growth levels.
This is all based on their exposure to copper and how China will respond to their too-hot urban property markets.
All three companies tend to move in unison with the China stock market, and how China goes they tend to go.
How deeply this will impact these companies remains to be seen, as we'll need to get a better look at how China responds to the property market, and whether they'll tighten more.
If they do, then copper imports will fall further, which are already down 6 percent on the year, and decreased by 9 percent in May from April's numbers.
This is all based on their exposure to copper and how China will respond to their too-hot urban property markets.
All three companies tend to move in unison with the China stock market, and how China goes they tend to go.
How deeply this will impact these companies remains to be seen, as we'll need to get a better look at how China responds to the property market, and whether they'll tighten more.
If they do, then copper imports will fall further, which are already down 6 percent on the year, and decreased by 9 percent in May from April's numbers.
Tuesday, June 22, 2010
Freeport-McMoRan (NYSE:FCX), Southern Copper (NASDAQ:SCCO) and Copper Demand
While everyone got excited yesterday over the decision to all the yuan to float more against the U.S. dollar, it didn't take long for the market to realize it wasn't that significant, even though precious metals like copper moved up quickly, and copper-exposed companies like Freeport-McMoRan (NYSE:FCX) and Southern Copper (NASDAQ:SCCO) plunged, after the brief euphoria left the market.
Calls also drove up the price of Southern Copper yesterday. But it's highly unlikely attempts to move the stock up by 14 percent to make a profit will work, as macro-economics simply aren't going to allow that to happen, as there's nothing out there to justify that happening, even if some temporary event or story causes some short-term optimism.
Several things are working against copper, and some of them very specific to demand. There is the Chinese property market inflation worries, which China is cooling off, and which copper demand will decline. The U.S. new housing starts are plunging as well, with the tax credit eliminated, which immediately resulted in 10 percent less starts.
Finally, there's the sovereign debt crisis in Europe, which is so bad it's impossible to know or predict how long that will last, or the real depths of the crisis.
That will keep copper demand in check for an unknown period of time, and there is little if anything that will change that in the short term, and in the long term it doesn't look much better.
Those excited about the decision of the Chinese with the yuan will need to take into account the parameters imposed upon copper and other precious metals by the ongoing recession, and the global situation is tenuous at best, with demand for raw materials far less than projected not that long ago.
Until the larger economic picture improves, Freeport and Southern Copper are going to struggle to grow. The best thing to look for there is probably buying opportunities through low price-points, with a view to the long term.
Short term there isn't much happening with these and other companies which have large exposure to the copper market.
Neither of the two companies mentioned here have done much of anything in share price since October 2009, and that's unlikely to change.
Calls also drove up the price of Southern Copper yesterday. But it's highly unlikely attempts to move the stock up by 14 percent to make a profit will work, as macro-economics simply aren't going to allow that to happen, as there's nothing out there to justify that happening, even if some temporary event or story causes some short-term optimism.
Several things are working against copper, and some of them very specific to demand. There is the Chinese property market inflation worries, which China is cooling off, and which copper demand will decline. The U.S. new housing starts are plunging as well, with the tax credit eliminated, which immediately resulted in 10 percent less starts.
Finally, there's the sovereign debt crisis in Europe, which is so bad it's impossible to know or predict how long that will last, or the real depths of the crisis.
That will keep copper demand in check for an unknown period of time, and there is little if anything that will change that in the short term, and in the long term it doesn't look much better.
Those excited about the decision of the Chinese with the yuan will need to take into account the parameters imposed upon copper and other precious metals by the ongoing recession, and the global situation is tenuous at best, with demand for raw materials far less than projected not that long ago.
Until the larger economic picture improves, Freeport and Southern Copper are going to struggle to grow. The best thing to look for there is probably buying opportunities through low price-points, with a view to the long term.
Short term there isn't much happening with these and other companies which have large exposure to the copper market.
Neither of the two companies mentioned here have done much of anything in share price since October 2009, and that's unlikely to change.
Tuesday, June 15, 2010
Freeport-McMoRan (NYSE:FCX), Southern Copper (NYSE:SCCO) and Australian Super Tax
Freeport-McMoRan (NYSE:FCX) and Southern Copper (NYSE:SCCO), along with Chile, could be the major beneficiaries of the misguided 40 percent tax proposed to be implemented on Australian miners.
Any project located in Australia with over a 6 percent rate of return is subject to the tax.
Chile has smartly responded with their own proposal, a royalty bill which allows a variable tax rate of between 3.5 percent to 9 percent.
Chile's Mining Minister Laurence Golborne said this last week when talking to reporters about the issue, "The situation in Australia is a tremendous opportunity for Chile, if we can offer the mining sector stability and tranquility. Let them know that our tax schemes are stable over time."
Over 33 percent of global copper production comes out of Chile.
Both Freeport-McMoRan and Southern Copper have strong operations in the area, which could strongly benefit them and their shareholders over the next year or two, or as long as Australia keeps the super tax in place, which supposedly only a temporary measure.
Any project located in Australia with over a 6 percent rate of return is subject to the tax.
Chile has smartly responded with their own proposal, a royalty bill which allows a variable tax rate of between 3.5 percent to 9 percent.
Chile's Mining Minister Laurence Golborne said this last week when talking to reporters about the issue, "The situation in Australia is a tremendous opportunity for Chile, if we can offer the mining sector stability and tranquility. Let them know that our tax schemes are stable over time."
Over 33 percent of global copper production comes out of Chile.
Both Freeport-McMoRan and Southern Copper have strong operations in the area, which could strongly benefit them and their shareholders over the next year or two, or as long as Australia keeps the super tax in place, which supposedly only a temporary measure.
Saturday, May 15, 2010
Freeport-McMoRan (NYSE:FCX), Southern Copper (NYSE:SCCO), Yamana Gold (NYSE:AUY) Could All be Hurt by Derivative Reform
The rush by lawmakers in the U.S. to throw out some new regulations could backfire as usual, as the move to regulate derivative could harm companies like Freeport-McMoRan (NYSE:FCX), Southern Copper (NYSE:SCCO), Yamana Gold (NYSE:AUY), who use them for hedging and financial management.
Talking about derivatives in any way get be confusing and complicated, so we'll just keep it to the obvious basics, and that is hedge their risks in areas like currency fluctuations, energy costs, inceasing interest rates and the cost of output in the future, among other things.
A derivative is an instrument which derives its value from something other than itself, like the interst rates mentions above, or how currencies interact with one another.
What companies do is use these derivatives as management tools to have some control over the costs of these types of financial challenges affecting their business results.
The bad reputations associated with derivatives isn't related to those which are used to hedge the risks of companies, but those used to speculate, in which case they can destroy gigantic companies, as they did with Bear Stearns and others.
What proposed legislation could end up doing is pushing the trading of derivatives to exchanges, which would effectively remove much of the value of the types used to hedge risks for companies, as they wouldn't be able customize their to their specific circumstances, but would be forced to use standard contracts, which would be much less valuable and ultimately, more costly.
Taking that way would take away much of the purpose of derivatives, and the extra cost would be for a far less useful product.
Interestingly for Yamana, some investors don't understand the difference between derivative types, and they punish the company for their derivative exposure as a consequence of that.
For the others like Freeport-McMoRan, Southern Copper and many others, the cost of doing business and the risk associated with it will increase as a result, and that cost is always passed on to the end-user: the customer.
There's a lot more to it than this, but again, the complexities are enormous, and you can go down all sorts of roads attempting to explain it all.
The bottom line is derivative regulations seems to be headed down an avenue where one size will fit all, and if it does, it's going to end up doing a lot more harm than good, especially for those companies using them properly and strategically.
It's something to keep in mind and add to our data when researching companies to accurately measure their operational costs and potential margins.
Talking about derivatives in any way get be confusing and complicated, so we'll just keep it to the obvious basics, and that is hedge their risks in areas like currency fluctuations, energy costs, inceasing interest rates and the cost of output in the future, among other things.
A derivative is an instrument which derives its value from something other than itself, like the interst rates mentions above, or how currencies interact with one another.
What companies do is use these derivatives as management tools to have some control over the costs of these types of financial challenges affecting their business results.
The bad reputations associated with derivatives isn't related to those which are used to hedge the risks of companies, but those used to speculate, in which case they can destroy gigantic companies, as they did with Bear Stearns and others.
What proposed legislation could end up doing is pushing the trading of derivatives to exchanges, which would effectively remove much of the value of the types used to hedge risks for companies, as they wouldn't be able customize their to their specific circumstances, but would be forced to use standard contracts, which would be much less valuable and ultimately, more costly.
Taking that way would take away much of the purpose of derivatives, and the extra cost would be for a far less useful product.
Interestingly for Yamana, some investors don't understand the difference between derivative types, and they punish the company for their derivative exposure as a consequence of that.
For the others like Freeport-McMoRan, Southern Copper and many others, the cost of doing business and the risk associated with it will increase as a result, and that cost is always passed on to the end-user: the customer.
There's a lot more to it than this, but again, the complexities are enormous, and you can go down all sorts of roads attempting to explain it all.
The bottom line is derivative regulations seems to be headed down an avenue where one size will fit all, and if it does, it's going to end up doing a lot more harm than good, especially for those companies using them properly and strategically.
It's something to keep in mind and add to our data when researching companies to accurately measure their operational costs and potential margins.
Friday, May 7, 2010
Freeport McMoRan (NYSE:FCX), Southern Copper (NYSE:SCCO) Down on China Concerns
Metal stocks like Freeport McMoRan (NYSE:FCX) and Southern Copper (NYSE:SCCO) have been hit hard on concerns over the possibility of a slowdown in China, which has cuased the companies to fall by over eight and nine percent respectively in the last few days.
China is battling its own potential housing bubble problems, and have been raising interest rates and cutting back on allowing third homes for borrowers.
That has investors fearing the measures could cut back on the need of raw materials, which of course would hammer the metals companies which are so reliant on China.
Even it this doesn't result in a bubble, companies and investors will have to take into consideration the levels of demand for commodities won't continue on at this pace, even in China.
China is battling its own potential housing bubble problems, and have been raising interest rates and cutting back on allowing third homes for borrowers.
That has investors fearing the measures could cut back on the need of raw materials, which of course would hammer the metals companies which are so reliant on China.
Even it this doesn't result in a bubble, companies and investors will have to take into consideration the levels of demand for commodities won't continue on at this pace, even in China.
Tuesday, May 4, 2010
US Steel (NYSE:X), AK Steel Holding (NYSE:AKS), Southern Copper (NYSE:SCCO) Indicate Slow Economy
US Steel (NYSE:X), AK Steel Holding (NYSE:AKS) and Southern Copper (NYSE:SCCO) have been getting clobbered lately, and that's a telltale sign the economy is grinding to a halt with little demand for metal products.
This coincides with the fact that the construction industry, and other large industries using metals, are projected to be down in demand, with the possible exception of the auto industry, although I wouldn't count on much there, as even if demand does increase, it won't make up for the numerous other industries expected to decrease orders.
What this seems to imply is the effects of the stimulus program are diminishing, and the reality of the markets are taking over, and the results are telling us it didn't take hold, as many expected, and now we probably must face the fallout from demand being determined by the market and not artificial government props.
This coincides with the fact that the construction industry, and other large industries using metals, are projected to be down in demand, with the possible exception of the auto industry, although I wouldn't count on much there, as even if demand does increase, it won't make up for the numerous other industries expected to decrease orders.
What this seems to imply is the effects of the stimulus program are diminishing, and the reality of the markets are taking over, and the results are telling us it didn't take hold, as many expected, and now we probably must face the fallout from demand being determined by the market and not artificial government props.
Friday, April 16, 2010
Southern Copper (NYSE:SCCO) Tia Maria Mine Project
Southern Copper (NYSE:SCCO) has been struggling to win support for its Tia Maria mine project, as Peruvian farmers and ranchers protested the approval of the mine on fears they'll lose land and water to the mining company.
Ranchers and farmers blocked the major highway in Peru in hopes of derailing a scheduled meeting on April 19 where Southern Copper must hold in order to even be approved for an environmental impact study.
Frustration by the government of Peru was expressed for both sides, as they said a number of the protesters had no intent of working with the mining company, but rather "have a clear agenda ... which is simply to say no to mining."
On the other hand, the government was also disappointed in Southern Copper, saying they could have gained more community support for the project, as other mining companies have navigated the waters and successfully launched mining projects in the country.
Ranchers and farmers blocked the major highway in Peru in hopes of derailing a scheduled meeting on April 19 where Southern Copper must hold in order to even be approved for an environmental impact study.
Frustration by the government of Peru was expressed for both sides, as they said a number of the protesters had no intent of working with the mining company, but rather "have a clear agenda ... which is simply to say no to mining."
On the other hand, the government was also disappointed in Southern Copper, saying they could have gained more community support for the project, as other mining companies have navigated the waters and successfully launched mining projects in the country.
Tuesday, March 23, 2010
Freeport-McMoRan (NYSE:FCX) and Southern Copper (NYSE:SCCO) Going to Struggle?
Freeport-McMoRan and Southern Copper
While everything seems to be on fire so for investing in 2010, there is one element to take into consideration that may cause a healthy check, and that is the performance of copper stocks like Freeport-McMoRan (NYSE:FCX) and Southern Copper (NYSE:SCCO), who haven't rebounded to their highs in January 2010.
This is probably a sign that there is still low demand for copper, which of course means contruction remains depressed and other than China, and smaller areas of Asia, there isn't much going on in that sector.
So unless China really goes full steam ahead, which looks like it's going to do the opposite, we're going to see companies with heavy copper exposure like Freeport-McMoRan and Southern Copper struggle throughout the year.
Freeport-McMoRan and Southern Copper
While everything seems to be on fire so for investing in 2010, there is one element to take into consideration that may cause a healthy check, and that is the performance of copper stocks like Freeport-McMoRan (NYSE:FCX) and Southern Copper (NYSE:SCCO), who haven't rebounded to their highs in January 2010.
This is probably a sign that there is still low demand for copper, which of course means contruction remains depressed and other than China, and smaller areas of Asia, there isn't much going on in that sector.
So unless China really goes full steam ahead, which looks like it's going to do the opposite, we're going to see companies with heavy copper exposure like Freeport-McMoRan and Southern Copper struggle throughout the year.
Freeport-McMoRan and Southern Copper
Friday, February 19, 2010
Southern Copper (NYSE:SCCO) Upgraded to Neutral by Bank of America (BAC)
Southern Copper
Bank of America (BAC) upgraded its outlook for Southern Copper (NYSE:SCCO) from Underperform to Neutral, while still maintaining its $38 target price.
In afterhours trading the stock was at $30.80, an increase of 0.51 and 1.68 percent; still down from the day before.
Southern Copper recently changed its ticker from PCU to SCCO.
Southern Copper
Bank of America (BAC) upgraded its outlook for Southern Copper (NYSE:SCCO) from Underperform to Neutral, while still maintaining its $38 target price.
In afterhours trading the stock was at $30.80, an increase of 0.51 and 1.68 percent; still down from the day before.
Southern Copper recently changed its ticker from PCU to SCCO.
Southern Copper
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