Southern Copper Corporation (SCCO): A Bull Case Theory

We came crossed a bullish thesis connected Southern Copper Corporation connected X.com by @TheValueist. In this article, we volition summarize the bulls’ thesis connected SCCO. Southern Copper Corporation's stock was trading astatine $174.37 arsenic of January 13th. SCCO’s trailing and guardant P/E were 37.65  and 34.84 respectively according to Yahoo Finance.

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Southern Copper Corporation (SCCO) represents a uniquely positioned, high-quality copper shaper with vertically integrated operations successful Peru and Mexico, combining large-scale open-pit mining with smelting and refining capabilities. The institution benefits from a multi-decade reserve basal of implicit 112 cardinal pounds of copper, supporting a robust maturation pipeline anchored by projects similar Tia Maria, Los Chancas, Michiquillay, and El Arco.

Its merchandise premix is copper-dominant but strategically leverages byproducts specified arsenic zinc, silver, and molybdenum, which successful Q3 2025 drove nett currency costs down to $0.42/lb, substantially beneath adjacent levels, highlighting SCCO’s low-cost, high-margin profile. Despite a impermanent diminution successful copper production, grounds EBITDA of $1.975 cardinal and nett income of $1.108 cardinal underscore the company’s resilience and terms leverage successful a choky planetary copper market. Strategic decisions, specified arsenic prioritizing zinc and metallic output astatine Buenavista, show operational flexibility to maximize worth per tonne of ore alternatively than conscionable copper tonnage, stabilizing short-term profitability.

While the near-term accumulation trajectory is simply a trough successful 2026–2027, the ramp-up from 2028 onwards, driven by Tia Maria and different large-scale projects, provides a compelling multi-year maturation bridge. SCCO’s beardown currency travel procreation supports an charismatic dividend yield, and management’s long-tenured operating experience, coupled with progressive seat development, provides continuity and execution credibility.

Although number investors look structural governance and related-party risks, the operation of low-cost production, precocious byproduct leverage, and a disposable maturation pipeline positions SCCO for important upside should commodity prices stay elevated and task execution proceed smoothly. With nett indebtedness nether power and superior allocation disciplined, SCCO offers a bullish risk/reward profile, making it an charismatic concern for those seeking premium copper vulnerability with precocious operational resilience.

Previously, we covered a bullish thesis connected Hudbay Minerals Inc. (HBM) by Unemployed Value Degen successful December 2024, which highlighted HBM’s operational efficiency, copper and golden diversification, and disciplined superior allocation. HBM’s banal terms has appreciated by 152.63% since our sum owed to unchangeable commodity prices and indebtedness reduction. TheValueist shares a akin bullish presumption connected Southern Copper Corporation (SCCO) but emphasizes SCCO’s scale, vertical integration, byproduct-driven debased costs, and semipermanent maturation pipeline.