Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 26 Mar, 26 | SCCO | Buy | USD 165.49 | USD 173.8 | USD 182.0 | 13 days | Closed |
14.54%
|
*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.
EBITDA Improvement: FY25 EBITDA increased to USD 7,822 million from FY24 USD 6,406 million, while EBITDA margin improved to 58% from 56%, highlighting improved operating leverage
Lower Net Cash Cost: FY25 cash cost declined to USD 0.58 per pound from FY24 USD 0.89 per pound, a 34% reduction, underscoring the benefit of strong by-product credits and cost competitiveness.
Higher Operating Cost Base: FY25 operating cost increased to USD 6,418 million from FY24 USD 5,879 million, up 9%, indicating that cost inflation and activity growth still pushed the gross cost base higher
Receivables Build-Up: FY25 trade receivables increased to USD 1,951.2 million from FY24 USD 1,189.6 million, implying a larger working-capital absorption during the year
Southern Copper’s key investment risk is its high sensitivity to copper price volatility, as copper represented about 74.8% of FY25 sales and market prices remain largely outside management’s control
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 165.49 | 148.9 | 173.8 | 182.0 |
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.
Revenue Expansion Supported by Stronger Realizations and Product Mix: Southern Copper Corporation delivered a strong financial performance in FY25, with net revenues rising to USD 13,420 million from USD 11,433 million in FY24, while net income increased to USD 4,335 million from USD 3,377 million. The improvement was supported by a stronger copper price environment, higher by-product realizations, and resilient sales execution across its Peruvian and Mexican mining operations.
Margin Improvement Reflected Structural Cost Strength: The company’s earnings profile strengthened meaningfully in FY25, with EBITDA increasing to USD 7,822 million from USD 6,406 million and EBITDA margin improving to 58% from 56%. This reflected the benefit of stronger pricing, low-cost integrated operations, and a sharp decline in net cash cost per pound of copper produced, net of by-products, to USD 0.58 from USD 0.89 in FY24.
Cash Generation and Liquidity Position Strengthened Further: Southern Copper ended FY25 with a significantly stronger liquidity profile. Cash and cash equivalents increased to USD 4,304.6 million from USD 3,258.1 million, while short-term investments rose to USD 604.6 million from USD 245.3 million. Combined cash, equivalents, and short-term investments therefore increased to USD 4,909 million, supported by robust operating cash flow generation despite elevated dividends and higher capital spending.
Operating Cash Flow Remained Robust Despite Working Capital Absorption: Net cash: provided by operating activities increased to USD 4,752.1 million in FY25 from USD 4,421.7 million in FY24. This was driven primarily by higher earnings, although the benefit was partly offset by a large rise in trade receivables and additional operating asset movements. Even with those pressures, the company preserved strong free cash flow generation and funding flexibility.
Capital Investment Program Continued to Support Long-Term Growth: Capital expenditures increased to USD 1,325.3 million in FY25 from USD 1,027.3 million in FY24, reflecting continued investment in expansion and long-dated project development. Management reiterated that the company is pursuing an organic growth plan aimed at raising copper production to 1.6 million tonnes by 2033, underlining the long-term production optionality embedded within its project pipeline.
Operational Platform Remained Strategically Attractive: Operationally, Southern Copper retained a strong industry position, supported by integrated mining, smelting and refining assets across Peru and Mexico. Management highlighted that the company has the largest copper reserves among listed peers, diversified geographical exposure, four large-scale open-pit mines, and a strong pipeline of greenfield opportunities. These factors continue to support its long mine life, production visibility, and strategic relevance to global copper demand growth.
Copper Market Fundamentals and By-Product Mix Supported FY25 Performance: The FY25 backdrop remained favorable, as average LME copper prices rose to USD 4.51 per pound from USD 4.15 in FY24, while copper accounted for roughly 74.8% of sales. Molybdenum, silver, and zinc also remained meaningful contributors, helping reinforce earnings and reduce net cash cost through by-product credits. This mix strengthened both profitability and cash generation during the year.
Based on company's financial updates and expected upside valuation, a "Buy" recommendation is given on Southern Copper Corporation (NYSE: SCCO) at the closing market price of USD 165.49, as of March 25,2026.
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 |
1.25 0.65% | 192.93 | 23.55 | 50.25 | 6.18 | 8.31 | 6.64 | 12.17 |
| FCX Freeport-McMoran Copper & Gold Inc |
-0.38 0.55% | 68.68 | 45.97 | 26.53 | 3.75 | 5.14 | 4.00 | 11.55 |
| CYPMF Cyprium Metals Limited |
- -% | 0.26 | - | - | 6604.46 | 1.55 | -2.1699 | |
| ANFGF Antofagasta PLC |
- -% | 55.80 | 39.93 | 33.33 | 6.16 | 4.90 | 6.08 | 10.04 |
| FQVLF First Quantum Minerals Ltd |
-0.0001 0.0003% | 30.61 | - | 39.68 | 4.28 | 2.14 | 5.53 | 16.22 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
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 as on March 26, 2026. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
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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