How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Southern Copper SCCO ten years ago? It may not have been easy to hold on to SCCO for all that time, but if you did, how much would your investment be worth today?
Southern Copper's Business In-Depth
With that in mind, let's take a look at Southern Copper's main business drivers.
Southern Copper has the largest copper reserves in the industry and operates high-quality, world-class assets in investment grade countries, such as Mexico and Peru.
Peruvian operations (around 36% of the company's revenues) includes the Toquepala and Cuajone mine complexes and the smelting and refining plants, industrial railroad and port facilities that service both mines. The Peruvian operations produce copper, with significant by-product production of molybdenum, silver and other materials.
Mexican Open-Pit (58% of revenues) includes La Caridad and Buenavista mine complexes, the smelting and refining plants and support facilities, which service both mines. The Mexican open pit operations produce copper, with significant by-product production of molybdenum, silver and other materials.
Mexican underground operations (6% of revenues) (IMMSA unit) includes five underground mines that produce zinc, lead, copper, silver and gold, a coal mine which produces coal and coke, and several industrial processing facilities for zinc, copper and silver.
Approximately 80% of the company's revenue come from the sale of copper, 6% from molybdenum and 10% from silver and zinc.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Southern Copper ten years ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in May 2014 would be worth $3,904.41, or a 290.44% gain, as of May 23, 2024. Investors should keep in mind that this return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 180.42% and the price of gold went up 76.55% over the same time frame.
Looking ahead, analysts are expecting more upside for SCCO.
Southern Copper expects copper production to be up 4.1% year over year and reach 948,800 tons in 2024 driven by the Pilares project running at full capacity and the Buenavista zinc concentrator ramp-up. Copper prices have gained recently supported by China's output reduction plans and the pickup in industrial activity. Strong demand amid worries about potential shortages is fueling copper prices. Silver prices have gained on expectations of interest rate cuts and safe haven demand. Higher output and metal prices will aid Southern Copper's top line while cost-control measures will boost margins. With substantial copper reserves and strategic growth investments, the company is positioned for growth. The long-term prospects for copper remain positive, buoyed by U.S. infrastructure investment and global clean energy transition.
Shares have gained 7.91% over the past four weeks and there have been 3 higher earnings estimate revisions for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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