A bullish thesis on Southern Copper Corporation was posted on X.com by @TheValueist. The company's share price was $174.37 as of January 13. According to Yahoo Finance, SCCO's trailing P/E was 37.65 and its forward P/E was 34.84.
Southern Copper Corporation operates vertically integrated mining, smelting, and refining in Peru and Mexico. It holds reserves exceeding 112 billion pounds of copper. Growth projects include Tia Maria, Los Chancas, Michiquillay, and El Arco.
In the third quarter of 2025, net cash costs fell to $0.42 per pound, driven by byproducts like zinc, silver, and molybdenum. EBITDA reached $1.975 billion, with net income at $1.108 billion. Production at Buenavista prioritized zinc and silver output to maximize value per tonne of ore.
Copper production is expected to trough between 2026 and 2027. A ramp-up is projected from 2028 onward, led by Tia Maria and other large-scale projects. The company maintains strong cash flow generation and an attractive dividend yield. Management has long-tenured operating experience with active bench development.
Minority investors face governance and related-party risks. However, low-cost production, high byproduct leverage, and a visible growth pipeline position SCCO for potential upside if commodity prices remain elevated and projects proceed smoothly. Net debt is under control with disciplined capital allocation.
Previously, a bullish thesis on Hudbay Minerals Inc. by Unemployed Value Degen in December 2024 highlighted HBM's operational efficiency and copper-gold diversification. HBM's stock price increased 152.63% since coverage due to stable commodity prices and debt reduction. TheValueist's view on SCCO emphasizes scale, vertical integration, low costs, and long-term growth.
Southern Copper Corporation is not among the 30 Most Popular Stocks Among Hedge Funds. Thirty-six hedge fund portfolios held SCCO at the end of the third quarter, down from 45 in the previous quarter.