If You Invested $1000 in Southern Copper 10 Years Ago, This Is How Much You'd Have Now
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as 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.
Phoenix, AZ-based Southern Copper Corporation engages in mining, exploring, smelting, and refining copper and other minerals. The company conducts exploration activities in Argentina, Chile, Ecuador, Mexico and Peru.
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.
Southern Copper reports results under three reportable segments. Each consist of a groups of mines with similar economic characteristics, type of products, processes and support facilities, regulatory environments as well as employee bargaining contracts.
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.
The geographic breakdown of the company’s sales is as follows – Americas (50% of revenues), Europe (32%) and Asia (18%).
Approximately 80% of the company’s revenue come from the sale of copper, 6% from molybdenum and 10% from silver and zinc.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Southern Copper, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in April 2014 would be worth $3,865.28, or a gain of 286.53%, as of April 19, 2024, according to our calculations. This return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 168.71% and the price of gold went up 75.58% over the same time frame.
Looking ahead, analysts are expecting more upside for SCCO.
Southern Copper expects copper production to be up 2.6% year over year and reach 935,900 tons in 2024. The company expects this growth to be driven by the Pilares project running at full capacity and ramp up of the Buenavista zinc concentrators. Copper prices have been impacted this year due to weak demand in China and the manufacturing sector. However, prices have picked up recently on reports that China is planning to reduce output. The company’s cost-control measures will help offset the impact of inflated labor and operating costs. Backed by industry-leading copper reserves as well as growth investments, it is well-poised to deliver solid results. The long-term outlook for copper remains positive, aided by growth in public infrastructure investment in the United States and initiatives to address climate change.
Over the past four weeks, shares have rallied 11.39%, and there have been 4 higher earnings estimate revisions in the past two months for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.
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Southern Copper Corporation (SCCO) : Free Stock Analysis Report
