Topic: How To Invest

Spinoffs & Takeovers Hotline – Friday, July 22, 2022

Article Excerpt

SOUTHERN COPPER CORP., $48.07, symbol SCCO on New York, is the fifth-largest copper producer in the world with operations in both Mexico and Peru, it also produces molybdenum, silver, zinc, lead and gold. The company is owned 88.9% by Mexican conglomerate Grupo Mexico. Between 2024 and 2027, Southern Copper plans to spend $9.2 billion to significantly increase its copper production. Output is targeted to rise from 958,000 metric tonnes in 2021 to a high of 1.77 million in 2029. In 2021, the company’s costs were just $0.67 a pound, making Southern Copper one of the world’s lowest-cost producers. It generates 81% of its revenues from copper, with the rest from molybdenum (10%), zinc (3%), silver (3%), and other metals (3%). In the quarter ended March 31, 2022, Southern Copper’s revenue increased 9.1%, to $2.76 billion from $2.53 billion a year earlier. Revenue was higher due to increased metal prices across all of its products, except silver. In the latest quarter, the company earned $784.7…