Equity, Bottom-up Analyst, Investics Research

Sameer Taneja

Equity, Bottom-up Analyst

Investics Research

It is important to note that the information provided by Investics Research is based on publicly available data and own knowledge, which has been gathered and analyzed from a variety of sources. While every effort has been made to ensure the accuracy and completeness of the information provided, it is not guaranteed to be free from errors or omissions. All forecasts and estimates are based on information that has been obtained from public sources that are considered to be reliable. The sources include but are not limited to, company announcements, exchange filings, presentations, etc. Investics does not guarantee the accuracy and completeness of the forecasts, estimates, and/or other information.

Equity Bottom-up Research

Commodities

<ul>
<li>
<a href="https://www.smartkarma.com/entities/southern-copper-corp" target="_blank" data-smartkarma-citation="entities:16279:1" rel="noopener">Southern Copper (SCCO US)</a> in the equity space is the best way to play bullish copper long-term with its long-term (10-year) ROCE of &gt;22% </li>
<li>With low-cost production assets in Peru and Mexico, the company has managed EBITDA margins of&gt; 39% across the cycle (last 15 years) and averaging 50%.</li>
<li>A 100% payout results in a dividend yield of 3.5%. We believe there is a price for everything, and in the event of a 20% correction, it would be attractive.</li>
</ul>



Southern Copper (SCCO US) in the equity space is the best way to play bullish copper long-term with its long-term (10-year) ROCE of &gt;22% 
With low-cost production assets in Peru and Mexico, the company has managed EBITDA margins of&gt; 39% across the cycle (last 15 years) and averaging 50%.
A 100% payout results in a dividend yield of 3.5%. We believe there is a price for everything, and in the event of a 20% correction, it would be attractive.


<ul>
<li>Top miners like <a href="https://www.smartkarma.com/entities/bhp-group-ltd" target="_blank" data-smartkarma-citation="entities:147:1" rel="noopener">BHP Group Ltd (BHP AU)</a> and <a href="https://www.smartkarma.com/entities/teck-resources-ltd-36dbdad5-1430-4d7a-8578-31bc50086f72" target="_blank" data-smartkarma-citation="entities:33343:1" rel="noopener">Teck Resources (TECK US)</a> are signaling their long-term bullish copper intent through their recent corporate actions. </li>
<li>Copper may experience short periods of oversupply, but its long-term outlook makes it one of the best commodities we cover in terms of return potential. </li>
<li>Our best plays in the copper space are <a href="https://www.smartkarma.com/entities/southern-copper-corp" target="_blank" data-smartkarma-citation="entities:16279:1" rel="noopener">Southern Copper (SCCO US)</a>, <a href="https://www.smartkarma.com/entities/teck-resources-ltd-36dbdad5-1430-4d7a-8578-31bc50086f72" target="_blank" data-smartkarma-citation="entities:33343:1" rel="noopener">Teck Resources (TECK US)</a> and <a href="https://www.smartkarma.com/entities/freeport-mcmoran-inc" target="_blank" data-smartkarma-citation="entities:12491:1" rel="noopener">Freeport Mcmoran (FCX US)</a>
</li>
</ul>


Top miners like BHP Group Ltd (BHP AU) and Teck Resources (TECK US) are signaling their long-term bullish copper intent through their recent corporate actions. 
Copper may experience short periods of oversupply, but its long-term outlook makes it one of the best commodities we cover in terms of return potential. 
Our best plays in the copper space are Southern Copper (SCCO US), Teck Resources (TECK US) and Freeport Mcmoran (FCX US)



Copper Primer: What We Like About Copper And What to Play

Asia L/S Equity PM/Macro/Thematic Idea Generation

Rikki Malik

Equity Bottom-Up

<ul>
<li>Low-Cost producer of copper and zinc with two of the biggest  ten mines in the world.</li>
<li>Recent mine acquisition and increased production at existing mines will grow earnings.</li>
<li>The supply and demand imbalance in copper will lead to higher prices.</li>
</ul>


Low-Cost producer of copper and zinc with two of the biggest  ten mines in the world.
Recent mine acquisition and increased production at existing mines will grow earnings.
The supply and demand imbalance in copper will lead to higher prices.


Mmg Limited 1208.HK - It's Got It All - Copper, EV's, and AI!

<ul>
<li>We follow up on our coverage of <a href="https://www.smartkarma.com/entities/southern-copper-corp" target="_blank" data-smartkarma-citation="entities:16279:1" rel="noopener">Southern Copper (SCCO US)</a> since our first insight, <a href="https://www.smartkarma.com/insights/southern-copper-in-a-league-of-its-own" target="_blank" data-smartkarma-citation="insights:139839" rel="noopener">Southern Copper: In a League of Its Own</a> </li>
<li>The company's revenues/profits have beaten estimates for Q3 2024, up 17%/45% YoY, as opposed to the street estimates of 13%/32% YoY; we expect minor upgrades to earnings. </li>
<li>Trading at 30x PE FY24e, with a 3.5% dividend yield (with 10 Yr- ROCE&gt;22%), we would be excited whenever we see this name at a &lt;100 USD/share level. </li>
</ul>


We follow up on our coverage of Southern Copper (SCCO US) since our first insight, Southern Copper: In a League of Its Own 
The company's revenues/profits have beaten estimates for Q3 2024, up 17%/45% YoY, as opposed to the street estimates of 13%/32% YoY; we expect minor upgrades to earnings. 
Trading at 30x PE FY24e, with a 3.5% dividend yield (with 10 Yr- ROCE&gt;22%), we would be excited whenever we see this name at a &lt;100 USD/share level. 


Southern Copper Q3 2024 Concall: Another Small Beat, Future Production Estimates Inline

<ul>
<li>Copper prices were down slightly, WoW, by 0.3% YoY, as the effect of China's stimulus plan announcements waned, with investors viewing them more skeptically.</li>
<li>With 58% of the metal's demand arising from China, we expect the short-term malaise to be felt unless China makes punchier fiscal stimulus announcements soon. </li>
<li>We believe high-quality equities like <a href="https://www.smartkarma.com/entities/southern-copper-corp" target="_blank" data-smartkarma-citation="entities:16279:1" rel="noopener">Southern Copper (SCCO US)</a> and <a href="https://www.smartkarma.com/entities/ivanhoe-mines-ltd" target="_blank" data-smartkarma-citation="entities:25338:1" rel="noopener">Ivanhoe Mines (IVN CN)</a> will continue to be resilient and prefer exposure to copper in those names.</li>
</ul>


Copper prices were down slightly, WoW, by 0.3% YoY, as the effect of China's stimulus plan announcements waned, with investors viewing them more skeptically.
With 58% of the metal's demand arising from China, we expect the short-term malaise to be felt unless China makes punchier fiscal stimulus announcements soon. 
We believe high-quality equities like Southern Copper (SCCO US) and Ivanhoe Mines (IVN CN) will continue to be resilient and prefer exposure to copper in those names.


Copper Tracker Oct 21st, 2024: The China Malaise Sets In

United States

Southern Copper Corporation conducts mining operations in Peru and Mexico.  The Company owns and operates open pit mines and metallurgical complexes that produce copper, molybdenum, zinc, and precious metals.

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Southern Copper (SCCO US)

Southern Copper: In a League of Its Own

We initiate on Southern Copper (SCCO US), a high-quality copper play with assets in Peru and Mexico. Its long term ROCE >22% makes its a very...

Sameer Taneja

Copper Primer: What We Like About Copper And What to Play

We initiate with a primer on the copper sector. We elaborate on our fundamental rationale for being bullish on the metal and discuss different ways...

Sameer Taneja

Mmg Limited 1208.HK - It's Got It All - Copper, EV's, and AI!

The stock is breaking out of a 3 year range today, with copper prices continuing to move up. We continue to like this stock and also Sumitomo...

Rikki Malik

Southern Copper Q3 2024 Concall: Another Small Beat, Future Production Estimates Inline

We summarize the Q3 2024 results and the conference call for Southern Copper (SCCO US), the low-cost copper producer with a >20% ROCE across the...

Sameer Taneja

Copper Tracker Oct 21st, 2024: The China Malaise Sets In

We highlight our top picks in the copper space and news from the copper world as the investing world starts to get skeptical about China's stimulus...

Sameer Taneja

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