Southern Copper’s $800 Million Expansion in Peru Could Be a Game Changer for SCCO

• Southern Copper announced ongoing copper production stability in Peru and significant investments of US$800 million in new projects, with the Tia Maria mine targeting operational status by 2027 and Michiquillay progressing through exploration and aiming for a 2032 start.
• An interesting aspect is the company’s ability to advance large-scale mining projects despite previous community resistance, potentially expanding future production capacity as copper resource estimates at new mines exceed expectations.
• We’ll explore how the progression of Southern Copper's major Peruvian projects may influence the company’s future production outlook and investment thesis.

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Southern Copper Investment Narrative Recap

To be a shareholder in Southern Copper, you need to believe in the company’s ability to maintain steady copper production and execute large-scale expansions in Peru, even in the face of past community concerns. The recent news of sustained Peruvian output and substantial project investments does not materially alter the nearest-term catalyst: the progress and timing of new capacity additions, while operational setbacks due to community issues remain one of the biggest risks for now.

Among recent announcements, the ongoing advancement of the Tia Maria project is especially relevant, as it illustrates the company’s efforts to move forward on pivotal developments despite historical resistance. This progress links directly to future production and remains central to the investment case, since any delays or disruptions could meaningfully affect expected supply growth and future earnings potential.

Yet, investors should also be aware that, in contrast, potential commercial tensions between global economies could...

Read the full narrative on Southern Copper (it's free!)

Southern Copper's outlook anticipates $13.0 billion in revenue and $4.3 billion in earnings by 2028. Achieving this requires an annual revenue growth rate of 3.1% and an earnings increase of $0.7 billion from current earnings of $3.6 billion.

Uncover how Southern Copper's forecasts yield a $95.25 fair value, a 14% downside to its current price.

Exploring Other Perspectives

Six members of the Simply Wall St Community estimated Southern Copper's fair value, ranging from US$45 to US$124.57 per share. With project expansions in focus, it’s clear your views on growth risks and opportunities might differ, explore how other market participants assess Southern Copper’s outlook.

Explore 6 other fair value estimates on Southern Copper - why the stock might be worth as much as 13% more than the current price!

Build Your Own Southern Copper Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Southern Copper research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Southern Copper research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Southern Copper's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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