CIBC Asset Management Inc Decreases Stake in Southern Copper Co. by 35%
June 14, 2023
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Southern Copper ($NYSE:SCCO) Co. is a mining industry giant that is primarily engaged in the exploration, mining, refining and production of copper, molybdenum, zinc and other related materials. The company operates through its subsidiaries in Peru, Mexico and Chile, and is one of the world’s largest producers of copper. It has a diversified portfolio of high quality assets and owns the rights to some of the world’s most important mineral deposits. This follows a trend among some of the company’s major shareholders where a number of investors have been reducing their exposure to the stock.
Despite this decrease in ownership, CIBC Asset Management Inc still remains one of the company’s largest shareholders, with a significant percentage of shares held. It remains to be seen how this news will affect the share price of Southern Copper Co., as well as how CIBC Asset Management’s decision will shape the company’s future outlook. Given its size, Southern Copper Co. is likely to remain a major player in the mining industry for many years to come, however further developments should be monitored closely by investors.
Analysis
As part of our analysis, we assessed the wellbeing of SOUTHERN COPPER. Based on our Star Chart, SOUTHERN COPPER is classified as a ‘rhino’, which we conclude means that this company has achieved moderate revenue or earnings growth. We believe that this type of company would be of interest to a variety of investors, as it is strong in dividend and profitability and medium in asset and growth. Notably, SOUTHERN COPPER also has a high health score of 10/10 with regard to its cashflows and debt, indicating that it is capable of safely riding out any crisis without the risk of bankruptcy. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Southern Copper. More…
| Total Revenues | Net Income | Net Margin |
| 10.08k | 2.67k | 26.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Southern Copper. More…
| Operations | Investing | Financing |
| 3.17k | -712.3 | -3.01k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Southern Copper. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 17.32k | 9.13k | 10.51 |
Key Ratios Snapshot
Some of the financial key ratios for Southern Copper are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 11.6% | 18.5% | 44.5% |
| FCF Margin | ROE | ROA |
| 21.7% | 34.6% | 16.2% |
Peers
The global copper industry is highly competitive, with a large number of companies vying for market share. Southern Copper Corp is one of the largest copper producers in the world, and competes against China Nonferrous Mining Corp Ltd, Hindustan Copper Ltd, and Jiangxi Copper Co Ltd, among others. The company has a long history dating back to 1902, and has a strong position in the market. Southern Copper Corp is a vertically integrated company, meaning it is involved in all aspects of the copper mining process, from exploration and development to mining, smelting, and refining. The company has a diversified portfolio of assets and operations, and is one of the lowest-cost copper producers in the world. Southern Copper Corp is well-positioned to compete in the global copper industry.
– China Nonferrous Mining Corp Ltd ($SEHK:01258)
The company’s market cap is 11.67B as of 2022, a Return on Equity of 29.54%. The company is engaged in the business of nonferrous metals mining and operates a number of mines in China. It is also engaged in the smelting and refining of nonferrous metals. The company’s products include copper, aluminum, lead, zinc, nickel, tin, and precious metals.
– Hindustan Copper Ltd ($BSE:513599)
Hindustan Copper Ltd is an Indian copper mining company with a market cap of 103.42B as of 2022. The company has a Return on Equity of 13.71%. Hindustan Copper Ltd is engaged in the business of copper mining, smelting, and refining. The company has mines in Jharkhand and Rajasthan, and a plant in Gujarat. The company produces copper cathodes, copper rods, and copper wire. Hindustan Copper Ltd also produces gold and silver.
– Jiangxi Copper Co Ltd ($SHSE:600362)
Jiangxi Copper Co Ltd is a Chinese company that produces and supplies copper. The company has a market cap of 44.09B as of 2022. The company’s Return on Equity is 8.5%. Jiangxi Copper Co Ltd produces copper cathodes, copper rods, and copper wire. The company also produces gold, silver, and other metals. Jiangxi Copper Co Ltd is headquartered in Jiangxi Province, China.
Summary
Southern Copper Corporation is an attractive investment opportunity for investors due to its solid reputation and strong financial performance. The company recently reported a 35.0% decrease in its stake in the fourth quarter, prompting an increase in its stock price. This has opened up opportunities for investors looking for potential gains in the market. The company has also been known to maintain healthy dividend yields for shareholders, signaling ongoing profitability and reducing risk associated with investments.
Furthermore, analysts are confident in the company’s prospects due to its low debt levels and ample cash reserves. Therefore, investors should look favorably upon Southern Copper Corporation as a potential investment option.
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