Southern Copper is an exceptional quality business — 46% return on equity, 34% net margins, a perfect Piotroski score of 9/9, and 4 consecutive earnings beats — but the stock has rallied past its analyst target by 23%, creating a wait-for-pullback situation despite strong underlying fundamentals.
Thesis pillars
- Strong Growth And Beat Streak↓Deteriorating
- Geographic Commodity Concentration↑Improving
- Price Above Analyst Target No Entry↑Improving
- +1 more pillar — see the Why tab for full reasoning
Pillars as of Jul 3, 2026, based on the 10-K filed Feb 27, 2026
Southern Copper Corporation (SCCO) Stock Analysis
Basic Materials · Copper
Wait for pullback to $183.99. Price sits above the model's entry target of $183.99; the risk/reward becomes favorable on a pullback. Key risks: Concentration risk — Commodity: copper (75.9%); Concentration risk — Geographic: Peru and Mexico.
Southern Copper mines, smelts, and refines copper, molybdenum, zinc, and silver in Peru — operating the Toquepala and Cuajone open-pit mines — and Mexico, where subsidiary Minera Mexico runs La Caridad, Buenavista, and five IMMSA underground mines. Revenue is dominated by copper... Read more
Wait for pullback to $183.99. Price sits above the model's entry target of $183.99; the risk/reward becomes favorable on a pullback. Key risks: Concentration risk — Commodity: copper (75.9%); Concentration risk — Geographic: Peru and Mexico. Chart setup: No clear chart pattern; technical signals are mixed. Fundamentals strong but target reached (-16.4% upside). Wait for pullback. Score 6.4/10, moderate confidence.
Passes 6/9 gates (positive momentum, clean insider activity, news events none recent, earnings proximity 88d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: moderate.
About Southern Copper Corporation
About Southern Copper Corporation
Southern Copper's open-pit mines Toquepala and Cuajone in Peru and La Caridad and Buenavista in Mexico are among the world's largest copper ore deposits, with copper accounting for approximately 75.9% of revenues over the three years through 2025 and the COMEX copper price averaging $4.82 per pound for full-year 2025, reaching a high of $5.80. By-products molybdenum, silver, and zinc contributed roughly 20% of revenues over the same period. The company employed 16,617 people at December 31, 2025, supported by approximately 12,400 contractors.
Southern Copper generates revenue by selling copper cathodes, rod, concentrates, and by-products at commodity prices set principally on the COMEX and LME for copper, zinc, and silver and by reference to Platt's Metals Week for molybdenum. Generally, 80% to 90% of metal production is sold under annual or longer-term contracts to end-user customers rather than on the spot market or to trading companies. Three reportable segments — Peruvian operations (Toquepala and Cuajone mines), Mexican open-pit operations (La Caridad and Buenavista), and IMMSA underground mines — produce copper and by-products with vertical integration spanning ore mining through refined copper rod and associated transport. Fuel, gas, and power costs constituted approximately 26% of total production costs in 2025 — down from 29% in 2023 — creating sensitivity to energy prices, regulatory changes, and supplier curtailments. Grupo Mexico, through Americas Mining Corporation, owned 88.9% of the company's capital stock at December 31, 2025.
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All of Southern Copper's mining, smelting, and refining facilities are located in Peru and Mexico, concentrating operational exposure in two jurisdictions with distinct community-relations and political risks. In February 2022, protesters blocked the railway to the Cuajone mine in the Moquegua region and seized water reservoir facilities; the Peruvian government declared a state of emergency in April 2022 before operations resumed. The company's Tia Maria project in Peru continues to face community demands for infrastructure commitments. In April 2026, Southern Copper disclosed via Form 8-K the unexpected passing of President and CEO Oscar Gonzalez Rocha, with Leonardo Contreras Lerdo de Tejada named as permanent CEO on April 23, 2026.
See also: Basic Materials · Copper
From Southern Copper Corporation's most recent 10-K filing, extracted June 11, 2026.
Recent developments
updated 2026-10-30Recent Developments — Southern Copper Corporation
Latest news
- NEWS Southern Copper Corp Stock (SCCO) Moved Up by 3.87% on Sep 30: What Signal Does It Send? - TradingKey — TradingKey positive
- NEWS Southern Copper Corp Stock (SCCO) Moved Up by 3.87% on Sep 30: What Signal Does It Send? - tradingkey.com — tradingkey.com positive
- NEWS What Has Actually Changed At Southern Copper? - Simply Wall Street — Simply Wall Street neutral
- NEWS Southern Copper Corporation (SCCO) Stock Falls on Q1 2026 Earnings - Quiver Quantitative — Quiver Quantitative negative
- NEWS SCCO Q3 Earnings Call Highlights Project Delays and Cost Outlook - TradingView — TradingView negative
Generated 2026-10-30T10:32:50Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHCommoditycopper76%10-K Item 1A: 'approximately 75.9% of our revenues were generated from the sale of copper'
- HIGHGeographicPeru and Mexico10-K Item 1: 'All of our mining, smelting and refining facilities are located in Peru and Mexico'
Material Events(8-K, last 90d)
- 2026-04-17Item 5.02MEDIUMCEO Oscar Gonzalez Rocha passed away unexpectedly on April 13, 2026. Leonardo Contreras Lerdo de Tejada appointed interim CEO effective April 16, 2026. No changes to his compensation approved in connection with interim appointment.SEC filing →
- 2026-04-29Item 5.02MEDIUMBoard appointed Leonardo Contreras Lerdo de Tejada as permanent CEO on April 23, 2026, following the April 13 passing of Oscar Gonzalez Rocha. Contreras Lerdo de Tejada continues to serve on the Board of Directors.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
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Rating Breakdown
2 ceiling hits
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Wait for pullback to $183.99. Price sits above the model's entry target of $183.99; the risk/reward becomes favorable on a pullback. Key risks: Concentration risk — Commodity: copper (75.9%); Concentration risk — Geographic: Peru and Mexico. Chart setup: No clear chart pattern; technical signals are mixed. Fundamentals strong but target reached (-16.4% upside). Wait for pullback. Analyst target $160.37 reached (−16.4%), stop $175.40 (−9.3%), A.R:R -2.0:1. Score 6.4/10, moderate confidence.
Analyst target $160.37 reached (−16.4% from $191.75); no take-profit level is published. Analyst target $160.37 reached (−16.4%), stop $175.40 (−9.3%), A.R:R -2.0:1. Stop-loss: $175.40.
Concentration risk — Commodity: copper (75.9%); Concentration risk — Geographic: Peru and Mexico; Analyst target reached - limited upside remaining.
Southern Copper Corporation trades at a P/E of 25.5 (forward 25.1). TrendMatrix value score: 5.2/10. Verdict: Buy (Wait for Entry).
19 analysts cover SCCO with a consensus score of 2.4/5. Average price target: $178.
What does Southern Copper Corporation do?Southern Copper mines, smelts, and refines copper, molybdenum, zinc, and silver in Peru — operating the Toquepala and...
Southern Copper mines, smelts, and refines copper, molybdenum, zinc, and silver in Peru — operating the Toquepala and Cuajone open-pit mines — and Mexico, where subsidiary Minera Mexico runs La Caridad, Buenavista, and five IMMSA underground mines. Revenue is dominated by copper prices set on the COMEX and LME, with copper accounting for approximately 75.9% of revenues over the prior three years.