This report is an updated version of the report published on 7 January 2026 at 4:00 AM EST.

Southern Copper Corporation (NYSE: SCCO)

Southern Copper Corporation is a fully integrated copper producer involved in the extraction of copper, molybdenum, silver, and zinc. The company operates mining, smelting, and refining facilities in Peru and Mexico, and carries out exploration activities in these countries as well as in Argentina, Chile, and Ecuador. 

Recommendation Rationale – SELL at USD 160.08 

• Trading Near Resistance Level: SCCO’s share price is approaching its R2 level recommended on 2 December 2025, the 14-day RSI is now around 72.70, trading in overbought territory. Therefore, share price can face resistance at the current levels.
• Rising Cost Base: Total operating costs and expenses increased to USD 1,608.5 million in Q3 FY25 from USD 1,480.6 million in Q3 FY24, pointing to cost inflation which is pressuring margins.

• Higher Leverage Profile: Long-term debt, net of current portion, increased to USD 6,749.4 million as of September 30, 2025, from USD 5,758.5 million as of December 31, 2024, indicating elevated leverage risk.
• Overvalued Multiples: On a forward 12-month – key valuation multiples (EV/EBITDA, Price/Earnings, Price/Book and Price/Cash Flow) are higher than average of the Basic Materials’ sector. 
• Business Risk: Earnings remain sensitive to copper and other metal price swings driven by market, geopolitical and supply-demand shifts, while operations across multiple jurisdictions heighten exposure to environmental regulations, with non-compliance risking penalties, legal action and reputational damage. 

SCCO’s Daily Price Chart

Valuation Methodology: Price/Earnings Approach (FY December'26E) (Illustrative)

Stock might trade at a slight premium to its peers considering revenue growth in Q3 FY25, increased net income, higher silver and zinc production, and improved net income margin in Q3 FY25, etc. For conducting the valuation, peers such as Compass Minerals International Inc (NYSE: CMP), Hecla Mining Co (NYSE: HL), Freeport-McMoRan Inc (NYSE: FCX), and others have been considered.

Given the stock is approaching its R2 level, recent rally in the share price, and risks associated, it is prudent to sell the stock at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the closing market price of USD 160.08, as of 6 January 2026.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical issues prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing. 

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 6 January 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice. 

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.